3.11.12 Exempt Organization Returns

Manual Transmittal

December 06, 2016

Purpose

(1) This transmits revised IRM, 3.11.12, Exempt Organization Returns, in IRM 3.11, SC Returns and Document Analysis.

Material Changes

(1) Various editorial changes made throughout the IRM.

(2) All dates changed to reflect tax year 2016, and processing year 2017.

(3) Plain language updates made throughout IRM.

(4) IRM references corrected.

(5) Incorporated IPU 16U0604 issued 03-25-2016 IRM 3.11.12.4.36 - Removed the requirement to photocopy first page of 990 and Schedule C.

(6) Incorporated IPU 16U0010 issued 01-04-2016 IRM 3.11.12.2.10 - Added language to research for Status 97.

(7) 3.11.12-4 - Due date chart updated.

Effect on Other Documents

Supersedes IRM 3.11.12, dated January 1, 2016 .

Audience


Submission Processing Document Perfection
Wage & Investment (W&I)

Effective Date

(01-01-2017)

Sean E. O'Reilly,
Acting Director, Business System Planning
Government Entities and Shared Services
Tax Exempt and Government Entities

♦IRM Deviation Procedures♦

  1. Program guidance doesn’t always apply to the work in all offices in all areas of the country. Sometimes, you may need to work in a way that doesn't comply with the official procedures in the IRM.

  2. Guidance that deviates from the IRM or that establishes new practices (even if temporary) must be:

    1. Approved by a first-line executive with program responsibility (or documented designee),

    2. Communicated to employees in writing, and

    3. Reviewed annually if the deviation is effective longer than one year.

  3. When you prepare a request:

    1. Summarize the circumstances that require deviation.

    2. Identify the applicable IRM section.

    3. Describe the reason for the deviation (explain what caused the situation to occur and what is being done to correct it).

    4. Specify the time frame the deviation is effective (no longer than one year).

  4. Guidance which deviates from the IRM may require disclosure on IRS.gov to adhere to FOIA laws. For information on the E-FOIA criteria and requirements, see IRM 1.11.1.3.1, Transparency of Instructions to Staff.

Exempt Organization Returns

  1. IRM 3.11.12 provides instructions for processing exempt organization returns in the Ogden Submission Processing Campus Code and Edit function.

Overview of IRM 3.11.12

  1. The Submission Processing Code and Edit (C&E) functions use this IRM. Other IRMs for processing BMF Exempt Organization (EO) returns may cite this IRM. The Ogden Campus is the central processing center for all EO returns (excluding non-Master File returns). Route unprocessed EO returns received in other Campuses or field offices to the Ogden Submission Processing Campus. See IRM 3.10.72, Campus Mail and Work Control - Receiving, Extracting, and Sorting.

Format of IRM 3.11.12
  1. Numbers in parenthesis (e.g., (1), (2)), indicate paragraph numbers.

  2. Indented numerical lists (e.g., 1., 2.), indicate steps you must take in order. Complete the procedure in step one before doing the procedure in step two, and consider all steps.

  3. Indented alphabetical or bullet lists (e.g., a., b.), indicate procedures or informational items where order isn't important, however, you must consider all items.

General

  1. IRM 3.11.12.2 through 3.11.12.2.26 provides general information and instructions for EO returns and return processing.

  2. IRM 3.11.12.3 through 3.11.12.16.6 provides the following instructions for a specific EO return:

    1. General instructions and a definition of the organization required to file.

    2. Special instructions relating to the specific EO return.

    3. Tips and reminders for editing, perfecting and corresponding.

    4. Edit sheet T-lines, or coding T-lines.

    5. Tax return and supporting form T-lines and correspondence.

Exempt Organization Filers Defined

  1. The Internal Revenue Code (IRC) defines the activities of an EO.

  2. The following returns are filed by Exempt Organizations:

    • Form 990, Return of Organization Exempt From Income Tax

    • Form 990-EZ, Short Form Return of Organization Exempt From Income Tax

    • Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Person

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

    • Form 990-T, Exempt Organization Business Income Tax Return

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

    • Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations

    • Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC

    • Form 5227, Split-Interest Trust Information Return

    • Form 6069, Return of Excise Tax on Excessive Contributions of Black Lung Benefit Trust

    • Form 8871, Political Organization Notice of Section 527 Status

    • Form 8872, Political Organization Report of Contributions and Expenditures

  3. The Subsection Code (SSXX) defines the IRC subsection (IRC under which the organization is exempt.

  4. The Foundation Code identifies whether an IRC 501(c)(3) organization is a private foundation required to file Form 990–PF, or a public charity required to file Form 990 or 990-EZ and Schedule A.

  5. EO Filers Defined:Figure 3.11.12-1a and Figure 3.11.12-1b define Exempt Organizations in both Subsection/Foundation Code order and tax return number order.

  6. You can determine the Subsection Code and Foundation Code from either the information on the return or attachment(s), or INOLES research.

    Figure 3.11.12-1a

    EO FILERS DEFINED
    SUBSECTION CODE ORDER
    SSXX FOUNDATION CODE ANNUAL RETURN SUPPLEMENTARY RETURN IRC SECTION
    01 None Required. 990–T, 501(c)(1)
    02 990,
    990–EZ,
    990–T 501 (c) (2)
    03 02 990–PF, 990–T, 4720, 501 (c) (3)
    03 03 990–PF 990–T, 4720 501 (c) (3)
    03 04 990–PF 990–T, 4720 501 (c) (3)
    03 10 990
    990–EZ
    990–T, 4720 501 (c) (3)
    03 11 990
    990–EZ
    990–T, 4720 501 (c) (3)
    03 12 990
    990–EZ
    990–T, 4720 501 (c) (3)
    03 13 990
    990–EZ
    990–T, 4720 501 (c) (3)
    03 14 990
    990–EZ
    990–T, 4720 501 (c) (3)
    03 15 990
    990–EZ
    990–T, 4720 501 (c) (3)
    03 16 990
    990–EZ
    990–T, 4720 501 (c) (3)
    03 17 990
    990–EZ
    990–T, 4720 501 (c) (3)
    03 18 990
    990–EZ
    990–T, 4720 501 (c) (3)
    04 990
    990–EZ
    990–T, 4720 501(c) (4)
    05 THRU 19 990
    990–EZ
    990–T 501(c)(5) THRU (19)
    21 990–BL, 990–T, 6069 501(c) (21)
    22 THRU 27 990
    990–EZ
    990–T 501(c)(22) THRU (27)
    28 990
    990-EZ
    990-T 501(c)(28)
    29 990
    990-EZ
    990-T 501(c)(29)
    40 990
    990–EZ
    990–T 501(d)
    50 990
    990–EZ
    990–T 501(e)
    60 990
    990–EZ
    990–T 501(f)
    70 990
    990–EZ
    990–T 501(k)
    71 990
    990–EZ
    990–T 501(n)
    81 09-18 990
    990-EZ
    990-T 529
    82 990
    990–EZ
    1120 POL, 8871, 8872 527
    90 5227, 1041–A, 4720 4947(a) (2)
    91 00 990
    990–EZ
    990–T, 4720 4947(a) (1)
    92 990–PF 990–T, 4720 4947(a) (1)

    Figure 3.11.12-1b

    EO FILERS DEFINED IN
    RETURN NUMBER ORDER
    RETURN SSXX FOUNDATION CODE IRC SECTION
    990
    990-EZ
    28 501(c)(28)
    990
    990EZ
    29 501(c)(29)
    990
    990–EZ
    02 501(c)(2)
    04 THRU 20 501(c)(4) THRU (20)
    22 THRU 27 501(c)(22) THRU (27)
    990
    990–EZ
    03 09 THRU 18 501(c)(3)
    50 501(e)
    60 501(f)
    70 501(k)
    71 501(n)
    990
    990-EZ
    81 09-18 529
    82 527
    91 00 4947(a)(1)
    990–BL 21 501(c)(21)
    990–PF 03 02 THRU 04 501(c)(3)
    92 4947(a)(1)
    990–T ALL ALL
    1041–A TRUST
    90 4947(a)(2)
    1120-POL 82 527
    4720 03 501(c)(3)
    04 501(c)(4)
    90 4947(a)(2)
    91 4947(a)(1)
    92 4947(a)(1)
    5227 90 4947(a)(2)

♦BMF Consistency♦

  1. The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code & Edit processing IRMs.

  2. Cincinnati, Ogden, and Paper Processing Branch BMF Code & Edit/ERS coordinated an effort to identify and develop topics for BMF Consistency.

  3. We identify BMF Consistency subsections by a "♦" (diamond) before and after the subsection title.

  4. Text in normal print is the common process for BMF returns. The text in bold print is form-specific and applies to this IRM only.

General Perfecting of EO Returns

  1. Use the following general information when editing Exempt Organization returns. If the general instructions and the form specific instructions conflict, follow the form specific instructions.

  2. Perfect for legibility. If perfecting a dollar or "total" line and an amount isn’t present, bring the amount to the line from attachment(s) or from the lines feeding into the "total" line.

    1. "X" the T-line if the taxpayer crossed out the wording and replaced it with wording with a different meaning from the wording on the return.

    2. "X" the line and edit or add the entry on the correct T-line if the taxpayer crossed out the wording and replaced it with wording that is on a T-line.

    3. Recompute a "total" T-line if all of the lines above it are also T-lines, and one or more dollar entries were edited or deleted ("X" ed).

  3. A dollar entry is a positive or negative dollar amount.

    1. Document Perfection no longer requires editing dollars and cents.

    2. Don’t edit brackets or parentheses around amounts clearly indicated to be negative with a bracket or a minus (-) sign. A true negative entry means that, through computation or perfection, the result or entry is actually negative.

      Reminder:

      Bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a missing line entry, etc.).

  4. If any of the transcribed data lines are missing, compute the correct entry from available figures on the return or attachments. If you can’t determine the entry , leave blank.

  5. Move any misplaced entries to the appropriate line. Delete the entry on the incorrect line.

♦Edit Marks♦

  1. Edit marks are edited on the return for transcription to the Automated Data Processing (ADP) System through ISRP. Code and Edit must edit in red pencil/pen. Other areas can edit in brown, red, orange, purple or green pencil/pen.

  2. The only items edited on the return are those for transcription except where specific instructions require editing of a non-transcribed item. Leave lines blank if the entry would be a zero amount unless otherwise instructed.

  3. Never obliterate, alter or erase the original entry on a return when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

  4. For a description of specific edit marks, see the table below:

    Edit Mark Description
    "X" or "/" Use the "X" to delete tax data or to indicate that an item isn't to be transcribed.
    Use a "/" when deleting a form or schedule not being transcribed.
    "//$" Use the"//$" in the entity area to identify the beginning and ending of a foreign country code.

    Example:

    Edit "/EI/$" for "Ireland" and "/GM/$" for "Germany " .

    "%" or "c/o" Indicates an "in-care-of" name for transcription.
    Circle Indicates that an entry isn't to be transcribed. Also used to delete Entity data or a Received Date.

    Note:

    If the taxpayer circles an entry, edit the entry.

    Underline Indicates an entry for transcription (e.g., Name Control, Tax Period, etc.).
    Arrow Indicates the correct placement of a misplaced entry. Use an arrow if the misplaced item is close to the correct line and there is no question where the entry belongs.

    Note:

    Use a double arrow (>-------<) if transcribing the same figure in two different places (along with any required transcription data between the two arrows).

    Check Mark Indicates a manually math verified and/or correct entry.
    Bracket/Parenthesis Indicates a negative numerical amount.

    Note:

    C&E no longer needs to bracket negative amounts when preprinted brackets are on the form or schedule, or when the taxpayer clearly indicates a negative amount with ( ) brackets or - minus sign. Bracket negative amounts when editing negative entries on transcription lines (i.e., computing and entering a line entry, entering a missing entry, etc.).

    Vertical Line or Decimal Point Indicates the separation of dollar and cents.
    0 (zero), - (dash), None, or N/A "ZERO" , "DASH" , "NONE" , or "N/A" are considered valid entries except when specific instructions require editing of an entry.
    Edit Marks Made by Other IRS Functions Don’t re-edit marks entered by other areas, such as Compliance or Accounts Management, except to place the marks in the correct area.
    Rocker Indicates the amount paid when drawn under a remittance amount.

Attachments to an EO Return

  1. See Exhibit 3.11.12-3 for attachment guidance.

Researching an EO Return

  1. Use Form 12837 to request research when so instructed.

  2. Use the following IDRS Command Codes for research:

    1. BMFOLE

    2. BMFOLI

    3. BMFOLO

    4. BMFOLT

    5. ENMOD

    6. INOLES

    7. NAMEE/NAMEB

  3. You can identify MeF returns on IDRS by DLNs with a File Location Code of 92 or 93 (first two digits of the DLN).

  4. You can view and/or print the return in its entirety by accessing the MeF Employee User Portal (EUP).

  5. Procedures to access and use the EUP can be found in IRM 3.42.4.4 .

Routing to Other Functions

  1. Use Form 4227 to route either a numbered or unnumbered return, attachment, photocopy, or other document to another function by doing one of the following:

    Exception:

    Route NMF returns per local procedures.

    If the document is Then
    Unnumbered 1. Pull the document from the batch.
    2. Forward the document to the proper function following local procedures using Form 4227.
    Numbered
    1. Perfect only the entity information.
    2. Attach Form 4227.
    3. Edit the appropriate Action Code for Forms 990/990–EZ, 990–PF, 990-T, 1120-POL, 4720-A, 5227, 5768 and 8872 or CCC "U" for all other Master File returns.
    4. Leave the document in the batch.
  2. Some examples of reasons for routing and/or instructions to note on Form 4227 include :

    • Correspondence reply to a letter sent by Rejects

    • Entity issues

    • Examination prepared unprocessable returns

    • IRC 6020(b) unsigned returns

    • Move $$ for Non-Master File Assessment

    • Multiple ERS Action Codes

    • Numbered returns with the wrong DLN (use Action Code 640 for documents batched as Forms 990/990–EZ, 990–PF, 990-T, 1120-POL, 4720-A, 5227, or 8872. Use CCC "U" for all others).

    • Prompt Determinations

    • Returns sent to Rejects

    • Re-entry returns

    • Returns sent to Imaging

    • Statute returns

    • Termination Code, Form 990-PF

    • IRC 4962 Abatement Requests, Form 4720

Routing of Prompt Determination Request
  1. Returns may be received requesting a prompt determination of any unpaid tax liability of a bankruptcy estate. The trustee or debtor-in-possession must file a written request for the determination with the IRS Area Office Director.

  2. If wording similar to "Prompt Determination" , "Title 11, U.S.C. Section 505(b)" , "Rev. Proc. 81–17" , or "Rapid Examination" is indicated on a return or attachment, or a letter to an Area Office Director requesting a prompt determination or a prompt audit is attached, review the return for an Area Office Received Date Stamp. If present, continue processing. If not present, do all of the following:

    1. Photocopy the return and all attachments.

    2. Route the photocopies to EP Classification, 9350 Flair Dr 4th Floor, EL Monte, CA, 91731. Notate on the Form 4227 "Prompt Determination, U.S.C. Section 505(b)" .

    3. Continue processing the original return.

Routing to Entity
  1. Route the following ENTITY ISSUES to Entity if there is no indication Entity worked the issue (e.g. TC 59X, Entity stamp). Follow the procedures in IRM 3.11.12.2.16.1 prior to routing EIN issues to Entity.

    1. Mismatch, multiple, "applied for" , or no EIN.

    2. Name change.

    3. Name and EIN are not legible or not present.

    4. Address changes for affiliates or credit unions.

    5. "We aren’t required to file."

    6. "We aren’t an exempt organization."

    7. "We terminated our exempt status" or "We are no longer exempt."

    8. We merged our assets with another organization. Don't route to Entity if CCC F was edited.

    9. "We assumed, purchased, acquired, etc. the assets of another organization."

    10. "We’re no longer a group or no longer an affiliate of this group."

    11. "We no longer charter credit unions."

    12. Undeliverable CPs 259A–259H, 431.

    13. Form 8872 has the "change of address" box checked. Notate "Oracle update required" in the remarks area of Form 4227.

    14. A CP4XX is attached to an unnumbered return, and Entity has not cleared the CP . Attach the CP to the front of the return and pull the return from the pack to be routed to Entity.

    15. Form 990-PF has Item G "Initial Return of a Former Public Charity" checked or "Notice 2008–6" or similar wording on the top of the form.

    16. Forms 990 or 990-EZ have "Announcement 2010–19" or similar wording on the top of the form.

    17. Forms 990 or 990-EZ have the form number crossed through and the filer has changed the form number to 990-N.

    18. Form 990-T has "reinsurance entity" or similar wording on the top of the form.

    19. An organization stating they are a U. S. Government instrumentality.

      Note:

      If a determination letter is attached indicating the organization should file a return, enter ERS Action Code 320.

Preparing Form 4227
  1. Include on Form 4227 all of the following information:

    1. Your name or C&E stamp

    2. Where you are routing the document(s)

    3. The reason for routing the document(s) and/or any instructions for the receiving area

  2. Attach a completed Form 4227 under the entity section of the original or photocopied document(s).

♦Action Codes (ERS)♦

  1. We use Action Codes to indicate whether we need correspondence, research, or some other action. The Action Code sets the suspense period assigned to the return and places the return in the workable or unworkable suspense inventory.

  2. When necessary, assign a three-digit Action Code. Action Codes are valid for Forms 990, 990-EZ, 990-PF, 990-T, 1120-POL, 5227, 5768 and 8872. Process any other returns through a manual correction process. Use Computer Condition Code "U" on these returns when needing actions such as correspondence.

  3. Edit the Action Code in the bottom left margin of the return.

  4. Assign Action Codes in the following priority:

    1. Action Code 310 (Statute Control)

    2. Action Code 320 (Entity Control)

    3. Action Code 4XX

    4. Action Code 6XX

    5. Action Code 3XX

    6. Action Code 2XX (Correspondence)

    Exception:

    Use Action Code 211, 215, 225, or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued.

    Exception:

    Use Action 2XX before Action Code 480 to ensure we write to the taxpayer for completeness before suspending the return as early filed.

  5. All returns routed for correspondence should be researched to determine if the account is in Status 97. If the account is in Status 97, correspondence should not be issued. Continue editing the return and send through normal processing without routing to ERS for correspondence. Action codes should not be edited on the return.

  6. Attach Form 4227 when needing more than one Action Code . Edit the second Action Code on Form 4227.

  7. If requiring more than one Action Code of the same priority (e.g., 310 and 341), edit the Action Code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition, see Exhibit 3.11.12-1.

  8. Edit the following Action Codes when you can’t perfect a return from the information present:

    Action Code Description
    211 - Domestic
    215 - International

    Note:

    First Correspondence & for Missing Signature on Form 990, 990-EZ and 990-PF.

    • Return is so illegible, incomplete or contradictory that we can’t accept it for computer processing.

    • The taxpayer notates on the return or attachment that they are reporting tax for more than one Tax Period or for more than one type of tax.

    • Unsigned Form 990, 990–EZ or 990–PF.

    225 (Missing Signature, Domestic - Correspondence)

    Exception:

    Form 990, 990-EZ and 990-PF

    • Unsigned returns (only issue for correspondence).

    226 (Missing Signature, International Correspondence)

    Exception:

    Form 990, 990-EZ and 990-PF

    • Unsigned foreign return (only issue for correspondence).

    310 (Statute)
    • Route return to have Statute cleared.

    320 (Entity)
    • Route return to have Entity issue worked.

    331 (Frivolous Review)
    • Route return to have Exam review.

    341 (Ten Million Dollar/Manual Refund)
    • Route return to have refund verified/issued.

    420 (Imaging)
    • Route return to have return Imaged.

    450 (Any Other Area)
    • Route return to any other area.

    480 (Early Filed - Suspense)
    • The return is an early-filed return.

    610 (Renumbered Non Remittance) or
    611 (Renumbered with Remittance)
    • A return is mis-blocked (e.g., Form 990 is found in a 4720 batch of work).

    640 (Void)
    • To delete the assigned DLN on the return (e.g., Re-entry Returns).

    650 (International)
    • The return is an International return. Forward to OSPC.

  9. Continue perfecting the return after editing the Action Code(s).

  10. For a list of valid Action Codes, see Exhibit 3.11.12-1.

Computer Condition Codes

  1. Computer Condition Codes (CCC) identify special conditions or computations to post to the Masterfile.

  2. Edit CCCs in the center portion of the return below the entity section or per specific form instructions.

  3. Edit one or more CCCs when so instructed.

    Note:

    If another area entered a CCC in the incorrect area of a return circle the CCC and edit the CCC to the appropriate area of the return.

  4. Don't edit CCC "R" or "V" if you are corresponding for one or more Parts which are IRI items (i.e., the return is still late because it isn't complete) with the exception of the following:

    • Zero filer with transcription lines in any parts of Form 990, or Form 990-EZ (2007 and prior revisions). IRM 3.11.12.2.26.1

    • Field Secured/Prepared returns when a Revenue Officer notates penalties should not be assessed. IRM 3.11.12.2.13.7 through IRM 3.11.12.2.13.11 .

    • Form 990, 990-EZ or 990-PF filers who write "filing for retroactive reinstatement" (or similar language) or Notice 2014-11 across the top of the return.

    Figure 3.11.12-2

    COMPUTER CONDITION CODES
    MEANING USE IF FOR FORM(s)
    A No Estimated Tax Penalty Form 2220 (Lines 37 & 38 are zero or blank) or acceptable substitute statement is attached which shows no liability for the Estimated Tax Penalty. 990–PF
    990–T
    1120–POL
    B Termination of Installment Sale Form 6252, Computation of Installment Sale Income, is attached and there is an indication on the return or attachment that the organization is opting out of the installment plan (e.g., "final lump sum payment" written across the top of Form 6252). 990–T
    C Sequestration Form 990–T is filed claiming 45r (Small Business Health Care Credit., An amount is present on line 44f or Form 8941 is attached. 990-T
    D Reasonable Cause for Failure to Pay Taxes Timely
    • The return is an untimely paid return and reasonable cause is established.

    • The return is stamped "DON’T ASSESS FAILURE TO PAY PENALTY " .

    • The return is a "Final" , Balance Due return and the Received Date is after the short period due date but before the regular Tax Period due date≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Don't edit CCC D when pre-computed penalty is shown on the return

    .
    990–PF
    990–T
    1120-POL
    4720
    4720-A
    F Final Return The "Final" or "Termination" box is checked, or a note such as "Final," "Out of Business," "Termination," etc. is on the return or attachments. IRM 3.11.12.3.7 for Form 990 Revision 2008 and subsequent, IRM 3.11.12.6.9 for Form 990-EZ and IRM 3.11.12.4.10 for Form 990 2007 and prior. See IRM 3.11.12.2.17 for all others. 990
    990–EZ
    990–PF
    1120-POL
    8872 990–T
    1041–A
    4720
    4720-A
    5227
    G Amended Return "Amended" box is checked or any other indication the taxpayer has filed previously. 990
    990–EZ
    990–PF
    1120-POL
    8872 990–T
    1041–A
    4720
    4720-A
    5227
    I Future Contracts and Tax Straddles Form 6781 is attached identifying income or loss from futures, contracts, and tax straddles. 990–T
    L Treaty-Based Return Position Disclosure Form 8833 is attached and/or "Section 6114 Election" on face of return. 990
    990–EZ 990–T
    O Module Freeze Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax is attached. 990–PF
    990–T
    1120-POL
    R Reasonable Cause for Failure to File Return Timely
    • The filer has attached reasonable cause for failure to file timely.

    • The filer indicates filing for retroactive reinstatement, similar language or Notice 2014-11 is written across the top of the return. (990, 990-EZ or 990-PF filer only.

    • Zero filer - Form 990, 990-EZ 2007 and prior only.

    • Field Secured return that has been notated "Don't assess failure to file penalty" .

    • FTP not applicable.

    See Figure 3.11.12-3.
    990
    990–EZ
    990–PF
    1120-POL 990–T
    1041–A
    4720
    4720-A
    5227
    T Investor Reporting of Tax Shelter Registration Form 8271, Investor Reporting of Tax Shelter Registration, is attached.

    Note:

    Taxpayers are no longer required to file Form 8271 otherwise due on or after August 3, 2007.

    990
    990–EZ 990–PF
    990–T
    U Unprocessable Document You cannot perfect a numbered or unnumbered document from information present. 1041–A
    4720
    4720-A
    5578
    V Suppress Daily Delinquency Penalty
    • The filer has attached reasonable cause for filing a delinquent return.

    • The filer indicates filing for retroactive reinstatement, similar language or Notice 2014-11 is written across the top of the return. (990, 990-EZ or 990-PF filer only.

    • Zero filer - Form 990, 990-EZ 2007 and prior only.

    • Field Secured return that has been notated "don't assess penalties" .

    See Figure 3.11.12-3.
    990
    990–EZ
    990–PF 1041–A
    5227
    V Therapeutic Discovery Credit Form 3800, Part III, Line 1a, has a significant entry and Form 3468, Line 9* contains an entry.
    *(Not applicable for 2009 and prior year revisions of Form 3468.)
    990-T
    W Return Cleared by Statute Statute has cleared the return and it is a true statute return. IRM 3.11.12.2.13.6 990
    990–EZ
    990–PF
    1120-POL
    990–T
    1041–A
    4720
    4720-A
    5227
    X Module Credit Freeze The filer wants the overpayment to be applied to another account (e.g., information for two tax years on the same return). 990–PF
    990–T
    4720
    4720-A
    1120-POL
    Y Short Period for Change of Accounting Period The return has a short year because of a change in accounting period. Don't edit on an initial or final/termination return. IRM 3.11.12.2.25.2 990
    990–EZ
    1120-POL
    990–PF
    990–T
    3 No Reply to Correspondence The filer fails to respond to correspondence or the correspondence is returned undeliverable. All
    7 Reasonable Cause was Considered and Denied The Reasonable Cause statement was not acceptable, see Figure 3.11.12-3. 990
    990–EZ
    990–PF
    1120-POL
    990–T
    1041–A
    4720
    4720-A
    5227
    8 Waiver of Estimated Tax Penalty Form 2220, Part II, "annualized income" installment method box is checked, or Form 990–T, Line 37 contains an amount. 990–T
    990–PF
    1120-POL
    9 Low Income Housing One or more of the following Form(s) is attached: Form 8611, 8693, 8609/Schedule A, 8586 with a credit on line 3. (Exception: If credit is shown only on Line 4 of Form 8586, DON’T edit CCC "9" ) 990–T

Correspondence

  1. Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.

  2. Don’t correspond or contact the taxpayer on the following type of returns:

    1. Returns prepared by Compliance (Collections or Examination), IRC 6020(b) or for SFR returns.

    2. Form 11249, Taxpayer Advocate Expedite, is attached without contacting the Taxpayer Advocate Office (TAO) for instruction. If Form 11249 is attached, notify your manager. IRM 3.11.12.2.24.1 .

  3. Examine the return so that all of the conditions can be included in the same correspondence.

  4. If corresponding for a signature only:

    1. Forms 990, 990-EZ, 990-PF: Attach a Correspondence Action sheet below the entity area and edit ERS Action Code 211 or 215 and IRI 90.

    2. Forms 990-T, 1120-POL, 5227, 5768 and 8872: Edit ERS Action Code 225 or 226 on the bottom left margin of page one of the return.

    3. Forms 1041-A, 4720, and 5578 Edit Computer Condition Code "U" . Attach correspondence action sheet.

  5. Do both of the following when instructed to correspond with the organization with the exception of (4) above:

    1. Attach a completed Correspondence Action Sheet below the entity area.

    2. Edit ERS Action Code 211, 215, 225, or 226 (see Exhibit 3.11.12–1) for Forms 990/990–EZ, 990–PF, 990-T, 1120-POL, 5227, 5768 and 8872.

    3. Edit Computer Condition Code "U" for Forms 1041-A, 4720 and 5578.

  6. Complete the Correspondence Action Sheet using the following letter(s):

    1. Letter 854C is used for an invalid reasonable cause for late filing or late payment.

    2. Letter 2694C is used for Form 990R to request missing IRI and non-IRI items.

    3. Letter 2695C is used for Form 990–EZR to request missing IRI and non-IRI items.

    4. Letter 2696C is a multiple use form , depending on the return involved. This letter is for Form 1120-POL and Form 8872 to request missing information and for all returns to request an explanation for an early filed return or a missing signature.

    5. Letter 2697C is used for Form 990–PF to request missing IRI and non-IRI items.

    6. Letter 2698C is used for Form 990 to request missing IRI and non-IRI items.

    7. Letter 2699C is used for Form 990–EZ to request missing IRI and non-IRI items.

Correspondence Imaging System (CIS) Returns
  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images. At this time, TE/GE CIS returns are to be processed no differently than any other paper return that is filed.

    Note:

    IRM 3.11.12.2.23 for signature requirements.

Correspondence Reply to a Letter Sent By Rejects
  1. If a reply to a letter that was sent by Rejects is attached to a Form 990 informing the taxpayer to file a Form 990 instead of a Form 990-EZ, and there is an indication the return has been worked by Rejects, process the Form 990 as a new return.

  2. If a reply to a letter that was sent by Rejects is attached to a return:

    1. Perfect the entity information.

    2. Attach the reply to the back of the return.

    3. Edit ERS Action Code 450 for Form 990, 990-EZ, 990-PF, 990-T, 1120-POL, 5227, 5768 and 8872.

    4. Edit Computer Condition Code "U" for Form 1041-A, 4720 and 5578.

    5. Prepare for routing to Rejects per IRM 3.11.12.2.9.3 . Notate on Form 4227, "Reply."

    6. Leave return in pack.

Incomplete Return Item (IRI) Program
  1. The Incomplete Return Item (IRI) program computes penalties when a return is incomplete.

  2. In July 2011 the IRI program was changed to only require one round of correspondence for the following returns:

    1. Form 990, Schedules A, B, C, D, E, H, J, L, O and R.

    2. Form 990–EZ, Schedules A, B, C, E and L.

    3. Form 990–PF, Schedule B.

  3. Edit an IRI code value in the top right margin of page two of the return. If editing an IRI code and page 2 is missing, insert a blank page 2 and edit the IRI code value. Up to five (5) missing IRI item(s) may be entered on each return. Edit an IRI Code Value for every IRI item(s). If more than five, edit the first five that are identified.

    Caution:

    Don't edit CCC "R" or "V" if you are corresponding for one or more parts which are IRI items (i.e., the return is still late because it isn’t complete) with the exception of the following:

    • Zero filer with transcription lines in any parts of Form 990, or Form 990-EZ for 2007 and prior only. IRM 3.11.12.2.26.1 .

    • Field Secured/Prepared returns when a Revenue Officer notates penalties should not be assessed. IRM 3.11.12.2.13.9 through IRM 3.11.12.2.13.11 .

    • Form 990, 990-EZ or 990-PF filers who write "filing for retroactive reinstatement" (or similar language) or Notice 2014-11 across the top of the return.

♦Use of Fax for Taxpayer Submissions♦
  1. Tax return information can be received via fax as part of return perfection even if a taxpayer's signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. Code & Edit tax examiners will indicate the fax paragraph on the approved Correspondence Action Sheet to advise taxpayers of the option to fax their response.

    Caution:

    Before disclosing tax information by telephone, you must be sure you are speaking to the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3.2.3, Required Taxpayer Authentication and IRM 21.1.3.2.4, Additional Taxpayer Authentication. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information, must be reviewed prior to faxing confidential information to the taxpayer.

Special Returns

  1. Follow the instructions in this portion of the IRM 3.11.12 in addition to the regular editing requirements unless otherwise instructed.

♦Frivolous Argument♦
  1. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form, or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 4.10.12, Frivolous Return Program, shown in Exhibit 3.11.12-18.

  2. Frivolous returns are not imaged. Don’t send a frivolous or potential frivolous return back to Imaging if the return isn't stamped "scanned" in the left margin of the return. Continue to process per (3) below.

  3. Review the return to determine whether it appears to be a frivolous return.

    If Then
    The return meets any of the conditions shown in Exhibit 3.11.12-18.

    Caution:

    If the return shows Action Code "331" and has a Form 4227 attached with the remarks "Refer to Exam FRP for audit after processing" , continue to next procedure.



    Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Processing (FRP) for review.

    Note:

    IRM 4.10.12.1.3.3, Campus FRP Coordinators, requires Examination to expedite the return and make a determination whether it qualifies as a frivolous return within two (2) business days. If a determination isn’t made within the allowed time frame, the Examination examiner will edit Action Code "331" in the lower left margin of the return.

    Examination has selected the return as frivolous (e.g. indicated by an Action Code "331" (OSPC), and a Form 4227 with remarks, "Refer to Exam FRP for audit after processing" ), but sends the return for processing Continue processing the return using procedures in IRM 3.11.12. However, don’t circle or void the Action Code indicating a frivolous return.


    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Amended Returns
  1. An Amended return may be identified by the "Amended" box being checked and/or by such words as "SUPPLEMENTAL" , "DUPLICATE" , "ADDITIONAL." Filing a "Copy" of a return isn’t sufficient reason to label a return "Amended" unless accompanied by a positive statement from the taxpayer.

    Caution:

    Process a "copy" return as an original unless a statement is attached indicating it is an amendment.

  2. Examine the return for attachments. Don’t separate any related attachments from the return that the taxpayer has submitted to explain the reason for the amended return, as this information will be used by Accounts Management. Detach any unrelated documents and route them to the appropriate function using Form 4227. Edit Action Trail on the return.

  3. If there is an indication the return is amended and:

    If Then
    TC59X or ICS was entered on the return by Compliance Services Don’t edit CCC "G" . Process as original.
    The return is stamped "Delinquent Original Cleared for Processing" by Statutes Don’t edit CCC "G" . Process as original.
    Form 3893 or 13596 is attached Don’t edit CCC "G" . IRM 3.11.12.2.13.4 and IRM 3.11.12.2.13.5
    None of the above are present Edit CCC "G" or follow local procedures. No other codes may be used with a CCC "G" except "W" , "3" , "U" , and/or ERS Action Codes.
  4. Edit the following data on all amended returns:

    1. Name Control

    2. EIN

    3. Tax Period

    4. CCC "G"

    5. Received Date

    6. Signature

♦Re-Entry Document♦
  1. A return posted to the wrong account or module, or attempting to post must be reprocessed to post to the proper account or module.

  2. Each re-entry return must have a Form 3893, Re-entry Document Control or Form 13596, Reprocessing Returns, attached.

    1. Form 3893 is used to re-input documents that have not posted to an account or module.

    2. Form 13596 is used to reprocess documents to correct the account or module that had previously posted to the wrong account or module.

  3. Always leave the Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document.

  4. Some re-entry returns may have originally been filed and accepted electronically ("E-File" ). Returns may be identified by the presence of Mod E-File printouts in lieu of an actual return. Don't correspond for missing signatures on these documents. Mod E-File printouts may include a web address of https://eup.eps.irs.gov/mef.rrdprd/sdi/proxy printed on the bottom of the return. Also, the signature line may contain ****** (asterisks) along with a date. Don’t correspond for missing signatures on returns printed from the CIS system, or returns with "This is a live return from SNIP" printed across the top of the return.

  5. Examine Form 3893 and/or Form 13596 to determine the action needed to make the return processable.

    Caution:

    If the Received Date is 2 years and 9 months or more after the Return Due Date, refer to Statute procedures before re-entering or reprocessing the return. See Statute Return, IRM 3.11.12.2.13.6 .

♦Form 3893♦
Re-Entry Document Control
  1. Form 3893, Re-entry Document Control, is used to reinput a return that has not posted to an account or module.

  2. If more than one return is in the batch and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control number), edit all returns using current processing instructions and keep all returns clipped together.

  3. Circle CCC "G" if present.

  4. Don’t edit CCC "G" on amended returns.

  5. If the return was not edited according to current processing instructions, circle any Action Codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.

  6. If the return was edited according to current processing instructions, ensure that the information from Form 3893 is edited to the return.

    Form 3893 ACTION TAKEN
    Box 14 (Remarks) Ensure that the information is edited to the return.
    Box 15 (Process as) 1. Circle out any green rocker and edit marks that may indicate a receipt of remittance.
    2. Don’t change any tax due amounts.
  7. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    If Then
    Improper perfection Edit the same correction in red to the appropriate area.
    Taxpayer error Leave the entries as shown on the document.
  8. A Received Date must be present on all Re-Entry returns.

    If Then
    Received Date isn’t present Edit a Received Date to the middle of the return. IRM 3.11.12.2.14.1 .
    Multiple Received Dates are present Circle out all but the earliest date.
  9. When additional information is still needed to make the return processable, prepare Form 4227 for the appropriate action (e.g. correspondence, research, etc.).

    Exception:

    If there is an indication that correspondence has already been issued for the return, edit ERS Action Code 450 for Form 990, 990-EZ, 990-PF, 990-T, 1120-POL, 4720-A, 5227, 5768 and 8872, or CCC "U" for all other returns. Leave in pack.

  10. When perfection isn't possible, edit Action Code "640" on the return and attach Form 4227 noting "Perfection not possible" and leave in batch.

♦Form 13596♦
Reprocessing Returns
  1. Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module.

  2. Circle CCC "G" if present.

  3. Don’t edit CCC "G" on amended returns.

  4. If the return was not edited according to current processing instruction, circle any Action Codes, CCCs and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.

    Exception:

    If there is an indication that correspondence has already been issued for the return, edit ERS Action Code 450 for Form 990, 990-EZ, 990-PF, 990-T, 1120-POL, 4720-A, 5227, 5768 and 8872, or CCC "U" for all other returns. Leave in pack.

  5. If the return was not edited according to current processing instructions, ensure that the information from Form 13596 is edited on the return.

    Form 13596 ACTION TAKEN
    Taxpayer Identification Number (TIN) correction Edit the correct TIN on tax return.
    Tax period correction Edit the correct Tax Period ended on the tax return.
    Reasonable cause Edit the appropriate CCC:
    1. Edit CCC "R" if the "FTF" box is checked.

    2. Edit CCC "D" if the "FTP" box is checked.

    3. Edit CCC "V" if the "DDP" box is checked for Forms 990, 990-EZ, 990-PF, 1041-A, and 5227.

  6. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    If Then
    Improper perfection Edit the same correction in red to the appropriate area.
    Taxpayer error Leave the entries as shown on the document.
  7. A Received Date must be present on all reprocessed returns.

    If Then
    Received Date isn’t present Edit a Received Date to the middle of the return. IRM 3.11.12.2.14.1
    Multiple Received Dates are present Circle out all but the earliest date.
  8. Circle any green rocker and edit marks or "received with remit" portion of the received date stamp that may indicate a receipt of remittance.

♦Statute Return♦
  1. Any return with a Received Date that is 2 years and 9 months or more after the Return Due Date is a potential Statute Control return.

  2. Statute returns (per (1) above) must be routed to the Statute Control Unit daily or more often if needed.

    Exception:

    Don’t route to the Statute Control Unit for clearance, edit CCC "W" and continue processing if the following conditions are present:

    1. Compliance IRC (6020(b)) returns.

    2. A return with "TC59X" or "ICS" is notated on the face of the return.

    3. Returns that are substitute returns prepared by Examination (SFR notated in top margin).

    4. Returns with a stamp indicating a previous clearance by the Statute Control unit within the last ninety days.

    5. CCC "W" isn't valid for Form 8872. Don’t edit CCC "W" on this form.

    6. Return is for a "zero" filer with no transcribed lines on the following IRM 3.11.12.2.26 :

      Form 990 (2007 and prior revisions) Parts I-XI
      Form 990-EZ (2007 and prior revisions) Parts I-V
  3. Statute returns are unprocessable until they are cleared by Statute Control.

    If Then
    The return is numbered 1. Edit Action Code 310 for Forms 990/990–EZ, 990–PF, 990-T, 1120-POL, 5227, and 5768 or CCC "U" for all other forms on the return.
    2. Attach Form 4227 and check the box for "Statute Control."
    3. Continue editing and leave in batch.
    The return is unnumbered 1. Don’t continue processing.
    2. Pull the return from the batch.
    3. Attach Form 4227 and route to Statute Control Unit.
  4. Edit CCC “W” if the return has been cleared by Statute Control Unit. Statutes will stamp or indicate clearance on the front of the return.

  5. Statute may stamp a return as “No Statute Issue”, “Statute N/A”, or similar statement indicating there is no statute issue. Follow the chart below to determine if a CCC “W” is needed:

    If.. And.. Then..
    The return received date is 2 years and 9 months or more after the Return Due Date, The return is stamped, “No Statute issue”, “Statute N/A”, or similar statement indicating there isn’t statute issue, Edit a CCC W
    The return received date is less than 2 years and 9 months from the Return Due Date, The return is stamped, “No Statute issue”, “Statute N/A”, or similar statement indicating there isn’t statute issue, Don’t edit a CCC W.
♦Secured/Prepared Returns - Compliance♦
  1. Compliance functions (Collections and Examination) secure returns from the taxpayer and also prepare returns if the taxpayer doesn’t provide them.

    Note:

    Form 3198, Form 3198–A or Form 13133 may be attached.

    1. Prepared tax returns are notated with "6020(b)" or SFR (Substitute for Return) if prepared by Compliance.

    2. Secured tax returns are notated "TC59X" or "ICS" (Integrated Collections System) or notated "Process as Original" or "Delinquent Return Secured by TE/GE or Secured by EOCU" with an attached Form 3198, Form 3198-A, or Form 13133, Expedite Processing Request. The "Delinquent Return" box on Form 3198, Form 3198-A or Form 13133 may be checked.

♦IRC 6020(b) Prepared by Compliance♦
  1. When the taxpayer fails to file a required return, IRC 6020(b) is the authority for IRS to prepare the return.

  2. These returns are identified by the notation "PREPARED AND SIGNED UNDER THE AUTHORITY OF 6020(b) OF THE INTERNAL REVENUE CODE" .

    1. Returns must have a Received Date. If no Received Date is present per the Compliance Function, follow the normal procedures for editing the Received Date.

    2. Returns must be signed by a Compliance Function representative. If not signed, route to Compliance using Form 4227.

    3. Edit CCC "D" , "R" , "V" and/or "8" if the Revenue Officer notates penalties should not be assessed per IRM 3.11.12.2.11 and IRM 3.11.12.2.14.1.1 .

      Note:

      CCC "V" is only valid for Form 990–T if Therapeutic Discovery Credit is claimed. IRM 3.11.12.2.11.

    4. Don’t correspond with the taxpayer for unprocessable conditions. If an unprocessable condition exists, route the return back to the Area Office using Form 4227.

    5. Edit CCC "W" if the Received Date is more than 2 years and 9 months after the return due date. Don’t send the return to Statute Control. IRM 3.11.12.2.13.6 .

    6. Don’t forward the return to be imaged.

♦Compliance Secured Returns♦
  1. These returns are identified by the notations "TC59X" or "ICS" .

    1. Don’t edit CCC "G" .

    2. Correspond for conditions that cannot be processed (e.g., missing signature, missing schedules, etc.).

    3. On the attached Form 3198, Form 3198-A, or Form 13133, review the "Freeze from Refunding" (Form 3198 and Form 3198-A), "Hold Credit on Module-Generate TC570" (Form 13133) box to determine if the return should be edited with CCC "X" .

    4. Edit CCC "W" if the Received Date is more than 2 years 9 months after the Return Due Date. Don’t send the return to Statute Control. IRM 3.11.12.2.13.6 .

    5. Edit CCC "D" , "R" , "V" and/or "8" if a Revenue Officer notates penalties should not be assessed per IRM 3.11.12.2.11 and IRM 3.11.12.2.14.1.1 .

      Note:

      CCC "V" is only valid for Form 990-T if Therapeutic Discovery Credit is claimed. IRM 3.11.12.2.11 .

♦Examination Prepared♦
  1. These returns are identified by the notation "SFR" or "SUBSTITUTE RETURN" on Page 1.

    1. Return must have a Received Date. If no Received Date is present, follow the normal procedures for editing the Received Date.

    2. Don’t correspond with the taxpayer for unprocessable conditions. If an unprocessable condition exists, route back to Examination using Form 4227.

    3. If Form 3198, Form 3198-A, or Form 13133 is attached, edit the CCCs that are indicated on the form.

    4. Edit CCC "W" if the Received Date is more than 2 years 9 months after the Return Due Date. Don’t send the return to Statute Control. IRM 3.11.12.2.13.6 .

    5. Edit CCC "D" , "R" , "V" and/or "8" if a Revenue Officer notates penalties should not be assessed per IRM 3.11.12.2.11 and IRM 3.11.12.2.14.1.1 .

      Note:

      CCC "V" is only valid for Form 990-T if Therapeutic Discovery Credit is claimed. See IRM 3.11.12.2.11 .

♦Examination Secured♦
  1. These returns are identified by the notation "Process as Original" or "Delinquent Return Secured by TE/GE" on page 1 of the return and a Form 3198, Form 3198-A or Form 13133 is attached with the "Delinquent Return" box checked.

    1. Don’t edit CCC "G" on these returns.

    2. Correspond for conditions that cannot be processed (e.g., missing signatures, missing schedule, etc.).

    3. On the attached Form 3198, Form 3198–A or Form 13133, review the "Freeze from Refunding" (Form 3198 and Form 3198–A), "Hold Credit on Module - Generate TC570" (Form 13133) box to determine if the return should be edited with CCC "X" .

    4. Edit CCC "W" if the Received Date is more than 2 years 9 months after the Return Due Date. Don't send to Statute Control. IRM 3.11.12.2.13.6

    5. Edit CCC "D" , "R" , "V" and/or "8" if a Revenue Officer notates penalties should not be assessed per IRM 3.11.12.2.11 and IRM 3.11.12.2.14.1.1 .

      Note:

      CCC "V" is only valid for Form 990-T if Therapeutic Discovery Credit is claimed. IRM 3.11.12.2.11 .

Unprocessable Return
  1. If a return can be perfected, e.g., Form 990, page 1 is missing, but the entity information can be obtained in an attachment, insert a dummy page 1, edit the entity information on the inserted page, and continue to process the return. If the return cannot be perfected, follow (2)-(6) below.

  2. An unprocessable EO return is when the return cannot be perfected from the return or attachments and either of the following:

    1. A return with completely illegible entries.

    2. A return with completely contradictory and unperfectable entries.

  3. Don’t send an unprocessable return back to Imaging if the form isn't stamped "scanned" in the left margin of the return. Continue to process per (4)-(6) below.

  4. Correspond for a processable return if both of the following apply:

    1. The name, address, and EIN are perfectible.

    2. The return is unnumbered.

  5. Give the return to your manager to destroy if the name and EIN cannot be perfected on an unnumbered, unprocessable return.

  6. Route a numbered, unprocessable return to Rejects per IRM 3.11.12.2.9 .

Due Date of Return

  1. The return is timely filed if it is postmarked by the next business day after the due date, and the due date falls on a Saturday, Sunday, or federal holiday.

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between the due date and received date. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. See Exhibit 3.11.12-4 for a list of return due dates.

  4. Refer to the following references for delinquent return topics:

    Topic: IRM Section
    CCCs for late payment IRM 3.11.12.2.11
    CCCs Daily Delinquency IRM 3.11.12.2.11
    Penalty for late filing IRM 3.11.12.2.14.1.2
    Reasonable cause statement IRM 3.11.12.2.14.1.1
Received Date
  1. A Received Date is required on all TE/GE returns unless otherwise stated.

    If And Then
    The return is received within ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The return is considered timely.
    The due date falls on a weekend or legal holiday The return is timely if postmarked by the first business day following the weekend or legal holiday.
    The IRS received date stamp is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or the legal or extended due date The postmark or shipment date is on or before the legal or extended due date Edit the received date to agree with the postmark or shipment date.

    Note:

    A private metered postmark is to be considered timely if the meter date is timely and the document is received on or within the time ordinarily required for delivery ( 14 days).

    Note:

    For certified mail only If a postmark isn't present, look for a “"USPS.com Track & Confirm" emphasis record that has been attached to the return (should be before the envelope). Use the "Acceptance " date on the record to determine timeliness and follow normal editing procedures." USPS.com Track & Confirm" record isn't attached, no action is required.

  2. A Received Date is required on the face of all EO returns with the exception of Form 5578.

  3. If the Received Date stamp isn't present or the date is illegible or invalid, edit the Received Date in "MMDDYY" format in the middle of Page 1 of the return. Edit the Received Date according to the following priority:

    1. The earliest legible Postmark Date (U.S. Postal Service, Foreign Postmark, or Private Delivery Service) on the envelope. Rules for using the U.S. Postal Service Postmark (USPS) or Foreign Postmark date are as follows:

      If Then
      An envelope isn't attached Use the postmark date stamped on the face of the return.
      An envelope has a USPS and private metered postmark Always use the USPS postmark.
      An envelope has foreign and private metered postmark Always use the foreign postmark.
      An envelope has two private metered postmarks Always use the latest private postmark.
      An envelope has only one private metered postmark Use the private metered postmark.
    2. Service Center Automated Mail Processing System (SCAMPS) digital date.

    3. Revenue Officer/Agent signature date.

    4. Signature date (only if within current year).

    5. Julian control date minus 10 days.

    6. Current date minus 10 days.

  4. Edit the IRS received date as follows:

    If And Then
    A timely Received Date is the only Received Date stamped on the return No editing is required.
    The stamped IRS Received Date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The postmark date shows a legal timely mailing without regard to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ but with regard to a due date falling on Saturday, Sunday or holiday Change the received date to the postmark date.
    Two or more dates are stamped on the return 1. Use the earliest IRS stamped Received Date.
    2. Circle out all other dates.
    A Federal return is addressed to the IRS Delivered to a State agency Use the Postmark Date as the Received Date.
    A Federal return is addressed to a State agency Use the IRS date stamp as the Received Date.
  5. If Form 990, 990-EZ, 990-PF, or 1120-POL is delinquent and the taxpayer explains the return is late due to the REJECTION of a TIMELY FILED ELECTRONIC RETURN, edit as follows:

    Note:

    Taxpayers are instructed to annotate in red in the top margin of the return "REJECTED ELECTRONIC RETURN" to indicate the timely filed return cannot be filed electronically. Taxpayers should also attach a copy of the rejection notification to the return.

    If And Then
    The postmark date is 10 calendar days or less of the notification from the Service that the electronic return has been rejected or cannot be accepted for processing A copy of the rejection notification is attached 1. For Forms 990, 990-EZ or 990-PF, edit CCC "R" and "V" .
    2. For Form 1120-POL, edit CCC "R" .
    A copy of the rejection notification isn't attached No action required.
    The postmark date is more than 10 calendar days of the notification from the Service that the electronic return has been rejected or cannot be accepted for processing No action required.

    Note:

    If an extension form is attached (or an indication that an extension was filed), the Return Due Date will be the approved extension date≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Reasonable Cause
  1. Figure 3.11.12-3, Reasonable Cause Guidelines, states the valid definitions of reasonable cause for late filing or late payment. See IRM 20.1.1.1.3 for additional information of employee responsibilities when determining penalty relief.

    Caution:

    Don't edit CCC "R" or "V" if you are corresponding for one or more Parts which are IRI items (i.e., the return is still late because it isn't complete) with the exception of the following:

    • Zero filer with transcription lines in any parts of Form 990, or Form 990-EZ. (2007 and prior revisions). IRM 3.11.12.2.26.1 .

    • Field Secured/Prepared returns when a Revenue Officer notates penalties should not be assessed. IRM 3.11.12.2.13.9 through IRM 3.11.12.2.13.11 .

    • Form 990, 990-EZ or 990-PF filers who write "filing for retroactive reinstatement " (or similar language) or Notice 2014-11 across the top of the return.

  2. Do either of the following if a reasonable cause statement for late filing is attached and no IRI correspondence is required:

    1. Edit CCC "R" for all EO Master File returns, and edit CCC "V" for Forms 990, 990–EZ, 990–PF, 1041–A, or 5227 if the reason is valid. Continue perfecting the return.

    2. Edit CCC "7" and send Letter 854C for all EO Master File returns if the reason isn't valid. Continue perfecting the return.

  3. Do either of the following if a reasonable cause statement for late payment is attached:

    1. Edit CCC "D" for Forms 990-PF, 990-T, 1120-POL, or 4720 if the reason is valid. Continue perfecting the return.

    2. Edit CCC "7" and send Letter 854C if the reason isn't valid; and continue perfecting the return.

    Figure 3.11.12-3

    EXEMPT ORGANIZATION REASONABLE CAUSE GUIDELINES
    The return was mailed in time but was returned to sender.
    The return was filed in time but sent or deposited to the wrong IRS office.
    Delay or failure to file was due to erroneous information given to the taxpayer by an IRS employee.
    Delay was caused by death or serious illness of the taxpayer, or a death or serious illness in his/her immediate family (see Note below).
    Delay was caused by unavoidable absence of the taxpayer (see Note below). NOTE: In case of a corporation, estate, trust, etc., the death, illness or absence must have been of an individual (or a member of the individual’s immediate family) having sole authority to execute the return.
    Delinquency was caused by destruction, by fire, or other casualty of the taxpayer’s place of business or business records.
    Taxpayer requested the proper forms in a timely fashion, but the forms were not furnished in sufficient time to permit the timely filing of the return.
    Taxpayer provides proof that he/she personally visited an IRS office on or before the due date of the return for the purpose of securing the information or advice and was unable to meet with an IRS representative.
    Considering all the facts and circumstances, it is concluded that the taxpayer has reasonable cause for the failure to timely file a return.
    If the organization is a PRIVATE FOUNDATION: The organization has 90 days to file and pay after it receives a determination letter from the Service.
    If the organization isn't A PRIVATE FOUNDATION with UBIT or NOT A TAXABLE ORGANIZATION (not a Form 990–PF or Form 990–T filer), is a membership organization (PTA, Boy Scout Troop, Garden Club, Homeowners Assn. etc.), and has no full-time employee responsible for administering the organization’s finances, reasonable cause may be granted if the organization:
    1. Clearly shows it exercised normal care and prudence, but was unable to file the return timely due to little continuity or understanding of duties due to frequent officer changes, or
    2. Has no prior history of late filing and claims ignorance of the law (new organizations or those not previously required to file).
    Source: Internal Revenue Manual 4.75.22, Revenue Procedure (Rev. Proc.) 79–8, Policy Statement P–2–7, and Law Enforcement Manual (LEM) (31)20.
    See IRM 20.1.8 for additional discussion of penalty relief.
Daily Delinquency Penalty and Payment
  1. A Daily Delinquency Penalty (DDP) is assessed on an organization if Form 990, 990–EZ, 990–PF, 1041–A, or 5227 is late and/or incomplete.

  2. Edit the dollar amount of the DDP paid as indicated by an Area Office, TE/GE, Compliance, or Exam, to Box 7 of the Edit Sheet ), or to the right of Part II for Form 1041–A if the received date is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    Note:

    If the DDP contains both dollars and cents other than ".00" , edit both the dollars and cents to the edit sheet, such as "20.25" . Otherwise, edit the DDP in dollars only such as "20.00" would be edited as "20" .

Penalty and Interest Code
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Form 990–PF, 990–T, 1120-POL, 4720, 4720-A, or 5227 has a pre-computed late filing penalty or interest:

    1. Edit a Penalty and Interest Code 1 to Box 6 of the edit sheet or to the dotted portion of Line 3 for Form 4720.

    2. "X" the entry for tax due and edit the recomputed tax due if the entry for tax due includes a pre-computed penalty and/or interest.

Edit Sheet

  1. Form 5800, Exempt Organization Return Edit Sheet, is used for Forms 990, 990-EZ, 990-PF, 990-T, 5227, and 1120-POL. .

  2. The Edit Sheet, contains additional items needed for transcription to the Master File.

  3. Attach a Form 5800, Exempt Organization Return Forms Edit Sheet, if necessary, under the entity section of the following EO returns:

    Form Daily Delinquency Penalty paid Penalty and Interest Code if required
    990 X
    990–EZ X
    990–PF X X
    990–T X
    1120-POL X
    5227 X X
  4. Each form procedures lists the required edit sheet T-lines for the return.

  5. Use the remarks section to note any additional action taken or needed to process the return.

♦Entity Perfection - General♦

  1. The entity area of a tax return identifies the taxpayer on the Business Master File. The entity of the return contains the following:

    1. Employer Identification Number (EIN)

    2. Name

    3. "In-care-of" Name

    4. Address

    Note:

    Some forms have IRS labels printed under the National Change of Address (NCOA) program. These returns can be identified by either a solid black line or by pound signs above and to the left of the entity area. These returns don't contain Check Digits and are not considered to be pre-addressed.

♦Entity Perfection - Employer Identification Number (EIN)♦
  1. The EIN is a nine-digit number (XX-XXXXXXX) assigned to identify the taxpayer.

  2. The EIN is located in the upper right of the Form ("Employer Identification Number" box).

  3. Perfect the EIN as follows:

    1. Non-pre-addressed Returns (the entity is handwritten or typed):

      If And Then
      EIN is missing You can determine the correct EIN from the attachments and/or schedules 1. Edit the EIN to the proper location.
      The EIN is either a PTIN or ITIN Unnumbered 1. Remove return from batch.
      2. Route to Entity for EIN assignment.
      Numbered 1. Edit Action Code "320" .
      2. Attach Form 4227 for routing to Entity Control.
      3. Leave document in batch.
      Multiple EINs are present Unnumbered 1. Remove return from batch.
      2. Route to Entity Control for EIN assignment.
      Numbered 1. Edit Action Code "320" .
      2. Attach Form 4227.
      3. Leave in the batch.
      The EIN contains any of the following conditions and cannot be determined from attachments and/or schedules:
      - Illegible
      - Missing
      - Other than 9-digits
      All zeroes
      All nines
      Unnumbered 1. Research IDRS.
      2. If found, edit to the proper location.
      3. If not found, route to Entity for EIN assignment.
      Numbered 1. Circle out all illegible EINs, zeroes, or nines.
      2. Edit Action Code "320" .
      3. Attach Form 4227.
      4. Leave return in batch.
      "Pending" , "applied for" , etc., is indicated in the EIN area. Unnumbered 1. Research IDRS.
      2. If found, edit to proper location.
      3. If not found, route to Entity for EIN assignment.
      Numbered 1. Edit Action Code "320" .
      2. Attach Form 4227
      3. Leave return in batch.
Entity Perfection - Name Control
  1. The Name Control consists of four characters or less.

    1. Valid characters are alpha, numeric, ampersand (&), hyphen (-), and blank. However, blanks are only valid in the last two positions.

    2. Perfect the name control by underlining or editing the first four characters of the name per (1)d)-(6) below.

    3. Disregard the word "The" in the Name Control only when more than one word follows. For example:
      Name: The Flamingo Tree
      Name Control: FLAM

    4. Include the word "The" when it is only followed by one word. For example:
      Name: The Hawk
      Name Control: THEH

  2. For Forms 5227 and 1041-A, trust name control rules apply even if "Fund" or "Foundation" is in the organization's name.

  3. CORPORATION Name Control: For the name control of a corporation, use the first four characters of the corporation's name. A corporate name may include "Corporation" , "Inc." , "Foundation" , "Fund " . Use corporate name control rules if:

    1. The organization's name contains the name of a "corporation" , "Inc" , "Foundation" , or "Fund" and the word "Trust" . For example:
      Name: Jane Dove Family Corporation Trust
      Name Control: JANE

    2. The organization's name contains the word "Fund" or "Foundation" . For example:
      Name: Kathryn Canary Memorial Foundation
      Name Control: KATH

    3. An individual name contains the abbreviations PC (Professional Corporation), SC (Small Corporation), PA (Professional Association), or PS (Professional Service). For example:
      Name: John Stilt PA
      Name Control: JOHN

    4. The organization is a scholarship, and doesn't contain other indicators such as "Corporation" , "Foundation" , "Trust" , etc., treat it like a Foundation or Fund and apply corporate name control rules. For example:
      Name: John Macaw Scholarship
      Name Control: JOHN

    5. The organization is a corporation and contains the words "Friends of" . For example:
      Name: Friends of Burrowing Owl Corporation
      Name Control: FRIE

    6. Specific name control examples to be used if "Corporation" , "Inc." , "Foundation" , or "Fund" are not present are:
      Local, Chapter, or Post—Edit the first four characters of the name of the national organization if the words "Local" , "Chapter" , or "Post" are contained in the name.
      Habitat for Humanity — Name Control: HABI
      Little League — Name Control: LITT
      American Legion — Name Control: AMER
      AMVETS — Name Control: AMER
      Boy Scouts of America (BSA) — Name Control: BOYS
      BPOE — Name Control: BENE
      FOE — Name Control: FRAT
      VFW — Name Control: VETE
      PTA—Name Control: PTA plus the first letter of the name of the state
      PTO or PTSA— Edit the first four characters of the school

  4. TRUST or ESTATE Name Control: For the name control of a trust or estate, use the first four characters of the last name of the individual, trustee or beneficiary. For example:

    1. If the name contains "Trust" :
      Name: Michael I Finch Trust
      Name Control: FINC

      Name: Sue Kingfisher IRA
      Name Control: KING

    2. If the name contains "Estate" :
      Name: Michael Parrot Estate
      Name Control: PARR

    3. If the name contains "FBO"
      Name: FBO Michael I Finch
      Name control: FINC

    4. If the name contains Corporation and Trust, apply corporate name control (see (3)(a) above).

    5. For Forms 5227 and Forms 1041-A, trust name control rules apply even if "Fund" or "Foundation" is in the organization's name. For example:
      Name: David L Eagle Fund
      Name Control: EAGL

  5. POLITICAL ORGANIZATION Name Control: For the name control of a political organization, use the first four characters of the individual's first name. If an individual's first name isn't present, use the first four characters of the organization's name. For example:

    1. Name: Friends of Jane Gull
      Name Control: JANE

    2. Name: Committee to Elect John Hummingbird
      Name Control: JOHN

    3. Name: Toucan for State Representative
      Name Control: TOUC

  6. If unable to determine the name control by following (2)-(5) above, apply corporate name control rules and edit the first four characters of the name line.

Entity Perfection - Name Change
  1. Continue perfecting the return if the name change has been worked by Entity (e.g. TC 59X, Entity stamp).

  2. Route the return to Entity per IRM 3.11.12.2.9.2 , if a name change is indicated on the return (e.g., "name change" box checked) or on attachments, and the return has not been worked by Entity.

♦Entity Perfection - "In-Care-Of" Name♦
  1. An "in-care-of" name can be identified by words "in care of" or symbols "c/o" or "%" (percent).

  2. Ensure the "in-care-of" name is located in the proper location.

    If Then
    The "in-care-of" name is located on the street address line preceding the street address No editing required.
    The "in-care-of" name is located above the first name line or below the street address 1. Arrow the "in-care-of" name so it appears below the first name line and above the street address.
    2. Continue editing the return.
    The "in-care-of" name is shown on an attachment 1. Edit the "in-care-of" name above the street address beginning with the "%" or "c/o" in the first position.
    2. Continue editing the return.
    The street address for the "in-care-of" name is different from the street address of the organization 1. Arrow the "in-care-of" street address below the "in-care-of" name or edit the "in-care-of" street address below the "in-care-of" name if located on an attachment.
    2. Circle the organization's street address and notate "TC 014" in the upper left margin of the return.
    3. Input "TC 014" .
    4. Continue editing the return.

    Note:

    Always circle out the "in-care-of" symbol (% or c/o) if it is present with an address. Don't use the ampersand (&) and the percent sign (%) when editing address information.

  3. A change to the "in-care-of" name can be determined by any of the following:

    • A check mark in the "Name change" box, or

    • A check mark in the "Address change" box, or

    • An indication that the "in-care-of" name is changed (i.e., the taxpayer crossed out the original "in-care-of" name and added the new name or has entered a new "in-care-of" name in brackets).

    If Then
    An "in-care-of" name is changed but there is no indication of an address change 1. Edit the "in-care-of" name as shown in (2) above.
    2. Continue editing the return.
    An "in-care-of" name is present and the "Address change" box is checked (or there is an indication of an address change) 1. Edit the "in-care-of" name as shown in (2) above.
    2. Correct the address.
    3. Continue editing the return.
♦Entity Perfection - Domestic Addresses♦
  1. Perfection of the address is necessary when the mailing address (Street or P.O. Box) isn't easily identified.

    Exception:

    Forms 1041–A, 4720, 4720-A, 5578 and 5768 don't require address perfection.

    Exception:

    Don't perfect the address on amended returns (CCC "G" ).

  2. See table below for procedures to perfect an address for pre-addressed returns indicating an address change and non-preaddressed returns:

    If And Then
    The address contains information other than a street address or a P.O. Box No perfection is necessary. ISRP will enter the complete address.
    There is an indication on an attachment that the address has been changed Edit the new address in the Entity section of the return.
    Form 8822, or Form 8822-B Part II (Address Change Requested) is attached The information is the same Take no action.
    The information is different Detach Form 8822 and route to Entity.
    Both a P.O. Box and a street address are shown 1. Notate "TC 014" in the upper left margin of the return.
    2. Input "TC 014" .
    Two street addresses are shown 1. Underline the second street address.
    2. Notate TC 014 in the upper left margin of the return.
    3. Input TC 014.
    One street address is shown The taxpayer changed the address to a P.O. Box 1. Notate "TC 014" in the upper left margin of the return.
    2. Input "TC 014" .
    The city and state are not shown on the return, but are shown on an attachment Edit the city and state on the form in the Entity section or the return.
    No address is shown on the return or attachment Leave blank and allow to fallout to ERS.
    The ZIP Code is missing or illegible isn't available from the return or attachments Determine ZIP Code by using Document 7475.
    Only the first three digits of the ZIP Code can be determined Edit "01" for the fourth and fifth digits.
    The "Address Change" box is checked An "in-care-of" name is present 1. Edit the "%" (percent) or "c/o" to the left of the "in-care-of" name (in the first position) followed by the appropriate name.
    2. Correct the address.
    The National Change of Address (NCOA) label is present Underline the Name Control.

    Note:

    Always circle out the in-care-of symbol ("c/o" or "%" ) if it is present with an address. Don't use the ampersand (&) or the percent symbol (%) when editing address information.

  3. The U.S. Postal Service established new address requirements for APO/FPO addresses. If the old address appears (i.e., APO New York, NY 091XX), convert to the new state abbreviation based on the zip code (i.e., the previous example would be converted to APO AE 091XX). APO/FPO addresses are considered domestic addresses. Refer to Conversion Chart below:

    ZIP Code Address Country APO/FPO Address
    34000–34049 APO Americas APO AA
    34050–34099 FPO Americas FPO AA
    090XX-094XX
    096XX-098XX
    APO Europe APO AE
    095XX FPO Europe FPO AE
    962XX-965XX
    98700–98759
    APO Pacific APO AP
    966XX and
    98760–98799
    FPO Pacific FPO AP
♦Entity Perfection - Foreign Address♦
  1. A foreign (international) address is any address that isn't in the 50 states or the District of Columbia.

    Note:

    If a foreign return is discovered in a batch of domestic returns, pull the return and follow local procedures.

  2. Returns with APO or FPO addresses are considered domestic addresses. IRM 3.11.12.2.16.5 .

  3. Route returns with a foreign address to Ogden Submission Processing Center (OSPC) for processing. Prepare 86C to inform the taxpayer that the return has been sent to Ogden.

  4. Returns with addresses in the following U.S. Possessions/Territories are considered to be a foreign address for processing purposes but are edited in the same way as domestic addresses.

    1. A two-character alpha code must be edited for the possession/territory name.

      U.S. Possessions/Territories Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Islands (U.S.) VI
    2. A ZIP code must be present for U.S. Possessions/Territories. Edit the appropriate ZIP code if one isn't provided, see Document 7475.

  5. All other foreign addresses are edited the same as a domestic address with the following exceptions:

    1. The foreign country must be the last entry in the address.

    2. Circle out the foreign country and edit the country code preceded by a "/" and followed by "/$" . For example "/EI/$" is edited for Ireland. See Document 7475, State and Address Abbreviations, Major City Codes (MCCs), ZIP Codes and Countries for official foreign country codes.

      Note:

      Submission Processing BMF Foreign Address Job Aid (Number 2324–002) provides examples for editing foreign addresses.

    3. A unique country code is edited for returns filed with an address in Canada. See "Country Code - Canada" . IRM 3.11.12.2.16.7.

    4. If the foreign address is from Australia, Brazil, Canada, Cuba, Italy, Mexico or The Netherlands, check if the address contains a province, state or territory name.

      If Then
      A province, state or territory name is present 1. Circle out the province, state or territory name.
      2. Enter appropriate abbreviation, see Document 7475.
      A province, state or territory name isn't present Continue editing the return.
      Province, state or territory is shown in abbreviated format, Continue editing the return.
    5. A ZIP code isn't required on a foreign address. Foreign addresses use a postal code that is entered before the city or foreign country and is part of the address.

♦Country Code - Canada♦
  1. Edit returns with a Canadian address using a unique country code based on province/territory.

    If Then
    The foreign address contains a Canadian Province/Territory name or abbreviation shown in the table below 1. Circle the country name.
    2. Edit the appropriate Country Code based on the Province/Territory proceeded by a "/" and followed by a "/$" as the last entry in the address.
    The foreign address doesn't contain a Canadian Province/Territory name or abbreviation shown in the table below 1. Circle the country name.
    2. Edit the Country Code "/CA/$" as the last entry in the address.
    Canadian Province/Territory Province Abbreviation Country Code
    Alberta AB XA
    British Columbia BC XB
    Manitoba MB XM
    New Brunswick NB XN
    Newfoundland and Labrador NL XL
    Northwest Territories NT XT
    Nova Scotia NS XS
    Nunavut NU XV
    Ontario ON XO
    Prince Edward Island PE XP
    Quebec QC XQ
    Saskatchewan SK XW
    Yukon YT XY
  2. The rest of the foreign address is edited using procedures in IRM 3.11.12.2.16.6 .

Final/Termination or Initial Return

  1. Identify a return as initial if the return or attachment indicates this is the initial (or first) EO return the organization has filed under the EIN.

  2. For Final/Termination or Initial Return procedures for Form 990 and Form 990EZ, refer to the following tridocs:

    1. Form 990 (2008 and subsequent revisions), IRM 3.11.12.3.7 .

    2. Form 990 (2007 and prior revisions), IRM 3.11.12.4.10 .

    3. Form 990EZ (all revisions), IRM 3.11.12.6.9 .

  3. All other returns: Edit a CCC "F" (Final/Termination) if ANY of the following apply:

    1. The return or an attachment indicates this is the last EO return the organization will ever file under the EIN.

    2. The organization has indicated it is out of business or closed, .

    3. The return or an attachment is marked "Final/Termination" .

♦Foreign Currency♦

  1. For tax returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter to resubmit in U.S. currency.

Imaging Process

  1. All Forms 990/990–EZ, Forms 990–PF, Forms 990-T, Forms 4720, Forms 5227, Forms 8872 and related schedules will be scanned through the imaging process.

  2. If a Form 990/990–EZ, Form 990-PF, Form 990–T, Form 4720, Form 5227 or Form 8872 isn't stamped "scanned" in the left margin of the first page of the return, route the return to the Imaging Unit as an expedite as follows:

    If Then
    Return is numbered Leave the perfected numbered return in the batch. Attach a completed Form 4227, notate "route to Imaging" , and edit ERS Action Code 420.
    Return isn't numbered Pull the unperfected unnumbered return from batch. Attach a completed Form 4227, notate "please scan" and expedite to the Imaging Unit.
  3. Don’t route the following returns to Imaging:

    • Forms 4720-A

    • Foreign currency returns

    • Frivolous returns

    • Reprocessable/Re-Entry returns

    • Substitute for Returns (SFR)

    • "back-up with holding (BUWH)" - when an amount is on Line 44e only.

    • 990-T returns, "8941 Only" 45R may be notated across the top of the return

    • Unprocessable returns

Prior Year Return

  1. If a current/prior year return is filed on a tax form for other than the current processing year, convert the transcription lines to the current year format by using the Prior Year Conversion Charts Exhibit 3.11.12-5 through Exhibit 3.11.12-17 .

  2. If 2008 - 2013 Schedule A is attached to a 2014 and subsequent Form 990, see IRM 3.11.12.3.24.

  3. If 2008 - 2013 Schedule H is attached to a 2014 and subsequent Form 990, see IRM 3.11.12.3.32 .

♦Refund Returns
45-Day Jeopardy
10 Million Dollar Refunds♦

  1. Document Perfection is responsible for identifying refunds and for initiating requests for manual refunds. TAS will provide the W&I SP Liaison written approval (upon request) to issue a manual refund on TAS returns.

    Note:

    Expeditious processing of refund returns is critical if the 45–day period is about to expire.

    If Then
    A Refund Return is batched in a non-refund batch
    1. Completely edit the return.

    2. Pull the return from the non-refund batch and merge into a refund batch using local procedures.

    Note:

    Follow the instructions below when the processing date is more than 20 days after the received date or the return due date OR the refund is ≡ ≡ ≡ ≡ ≡ ≡ or more.

    The processing date is more than 20 days after received date or the return due date (whichever is later) and the refund amount is ≡ ≡ ≡ ≡ ≡ ≡ or more

    Note: "Refund" in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods.
    1. Edit Action Code "341" .

    2. Give the return to the manager.

    The refund is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more
    Note : "Refund" in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods.
    1. Don’t leave the return in the pack.

    2. Edit Action Code "341" for numbered and unnumbered returns on Form 990-PF, 990-T, and 1120-POL.

    3. Give the return to the manager.

    The W&I Submission Processing TAS Liaison walks a return through Code & Edit In addition to normal editing, perform the actions below:
    1. Edit CCC "O" to freeze the refund and provide TAS with the validated credit amount.
    2. Edit CCC "Y" to send the return to ERS.

Remittance

  1. A with remit (i.e.,. numbered) return is identified in one of the following ways:

    1. Batch ID on the transmittal.

    2. Manual Deposit blue or green rocker is on the return.

    3. A "W/R" or $ is written on the top left margin of the return.

    4. Field Office date stamped "Received with remit" .

  2. If any return (numbered or unnumbered) is discovered with an unprocessed remittance, give the return and remittance to your manager for action.

♦Signature♦

  1. A signature of an individual and jurat are required on all returns except the following:

    1. Returns prepared under IRC 6020(b). These returns must be signed by a Compliance Function representative.

    2. Returns prepared by Examination, for example "SFR" (Substitution for Return) or SUBSTITUTE RETURN.

      Reminder:

      Returns prepared by Examination don't require a signature and jurat.

    3. Dummy returns prepared by IRS.

    4. Returns filed under IRC 501(d) (Religious or Apostolic Organization).

    5. Correspondence is attached showing that the taxpayer is responding to an IRS letter or notice with the exception of a CP259A- 259H and CP 425 – 431(see (i) below). If the taxpayer is responding to a letter because they were informed they must file a 990 instead of a 990-EZ, don't correspond for a signature on the 990 if the 990-EZ is signed.

    6. Returns that were originally filed and accepted electronically ("E-file" ). These returns may be identified by the presence of Mod E-file printouts in lieu of an actual return and wording similar to "efile GRAPHIC print - DON’T PROCESS" printed at the top of the return.

    7. Returns printed from the CIS system if a Form 13596 is attached.

      Note:

      If a return is printed from the CIS system but a Form 13596 isn't attached, correspond for the missing signature.

    8. Returns with "this is a live return from SNIP" printed at the top of the return.

    9. CP 259A - 259H, if the declaration on the CP is signed. If neither the CP declaration, attached correspondence or the return isn't signed, you must correspond.

  2. A signature can consist of either an original signature (including printed signature), rubber stamped, mechanical device or signed by a software program.

  3. If a signature is missing, correspond when:

    1. The return isn't signed on the area designated for the taxpayer's signature, or

    2. The jurat isn't present on the line designated for the taxpayer's signature (a non-standard return).

      Note:

      Paper returns sent in by the filer that states their return was rejected through the E-file system require a signature. Form 8879-EO isn't an acceptable signature substitute for a paper return.

    If Then
    Signature is missing 1. Edit:
    • Action Code 211 or 215 (correspondence for signature only) on forms 990, 990-EZ and 990-PF use IRI code 90.

    • Action Code 225 or 226 (Correspondence for Signature only) on Forms 990–T, 1120–POL, 5227, 5768 and 8872.

    • CCC U for all other returns no listed above.

    Only the Entity information is present and there are no attachments containing tax data 1. Edit:
    • Action Code 211 or 215 (correspondence for signature only) on Forms 990, 990–EZ and 990–PF, use IRI Code 90.

    • Action Code 225 or 226 (Correspondence for Signature only) on Forms 990–T, 1120–POL, 5227, 5768 and 8872.

    • CCC U for all other returns not listed above.

  4. If the jurat is altered or stricken (crossed-out), see IRM IRM 3.11.12.2.13.1 for frivolous return instructions.

  5. Accept a "signature declaration" (a signature with jurat obtained through IRS correspondence) if attached to a return.

    1. If the signature declaration is altered or stricken, IRM 3.11.12.2.13.1 for frivolous return instructions.

    2. If the taxpayer responds with a self prepared "signature declaration" , it must contain the same language as the jurat on the tax return, e.g.,
      "UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE EXAMINED THIS RETURN INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS, AND TO THE BEST OF MY KNOWLEDGE AND BELIEF, IT IS TRUE, CORRECT AND COMPLETE. "

  6. Since tax examiners are not expected to be handwriting experts, 26 CFR 301.6064-1 allows the IRS to presume that the signature on a return, statement or other document is the true signature of the person who actually signed the document.

    Note:

    A check mark or "X" used to designate where the return should be signed isn't considered a valid signature.

Service Level Agreements

  1. Service Level Agreements (SLA) identify certain service levels or performance standards.

National Taxpayer Advocate Service (TAS)
Service Level Agreements
  1. National Service Level Agreements have been established between the Taxpayer Advocate Service (TAS) and each Operating Division. The SLAs contain uniform standards for handling TAS-referred cases, and include specific actions to take on TAS referrals and specific timeframes for completing those actions. An addendum to each agreement lists the name and contact information for each Business Unit Liaison.

  2. An electronic copy of the W&I SLA and addendum are available on both the TAS and W&I intranet site and the SLAs can also be found at IRS.gov.

Taxpayer Advocate Service (TAS) Operations
Assistance Requests (OARs)
  1. Taxpayer Advocate Service uses the Operation Assistance Request (OAR) process to refer cases when TAS lacks either the statutory or delegated authority to resolve a taxpayer's problem. The TAS uses Form 12412, Operations Assistance Request, to initiate the OAR process.

  2. In cases requiring an OAR, TAS completes Form 12412 and sends the case to the Operating Division Liaison via Form 3210. The Operating Division Liaison reviews the case, assigns it to the appropriate area, and monitors the case through its conclusion.

  3. The W&I Submission Processing Liaison acknowledges receipt and gives the IRS employee’s name and phone number assigned to work the case within one workday of receipt of the OAR involving Expedite processing. The W&I Submission Processing Liaison provides a relief/no relief decision within three workdays of acknowledging receipt of the Expedite OAR. The decision is by: telephone or in writing on Form 3210, Document Transmittal, via fax, secured email, or hand delivery to the TAS office that initiated the OAR.

  4. For OARs that don't require expedite handling, the W&I Submission Processing Liaison acknowledges receipt and gives the IRS employee’s name and phone number assigned to work the case within three workdays of receipt of the OAR. If necessary, the W&I employee assigned to the case negotiates a reasonable timeframe to resolve the OAR with the TAS employee.

  5. Complete OAR cases as soon as possible. The assigned area should complete the case on the time frames listed on Form 12412.

    1. If a taxpayer's case can’t be resolved by the requested timeframe or by a negotiated extension date, the employee elevates the matter to the W&I Business Unit Liaison.

    2. The manager/employee works with the Taxpayer Advocate contact listed on Form 12412 to agree on follow-up timeframes based on the case’s facts and circumstances.

    3. The manager/employee assigned the case discusses his or her findings and recommendations on the case’s final disposition with the appropriate TAS contact before communicating the final decision to the taxpayer or issuing any closing documents. The TAS contact is responsible for communicating the case’s final decision to the taxpayer however, this doesn't prohibit the manager/employee from also doing so.

    4. If the TAS contact and the manager/employee assigned the case can’t agree on the resolution to the taxpayer's problem, the TAS employee elevates this disagreement to his/her manager who discusses it with the appropriate Operating Division manager. The manager/employee assigned the case also elevates any disagreement to his/her manager. If they can’t agree on the appropriate resolution within three workdays, the manager evaluates the issue through management channels for resolution or for the Local Taxpayer Advocate (LTA) to consider a Taxpayer Assistance Order.

    5. When the case is resolved, the Business Operation Division (BOD)/Function employee assigned the OAR complete section VI of Form 12412, Operations Assistance Request, and returns it to the TAS Case Advocate assigned the case within three workdays of completing all actions and inputting transactions.

  6. For more detailed information, please refer to: IRM 13, Taxpayer Advocate Service and http://tasnews.wev.irs.gov/index.asp?pid=865 .

Form 911, Request for Taxpayer Advocate Service Assistance
(Application for Taxpayer Assistance Order)
  1. Refer to a TAS office if the IRS employee receives a taxpayer contact, and the employee can’t initiate action to resolve the taxpayer’s inquiry or provide the relief requested by the taxpayer. A taxpayer shouldn’t have to specifically request TAS assistance to be referred to TAS. IRS employees advise taxpayers of the option to seek TAS assistance when appropriate. TAS generally accepts the taxpayer’s problem at face value, and doesn’t require documentation from the taxpayer unless needed or required by the IRM to provide the requested relief.

  2. A referral to a TAS office isn't necessary even if TAS Case Criteria are met if the IRS employee can resolve a taxpayer’s inquiry or provide the relief requested, per IRM 13.1.7.4, Same Day Resolution. The definition of Same Day Resolution is "within 24 hours" . However, even if you can’t completely resolve the issue within 24 hours, if you’ve taken steps within 24 hours to resolve the taxpayer’s issue, these cases also meet the definition of same day. Don't refer these cases to TAS unless the taxpayer asks to be transferred to TAS.

    Note:

    Handle potential TAS cases with the taxpayer’s best interest in mind.

  3. See IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

  4. Don’t refer the following types of cases to TAS:

    • The taxpayer’s complaint or inquiry only questions the constitutionality of the tax system.

    • Cases where the focus of the taxpayer’s inquiry is solely to employ frivolous tax strategies to avoid or delay filing or paying federal taxes.

  5. TAS Case Acceptance Criteria: TAS accepts cases in which the taxpayer:

    • Is experiencing economic harm or is about to suffer economic harm.

    • Is facing an immediate threat of adverse action.

    • Will incur significant costs if relief isn't granted (including fees for professional representation).

    • Will suffer irreparable injury or long-term adverse impact if relief isn't granted.

    • Has experienced a delay of more than 30 days to resolve a tax account problem.

    • Hasn’t received a response or resolution to their problem or inquiry by the date promised.

    • A system or procedure has either failed to operate as intended, or failed to resolve the taxpayer’s problem or dispute within the IRS.

    • The manner in which the tax laws are being administered raise considerations of equity, or have impaired or will impair the taxpayer’s rights.

    • The NTA determines compelling public policy warrants assistance to an individual or group of taxpayers.

  6. Other TAS Case Acceptance Criteria:

    • A system or procedure has either failed to operate as intended, or failed to resolve the taxpayer’s problem or dispute within the IRS.

    • The manner in which the tax laws are being administered raise considerations of equity, or have impaired or will impair the taxpayer’s rights.

    • The NTA determines compelling public policy warrants assistance to an individual or group of taxpayers.

    Note:

    Case criteria are not meant to be all-inclusive; evaluate each taxpayer situation based on each case’s unique facts and circumstances.

Tax Exempt/Government Entities (TE/GE) and
Wage & Investment Small Business/Self-Employed (W&I)
Service Level Agreement
  1. The TE/GE and W&I SLA identifies a set of processing and customer service targets in which the TE/GE Division and the W&I Division agree on an acceptable level of service for the term of the agreement.

  2. Underlying this SLA are six key service needs:

    • Timely processing of submissions

    • Accurate processing of submissions

    • Striving for continuous improvement in processing of submissions (i.e., returns, correspondence, remittance, etc.)

    • Procedural changes

    • Workload

    • Resources

BMF Identification (ID) Theft
  1. BMF Identification Theft is increasing. If a tax examiner in Submission Processing (SP) Code and Edit (C&E) finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft, provide the entire case to your senior/lead. Your senior/lead expedites the case to the PA staff to refer to one of the SP BMF ID Theft liaisons. The taxpayer must clearly state that they are a victim of ID Theft: don’t send cases that are subject to Funny Box or Fraud review.

Tax Period

  1. An organization may have only one accounting period.

  2. The tax period is the year and last month of the approved accounting period of the organization.

    Note:

    A tax period should always end on the last day of the month except as otherwise specified. Ignore a minor discrepancy such as October 30 instead of October 31.

  3. Edit the Tax Period to the right of the form title in YYMM format if the tax year ending is other than current processing year (e.g., 1312).

    Exception:

    Edit a Tax Period on all Forms 8872. If Form 8872 doesn't have a period ending date, don't edit as YY12. .

  4. Identify the tax period and edit as follows:

    If Then
    The return is for current calendar year No editing is required.
    The return is for a prior year Edit the Tax Period.
    The taxpayer has notated a Tax Period other than the preprinted year on the return Edit the Tax Period based on the taxpayers indication.
    The Tax Period is missing, incomplete, or illegible Review the return and attachments ( e.g Form 1128) for the correct Tax Period.
    1. If found, edit the Tax Period.

    2. If unable to determine, process using current calendar year.

    Caution:

    If a Form 5578 has a tax period of 18 months or more in the future, IRM 3.11.12.2.13.2 (4) .

  5. The accounting period must meet the "52/53" week rule defined in (a) and (b) below:.

    1. If the tax period ending date isn't more than 3 days after the beginning of the month, edit the previous month. (i.e., October 3, use the designation for September YY09).

    2. If the tax period ending date isn't more than 6 days before the end of the month, edit the month shown on the return. (i.e., October 25, use the numeric designation for October, YY10).

  6. If the tax period is for more than 12 months or 53 weeks, research for the correct tax period. If not found, correspond.

  7. Correspond if the accounting period is more than 12 months or the accounting period doesn't meet the "52/53" week rule.

  8. Request INOLES, ENMOD, and BMFOLI research if the accounting period is less than 12 months. IRM 3.11.12.2.17 , IRM 3.11.12.2.25 and IRM 3.11.12.2.25.2 .

Early Filed Return
  1. An early filed return is defined as a return whose received date is prior to its Tax Period ending date.

  2. Do one of the following for an early filed EO return:

    If And Then
    Return isn't "final/termination" The tax period is less than 4 months after today’s date 1. Edit Action Code 480 for Forms 990, 990–EZ, 990-T, 990-PF, 1120-POL, 5227, 5768 and 8872 and CCC "U" for all other returns.
    2. If editing AC 480, Form 4227 isn't necessary. Leave the return in the pack you are working.
    3. If editing a CCC "U" , attach Form 4227, note "early filed" in the remarks area, check the Rejects box, and leave the return in the pack you are working.
    Return isn't "final/termination" The tax period is 4 months or more in the future, 1. Edit Action Code 211 for Forms 990, 990–EZ, 990–PF, 990-T 1120-POL, 5227, 5768 or 8872 and CCC "U" for all other returns.
    2. Correspond for future tax period or final return using Letter 2696.
    Return is "final/termination" edit the tax period to the month preceding the received date.
    Return is" final/termination" criteria isn't met (Form 990 and 990-EZ only) edit the tax period according to the taxpayer indication
  3. When correspondence issues are present on an early filed return, edit the Correspondence Action Code on the return and edit the Action Code 480 to Form 4227.

Short Tax Year Defined
  1. A short tax year is a return with a tax period less than 12 months or 52 weeks.

    Note:

    A tax period should always end on the last day of the month except as otherwise specified. Ignore a minor discrepancy such as October 30 instead of October 31.

  2. If a short tax year has an explanation, IRM 3.11.12.2.17 and IRM 3.11.12.2.25.2.1 .

  3. If a short tax year has no explanation, research ENMOD, INOLES, and BMFOLI to determine the Master File tax year.

  4. If the short tax year isn't explained from research, do one of the following:

    1. If the short tax year is the same as INOLES or ENMOD, continue to process. Don't edit CCC "Y" .

    2. If the short tax year is different from INOLES or ENMOD, and the organization has not changed its tax period in the last 10 years, edit CCC "Y" and continue to process.

      Note:

      BMFOLI may indicate less than ten years but if FYM has not been changed, continue on and edit CCC "Y."

    3. If the short tax year is different from INOLES or ENMOD, and the organization has changed its tax period in the last 10 years, correspond requesting an explanation for a short tax year.

Short Tax Year Change of Accounting Period
  1. Edit CCC "Y" if one of the following applies:

    1. Change of Accounting Period indicated on the return or an attachment.

    2. Rev. Proc. 85–58 indicated on a Form 990, 990-EZ, 990-PF, 990-T or an attachment.

    3. Rev. Proc. 76-10 indicated on a Form 990 or attachment.

    4. An approved Form 1128, Change of Accounting Period (CP284a) is attached.

      Note:

      A CP284a is generated on an approved Form 1128. A CP285 is generated on a disapproved Form 1128.

    5. BMFOLI shows the organization has not changed its tax period in ten years.

      Note:

      BMFOLI may indicate less than ten years.

  2. If Form 1128 is attached with no indication of approval (CP284a or IRS letter) to a numbered or unnumbered return research INOLES, ENMOD and BMFOLI. Do one of the following if Form 1128 is attached:

    If Then
    If the tax period matches INOLES or ENMOD continue to process. CCC "Y" isn't required.
    BMFOLI shows the organization has not changed its tax period in 10 years edit CCC Y. Leave 1128 attached.

    Note:

    BMFOLI may indicate less than ten years but if FYM has not been changed, continue on and edit CCC "Y."

    BMFOLI shows the organization has changed its tax period within the last 10 years, or you are unable to determine edit Action Code 450 to route to Rejects or CCC "U" as appropriate. Attach Form 4227, notate" Form 1128" .
  3. Don’t edit CCC "Y" for an initial or final/termination return.

Zero Filer Defined For 2007 and Prior Revisions
(Forms 990, 990-EZ)

  1. A zero filer is defined as a U.S. or foreign organization or an organization formed in a U. S. Possession/Territory (Rev. Proc. 2003-21), with gross receipts less than the filing requirement.

    Note:

    These instructions don't apply to 2008 and subsequent revisions.

  2. Form 990 (2007 and prior revisions): Process the return as a zero filer by adding the positive version of Part I, Line 6b, Line 8b Columns(A) and (B), Lines 9b, and 10b to Line 12 if any of the following apply:

    1. The computation in (2) above is $25,000 or less.

    2. The computation in (2) above is $37,500 or less, Box K is checked, and the organization states this is their initial year of operation.

    3. The return has no amounts more than $0 and the entity section is complete enough to perfect or research.

  3. Form 990-EZ (2007 and prior revisions): Process the return as a zero filer by adding the positive version of Part I, Lines 5b, 6b and 7b to Line 9 if any of the following apply:

    1. The computation in (3) above is $25,000 or less.

    2. The computation in (3) above is $37,500 or less, Box K is checked, and the organization states this is their initial year of operation.

    3. The return has no amounts more than $0 and the entity section is complete enough to perfect or research.

Zero Filer
Perfection
(Forms 990, 990-EZ) 2007 and Prior Year Revisions
  1. Do the following to completely perfect a zero filer return with NO transcribed lines in any of Form 990, or Form 990-EZ :

    1. Perfect the name control, address, EIN, tax period, and received date.

    2. Attach an edit sheet and edit the DDP amount paid in box 7 if the organization paid a DDP and the return was received within the grace period. IRM 3.11.12.2.14.1.2 .

    3. Edit the received date in the center portion of the return. Circle unnecessary received dates.

    4. Edit CCCs "R" and "V" in the center portion of the return below the entity section. Edit CCC's "F" , "W" , or "Y" as appropriate.

    5. Edit Organization Code 9.

    6. Edit a two-digit SS Code if no transcription lines are present and the SS is present. If the SS is missing, edit "00" .

    7. Edit the ERS Action Code in the bottom left corner of the return, as required.

    8. Edit a Preparation Code of "1" next to the Preparer's PTIN if data is present in the paid preparer area of the return.

    9. Correspond for the signature if missing.

    10. Correspond if identified as "final/termination" and all criteria in IRM 3.11.12.3.7 and 3.11.12.6.9 are not met.

  2. Do the following to completely perfect a zero filer return with transcribed lines in any of Form 990, or Form 990-EZ:

    1. Perfect the name control, address, EIN, tax period, and received date.

    2. Attach an edit sheet and edit the DDP amount paid in box 7 if the organization paid a DDP and the return was received within the grace period. IRM 3.11.12.2.14.1.2 .

    3. Edit the received date in the center portion of the return. Circle unnecessary received dates.

    4. Edit CCCs "R" and "V" in the center portion of the return below the entity section. Edit CCCs "F" , "W" , or "Y" , as appropriate.

    5. Edit and underline Organization Code 9.

    6. Perfect the remaining form in the same manner as a non-zero filer return regardless of the organization's "Total Revenue" .

    7. Correspond for a completed Form 990/990-EZ and required schedule(s) if required information is missing.

    8. Correspond for the signature if missing.

    9. Don’t consider a 0 (zero), - (dash), none, or N/A as a transcribed entry.

    10. Correspond if identified as "final/termination" and all criteria IRM 3.11.12.4.10 and IRM 3.11.12.6.9 are not met.

Form 990
(2008 and Subsequent Revisions)

  1. Most organizations exempt from income tax under Internal Revenue Code 501(a) must file an annual information return (Form 990 or Form 990-EZ) or an annual electronic notice (Form 990-N), depending upon the organization’s gross receipts and total assets.

  2. Form 990 must be filed by an organization exempt from income tax under Internal Revenue Code 501(a) if it has either the following:

    Must file Form 990 if the Tax Period is If gross receipts are And total assets are
    201012 and subsequent Equal to or greater than $200,000 Equal to or greater than $500,000
    200912 – 201011 Equal to or greater than $500,000 Equal to or great than $1,250,000
    200812 – 200911 Equal to or greater than $1,000,000 Equal to or great than $2,500,000
    200811 and prior Equal to or greater than $100,000 Equal to or greater than $250,000

General Instructions
(2008 and Subsequent Revisions)

  1. Always convert prior year return revisions, Exhibit 3.11.12-6 .

  2. Always follow the instructions for a "special return" .

  3. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave a "T" line blank only if it cannot be perfected in the steps above.

  4. Put Form 990 in the following order:

    1. Form 990, pages 1 -12, followed by

    2. Schedule A, (2014 and subsequent revision), pages 1-8.

    3. Schedule A, (2008 - 2013 revision) pages 1 - 4.

    4. Schedule C, page 1 (if Part I-A has an entry)

    5. Schedule D, page 1 (if Part I has an entry (Sch Ind Code "D1" is edited and underlined))

    6. Schedule H, 2016 and subsequent revision) pages 1-2, Part V, section order A, C, D, B (pages 3, 8, 9, 4, 5, 6, 7) for the first five facilities shown in Part V.

    7. Schedule H, (2014 and 2015 revision) pages 1-2, Part V, section order of A, C, D, B (pages 3, 7, 8, 4, 5, 6) for the first five facilities shown in Part V. For Schedule H (2014 and subsequent) pages should be put in order 1- 3, 7, 8, 4, 5, 6. Delete the double unused pages.

    8. Schedule H, (2013 revision) pages 1-2, Part V, section order of A, D, B (pages 3, 8, 4, 5, 6) for the first five facilities shown in Part V. For Schedule H (200812 - 201212) pages should be put in order 1- 3, 7, 4, 5, 6. Delete the double unused pages.

    9. Schedule L, page 1 (if Parts I or II have entries).

    10. Schedule R, page 3 (if Part V has an entry).

Forms LM-2, LM-3, 5500
(2008 and Subsequent Revisions)

  1. Labor organizations are NOT allowed to substitute information from Form LM-2 or LM-3 to the 2008 and subsequent revisions of Form 990. If correspondence items on Form 990 are missing, and Form LM-2 or LM-3 is attached, correspond for the missing information.

  2. Employee benefit plans are NOT allowed to substitute information from Form 5500 to the 2008 and subsequent revisions of Form 990. If correspondence items on Forms 990 are missing, and Form 5500 is attached, correspond for the missing information.

Perfection, Editing, and Correspondence
(2008 and Subsequent Revisions)

  1. Attach Form 5800, Exempt Organization Return Edit Sheet, if required.

  2. If a Form 990 is received with "Announcement 2010–19" or similar wording on the top of the form, edit CCC "R" & "V" . If there is no indication Entity has seen the return, route the return to Entity per IRM 3.11.12.2.9.2.

  3. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.2.10

    2. Computer Condition Codes (F, G, L, R, T, V, W, Y, 3, 7), IRM 3.11.12.2.11 . Edit the CCC in the general area of Part I, Lines 2-7b.

    3. Daily Delinquency Penalty, IRM 3.11.12.2.14.1.2

    4. Entity Perfection, IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

    5. Final Returns, IRM 3.11.12.2.17

    6. Imaging, IRM 3.11.12.2.19

    7. Incomplete Return Item (IRI) Program, IRM 3.11.12.2.12.3

    8. Received Date, IRM 3.11.12.2.14.1

    9. Tax Period, IRM 3.11.12.2.25

Subsection Code
(2008 and Subsequent Revisions)

  1. Edit a two-digit Subsection Code (SSXX) in the blank space of Item I of the entity portion if the Subsection is present, see Figure 3.11.12-1a. If the subsection is missing edit 00.

  2. Determine the Subsection Code from the list below:

    1. Item I of the entity section. Perfect as follows:

      Code Section Entry
      501(c)(3) 03
      501(c) XX (subsection taxpayer entered)
      4947(a)(1) 91
      527 82
    2. INOLES research

  3. If the Subsection Codes conflict (e.g., INOLES shows SS03, but the taxpayer indicates otherwise in Item I), always use the Subsection on INOLES.

  4. If you are unable to determine the Subsection Code, edit "00" .

  5. If Subsection 28 or the return is for the National Railroad Retirement Investment Trust:

    1. Part VII, Section A must be complete. If blank or missing, ALWAYS correspond.

    2. Don’t correspond for any other issues e.g., missing Part VIII, Part IX, Part X, Schedule A, Schedule B, etc.

Type of Organization Code
(2008 and Subsequent Revisions)

  1. Edit the Type of Organization Code on Form 990, page 1, blank space of Item K. Edit a Type of Organization Code as follows:

    Form 990
    Type of Organization Code Description
    1 SS 00, 02-20, 22-29, 50, 60, 70, 71, or 81.
    3 4947(a)(1) box is checked in Item I of the entity section (SS91).
    4 527 box is checked in Item I of the entity section (SS82).
    1 All others.

Group Return
(2008 and Subsequent Revisions)

  1. Identify a group return if Item H(a) is checked "yes" and Item H(c) contains a GEN. GEN numbers 0000 and 9999 are not valid.

  2. If Item H(a) is checked yes and Item H(c) is blank, 0000 or 9999, request INOLES research for the GEN. If found, edit to line H(c). A group return on INOLES must have 990-03 filing requirements. If 990-03 filing requirements are not present, circle out entries on H(a) and H(b).

  3. Circle out the yes/no entry on Item H(b) if an entry is present and the return isn't a group return.

  4. Don’t consider a group return indicating "final/termination" as a final/termination return. Don't CODE CCC "F" .

  5. Route the return to Entity, IRM 3.11.12.2.9.2 if any of the following apply:

    1. The group or an affiliate doesn't have an EIN.

    2. The group or an affiliate has two or more EINs.

    3. New affiliates have been added to the group.

    4. There are one or more entity issues, IRM 3.11.12.2.9.2 .

    5. An affiliate has changed its name or address, and Entity has not worked the change (e.g. TC 59X or Entity stamp).

  6. Request NAMEE/NAMEB research if the parent and group return are received in the same batch using the same EIN.

Group Return Perfection and Correspondence
(2008 and Subsequent Revisions)
  1. Circle out the yes/no entry on Item H(b) if an entry is present and the return isn't a group return.

  2. Use the following table for Form 990 (2008 and Subsequent Revisions):

    If And Then
    H (a) is checked yes H(b) is checked yes and GEN number is present Continue editing.
    H(b) is blank and the return or attachment states that all affiliates are included on the group return Check the yes box on Item H (b).
    H(b) is blank and the return or attachment doesn't state all affiliates are included in the group return Check the no box on Item H(b) and request a TC 590-014 input for the attached affiliates.
    H(b) is no or blank and a list of affiliates is attached Request a TC 590/014 input for attached affiliates.
    H(b) is no or blank and a list of affiliates isn't attached Circle out the yes/no box and correspond with the filer.
    GEN ≡ ≡ is present list of affiliates is present Check the no box on Item H(b) (if not checked). If the yes box is checked circle out the Yes entry and request a TC 590–014 input for the attached affiliates.
    GEN ≡ ≡ is present a list of affiliates isn't present. Correspond with the filer.
  3. Correspond with the parent if the return is identified as a group return and a GEN cannot be determined.

Final/Termination or Initial Return
(2008 and Subsequent Revisions)

  1. Identify a return as initial if the return or attachment indicates this is the initial (or first) EO return the organization has filed under the EIN.

  2. Form 990 (2008 and subsequent revisions): Edit CCC "F" (Final/Termination) if the return is marked Final/Termination or there are other indications the organization is out of business or closed and ALL of the following apply:

    1. Part IV, Line 31 is checked "yes" .

    2. Part X, Line 16(B) is 0 (zero), - (dash), none, blank, N/A or contains a negative amount.

    3. Schedule N, Part I is attached and data is present .

    4. Not a group return - Item H(a)-(b) is "no" or blank and Item H(c) is blank. IRM 3.11.12.3.6 .

  3. If the taxpayer is attempting to file a "Final/Termination" Form 990 and (2)(a)-(d) are not met, edit Action Code 211 and correspond.

♦Paid Preparer Section♦
(2008 and Subsequent Revisions)

  1. The Paid Preparer section is located below the Signature area at the bottom of Form 990.

♦Paid Preparer PTIN♦
(2008 and Subsequent Revisions)
  1. The Preparer's Social Security Number (SSN) or Preparer's Tax Identification Number (PTIN) is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 2009 and prior form revisions) at the bottom-right corner of Page 1.

  2. No action is required on amended returns.

  3. A valid PTIN begins with the alpha "P" followed by an eight digit number (e.g., PXXXXXXXX). Circle the SSN/PTIN if it is invalid, all zeros or all nines.

♦Firm's EIN♦
(2008 and Subsequent Revisions)
  1. The Firm's EIN is located below the Preparer's PTIN at the bottom-right corner of Page 1.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine-digit numeric number. Circle the EIN if all zeroes or all nines.

♦Paid Preparer Telephone Number♦
(2008 and Subsequent Revisions)
  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner of Page 1.

  2. No action is required on Amended returns.

  3. If a complete Paid Preparer's Telephone Number is on the Preparer Telephone Number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10digits, review the return and all attachments.

    Note:

    If more than 10 digits are present continue processing. ISRP will input the first 10 digits only.

    If Then
    A complete Paid Preparer's Phone Number is located Edit to the "Phone No" line.
    A complete Paid Preparer's Telephone Number isn't located or the number is illegible Circle the incomplete or illegible phone number.
Preparation Code
(2008 and Subsequent Revisions)
  1. No action is required on amended returns.

  2. Edit a Preparation Code of "1" next to the Preparer's PTIN if data is present which indicates the return was prepared by a paid preparer in the paid preparer area of the return.

    Note:

    Data such as N/A or self prepared doesn't indicate the return was prepared by a paid preparer and should not be edited with a "1" .

Part III
Correspondence
(2008 and Subsequent Revisions)

  1. Correspond for Part III if missing or blank.

Part IV
Perfection (Schedule Indicator Code (SIC))
(2008 and Subsequent Revisions)

  1. Edit a SIC on the top right margin of page 3 for each schedule that is attached and isn't blank and has information present other than the organization's name and/or EIN. If editing a SIC and page 3 is missing, edit the SIC on inserted page 3.

  2. If you are corresponding for a schedule, or parts/issues of a schedule, don't edit a SIC for that schedule.

  3. Substitute schedules are not acceptable. For example, if a filer writes "see attached" on a Schedule L, a SIC of "L" should NOT be edited and correspondence should be initiated asking for a complete Schedule L. See IRM 3.11.12.3.11 for Schedules that require correspondence.

  4. If Schedule D is attached and not blank, edit a "D" . If an entry is present in Part I of Schedule D, edit and underline a "D1" . If editing a "D1" , don't edit a "D" .

  5. The indicator codes are as follows:

    Schedule Code Schedule
    A Schedule A - Public Charity Status and Public Support
    B Schedule B - Schedule of Contributors
    C Schedule C - Political Campaign and Lobbying Activities
    D Schedule D - Supplemental Financial Statements
    D1 Schedule D, Part I - Supplemental Financial Statements
    E Schedule E - Schools
    F Schedule F - Statement of Activities Outside the United States
    G Schedule G - Supplemental Information Regarding Fundraising or Gaming Activities
    H Schedule H - Hospitals
    I Schedule I - Grants and Other Assistance to Organizations, Governments and Individuals in the U.S.
    J Schedule J - Compensation Information
    K Schedule K - Supplemental Information on Tax Exempt Bonds
    L Schedule L - Transactions with Interested Persons
    M Schedule M - Non-Cash Contributions
    N Schedule N - Liquidation, Termination, Dissolution or Significant Disposition of Assets
    O Schedule O - Supplemental Information to Form 990
    R Schedule R - Related Organizations and Unrelated Partnerships
  6. Part IV, Line 1: If checked "yes" , and the organization isn't a SS03, 50, 60, 70, 71 or 91, edit a "2" to the right of Line 1.

Part IV
Correspondence (IRI Codes 50 - 59)
(2008 and Subsequent Revisions)

  1. Correspond for a Schedule O (IRI 58) if not attached or one is attached but only contains the organizations name and/or EIN. All organizations are required to attach a Schedule O when filing Form 990.

  2. Correspond for the following schedules or parts of the schedules if the line is marked "yes" , and the related schedule for that line is missing or blank or a substitute schedule is attached.

    Line Number(s) Missing/Blank Schedule IRI Codes
    1 Schedule A entirely missing or blank or a 2007 & prior Schedule A revision
    See IRM 3.11.12.3.23.
    20
    1 Schedule A, Part I is blank. 21
    1 Schedule A, Part I, Line 5, 6 or 7 is checked and Schedule A, Part II is blank. 22
    1 Schedule A, Part I, Line 9 is checked and Schedule A, Part III is blank. 23
    2 Schedule B

    Caution:

    At least one name and amount must be present.


    See (4) below.
    50
    3 - 5 Schedule C 51
    6 Schedule D, Part I 52
    13 Schedule E 53
    20a Schedule H 57
    20b Schedule H, Audited Financial Statements 59
    23 Schedule J 56
    25a - 28c Schedule L 54
    33 - 37 Schedule R 55
  3. Don’t correspond for a Schedule A if Part IV, Line 1 is checked "yes" , and the organization isn't a SS03, 50, 60, 70, 71 or 91.

  4. Correspond for a Schedule B if Part IV, Line 2 is checked "yes" and:

    Schedule B is But And
    Missing
    Present doesn't contain contributor information (name(s) / amount(s)), or "anonymous" , "various" 0 (zero), - (dash), none, or N/A on Page 1 or in any of Parts I - III.
    The third box under "Special Rules" , page 1 isn't checked; or is checked, but an amount or 0 (zero), - (dash), none, or N/A isn't present on that line.

    Note:

    If a statement is attached indicating contributions from any one contributor did NOT exceed ≡ ≡ ≡ ≡ ≡ , or more during the year, a Schedule B isn't required.

    Note:

    Contributor information means at least one name and amount for the same contributor is present. A contributor may also be listed as a sponsor or shown as a function. For example, the contribution may be shown as bake sale or car wash or another type of activity or function.

Part V
Correspondence
(2008 and Subsequent Revisions)

  1. Correspond for Part V if Lines 1a - 14b are missing or blank.

Part VI
Correspondence
(2008 and Subsequent Revisions)

  1. Correspond for Part VI if lines 1a - 20 are missing or blank.

Part VII
Perfection
(2008 and Subsequent Revisions)

  1. Section A, Line 1d, Column (D), Total Line: If blank, add 1b and 1c, Column (D). If 1b and 1c, Column (D) is blank add rows above and edit amount in Line 1d, Column (D), Total Line.

  2. Section A, Line 1d, Column (E), Total Line: If blank, add 1b and 1c, Column (E). If 1b and 1c, Column (E) is blank add rows above and edit amount in Line 1d, Column (E), Total Line.

  3. Section A, Line 1d, Column (F), Total Line: If blank, add 1b and 1c, Column (F). If 1b and 1c, Column (F) is blank add rows above and edit amount in Line 1d, Column (F), Total Line.

  4. If dollar total amounts are on Part VII, page 7 and can be totaled to page 8, edit the amounts to Lines 1d, Columns (D), (E) or (F). (Dummy page 8).

  5. Section A, Line 2: Perfect.

  6. Section B, Line 2: Perfect.

Part VII
Correspondence (IRI Code 87)
(2008 and Subsequent Revisions)

  1. Correspond if all of the following apply:

    1. The box in Part VII, Section A, Line 1a, "Check this box if the organization did not.." isn't checked.

    2. Part IX, Line 5, Column (A) is more than ≡ ≡ ≡ ≡ ≡ .

    3. Part VII is missing, blank, or name(s) are present in Column (A), but Line 1d, Columns (D), (E), or (F) is blank and cannot be perfected.

Part VIII
Perfection
(2008 and Subsequent Revisions)

  1. Line 1h, Column (A): If blank, add Lines 1a-1f. Don't bring forward any amounts from Schedule B.

  2. Lines 2a - 2f, Column (A): If lines 2a-2f column (A) are blank, and an entry is present on line 2g(A), arrow any dollar amounts on lines 2a-2f columns (B), (C), or (D) or in the "Business Code" section to the corresponding lines in column (A).

  3. Line 2g, Column (A): If blank, add Lines 2a - 2f, Column (A).

  4. Lines 3 - 5, Column (A): Perfect.

  5. Line 6a, Columns (i) and (ii): If blank, do one of the following:

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  6. Line 6b, Columns (i) and (ii): If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, Leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  7. Line 6c, Columns (i) and (ii): If blank (for each column), Line "a" minus Line "b" .

  8. Lines 6a - 6c, Column (ii): If blank, and unable to perfect per (5) - (7) above, edit from Line 6d to Line 6a, Column (ii) and Line 6c, Column (ii).

  9. Line 6d, Column (A): If blank, add Line "c" , Columns (i) and (ii).

  10. Line 7a, Columns (i) and (ii): If blank, do one of the following:

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  11. Line 7b, Columns (i) and (ii): If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, Leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  12. Line 7c, Columns (i) and (ii): If blank (for each column), Line "a" minus Line "b" .

  13. Lines 7a - 7c, Column (ii): If blank, and unable to perfect per (10) - (12) above, edit from Line 7d to Line 7a, Column (ii) and edit to Line 7c, Colum (ii).

  14. Line 7d, Column (A): If blank, add Line "c" , Columns (i) and (ii).

  15. Line 8a: If blank, do one of the following:

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  16. Line 8b: If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, Leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  17. Line 8c: If blank (for each line), Line "a" minus Line "b" .

  18. Line 9a: If blank, do one of the following:

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  19. Line 9b: If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, Leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  20. Line 9c: If blank (for each line), Line "a" minus Line "b" .

  21. Line 10a: If blank, do one of the following:

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  22. Line 10b: If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, Leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  23. Line 10c: If blank (for each line), Line "a" minus Line "b" .

    Figure 3.11.12-4

    This is an Image: 33480500.gif

    Please click here for the text description of the image.

  24. Lines 11a - 11d, Column (A): If lines 11a-11d column (A) are blank, and an entry is present on line 11e(A), arrow any dollar amounts on line 11a-11d columns (B), (C), (D) or in the "Business Code" section to corresponding lines in column (A).

  25. Line 11e, Column (A): If blank:

    1. Add Lines 11a - 11d, Column (A).

    2. Edit from Line 12, if Line 12 is the first dollar entry on Part VIII.

  26. Line 12, Column (A): If blank, add Lines 1h, 2g, 3, 4, 5, 6d, 7d, 8c, 9c, 10c, and 11e.

Part VIII
Correspondence (IRI Code 88)
(2008 and Subsequent Revisions)

  1. Correspond for Part VIII if Lines 1a - 12, are blank or Part VIII is missing.

Part IX
Perfection
(2008 and Subsequent Revisions)

  1. Lines 1 - 4, Column (A): If blank, edit the amount from Column (B) to Column (A).

  2. Lines 5 - 24e, Column (A): If blank, add Columns (B) - (D) for each line.

  3. Line 25: If blank, add Lines 1 - 24e, Column (A).

Part IX
Correspondence (IRI Code 89)
(2008 and Subsequent Revisions)

  1. Correspond for Column (A) if Part IX Lines 1 — 25 are blank and Part I, Line 18 has a dollar entry or Part IX is missing.

    Note:

    A 0 (zero), - (dash), none, or N/A are acceptable entries.

Part X
Perfection
(2008 and Subsequent Revisions)

  1. Lines 1 - 15, Column (B): Perfect.

  2. Line 16, Column (A): If blank, do one of the following:

    1. Add Lines 1 - 15.

    2. Add Lines 26 and 33.

    3. Edit from Line 34.

  3. Line 16, Column (B): If blank, 0 (zero), - (dash), none, or N/A, do one of the following:

    1. Add Lines 1 - 15.

    2. Add Lines 26 and 33.

    3. Edit from Line 34.

    4. If unable to perfect per 1 - 3 above, and you are not corresponding for Part X, Column (B), edit "1" .

  4. Lines 17 - 25, Column (B): Perfect.

  5. Line 26, Column (A) and (B):If a negative symbol is present ( - , > , etc). circle out the negative symbol . If blank, do one of the following for each column:

    1. Add Lines 17-25. If blank, 0 (zero), - (dash), none or N/A are the only entries present, don’t edit line 26.”

    2. Line 16 minus Line 33 if both Line 16 and Line 33 have an amount.

    3. If Line 16 is the only line with an amount, leave Line 26 blank and edit the amount from Line 16 to Line 33.

  6. Lines 27 - 32, Column (B): Perfect.

  7. Line 33, Columns (A) and (B): If blank, do one of the following for each column:

    1. Line 16 minus Line 26.

    2. Add Lines 27 - 29.

    3. Add Lines 30 - 32.

  8. Line 34, Column (B): If blank, add Line 26, Column (B) and Line 33, Column (B).

    Figure 3.11.12-5

    This is an Image: 33480501.gif

    Please click here for the text description of the image.

Part X
Correspondence (IRI Code 80)
(2008 and Subsequent Revisions)

  1. Correspond for Part X, Column (B), if lines 1 - 34 are blank and cannot be perfected from attachments or Part X is missing. Don't correspond if 0 (zero), - (dash), none, or N/A is present in Part X, Column (B).

  2. Don’t correspond if the final/termination criteria is met. IRM 3.11.12.3.7

Schedule A (Form 990 or 990-EZ)
(2008 and Subsequent Revisions)

  1. Schedule A (Form 990 or 990-EZ) must be filed by an organization if they indicate they are one of the following (See Figures 3.11.12-1a and 3.11.12-1b, EO Filers Defined).

    1. SS03: IRC 501(c)(3)

    2. SS50: IRC 501(e)

    3. SS60: IRC 501(f)

    4. SS70: IRC 501(k)

    5. SS71: IRC501(n)

    6. SS91: IRC 4947(a)(1)

  2. If required to file per (1) above do the following:

    1. If attached put Schedule A (2014 and subsequent) in order, pages 1 - 8 and perfect per IRM 3.11.12.3.23 - IRM 3.11.12.3.29 .

    2. If attached put Schedule A (2008–2013) in order, pages 1 - 4 and perfect per IRM 3.11.12.3.23 - IRM 3.11.12.3.29 .

    3. If missing or blank, research INOLES for the Foundation Code and do the following:

    If And Then
    Schedule A is missing the foundation code is 02, 03 or 04
    • Insert a blank Part I and edit a NPFRC "11" .

    • Don’t edit a SIC "A" .

    • Don’t correspond for Schedule O.

    Schedule A is present with no boxes checked on Part I or multiple boxes checked in Part I The foundation code is 02, 03 or 04
    • Edit NPFRC "11" .

    • Delete Part II and III.

    • Don’t edit SIC of "A" .

    • Don’t correspond for Schedule O.

    Schedule A is missing The foundation code is other than 02, 03 or 04 Correspond using IRI 20.
    Schedule A is present with no boxes checked on Part I or multiple boxes checked in Part I The foundation code is other than 02, 03 or 04 Perfect following IRM 3.11.12.3.24 .
    Schedule A is missing or Schedule A is present with no boxes checked on Part I or multiple boxes checked in Part I The subsection is 03 and the foundation code is 00 or 09 Route to Entity for correction of foundation code. Foundation code 00 and 09 are not valid.
  3. If the organization isn't required to file a Schedule A per (1) above, "X" page 1, and staple the remaining pages of Schedule A together.

Schedule A (Form 990 or 990-EZ)
Correspondence (IRI Code 20)
(2008 and Subsequent Revisions)

  1. Correspond for a Schedule A if missing using IRI 20, and it has been determined that the organization is one of the following:

    1. SS03: IRC 501(c)(3) - Foundation Code other than 02, 03 or 04 (If 02, 03 or 04, don't correspond.

    2. SS50: IRC 501(e)

    3. SS60: IRC 501(f)

    4. SS70: IRC 501(k)

    5. SS71: IRC 501(n)

    6. SS91: IRC 4947(a)(1)

Schedule A
Part I
Perfection
(Non-PF Reason Code)
(2008 and Subsequent Revisions)

  1. The Non-Private Foundation Reason Code (NPFRC) is determined from:

    1. Schedule A, Part I, or

    2. INOLES (if no box is checked, or multiple boxes are checked and it's not a Group Return research is required).

      Note:

      If a Group Return with multiple boxes checked, see (7) below.

  2. Edit the NPFRC in the right margin of Schedule A, Part I to the right of Lines 1-2.

  3. If Part I is missing or blank, and Part II and/or Part III is present and the organization is required to file a Schedule A per IRM 3.11.12.3.22, insert Sch A, page 1 and edit the NPFRC on the inserted page.

  4. If the Foundation Code on INOLES differs from the box the taxpayer checked, edit the NPFRC using the taxpayer's entry.

  5. For SS 50, 60, 70, 71, or 91, edit the following NPFRC's regardless of what box the taxpayer has checked:

    1. SS 50 = NPFRC 03 (box 3). X Parts II and III.

    2. SS 60 = NPFRC 10 (box 11). X Parts II and III.

    3. SS 70 = NPFRC 09 (box 9). X Part II

    4. SS 71 = NPFRC 10 (box 11). X Parts II and III.

    5. SS 91 (4947(a)(1) = NPFRC 10 (box 11). X Parts II and III.

  6. For SS 03, edit the NPFRC which agrees with the following Foundation Codes IRM 3.11.12.3.5 and IRM 3.11.12.4.22 for a blank subsection or a subsection other than those listed in (5) above.

    Foundation Code Box Number NPFRC
    10 1 01
    11 2 02
    12 3
    or the organization's name includes "hospital" , "clinic" , etc.
    03
    12 4
    or the organization's name includes "research" , "laboratory" , etc., or the name of a hospital is entered on Line 4.
    05
    13 5 06
    14 6 04
    15 7 07
    15 8
    or the organization's name includes "trust" .
    08
    16 10 09
    18 11 11
    21 12a 12
    22 12b 13
    23 12c 14
    24 12d 15
    25 9 16
  7. If a Group Return and a SS03 with multiple boxes checked, and one of those boxes is 12-12d, edit the NPFRC corresponding to the box above line 12–12d that is checked.

    Example:

    Box 7 and 12d are checked. Edit a NPFRC of 07.

  8. 2016 and subsequent revision - If the taxpayer checked box 12 and/or has entered name(s) of supported organization(s) in the table for Line 12g, Column (i), but has not checked a Type of organization in 12a-12d, don't edit a NPFRC. IRM 3.11.12.3.25 (1).

  9. 2016 and subsequent revision - If any of the boxes in 1 - 12 are checked and the taxpayer has also entered information in the table for Line 12g, edit the NPFRC for the box marked in Line 1 -11 and perfect the table on Line 12g per (10) and (16) below.

  10. 2016 and subsequent - Line 12g, Column (i), Total: If blank, edit the number of organizations listed in 12g, Column (i).

  11. 2014 and 2015 revision - If the taxpayer checked box 11 and/or has entered name(s) of supported organization(s) in the table for Line 11g, Column (i), but has not checked a "Type" of organization in 11a-11d, don't edit a NPFRC. IRM 3.11.12.3.25 (1).

  12. 2014 and 2015 revision - If any of the boxes in 1 - 12 are checked and the taxpayer has also entered information in the table for Line 11g, edit the NPFRC for the box marked in Line 1 -10 and perfect the table on Line 11g per (12) and (14) below.

  13. 2014 and 2015 - Line 11g, Column (i), Total: If blank, edit the number of organizations listed in 11g, Column (i).

  14. 2014 and 2015 - Line 11g Column (iii) A,B,C,D, E, Type of Organization: If other than a single numeric 1 - 9 only is present circle out the information present and edit based on the following:

    If Description or information found on Line 11g Column (iii) or an attachment is Then edit on Line 11g, Column (iii) A, B, C, D, E
    Church, convention of churches or 170(b)(1)(A)(i) 1
    School or 170(b)(1)(A)(ii) 2
    Hospital or 170(b)(1)(A)(iii) 3
    Medical Research 4
    Operated for the benefit of a college, university or governmental unit or 170(b)(1)(A)(iv) 5
    Federal, state or local governmental unit or 170(b)(1)(A)(v) 6
    Support from a governmental unit or public or 170(b)(1)(A)(vi) 7
    Community trust 8
    More than 33% support or 509(a)(2) 9
    None of the above or unable to determine Circle out information.
  15. 2016 and subsequent - Line 12g Column (iii) A,B,C,D, E, Type of Organization: If other than a single numeric 1 - 9 only is present circle out the information present and edit based on the following:

    If Description or information found on Line 12g Column (iii) or an attachment is Then edit on Line 12g, Column (iii) A, B, C, D, E
    Church, convention of churches or 170(b)(1)(A)(i) 1
    School or 170(b)(1)(A)(ii) 2
    Hospital or 170(b)(1)(A)(iii) 3
    Medical Research 4
    Operated for the benefit of a college, university or governmental unit or 170(b)(1)(A)(iv) 5
    Federal, state or local governmental unit or 170(b)(1)(A)(v) 6
    Support from a governmental unit or public or 170(b)(1)(A)(vi) 7
    Community trust 8
    Agriculture research 9
    More than 33% support or 509(a)(2) 10
    None of the above or unable to determine Circle out information.
  16. 2016 and subsequent revision - Line 12g, Column (v), Total: If blank, add the dollar amounts in Column (v) for each organization listed in Column (i) and edit to the Total Line of Column (v). If a percentage is present, leave blank. Don't include percentages. If both dollar amounts and percentages are present, edit the total of the dollar amounts only.

  17. 2014 and subsequent revision - Line 11g, Column (v), Total: If blank, add the dollar amounts in Column (v) for each organization listed in Column (i) and edit to the Total Line of Column (v). If a percentage is present, leave blank. Don't include percentages. If both dollar amounts and percentages are present, edit the total of the dollar amounts only.

  18. For 2008 - 2013 revisions, perfect per paragraph 19 - 23 below.

  19. If the taxpayer checked box 11 and/or has entered name(s) of supported organization(s) in the table for Line 11h, Column (i), but has not checked a "Type" of organization in 11a-11d, don't edit a NPFRC. See IRM 3.11.12.3.25(1).

  20. If any of the boxes in 1 - 10 are checked and the taxpayer has also entered information in the table for Line 11h, edit the NPFRC for the box marked in Line 1 -10 and perfect the table on Line 11h per (15) and (16) below.

  21. Line 11h, Column (i), Total: If blank, edit the number of organizations listed in Column (i).

  22. Line 11h, Column (vii), Total: If blank, add the dollar amounts in Column (vii) for each organization listed in Column (i) and edit to the Total Line of Column (vii). If a percentage is present, leave blank. Don't include percentages. If both dollar amounts and percentages are present, edit the total of the dollar amounts only.

  23. Only convert 2008 - 2013 Schedule A if attached to a 2014 or subsequent revision of Form 990 or a 2008 and subsequent Form 990-EZ. See exhibit 3.11.12 - 11.

Schedule A
Part I
Correspondence (IRI Code 21)
(Non-PF Reason Code)
(2008 - 2015 Revisions)

  1. Correspond for Schedule A, Part I using IRI 21 if any of the following apply:

    • Lines 1 - 11 are blank or multiple boxes are checked and after research it is determined Part II or III is required.

    • Lines 1 - 11 are blank or multiple boxes are checked and research indicates the Foundation Code is 17.

    • Schedule A line 11 is checked and lines 11a - 11d are blank.

    • Name(s) or money is entered in the table for line 11h and lines 11a - 11d are blank.

    .

  2. If corresponding for the type box, don't "X" pages 2 and 3 of Schedule A.

Schedule A
Part I
Correspondence (IRI Code 21)
(Non-PF Reason Code)
2016 and Subsequent Revisions

  1. Correspond for Schedule A, Part I using IRI 21 if any of the following apply:

    • Lines 1 - 12 are blank or multiple boxes are checked and after research it is determined Part II or III is required.

    • Lines 1 - 12 are blank or multiple boxes are checked and research indicates the Foundation Code is 17.

    • Schedule A line 11 is checked and lines 11a - 11d are blank.

    • Name(s) or money is entered in the table for line 11h and lines 11a - 11d are blank.

    .

  2. If corresponding for the type box, don't X pages 2 and 3 of Schedule A.

Schedule A
Part II
Perfection
(2008 and Subsequent Revisions)

  1. Perfect Part II and "X" Part III if a NPFRC of 06, 07, 08 or 16 is edited. "X" Part II if other than a NPFRC 06, 07, 08 or 16 is edited.

  2. Lines 1-3, Column (f): If blank, add Columns (a)-(e) for each line.

  3. Line 4, Column (f): If blank, do one of the following:

    1. Add Line 4, Columns (a)-(e).

    2. Add Lines 1-3, Column (f).

  4. Line 5, Column (f): Perfect.

  5. Line 6, Column (f): If blank, Line 4 minus Line 5.

  6. Line 7, Column (f): If blank, do one of the following:

    1. Add Line 7, Columns (a)-(e).

    2. Edit from Line 4, Column (f).

  7. Lines 8-10, Column (f): If blank, add Columns (a)-(e) for each line.

  8. Line 11, Column (f): If blank, add Lines 7-10, Column (f).

Schedule A
Part II
Correspondence (IRI Code 22 )
(2008 and Subsequent Revisions)

  1. Correspond for Part II using IRI 22 if a single box is checked in Part I of Schedule A and all of the following apply:

    1. NPFRC 06, 07, 08 or 16 is edited.

    2. Lines 1-11, Column (a)-(f) are blank and doesn't contain a 0 (zero), - (dash), none, or N/A on any part of Part II, Lines 1-11.

    3. The return isn't an initial return.

Schedule A
Part III
Perfection
(2008 and Subsequent Revisions)

  1. Perfect Part III and "X" Part II if a NPFRC 09 is edited. "X" Part III if other than a NPFRC 09 is edited.

  2. Lines 1-5, Column (f): If blank, add Columns (a)-(e) for each line.

  3. Line 6, Column (f): If blank, do one of the following:

    1. Add Line 6, Columns (a)-(e).

    2. Add Lines 1-5, Column (f).

  4. Line 7a-7b, Column (f): If blank, add Columns (a)-(e) for each line.

  5. Line 7c, Column (f): If blank, do one of the following:

    1. Add Line 7c, Columns (a)-(e).

    2. Add Line 7a and 7b, Column (f).

  6. Line 8, Column (f): If blank, Line 6, minus Line 7c, Column (f).

  7. Line 9, Column (f): If blank, do one of the following:

    1. Add Line 9, Columns (a)-(e).

    2. Edit from Line 6, Column (f).

  8. Lines 10a-10b, Column (f): If blank, add Columns (a)-(e) for each line.

  9. Line 10c, Column (f): If blank, do one of the following:

    1. Add Line 10c, Columns (a)-(e).

    2. Add Line 10a and 10b, Column (f).

  10. Lines 11-12, Column (f): If blank, add Columns (a)-(e) for each line.

  11. Line 13, Column (f): If blank, add Lines 9, 10c, 11 and 12, Column (f).

Schedule A
Part III
Correspondence (IRI Code 23)
(2008 and Subsequent Revisions)

  1. Correspond for Part III using IRI 23 if a single box is checked in Part I of Schedule A and if all of the following apply:

    1. NPFRC 09 is edited.

    2. Lines 1-13, Columns (a)-(f) are blank and doesn't contain a 0 (zero), - (dash), none, or N/A on any part of Part III, Lines 1-13.

    3. The return isn't an initial return.

Form 990 Schedule C
Part II-A Lines 2a(a) - 2f(e)

  1. If Line 2c(e) is greater than Line 2b(e), or Line 2f(e) is greater than Line 2e(e) take the following actions:

    • Photocopy Form 990 , page 1 and Schedule C Part II A.

    • Route photocopies (clearly marked as photocopies) via Form 4227 to Mail Stop 1112. In remarks indicate "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " .

    • Edit an action trail "photocopy sent" .

Form 990 Schedule H
Parts I, III & V (Section B) Perfection (2016 and subsequent)

  1. Put Schedule H, (2016and subsequent revision) pages 1-2, Part V, section order of A, C, B, D (pages 3, 8, 9, 4, 5, 6, 7) order.

  2. Part I: Perfect as follows

    1. Line 7d, Column (e): If blank, add Lines 7a - 7c, Column (e).

    2. Line 7d, Column (f): If blank, add Lines 7a - 7c, Column (f).

    3. Line 7j, Column (e): If blank, add Lines 7e - 7i, Column (e).

    4. Line 7j, Column (f): If blank, add Lines 7e - 7i, Column (f).

    5. Line 7k, Column (e): If blank, add Lines 7d and 7j, Column (e).

    6. Line 7k, Column (f): If blank, add Lines 7d and 7j, Column (f).

  3. Part III, Line 8: Edit a code of 1 - 3 to the right of the check boxes based on the box that is checked. If no box is checked, leave blank.

    1. Code 1 - Cost accounting system

    2. Code 2 - Cost to charge ratio

    3. Code 3 - Other

  4. Part V, Section B: Edit a code of 1 - 5 on the top portion of the return to right of the Name of Hospital Facility. The number represents the first five facilities submitted in Section B. For example, if a Form 990 has a completed Schedule H attached, and Part V has three Sections B's present, number the first Section B 1, and the second Section B 2, and the third Section B 3.

Form 990 Schedule H
Parts I, III & V (Section B) Perfection (2014 and 2015)

  1. Put Schedule H, (2014 and subsequent revision) pages 1-2, Part V, section order of A, C, D, B (pages 3, 7, 8, 4, 5, 6) order.

  2. Part I: Perfect as follows

    1. Line 7d, Column (e): If blank, add Lines 7a - 7c, Column (e).

    2. Line 7d, Column (f): If blank, add Lines 7a - 7c, Column (f).

    3. Line 7j, Column (e): If blank, add Lines 7e - 7i, Column (e).

    4. Line 7j, Column (f): If blank, add Lines 7e - 7i, Column (f).

    5. Line 7k, Column (e): If blank, add Lines 7d and 7j, Column (e).

    6. Line 7k, Column (f): If blank, add Lines 7d and 7j, Column (f).

  3. Part III, Line 8: Edit a code of 1 - 3 to the right of the check boxes based on the box that is checked. If no box is checked, leave blank.

    1. Code 1 - Cost accounting system

    2. Code 2 - Cost to charge ratio

    3. Code 3 - Other

  4. Part V, Section B: Edit a code of 1 - 5 on the top portion of the return to right of the Name of Hospital Facility. The number represents the first five facilities submitted in Section B. For example, if a Form 990 has a completed Schedule H attached, and Part V has three Sections B's present, number the first Section B "1" , and the second Section B "2" , and the third Section B "3" .

Form 990 Schedule H
Parts I, III & V (Section B) Perfection (2008 - 2013)

  1. Put Schedule H ( 2013 revision) in pages 1-2, Part V, section order of A, D, B (pages 3, 8, 4, 5, 6) for the first five facilities in Part V. . Put Schedule H (200812 - 201212) in page 1, 2, 3, 7, 4, 5, 6 order.

  2. Part I: Perfect as follows:

    1. Line 7d, Column (e): If blank, add Lines 7a - 7c, Column (e).

    2. Line 7d, Column (f): If blank, add Lines 7a - 7c, Column (f).

    3. Line 7j, Column (e): If blank, add Lines 7e - 7i, Column (e).

    4. Line 7j, Column (f): If blank, add Lines 7e - 7i, Column (f).

    5. Line 7k, Column (e): If blank, add Lines 7d and 7j, Column (e).

    6. Line 7k, Column (f): If blank, add Lines 7d and 7j, Column (f).

  3. Part III, Line 8: Edit a code of 1 - 3 to the right of the check boxes based on the box that is checked. If no box is checked, leave blank.

    1. Code 1 - Cost accounting system

    2. Code 2 - Cost to charge ratio

    3. Code 3 - Other

  4. Part V, Section B: Edit a code of 1 - 5 on the top portion of the return to right of the Name of Hospital Facility. The number represents the first five facilities submitted in Section B. For example, if a Form 990 has a completed Schedule H attached, and Part V has three Sections B's present, number the first Section B "1" , and the second Section B "2" , and the third Section B "3" .

  5. Only convert a 2008 - 2013 Schedule H if attached to a 2014 or subsequent revision of a Form 990 . See Exhibit 3.11.12 -7

Form 990 Schedule H
Parts I, III & V (Section B)
Correspondence (IRI Codes 57 & 59)
(2008 and Subsequent Revisions)

  1. IRI Code 57 - correspond for a Schedule H if line Part IV, Line 20a, of Form 990 is checked yes and either of the following apply:

    1. Schedule H is missing or

    2. Sch H, Part V, Section B all yes/no questions are not answered for tax periods 201104 and subsequent.

    3. If questions 10b and/or 12b (2014 and subsequent revision) is the only question not answered, "Don't correspond" .

    4. If question 8b (2008 - 2013 revision) is the only question not answered, Don't correspond.

  2. IRI Code 59 - Correspond for Schedule H if all of the following apply:

    1. Tax period is 201104 and subsequent.

    2. Form 990, Part IV, line 20b is checked yes.

    3. Either a Schedule H or an Audited Financial Statement is missing (both must be present.

Form 990 Schedule L
Parts I & II
Perfection
(2008 and Subsequent Revisions)

  1. Edit a "1" in the right margin of Schedule L, Part I if data is present (including 0 - N/A or none) in Part I.

  2. Edit a "1" in the right margin of Schedule L, Part II if data is present (including 0 - N/A or none) in Part II.

Form 990
(2007 and Prior Revisions)

  1. Form 990 (2007 and prior revisions) is an information return required of organizations whose annual gross receipts are normally more than $50,000 who are exempt under IRC 501(a) and described in IRC 501(c) 1954, or organizations that have notified IRS they are operating as IRC 527 political organizations.

General Instructions
(2007 and Prior Revisions)

  1. Always convert prior year return revisions, see Exhibit 3.11.12–5.

  2. Always follow the instructions for a "special return" .

  3. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave a "T" line blank only if it cannot be perfected in the steps above.

  4. Put Form 990 in the following order:

    1. Form 990, pages 1 - 9 , followed by

    2. Schedule A, pages 1 - 7.

  5. For 990 zero filers with no transcribed lines present on any of Parts I-XI, it isn't necessary to put pages in order after page 1.

  6. For 990 zero filers with transcribed lines present on any of Parts I-XI, put form in order as shown in (4) above.

Special Returns
(2007 and Prior Revisions)

  1. Form 990 special returns are:

    Special Return: IRM Section:
    LM–2 and LM–3 IRM 3.11.12.4.3
    Zero Filer IRM 3.11.12.2.26 and IRM 3.11.12.2.26.1

Forms LM–2, LM–3, 5500
(2007 and Prior Revisions)

  1. Labor organizations are allowed to substitute some information from Form LM–2 or LM–3. Edit the corresponding information from LM-2 or LM-3 on the following lines, if blank, and Form LM-2 or LM-3 is attached:

    1. Form 990, Part I, Lines 13, 15 (but the organization must complete Lines 16-21).

    2. Form 990, all of Part II. If Part II is blank, leave blank.

    3. Form 990, Part IV (but the organization must complete Lines 59, 66, and 73, Columns (A) and (B).

  2. If unable to perfect from the LM-2 or LM-3, perfect the entries outlined in (1)a)-c) above using the perfection procedures for that Part (i.e., if Part II is blank and you cannot perfect from the LM-2 or LM-3, perfect using Part II Perfection procedures in 3.11.12.4.13).

  3. Correspond for the LM-2 or LM-3 reconciliation sheet if any of (1) above isn't present. Use the LM–2/LM–3 paragraph of the 2698C Letter.

  4. An employee benefit plan may substitute Form 5500 for part of Form 990 as follows:

    1. Form 990, Part I, Line 21: The organization may substitute Form 5500, Schedule H, Col (A), Line 1(b)(1), or Schedule I, Col (a), Line 1(c).

    2. Form 990, Part IV, Line 59 Col. (A): Form 5500, Schedule B, Line 1(b)(1).

    3. Form 990, Part IV, Line 59 Col. (B): Form 5500, Schedule B, Line 1(b)(1).

Perfection, Editing, and Correspondence
(2007 and Prior Revisions)

  1. Attach Form 5800, Exempt Organization Return Edit Sheet, if required.

  2. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.2.10

    2. Computer Condition Codes (F, G, L, R, T, V, W, Y, 3, 7), IRM 3.11.12.2.11

    3. Daily Delinquency Penalty, IRM 3.11.12.2.14.1.2

    4. Entity Perfection, IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

    5. Final Returns, IRM 3.11.12.4.10

    6. Imaging, IRM 3.11.12.2.19

    7. Incomplete Return Item (IRI) Program, IRM 3.11.12.2.12.3

    8. Received Date, IRM 3.11.12.2.14.1

    9. Tax Period, IRM 3.11.12.2.25

    10. Zero Filers, IRM 3.11.12.2.26 and IRM 3.11.12.2.26.1

Subsection Code
(2007 and Prior Revisions)

  1. Edit a two-digit Subsection Code (SSXX) in the lower right corner of the entity portion if transcription lines are present in Parts I-XI, see Figures 3.11.12-1a and 3.11.12-1b.

  2. Edit a two-digit Subsection Code (SSXX) in the lower right corner of the entity portion if no transcription lines are present in Parts I-XI and the Subsection is present. If the Subsection is missing, edit a "00" .

  3. Determine the Subsection Code from the list below:

    1. Item J of the entity section. Perfect as follows:

      Box Checked Subsection
      501(c) XX (subsection taxpayer entered)
      4947(a)(1) 91
      527 82
    2. INOLES research.

  4. If the Subsection Codes conflict (e.g., INOLES shows SS03, but the taxpayer indicates otherwise in Item J), always use the Subsection on INOLES.

  5. If you are unable to determine the Subsection Code, edit "00" .

  6. If Subsection 28 or the return is for the National Railroad Retirement Investment Trust:

    1. Part V-A (Form 990) must be complete. If blank or missing, ALWAYS correspond.

    2. Don’t correspond for any other issues e.g., missing Part II, Part IV, Schedule A, Schedule B, etc.

Type of Organization Code
(2007 and Prior Revisions)

  1. Edit the Type of Organization Code in the right margin of Form 990, page 1, next to Box F. Edit the Type of Organization Code as follows:

    Form 990
    Type of Organization Code Description
    1 SS00, 02-20, 22-29, 50, 60, 70, 71, or 81.
    3 4947(a)(1) box is checked in Item J of the entity section (SS91).
    4 527 box is checked in Item J of the entity section (SS82).
    9 Non-group zero filer with no transcribed lines in any of Parts I-XI. Don't underline code 9.
    9 Underline code 9 if a non-group zero filer with transcribed lines are present in any of Parts I-XI.
    1 All others.

Schedule B
Indicator
(2007 and Prior Revisions)

  1. For tax periods 200012 – 200712, all organizations must file Schedule B if the amount on Line 1e is ≡ ≡ ≡ ≡ or more. Organizations not required to file a Schedule B must certify they are not required by checking the box in Item M of Form 990 or by checking the third box on the Schedule B, under "Special Rules" and entering an amount or 0 (zero), - (dash), none, N/A on that line or 0 (zero), - (dash), none, N/A or various on Page 1 or in any of Part I.

    Exception:

    If a statement is attached indicating contributions from any one contributor did NOT exceed ≡ ≡ ≡ or more during the year, a Schedule B isn't required.

  2. Edit a Schedule B Indicator to the right of Part I, Line 1 for tax periods 200012 through 200811 as shown below:

    If And Then
    Item M in the entity section is checked or is blank
    • A Schedule B is attached, containing contributor information (name(s) / amount(s)), or

    • The word "anonymous, " , "various" , 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 is checked and/or an amount is present or 0 (zero), - (dash), none, or N/A on the line

    Edit a Schedule B Indicator of "1" .
    Item M in the entity section is checked or is blank, and Part I, Line 1e is ≡ ≡ ≡ ≡ ≡ ≡ or less, or
    There is a statement indicating contributions from any one contributor did not exceed ≡ ≡ ≡
    A Schedule B isn't attached 1. Don't edit a Schedule B Indicator.
    2. Continue processing return.
    Item M in the entity section is checked and Part I, Line 1e is ≡ ≡ ≡ ≡ or more A Schedule B isn't attached, or
    Is attached, but doesn't contain:
    • contributor information (name(s) / amount(s)), or

    • The word "anonymous" , various, 0 (zero), - (dash), none,or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 isn't checked

    1. Edit a Schedule B indicator of "2" .
    2. Continue processing return.
    Item M in the entity section is blank, and Part I, Line 1e is ≡ ≡ ≡ or more A Schedule B isn't attached, or
    Is attached, but doesn't contain:
    • contributor information (name(s) / amount(s)), or

    • The word "anonymous" , various, 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 isn't checked

    1. Correspond per IRM 3.11.12.4.8.
    2. Don't edit a Schedule B Indicator.

    Note:

    Contributor information means at least one name and amount for the same contributor is present. A "contributor" may also be listed as a "sponsor" or shown as a function. For example, the contribution may be shown as "bake sale" or "car wash" or another type of activity or function.

Schedule B
Correspondence (IRI Code 50)
(2007 and Prior Revisions)

  1. Correspond for a Schedule B if all of the following apply:

    1. Line 1e is ≡ ≡ ≡ ≡ ≡ ≡ or more.

    2. The box in Item M isn't checked.

    3. The tax period is 200012 or subsequent.

    4. Schedule B is one of the following:

      Schedule B is But And
      Missing
      Present doesn't contain contributor information (name(s) / amount(s)), or "anonymous" , "various" , 0 (zero) - (dash), none, or N/A on Page 1 or in Parts I - III The third box under "Special Rules" , page 1 isn't checked; or is checked, but an amount or 0 (zero), - (dash), none, or N/A isn't present on that line.

      Note:

      Contributor information means at least one name and amount for the same contributor is present. A "contributor" may also be listed as a "sponsor" or shown as a function. For example, the contribution may be shown as "bake sale" or "car wash" or another type of activity or function.

Group Return
(2007 and Prior Revisions)

  1. Form 990 (2007 and prior revisions): Identify a group return if Item H(a) is checked "yes" The following may also be present and used to identify a group return:

    1. Item I contains a GEN. A GEN consists of 4 numeric digits. GEN numbers 0000 and 9999 are not valid.

    2. Group Return is on the return or an attachment.

    3. There is a list of subordinates attached.

    4. There is a statement on the return or attachment that all affiliates are included on the group return.

    5. Form 851, Affiliations Schedule, is attached identifying the subordinates.

  2. Don’t consider a group return stating zero filer as a "zero filer" , and don't correspond for any information except as required in IRM 3.11.12.4.9.1 (8) below. DON’T EDIT ORGANIZATION CODE "9" .

  3. DON’T consider a group return indicating "final/termination" as a final/termination return. DON’T CODE CCC "F" .

  4. Route the return to Entity, IRM 3.11.12.2.9.2 if any of the following apply:

    1. The group or an affiliate doesn't have an EIN.

    2. The group or an affiliate has two or more EINs.

    3. New affiliates have been added to the group.

    4. There are one or more entity issues, IRM 3.11.12.2.9.2 .

    5. An affiliate has changed its name or address, and Entity has not worked the change (e.g. TC 59X or Entity stamp).

  5. Request NAMEE/NAMEB research if the parent and group return are received in the same batch using the same EIN.

  6. Request INOLES research for the GEN if you have identified the return as a group and the GEN isn't present. If found, edit to Line H(c).

Group Return Perfection and Correspondence)
(2007 and Prior Revisions)
  1. Form 990 (2007 and Prior Revisions):

    1. H(c) - yes: If Item H(c) is "yes" , edit Code 7 to the right of boxes H(a)-(b).

    2. H(c) - blank: If Item H(c) is blank: If Item H(c) is blank and the return or an attachment states that all affiliates are included on the group return, Edit Code 7 to the right of boxes H(a)-(b) if H(c).

    3. H(c) - blank: If Item H(c) is blank and the return or attachments doesn't state all affiliates are included in the group return, edit Code 8 to the right of boxes H(a)-(b), and request a TC 590014 input for the attached affiliates.

    4. H(c) - no: If Item H(c) is "no" or blank and a list of affiliates is attached, request a TC 590-14 input for the attached affiliates.

    5. If Item H(c) is checked "no" and a list of affiliates isn't attached, don't edit a group code and correspond per 8) below.

    6. If ≡ ≡ ≡ ≡ ≡ is present, a list of affiliates is required. If missing, correspond per 8) below. If present, edit group code "8" .

    7. Don’t edit the group code if you are routing the group return to Entity or you are corresponding for the list of affiliates included in the group return.

    8. Correspond with the parent if the return is identified as a "group return" and any of the following apply:

      • GEN cannot be determined.

      • Item H(c) (990, 2007 and prior revisions) is "no" or blank and a list of affiliates isn't attached.

      • GEN is ≡ ≡ ≡ and a list of affiliates isn't attached.

Final/Termination or Initial Return
(2007 and Prior Revisions)

  1. Identify a return as initial if the return or attachment indicates this is the initial (or first) EO return the organization has filed under the EIN.

  2. Form 990 (2007 and prior revisions): Edit CCC "F" (Final/Termination) if the return is marked Final/Termination or there are other indications the organization is out of business or closed and ALL of the following apply:

    1. The return or an attachment is marked "Final/Termination" or there are other indications the organization is out of business, closed.

    2. Part IV, Line 59(B) is 0 (zero), - (dash), blank, none, or N/A or contains a negative amount.

    3. Part VI, Line 79 is checked "yes" .

    4. Not a group return - Item H(a)-(d) is "no" or blank and Item I is blank. IRM 3.11.12.4.9.1 .

  3. If the taxpayer is attempting to file a "Final/Termination" Form 990 and (2)(a)-(d) are not met, edit Action Code 211 and correspond.

Part I
Lines 1–21
Perfection
(2007 and Prior Revisions)

  1. Line 1e: If blank, add Lines 1a-1d. Don't bring forward any amounts from Schedule B.

  2. Lines 2-5 and Line 7: Perfect.

  3. Line 6a If blank, do one of the following :

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  4. Line 6b : If a negative symbol ( - , > , etc.) is present, circle out the negative symbol. If blank, do one of the following :

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  5. Line 6c, : If blank , Line "a" minus Line "b" .

  6. Line 8a, Columns (A) and (B): If blank, do one of the following (for each line):

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  7. Line 8b Columns (A) and (B): If a negative symbol ( - , > , etc.) is present, circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  8. Line 8c Columns (A) and (B): If blank (for each line), Line "a" minus Line "b" .

  9. Lines 8a - 8c, Column (B): If blank, and unable to perfect per (6) - (8) above (do one of the following for each line):

    1. Edit Line 8d to Line 8a, Column (B).

    2. Edit Line 8a, Column (B) to Line 8c, Column (B).

  10. Line 9a: If blank, do one of the following (for each line):

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  11. Line 9b: If a negative symbol ( - , > , etc.) is present, circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  12. Line 9c: If blank (for each line), Line "a" minus Line "b" .

  13. Line 10a: If blank, do one of the following (for each line):

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  14. Line 10b: If a negative symbol ( - , > , etc.) is present, circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  15. Line 10c: If blank (for each line), Line "a" minus Line "b" .

    Figure 3.11.12-6

    This is an Image: 33480502.gif

    Please click here for the text description of the image.

  16. Line 11: If blank, edit from Line 12, if Line 12 is the first dollar entry on Part I.

  17. Line 12: If blank, add Lines 1e, 2, 3, 4, 5, 6c, 7, 8d, 9c, 10c, and 11. If Line 8d is blank and Line 8c, Columns (A) and/or (B) have an amount, add Line 8c, Columns (A) and/or (B).

  18. Line 13: If blank, do one of the following:

    1. Edit from Part II, Line 44, Column (B).

    2. Add Part II, Lines 22-43e, Column (B).

  19. Line 15: If blank, do one of the following:

    1. Edit from Part II, Line 44, Column (D).

    2. Add Part II, Lines 25-43e, Column (D).

  20. Line 16: Perfect.

  21. Line 17: If blank, Line 16 plus Part II, Line 44, Column (A).

  22. Line 18: If blank, Line 12 minus Line 17.

  23. Line 20: Perfect.

  24. Line 21: If blank, add Lines 18-20. If Line 19 is blank, use the amount from Part IV, Line 73, Column (A) for Line 19.

Part I
Correspondence (IRI Code 98)
(2007 and Prior Revisions)

  1. If the tax period ends December 2008 (200812) or subsequent, a 2008 or subsequent Form 990 revision and a 2008 or subsequent revision of Schedule A must be filed.

  2. Correspond for a 2008 or subsequent revision of Form 990 and a 2008 or subsequent revision of Schedule A if the taxpayer files a 2007 or prior Form 990 revision with a tax period ending in December 2008 or subsequent.

Part II
Perfection
(2007 and Prior Revisions)

  1. Lines 22a-24, Column (A): If blank, edit the amount from Column (B) to Column (A).

  2. Line 25a-25b, Column (A): If blank, do one of the following for each line:

    1. Add Columns (B)-(D).

    2. Line 25a - Add any easily totaled dollar entries in Part V-A, Column (C). Don't include any amounts from attachments.

    3. Line 25b - Add any easily totaled dollar entries in Part V-B, Column (C). Don't include any amounts from attachments.

  3. Lines 25c-29, Column (A): If blank, add Columns (B)-(D) for each line.

  4. Line 30, Column (A): If blank, total amounts from Columns (B), (C), and (D). Leave blank if the only amount on Line 30 is in Column (D).

  5. Line 30, Column (D): Bracket if negative and the form doesn't reflect the line as a negative amount (-) or >, and there are no amounts in Line 30, Columns (A), (B), or (C).

  6. Lines 31-43e, Column (A): If blank, add Columns (B)-(D) for each line.

  7. Line 44, Column (A): If blank, add Lines 22a-43e, Column (A).

Part II
Correspondence (IRI Code 92)
(2007 and Prior Revisions)

  1. Correspond for Column (A) if all of Part II is blank and Part I, Line 17 has a dollar entry.

    Note:

    A 0 (zero), - (dash), none, or N/A are acceptable entries.

  2. Correspond for Columns (B), (C), or (D) if missing or blank and both (a) & (b) apply:

    1. Part I, Lines 13, 14, or 15 have dollar entries.

    2. The organization is exempt under SS(03), SS(04), SS(91).

    Note:

    A 0 (zero), - (dash), none, and N/A are acceptable entries.

  3. Don’t correspond if Part I, Lines 16 and 17 are the only entries and they are equal.

Part IV
Perfection
(2007 and Prior Revisions)

  1. Lines 45 - 58, Columns (A) and (B): Perfect.

  2. Line 59, Column (A): If blank, do one of the following:

    1. Add Lines 45-58.

    2. Add Lines 66 and 73.

    3. Edit from Line 74.

  3. Line 59, Column (B): If blank, 0 (zero), - (dash), none, or N/A, do one of the following:

    1. Add Lines 45 - 58.

    2. Add Lines 66 and 73.

    3. Edit from Line 74.

    4. If unable to perfect per 1 - 3 above, and you are not corresponding for Part IV, Column (B), edit "1" .

  4. Lines 60 - 65, Columns (A) and (B): Perfect.

  5. Line 66, Column (A) and (B): If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following for each column:

    1. Add Lines 60-65.

    2. Line 59 minus Line 73 if both Line 59 and Line 73 have an amount.

    3. If Line 59 is the only line with an amount, leave Line 66 blank and edit the amount from Line 59 to Line 73.

  6. Line 72, Columns (A) and(B): Perfect.

  7. Line 73, Columns (A) and (B): If blank, do one of the following for each column:

    1. Line 59 minus Line 66.

    2. Add Lines 67 - 69.

    3. Add Lines 70 - 72.

    Figure 3.11.12-7

    This is an Image: 33480503.gif

    Please click here for the text description of the image.

Part IV
Correspondence (IRI Code 94)
(2007 and Prior Revisions)

  1. Correspond for Part IV Column (B) if Lines 45-73, Column (B) are blank and cannot be perfected from attachments. Don't correspond if 0 (zero), - (dash), none, or N/A is present in Part IV, Column B.

    Note:

    Don't correspond if this is a "zero" filer with no transcription lines present in any of Parts I-XI.

Part V-A
(Part V (prior years))
Correspondence (IRI Code 95)
(2007 and Prior Revisions)

  1. Correspond for Part V-A (excluding Lines 75a-75d) (Part V prior revisions) if both of the following apply:

    1. Part II, Line 25a, Column (A), is more than ≡ ≡ ≡ ≡ ≡ .

    2. Part V-A (Part V prior revisions) is missing, blank, or name(s) are present in Column (A), but Column (C) is blank.

Part V-B
Perfection
(2007 and Prior Revisions)

  1. For a 2005 – 2007 form revisions, edit a "1" in the right margin of Part V-B if an Officer's, Director's, etc. information is present in this section.

Part VI
Perfection
(2007 and Prior Revisions)

  1. Line 80a: Edit Code "1" in the right margin to the right of the "No" box if both of the following apply:

    1. Line 80a is "no" , blank or both boxes are checked.

    2. There is a name of an organization on Line 80b or the exempt or non-exempt box on Line 80b is checked.

  2. Lines 81a, 85c, 85d, and 85e: Perfect.

  3. Line 85f: If blank, do one of the following:

    1. If Line 85c is greater than Line 85d, then subtract Line 85d from Line 85e.

    2. If Line 85c is less than Line 85d, then subtract Line 85c from Line 85e.

  4. Lines 86a, 86b, 87a, and 87b: Perfect.

  5. Line 92: Edit Code "1" in the right margin to the right of the box if both of the following apply:

    1. Type of Organization Code is 3 (Item I shows a 4947(a)(1) filer).

    2. The Line 92 box is checked or there is a dollar entry on Line 92.

Part VII
Perfection
(2007 and Prior Revisions)

  1. Lines 93a-102, Column (D) and (E): Perfect.

Part XI
Perfection
(2007 and Prior Revisions)

  1. For a 2006 and 2007 form revision, Lines 106 & 107 : Edit Code "1" to the right of the yes/no box if neither box is checked and there is information present in Columns (A)-(D).

Part XI
Correspondence (IRI Code 96)
(2007 and Prior Revisions)

  1. For a 2006 and 2007 form revision, correspond for Part XI, if any of the following apply:

    1. Line 106: Yes box is marked and Columns (A)-(D) are blank.

    2. Line 107: Yes box is marked and Columns (A)-(D) are blank.

♦Paid Preparer Section♦
(2007 and Prior Revisions)

  1. The Paid Preparer section is located below the Signature area at the bottom of Form 990.

♦Paid Preparer PTIN♦
(2007 and Prior Revisions)
  1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 2009 and prior form revisions) at the bottom-right corner of Page 9.

  2. No action is required on amended returns.

  3. The Preparer's SSN must be a nine-digit number. Circle the SSN if all zeroes or all nines.

  4. A PTIN begins with the alpha "P" followed by an eight digit number (e.g., PXXXXXXXX).

♦Firm's EIN♦
(2007 and Prior Revisions)
  1. The Firm's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 9.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine-digit numeric number. Circle the EIN if all zeroes or all nines.

Preparation Code
(2007 and Prior Revisions)
  1. No action is required on amended returns.

  2. Edit a Preparation Code of "1" next to the Preparer's PTIN if data is present in the paid preparer area of the return.

    Note:

    Data such as N/A or self prepared doesn't indicate the return was prepared by a paid preparer and should not be edited with a "1" .

  3. Zero filer returns: If (2) above applies, edit a preparation code.

Schedule A
(Form 990 or 990-EZ)
(2007 and Prior Revisions)

  1. Always convert prior year revisions, see Exhibit 3.11.12-10.

  2. Schedule A (Form 990 or 990-EZ) must be filed by an organization if they indicate they are one of the following (See Figures 3.11.12-1a and 3.11.12-1b, EO Filers Defined):

    1. SS03: IRC 501(c)(3)

    2. SS50; IRC 501(e)

    3. SS60; IRC 501(f)

    4. SS70; IRC 501(k)

    5. SS71; IRC 501(n)

    6. SS91; IRC 4947(a)(1)

  3. If required to file per (2) above use the following table to determine required action:

    1. If attached, put Schedule A in order, pages 1-7 and perfect per IRM 3.11.12.4.4 - IRM 3.11.12.6.4 .

    2. If missing or blank, research INOLES for the Foundation Code and do the following:

      If And Then
      Schedule A is missing the foundation code is 02, 03 or 04 1. Insert a blank Part IV, edit a NPFRC "11" .
      2. No additional perfection of Schedule A is required.
      Schedule A is present with no boxes checked on Part IV or multiple boxes checked in Part IV The foundation code is 02, 03 or 04
      • Edit NPFRC 11.

      • Delete Parts IV-A and V.

      • Don’t edit SIC of A.

      • Don’t correspond for Schedule O.

      Schedule A is missing The foundation code is other than 02, 03 or 04 Correspond using IRI 30.
      Schedule A is present with no boxes checked on Part I V or multiple boxes checked in Part IV The foundation code is other than 02, 03 or 04 Perfect IRM 3.11.12.4.26 .
      Schedule A is missing or Schedule A is present with no boxes checked on Part IV The subsection is 03 and the foundation code is 00 or 09 Route to Entity for correction of foundation code. Foundation code 00 and 09 are not a valid foundation code.
  4. If the organization isn't required to file a Schedule A per (2) above, "X" page 1, and staple pages 1–7 of Schedule A together.

Schedule A
Correspondence (IRI Code 30)
(2007 and Prior Revisions)

  1. Correspond for Schedule A if missing , and it has been determined that the organization is one of the following:

    1. SS03; IRC 501(c)(3) - Foundation Code other than 02, 03 or 04 (If 02, 03 or 04, don't correspond. IRM 3.11.12.4.24 (3)(b)).

    2. SS50; IRC 501(e)

    3. SS60; IRC 501(f)

    4. SS70; IRC 501(k)

    5. SS71; IRC 501(n)

    6. SS91; IRC 4947(a)(1)

  2. Correspond for a 2007 and prior revision of Schedule A if all of the following apply. Use IRI Code 30:

    1. A 2007 or prior Form 990 or 990-EZ was filed.

    2. The tax period is November 2008 or prior.

Schedule A
Part I
Correspondence (IRI Code 31 (Form 990) & 41 (990-EZ))
(2007 and Prior Revisions)

  1. Correspond for Part I if a name is present and Part I, Column (c) is blank or not on an attachment, and either a) or b) apply:

    1. Form 990, Part II, Line 26, Column (A), is more than ≡ ≡ ≡ ≡ ≡ , or

    2. Form 990–EZ, Part I, Line 12 is more than ≡ ≡ ≡ ≡ .

    Note:

    A 0 (zero), - (dash), none, or N/A is an acceptable entry.

Schedule A
Part II-A
Correspondence (IRI Code 32 (Form 990) and 42 (Form 990-EZ))
(2007 and Prior Revisions)

  1. Correspond for Part II-A if a name is present and Part II-A, Column (c) is blank or not on an attachment, and either a) or b) apply:

    1. Form 990, Part II, Column (A), total of Lines 30-32 are more than $50,000, or

    2. Form 990–EZ, Part I, Line 13, is more than ≡ ≡ ≡ ≡ ≡ .

    Note:

    A 0 (zero), - (dash), none, or N/A is an acceptable entry.

Schedule A
Part III
Perfection
(2007 and Prior Revisions)

  1. Always perfect Schedule A, Part VI-A or Part VI-B before perfecting Part III.

  2. Question 1 dollar line: If blank, edit from either Part VI–A, Line 38, Column (b), or Part VI–B, Line i.

  3. Line 1: Edit Code 1 to the right of the "yes/no" boxes if Question 1 is "no" or blank, and there is a dollar entry in the Question 1 dollar line.

Schedule A
Part III
Correspondence (IRI Code 33)
(2007 and Prior Revisions)

  1. Correspond for Part III if all of the following apply:

    1. Part III, Question 1 is "yes" .

    2. Part III, Question 1 dollar line is blank.

    3. Part VI–A is blank.

    4. Part VI–B is blank.

    Note:

    A 0 (zero), - (dash), none, or N/A is an acceptable entry.

Schedule A
Part IV
Perfection
(Non-PF Reason Code)
(2007 and Prior Revisions)

  1. The Non-Private Foundation Reason Code (NPFRC) is determined from:

    1. Schedule A, Part IV, or

    2. INOLES (if no box is checked, or multiple boxes are checked and it's not a Group Return, research is required).

      Note:

      If a Group Return with multiple boxes checked, see (7) below.

  2. Edit the NPFRC in the right margin of Schedule A, Part IV, to the right of lines 5-6.

  3. If Part IV is missing or blank and the organization is required to file a Schedule A IRM 3.11.12.4.24 and you are not corresponding for other parts of Schedule A, insert and edit the NPFRC on the inserted page.

  4. If the Foundation Code on INOLES differs from the box the taxpayer checked, edit the NPFRC using the taxpayer's entry.

  5. For SS50, 60, 70, 71, or 91, edit the following NPFRC's regardless of what box the taxpayer has checked:

    1. SS50 = NPFRC 03 (box 7)

    2. SS60 = NPFRC 10 (box 13)

    3. SS70 = NPFRC 09 (box 12)

    4. SS71 = NPFRC 10 (box 13)

    5. SS91 (4947(a)(1) = NPFRC 10 (box 13)

  6. If SS03, edit the NPFRC which agrees with the following Foundation Codes ( IRM 3.11.12.4.5 and IRM 3.11.12.4.24 for a blank subsection or a subsection other than those listed in (5) above:

    Foundation Code Box Number NPFRC
    10 5 01
    11 6 02
    12 7
    or the organization's name includes "hospital" , "clinic" , etc.
    03
    14 8 04
    12 9
    or the organization's name includes "research" , "laboratory" , etc., or the name of a hospital is entered on Line 9.
    05
    13 10 06
    15 11a 07
    15 11b
    or the organization's name includes "trust" .
    08
    16 12 09
    21 13, Type I 12
    22 13, Type II 13
    23 13, Type III - Functionally Integrated 14
    24 13, Type III - Other 15
    18 14 11
  7. If a Group Return and a SS03 with multiple boxes checked, and one of those boxes are any of the boxes on Line 13, edit the NPFRC corresponding to the box above Line 13 that is checked.

    Example:

    Box 11a and box 13 Type III-Other is checked. Edit a NPFRC of 07.

  8. If the taxpayer checked box 13 and/or has entered name(s) of supported organization(s) in the table for Line 13, Column (a), but has not checked a "Type" of Organization in box 13 Type I through Type III-Other, don't edit a NPFRC. Correspond for the "Type" of organization on Schedule A, Part IV.

  9. If any of the boxes in 5 - 12 are checked and the taxpayer has also entered information in the table for Line 13, edit the NPFRC for the box marked in Line 5 - 12 and perfect the table on Line 13 per (10) below.

  10. Line 13, Column (e) Total Line: If box 13 is checked and the table "Total" line is blank, add rows above in Column (e) and edit to the "Total" line.

Schedule A
Part IV
Correspondence (IRI Code 34)
(Non-PF Reason Code)
(2007 and Prior Revisions)

  1. Correspond for a Schedule A, Part IV, if Lines 5-13 are blank and after research it is determined that Schedule A is required.

  2. Form 2006 and 2007 revisions, correspond for Schedule A, Part IV, Line 13 if any of the following apply:

    1. Box 13 is checked, but the "Type" of supporting organization (I, II, III-functionally integrated, III-other) box isn't checked or more than one box is checked.

    2. Schedule A, Part IV is blank, but the taxpayer has entered name(s) of supporting organization(s) on Line 13, Column (a) and the "Type" of supporting organization (I, II, III-functionally integrated, III-other) box isn't marked or more than one box is marked.

    Note:

    Don't correspond per (2) above if a 2005 or prior year revision.

  3. If corresponding for the type box, don't "X" pages 4 and 5 of Schedule A.

Schedule A
Part IV–A
Perfection
(2007 and Prior Revisions)

  1. Perfect Part IV-A and "X" Part V if a NPFRC 06, 07, 08, or 09 is edited. "X" Part IV-A when a NPFRC 01-05, or 10-15 is edited.

  2. Lines 15-18, 20, 21, Column (e): If blank add, Columns (a)-(d) for each line.

  3. Line 23, Column (e): If blank, add Lines 15-22.

  4. Line 24, Column (e): If blank, Line 23 minus Line 17.

Schedule A
Part IV–A
Correspondence (IRI Code 38)
(2007 and Prior Revisions)

  1. Correspond for Part IV–A if all of the following apply:

    1. NPFRC 06, 07, 08, or 09 is edited.

    2. Lines 15-24, Columns (a)-(e) are blank and doesn't contain a 0 (zero), - (dash), none, or N/A on any part of Part IV-A (Lines 15-27h).

    3. The return isn't an initial return.

Schedule A
Part V
Perfection
(2007 and Prior Revisions)

  1. Perfect Part V and "X" Part IV-A if a NPFRC 02 is edited. "X" Part V when a NPFRC 01, 03-15 is edited.

  2. If the NPFRC is 02, a Signature Code must be edited.

    Exception:

    Don't edit a Signature Code if you are corresponding for a missing signature.

  3. Edit the following Signature Codes in the bottom right margin of Schedule A, Part V, below line 35.

    1. Code "1" if the person signing the return has entered "officer" (president, vice-president, CEO, treasurer, or secretary), "director" , or "trustee" in the "name and title" area of the jurat.

    2. Code "2" for all others.

Schedule A
Part V
Correspondence (IRI Code 35)
(2007 and Prior Revisions)

  1. Correspond for Part V if all of the following apply:

    1. NPFRC 02 (Foundation Code 11) is edited.

    2. Any question (except 34a and 34b) is blank and doesn't contain a 0 (zero), - (dash), none, or N/A.

    3. The return isn't an initial return.

  2. Correspond for Part V, Question 35, if NPFRC 02 is edited and Question 35 is the only question unanswered, unless Part V isnoted "N/A" .

Schedule A
Part VI–A
Perfection
(2007 and Prior Revisions)

  1. Edit all T-lines from Part VI–A, Column (a) to (b) if the corresponding entry in Column (b) is blank.

  2. Lines 36, 37, 39, 41, 42, 43, and 44: Perfect.

Schedule A
Part VI–A
Correspondence (IRI Code 36)
(2007 and Prior Revisions)

  1. Correspond for Part VI–A or VI–B if all of the following apply:

    1. Part III, Question 1 is "yes" .

    2. Part III, Question 1 dollar line is blank.

    3. Parts VI–A and VI-B are blank.

Schedule A
Part VI-B
Perfection
(2007 and Prior Revisions)

  1. Line i: If blank, add Lines c-h.

Schedule A
Part VI-B
Correspondence (IRI Code 36)
(2007 and Prior Revisions)

  1. Correspond for Part VI–A or VI–B if all of the following apply:

    1. Part III, Question 1 is "yes" .

    2. Part III, Question 1 dollar line is blank.

    3. Parts VI–A and VI-B are blank.

Schedule A
Part VII
Correspondence (IRI Code 37)
(2007 and Prior Revisions)

  1. Correspond for Line 51d, Columns (a)-(d), if they are blank and any of Lines 51a through 51c are "yes" .

  2. Correspond for Line 52b, Columns (a)-(c), if they are blank and Line 52a is "yes" .

Form 990–BL
(CSPC Only)

  1. Route all Forms 990-BL to CSPC for NMF processing.

  2. Form 990-BL is an information and excise tax return for Black Lung Benefit Trusts and Certain Related Persons.

  3. Form 990-BL is subject to:

    1. The Daily Delinquency Penalty on a black lung benefit trust using only Parts I, II, III, and IV for their annual information return.

    2. IRC 4951 and 4952 excise tax "penalties" on the trust and its trustees, self-dealers and disqualified persons using Schedule A.

    3. Failure to file penalty.

    4. Estimated tax penalty.

Instructions

  1. Perfect Form 990-BL as follows:

    1. Perfect for dollar entries only.

    2. Always perfect for legibility.

    3. Always perfect from attachments if available.

    4. Follow the stated instruction for the line.

    5. Leave the line blank only if it cannot be perfected.

  2. Put Form 990-BL in the following order:

    1. Form 990-BL, pages 1 and 2.

    2. Schedule A.

Perfection

  1. Place a check next to the "Name of the Trust" and the "Trust" box if the "Name of the Trust" line and any Part I - Part IV are complete.

  2. Place a check next to the "Name of Other Person Filing Return" line and the "Trustee" box if the "Name of Other Person Filing Return" line and Schedule A, Part I, Column (h) is complete.

  3. Place a check next to the "Name of Other Person Filing Return" line and the "Disqualified Person" box if Schedule A, Part I, Column (g) is complete.

  4. Math verify Form 990-BL, Part I, Lines 3 and 12, and Part II, Lines 18 and 21 (both BOY and EOY columns). Place a check mark to the right of the line if your amount agrees with the taxpayer's entry. Place an "X" to the right of the taxpayer's entry if your amount doesn't agree with the taxpayer's entry, and edit the correct amount to the left of the line being verified. Don't continue to math verify the remaining lines. Flag the return to notify non-Master File of a math error.

  5. Perfect Form 990-BL, Schedule A, Part II, Lines 1-5 from corresponding lines in Schedule A, Part I.

  6. Math Verify Form 990-BL, Schedule A, Part II, Lines 1-5. Place a check mark to the right of the line if your amount agrees with the taxpayer's entry. If your amount doesn't agree with the taxpayer's entry, place an "X" to the right of the taxpayer's entry and edit the correct amount to the left of the line being verified. Flag the return to notify non-Master File of a math error.

Form 990–EZ
(All Form Revisions)

  1. Form 990–EZ is a short form used by exempt organizations and IRC 527 political organizations and may be filed as follows:

    File Form 990-EZ for Tax Periods If gross receipts are less than And total assets areless than
    201012 and subsequent $200,000 $500,000
    200912 – 201011 $500,000 $1,250,000
    200812 – 200911 $1,000,000 $2,500,000
    200811 and prior $100,000 $250,000
  2. Always convert prior year revisions. See Exhibit 3.11.12-9.

General Instructions
(All Form Revisions)

  1. Unless the tridoc is specified as 2008 and Subsequent Revisions or 2007 and Prior Revisions, the procedure applies to both 2008 (and subsequent) and 2007 (and prior) year returns.

  2. Always follow the instructions for a "special return" .

  3. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave the T-line blank only if it cannot be perfected in the steps above.

  4. Put Form 990–EZ in the following order (2014 and subsequent)

    1. Form 990-EZ, (2014 and subsequent) pages 1 - 4

    2. Schedule A, (2014 and subsequent) pages 1 - 8

    3. Schedule C, page 1 (if Part I - A has an entry)

    4. Schedule L, page 1 (if Parts I or II have entries).

  5. Put Form 990–EZ in the following order (2008 and- 2013):

    1. Form 990-EZ, (2008 - 2013) pages 1 - 4

    2. Schedule A, pages 1 - 4

    3. Schedule C, page 1 (if Part I - A has an entry)

    4. Schedule L, page 1 (if Parts I or II have entries).

  6. Put Form 990-EZ in the following order (2007 and prior revisions):

    1. Form 990-EZ, pages 1 -3

    2. Schedule A, pages 1 - 7.

  7. For 990-EZ 2007 and prior revisions zero filers with no transcription lines present on Parts I - V it isn't necessary to put pages in order after page 1.

  8. For 990-EZ zero filers 2007 and prior revisions with transcription lines present on Parts I - V put the form in order as shown in (4) above.

Special Returns

  1. Form 990–EZ special returns are:

    Special Return: IRM Section:
    LM–2 and LM–3 IRM 3.11.12.6.3
    Zero Filer IRM 3.11.12.2.26 and IRM 3.11.12.2.26.1 (2007 and prior revisions only).

Forms LM–2, LM–3,
5500
(All Form Revisions)

  1. 2008 and Subsequent revisions: Labor organizations are NOT allowed to substitute information from Form LM-2 or LM-3 to the 2008 and subsequent revisions of Form 990-EZ. If correspondence items on Form 990-EZ are missing, and Form LM-2 or LM-3 is attached, correspond for the missing information.

  2. 2008 and Subsequent revisions: Employee benefit plans are NOT allowed to substitute information from Form 5500 to the 2008 and subsequent revisions of Form 990–EZ. If correspondence items on Forms 990–EZ are missing, and Form 5500 is attached, correspond for the missing information.

  3. 2007 and Prior revisions: Labor organizations are allowed to substitute some information from Form LM–2 or Form LM–3. Edit the corresponding information from LM-2 or LM-3 on the following lines, if blank, and LM-2 or LM-3 is attached:

    1. Form 990–EZ, Part 1, Lines 10-12 (but the organization must complete Lines 17-21).

    2. Form 990–EZ, Part II, (but the organization must complete Lines 25-27, Columns (A) and (B).

  4. 2007 and Prior Revisions: If unable to perfect from the LM-2 or LM-3, perfect the entries outlined in (1) above using the perfection procedures for that part (i.e., if Part II is blank and you cannot perfect from the LM-2 or LM-3, perfect using Part II Perfection procedures in 3.11.12.6.12).

  5. 2007 and Prior Revisions: Correspond for the LM-2 or LM-3 reconciliation sheet if any of (3 a - b) above isn't present. Use the LM–2/LM–3 paragraph of the 2699C letter.

  6. 2007 and Prior Revisions: An employee benefit plan may substitute Form 5500 for part of Form 990–EZ as follows:

    1. Form 990–EZ, Part I, Line 21: The organization may substitute Form 5500, Schedule H, Col (A), Line 1(1), or Schedule I, Col(A), Line 1(c), but must complete Lines 16-20.

    2. Form 990–EZ, Part II, Line 25 Col. (A): Form 5500, Schedule B, Line 1(b)(1).

    3. Form 990–EZ, Part II, Line 25 Col. (B): Form 5500, Schedule B, Line 1(b)(1).

Perfection, Editing, and Correspondence
(All Form Revisions)

  1. Attach an edit sheet to Form 990-EZ, if required.

  2. If a Form 990-EZ is received with "Announcement 2010–19" or similar wording on the top of the form, edit CCC "R" & "V" . If there is no indication Entity has seen the return, route the return to Entity per IRM 3.11.12.2.9.2.

  3. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.2.10

    2. Computer Condition Codes, (F, G, L, R, T, V, W, Y, 3, 7), IRM 3.11.12.2.11

    3. Daily Delinquency Penalty, IRM 3.11.12.2.14.1.2

    4. Entity Perfection, IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

    5. Final Returns, IRM 3.11.12.2.17

    6. Imaging, IRM 3.11.12.2.19

    7. Incomplete Return Item (IRI) Program, IRM 3.11.12.2.12.3

    8. Received Date, IRM 3.11.12.2.14.1

    9. Tax Period, IRM 3.11.12.2.25

    10. Zero Filers, 2007 and prior only, IRM 3.11.12.2.26 and IRM 3.11.12.2.26.1

Subsection Code
(All Form Revisions)

  1. Edit a two-digit Subsection Code (SSXX) in the lower right corner of the entity portion.

  2. If the Subsection is missing, edit "00" .

  3. Determine the Subsection Code from the list below:

    1. Item J of the entity section. Perfect as follows:

      Box Checked Subsection
      501(c)(3) 03
      501(c) XX (subsection taxpayer entered)
      4947(a)(1) 91
      527 82
    2. INOLES research.

  4. If the Subsection Codes conflict (e.g., INOLES shows SS03, but the taxpayer indicates otherwise in Item J), always use the Subsection on INOLES.

  5. If you are unable to determine the Subsection Code, edit "00" .

Type of Organization Code
(All Form Revisions)

  1. Edit the Type of Organization Code in the right margin of Form 990-EZ, page 1, next to Box F. Edit a Type of Organization Code as follows:

    Form 990-EZ
    Type of Organization Code Description
    1 SS 00, 02-20, 22-29, 50, 60, 70, 71, or 81.
    3 4947(a)(1) box is checked in Item J of the entity section (SS91).
    4 527 box is checked in Item J of the entity section (SS82).
    9 Non-group zero filer with no transcribed lines in any Parts I-V (2007 and prior revisions). Don't underline code 9.
    9 Underline code 9 if a non-group zero filer with transcribed lines are present in any of Parts Parts I-V (2007 and prior revisions).
    1 All others.

Schedule B Indicator
(All Form Revisions)

  1. All organizations must file Schedule B if the amount on Part I, Line 1 is $5,000 or more. Organizations not required to file a Schedule B must certify they are not required by checking the box in Item H or by checking the third box on the Schedule B, under "Special Rules" and entering an amount or 0 (zero), - (dash), none, N/A on that line or 0 (zero), - (dash), none, or N/A on Page 1 or in any of Parts I - III.

    Exception:

    If a statement is attached indicating contributions from any one contributor did NOT exceed ≡ ≡ ≡ ≡ ≡ or more during the year, a Schedule B isn't required.

  2. Edit a Schedule B Indicator to the right of Part I, Line 1 as shown below:

    If And Then
    Item H in the entity section is checked or is blank
    • A Schedule B is attached, containing contributor information (name(s) / amount(s)), or

    • The word "anonymous, " , "various" , 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 is checked and /or an amount is present or 0 (zero), - (dash), none, N/A on the line

    Edit a Schedule B Indicator of "1" .
    Item H in the entity section is checked or is blank, and Part I, Line 1 is ≡ ≡ ≡ ≡ ≡ or less, or
    There is a statement indicating contributions from any one contributor did not exceed ≡ ≡ ≡ ≡ ≡
    A Schedule B isn't attached 1. Don't edit a Schedule B Indicator.
    2. Continue processing return.
    Item H in the entity section is checked and Part I, Line 1 is ≡ ≡ ≡ ≡ or more A Schedule B isn't attached, or
    Is attached, but doesn't contain:
    • contributor information (name(s) / amount(s)), or

    • The word "anonymous" , "various" , 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 isn't checked

    1. Edit a Schedule B Indicator of "2" .
    2. Continue processing return.
    Item H in the entity section is blank, and Part I, Line 1 is ≡ ≡ ≡ or more A Schedule B isn't attached, or
    Is attached, but doesn't contain:
    • contributor information (name(s) / amount(s)), or

    • The word "anonymous" , "various" , 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 isn't checked

    1. Correspond per IRM 3.11.12.6.8.
    2. Don't edit a Schedule B Indicator.

    Note:

    Contributor information means at least one name and amount for the same contributor is present. A "contributor" may also be listed as a "sponsor" or shown as a function. For example, the contribution may be shown as "bake sale" or "car wash" or another type of activity or function.

Schedule B
Correspondence (IRI Code 50)
(All Form Revisions)

  1. Correspond for a Schedule B using IRI Code 50, if all of the following apply:

    1. Line 1 is ≡ ≡ ≡ ≡ or more.

    2. The box in Item H isn't checked.

    3. The tax period is 200012 or subsequent.

    4. Schedule B is one of the following:

      Schedule B is But And
      Missing
      Present doesn't contain contributor information (name(s) / amount(s)), or "anonymous" , "various" , 0 (zero) - (dash), none, or N/A on Page 1 or in Parts I - III The third box under "Special Rules" , page 1 isn't checked; or is checked, but an amount or 0 (zero), - (dash), none, or N/A isn't present on that line.
      2.

      Note:

      Contributor information means at least one name and amount for the same contributor is present. A "contributor" may also be listed as a "sponsor" or shown as a function. For example, the contribution may be shown as "bake sale" or "car wash" or another type of activity or function.

Final/Termination or Initial Return
(All Form Revisions)

  1. Identify a return as initial if the return or attachment indicates this is the initial (or first) EO return the organization has filed under the EIN.

  2. Form 990-EZ Edit CCC F (Final/Termination) if the return is marked Final/Termination or there are other indications the organization is out of business or closed and ALL of the following apply:

    1. Part II, Line 25(B) is 0 (zero, - (dash), blank, none or N/A or contains a negative amount.

    2. Part V, Line 36 is checked "yes" .

    3. Schedule N, Part I is attached and data is present (2008 and subsequent revisions only).

  3. If the taxpayer is attempting to file a "Final /Termination" Form 990-EZ and (2)(a)-(c) are not met, edit Action Code 211 and correspond.

Part I
Lines 1–21
Perfection
(All Form Revisions)

  1. Lines 1-4: If blank, leave blank. Don't bring forward any amounts from Schedule B to Line 1.

  2. Line 5a: If blank, do one of the following:

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  3. Line 5b: If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following:

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  4. Line 5c: If blank, Line "a" minus Line "b" .

  5. Line 6a: (2010 & subsequent revisions): If blank, do one of the following:

    1. If Line "b" has an entry, leave blank.

    2. Line "c" plus Line "d" .

    3. If Lines "a" and "b" are blank, edit from Line "d" .

  6. Line 6b: If blank, do one of the following:

    1. If Line "a" has an entry, leave blank.

    2. Line "c" plus Line "d" .

  7. Line 6c: If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following:

    1. Lines "a" and "b" minus Line "d" if Lines "a" , and/or "b" and Line "d" have an amount.

    2. If Lines "a" and/or "b" is the only line with an amount, leave Line "c" blank and edit the amount from Lines "a" and "b" to Line "d" .

  8. Line 6d: If blank, Lines "a" and "b" minus Line "c" .

  9. For 2007 & prior form revisions, perfect per (10) - (12) below.

  10. Line 5a, 6a, 7a: If blank, do one of the following (for each line):

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  11. Line 5b, 6b, 7b: If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following (for each line):

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  12. Line 5c, 6c, 7c: If blank (for each line): Line "a" minus Line "b" .

  13. Line 7a: If blank, do one of the following:

    1. Line "b" plus Line "c" .

    2. Edit from Line "c" .

  14. Line 7b: If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following:

    1. Line "a" minus Line "c" if both Line "a" and Line "c" have an amount.

    2. If Line "a" is the only line with an amount, leave Line "b" blank and edit the amount from Line "a" to Line "c" .

  15. Line 7c: If blank, Line "a" minus Line "b" .

    Figure 3.11.12-8

    This is an Image: 33480504.gif

    Please click here for the text description of the image.

  16. Line 8: If blank, edit from Line 9, if Line 9 is the first dollar entry on Part I.

  17. Line 9: If blank, add Lines 1, 2, 3, 4, 5c, 6d, 7c, and 8 (2008 and subsequent revisions) or Lines 1, 2, 3, 4, 5c, 6c, 7c, and 8 (2007 and prior revisions).

  18. Lines 10-12: Perfect.

  19. Line 17: If blank, add Lines 10-16.

  20. Line 18: If blank, Line 9 minus Line 17.

  21. Line 20: Perfect.

  22. Line 21: If blank, add Lines 18-20. If Line 19 is blank, use the amount from Part II, Line 27, Column (A) for Line 19.

Part I
Correspondence (IRI Codes 61 (2007 & prior), 91 (2008 & subsequent))
(All Form Revisions)

  1. See IRM 3.11.12.6.8 for Schedule B correspondence requirements.

  2. Correspond for Form 990 if a Group Return is filed on Form 990-EZ.

    Caution:

    A GEN on Item "F" of Form 990-EZ isn't an indication of a group return.

  3. Correspond using IRI 61 or 91 for Form 990 if any of the following apply:

    Must file Form 990 if the Tax Period is If gross receipts are (sum of Form 990-EZ, Line 9 and Lines 5b, 6c and 7b (2008 and subsequent revisions) or the sum of Line 9 and Lines 5b, 6b and 7b (2007 and prior revisions))
    201012 and subsequent IRI 91 Equal to or greater than ≡ ≡ ≡ ≡ ≡ ≡
    200912 – 201011 IRI 91 Equal to or greater than ≡ ≡ ≡ ≡ ≡ ≡
    200812 – 200911 IRI 91 Equal to or greater than ≡ ≡ ≡ ≡ ≡
    200811 and prior IRI 61 Equal to or greater than ≡ ≡ ≡ ≡ ≡ ≡

Part II
Perfection
(All Form Revisions)

  1. Line 25, Column (A): If blank, do one of the following:

    1. Add Lines 22 - 24.

    2. If Line 26 is the only entry, leave blank.

    3. If Lines 26 and 27 contain the same dollar amount, leave blank.

    4. Add Lines 26 and 27.

  2. Line 25, Column (B): If blank, 0 (zero), - (dash), none, or N/A, do one of the following:

    1. Add Lines 22 - 24.

    2. If Line 26 is the only entry, edit a "1" on Line 25, Column (B).

    3. If Lines 26 and 27 contain the same dollar amount, edit a "1" on Line 25, Column (B).

    4. Add Lines 26 and 27.

    5. If unable to perfect per 1) - 4) above, and you are not corresponding for Part II, Column (B), edit a "1" , on Line 25, Column (B).

  3. Line 26, Column (A)and (B): If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following for each column:

    1. If Line 26 is the only taxpayer entry, edit Line 26 to Line 27 as a negative amount.

    2. Line 25 minus Line 27 if both Line 25 and Line 27 have an amount.

    3. If Line 25 is the only line with an amount, leave Line 26 blank and edit the amount from Line 25 to Line 27.

  4. Line 27, Column (A) and (B): If blank, Line 25 minus Line 26 for each column.

    Figure 3.11.12-9

    This is an Image: 33480505.gif

    Please click here for the text description of the image.

Part II
Correspondence (IRI Code 61 (2007 & prior, 91, (2008 and subsequent) 62 (for all form revisions)
(All Form Revisions)

  1. Correspond using IRI 61 or 91 for Form 990 if Line 25, Column (B) is equal to or greater than the following amount:

    Tax Year: Amount:
    Form 990-EZ (201012 and subsequent tax period) IRI 91 ≡ ≡ ≡ ≡ ≡ ≡
    Form 990-EZ (200912 – 201011 tax period IRI 91) ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Form 990-EZ (200812 – 200911 tax period IRI 91) ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Form 990-EZ (200811 and prior IRI 61) ≡ ≡ ≡ ≡ ≡ ≡ ≡
  2. Correspond using IRI 62 for Part II, Column (B), if Lines 22-27, Column (B) are blank and cannot be perfected from attachments. Don't correspond if 0 (zero), - (dash), none, or N/A is present in Part II, Column (B).

    Exception:

    Don't correspond per (2) above if this is a 2007 and prior revision "zero" filer with no transcription lines in Parts I - V.

  3. Don’t correspond if the final/termination criteria is met. IRM 3.11.12.6.9

Part IV
Correspondence (IRI Code 64)
(All Form Revisions)

  1. Correspond for Part IV using IRI Code 64, if both of the following apply:

    1. Part I, Line 12 is more than ≡ ≡ ≡ .

    2. No names are present in Part IV, Column (a) or on an attachment.

Part V
Schedule Indicator Code (SIC)
(2008 and Subsequent Revisions)

  1. Edit a SIC on the top right side of page 3 for each schedule shown below that is attached and has information present other than the organizations name and/or EIN. If editing a SIC is required and page 3 is missing, insert a blank page 3 and edit the SIC on the inserted page.

  2. The indicator codes are as follows:

    Schedule Code Schedule
    A Schedule A - Public Charity Status and Public Support
    B Schedule B - Schedule of Contributors
    C Schedule C - Political Campaign and Lobbying Activities
    E Schedule E - Schools
    G Schedule G - Supplemental Information Regarding Fundraising or Gaming Activities
    L Schedule L - Transactions with Interested Persons
    N Schedule N - Liquidation, Termination, Dissolution or Significant Disposition of Assets
    O Schedule O - Supplemental Information
  3. Substitute schedules are not acceptable. If the filer writes "see attached" for a schedule that requires correspondence don't edit a SIC. Initiate correspondence for the required schedule.

  4. If you are corresponding for a missing schedule or part don't edit a SIC.

Part V
Perfection
(All Form Revisions)

  1. Lines 37a, 39a, and 39b: Perfect.

  2. Line 43: Edit Code 1 to the right of the box if both of the following apply:

    1. Type of Organization code is 3 (Item J shows a 4947(a)(1) filer).

    2. The Line 43 box is checked, or there is a dollar entry on Line 43.

Part V
Correspondence (IRI Codes 51 & 54)
(2008 and Subsequent Revisions)

  1. Correspond for the following schedules if the line is marked yes, and the related schedule for that line is missing or blank or a substitute Schedule L or substitute Schedule C is attached:

    Line numbers Missing/Blank Schedule IRI Code Value
    38a or 40b Schedule L 54
    46 Schedule C 51

Part VI
Correspondence (IRI Codes 51 & 53)
(2008 and Subsequent Revisions)

  1. 501(c)(3) organizations only: Correspond for the following schedules if the line is marked yes, and the related schedule for that line is missing or blank or a substitute Schedule C or substitute Schedule E is attached:

    Line Number(s) Missing/Blank Schedule IRI Code Value
    47 Schedule C 51
    48 Schedule E 53

♦Paid Preparer Section♦
(All Form Revisions)

  1. The Paid Preparer section is located below the Signature area at the bottom of Form 990-EZ.

♦Paid Preparer PTIN♦
(All Form Revisions)
  1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 2009 and prior form revisions) at the bottom-right corner of Page 4 (2008 & subsequent revisions, or Page 3 of 2007 & prior revisions) .

  2. No action is required on amended returns.

  3. The Preparer's SSN is a nine-digit number. Circle the SSN if all zeroes or all nines.

  4. A PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX).

♦Firm's EIN♦
(All Form Revisions)
  1. The Firm's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 4 (2008 & subsequent revisions, or Page 3 of 2007 & prior revisions).

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine-digit numeric number. Circle the EIN if all zeroes or all nines.

♦Paid Preparer Telephone Number♦
(All Form Revisions)
  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner of Page 4 (2008 & subsequent revisions, or Page 3 of 2007 & prior revisions) .

  2. No action is required on Amended returns.

  3. If a complete Paid Preparer's Telephone Number is on the Preparer Telephone Number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10digits, review the return and all attachments.

    Note:

    If more than 10 digits are present continue processing. ISRP will input the first 10 digits only.

    If Then
    A complete Paid Preparer's Phone Number is located Edit to the "Phone No" line.
    A complete Paid Preparer's Telephone Number isn't located or the number is illegible Circle the incomplete or illegible phone number.
Preparation Code
(All Form Revisions)
  1. No action is required on amended returns.

  2. Edit a Preparation Code of "1" next to the Preparer's PTIN if data is present in the paid preparer area of the return.

    Note:

    Data such as N/A or self prepared doesn't indicate the return was prepared by a paid preparer and should not be edited with a "1" .

  3. Zero filer returns: (2007 and prior revisions) If (2) above applies, edit a preparation code.

Form 990-EZ, Schedule C
(2008 and Subsequent)
Part II-A, Lines 2a(a) - 2f(e)

  1. If line 2c(e) is greater than Line 2b(e) or Line 2f(e) is greater than Line 2e(e), take the following actions:

    • Photocopy Form 990-EZ page 1 and Schedule C Part II-A.

    • Route photocopies (clearly marked as photocopies) via Form 4227 to Mail Stop 1112. In remarks indicate "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡

    • Edit an action trail "photocopy sent" .

Form 990–EZ Schedule L
Parts I & II
Perfection
(2008 and Subsequent

  1. Edit a "1" in the right margin of Schedule L, Part I if data is present in Part I (including 0 - N/A or none).

  2. Edit a "1" in the right margin of Schedule L, Part II if data is present in Part II (including 0 - N/A or none).

Form 990–PF

  1. Form 990–PF is the primary annual information and taxable return filed by a foundation or trust to comply with the filing requirements of IRC 6033.

  2. A foundation or trust is required to file each year regardless of the amount of its gross receipts or assets.

  3. If a Form 990-PF is filed using only the front page, or indication the form is filed for payment purposes, give to the lead. Don't process. Lead will research and destroy if needed.

General Instructions

  1. Always convert prior year return revisions, see Exhibit 3.11.12-12.

  2. Request and follow INOLES research when editing all Form 990–PFs.

  3. Always follow the instructions for a " special return" .

  4. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave the T-line blank only if it cannot be perfected in the steps above.

  5. Route any correspondence stating a reasonable cause for failing to deposit along with a photocopy of the first page of the return to OAMC, EO Accounts, M/S 6552.

  6. Put Form 990–PF, pages 1 - 13 in order. Note: Insert and edit pages 2, and/or 4 if missing.

Special Returns

  1. Form 990–PF special returns are:

    Special Return: IRM Section:
    Foreign Return IRM 3.11.12.7.3
    Inactive 990–PF IRM 3.11.12.7.4 and IRM 3.11.12.7.5

Foreign Return

  1. Correspond for clarification as to whether the organization is foreign or domestic if the Organization Code is "4" or "7" , Part I, line 26, column (b) has a dollar entry, and the address isn't foreign.

  2. If Box D2 is checked, "X" Parts X, XI, XIII, and XV.

Inactive
Perfection

  1. An organization is inactive if either of the following apply:

    1. The return is annotated INACTIVE.

    2. Part I - Part XVII have no dollar entries.

  2. Completely perfect an inactive Form 990-PF by perfecting the entity information (name control, address, EIN, tax period, and received date), Organization Code, Foundation Code and all of the following:

    1. Edit and insert pages 2, and/or 4 if one or more are missing.

    2. Part I, Column (a), Line 12: Edit "1" .

    3. Part II: Edit "1" on Line 16, Column (b) and (c).

      Note:

      Don't edit the amount from Item I of the entity section, if present.

    4. Part VII-A: Code Line 9 per IRM 3.11.12.7.19.

    5. Part XIV: Edit as follows:

      If the Foundation Code is Then
      An "02" or "03" , and there are no dollar entries in Part XIV 1. Edit a "1" on Line 2a, Columns (a) and (e).
      2. Edit a "1" on Line 3a(1), Columns (a) and (e).
      3. "X" Parts XI and XIII.
      Other than an "02" or "03" , and Part VII-A, Line 9 is 2 "X" Part XIV.

Inactive
Correspondence

  1. Correspond for a signature, if missing. Use Action Code 211, see Exhibit 3.11.12–1.

  2. Don’t correspond for any other issues.

Perfection, Editing, and Correspondence

  1. Attach an edit sheet to Form 990–PF if required.

  2. Item G of the entity section: If checked "Initial Return of a Former Public Charity" or "Notice 2008–6" or similar wording on the top of the form, and there is no indication Entity has seen the return, route the return to Entity IRM 3.11.12.2.9.2 .

  3. Item I of the entity section: If blank, edit from Part II, Line 16, Column (c).

  4. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.2.10

    2. Computer Condition Codes, (A, D, F, G, O, R, T, V, W, X, Y, 3, 7, 8), IRM 3.11.12.2.11 . Edit the CCC in Part I.

    3. Daily Delinquency Penalty, IRM 3.11.12.2.14.1.2

    4. Entity Perfection, IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

    5. Imaging, IRM 3.11.12.2.19

    6. Incomplete Return Item (IRI) Program, IRM 3.11.12.2.12.3

    7. Penalty and Interest Code, IRM 3.11.12.2.14.1.3

    8. Received Date, IRM 3.11.12.2.14.1

    9. Tax Period, IRM 3.11.12.2.25

Foundation Code

  1. Edit the two–digit Foundation Code in the white space of Item H (below the entity section). This is obtained through IDRS research (INOLES).

    Example:

    If the Foundation Code on INOLES is "02" , edit "02" .

  2. If IDRS doesn't have a Foundation Code present, leave blank.

Type of Organization Code

  1. Edit the Type of Organization Code in the right margin next to Item C in the entity section.

  2. Determine the Type of Organization Code from the box(es) checked in Item H and/or D1 or D2 of the entity section.

  3. Edit a Type the type of organization code in the right margin next to item C in the entity from the tables below:

    Form 990–PF
    Type of Organization Code Only 4947(a)(1) box checked with: Multiple or no boxes checked
    3 U.S. Address Trust with a U.S. address and the subsection is 92.
    4 Foreign address
    • Trust with a foreign address and the subsection is 92 or

    • Box D1 or D2 in the entity section is checked.

    5 Canadian address
    • Trust with Canadian address and the subsection is 92 or

    • Box D1 or D2 in the entity section is checked.

    Form *990-PF
    Type of Org Code Either 501(c)(3) exempt private foundation box or Other taxable private foundation is checked Multiple or no boxes checked
    6 U.S. Address Foundation with a U.S. address and the subsection is other than 92.
    7 Foreign Address
    • Foundation with a foreign address and a subsection other than 92 or

    • Box D1 or D2 in the entity section is checked.

    8 Canadian Address
    • Foundation with a foreign address and a subsection other than 92 or

    • Box D1 or D2 in the entity section is checked.

Termination Code

  1. If Box "F" of the entity section is checked do all of the following:

    1. Edit Termination Code"1" in the right margin of page 1, Form 990-PF, next to Item F.

    2. Edit ERS Action Code 320.

    3. Prepare Form 4227, route to Entity stating "status 25" .

    4. Leave the return in the batch.

  2. The organization is allowed to start a 60-month period to end (terminate) their private foundation status and become a public charity only when they receive permission from the Area Office to begin an IRC 507(b)(1)(B) termination.

  3. The Part VI taxes owed over the 60-month period are abated if at the end of the 60-month termination period, the Area Office determines that the organization had a "successful" termination.

Schedule B Indicator

  1. For tax periods 200112 and subsequent, all Form 990–PF filers must file Schedule B if the amount on Form 990–PF, Part I, Line 1, is ≡ ≡ ≡ ≡ ≡ or more. Organizations not required to file a Schedule B must certify they are not required by checking the box on Part I, Line 2, of Form 990–PF, or by checking the third box on the Schedule B, under "Special Rules and entering an amount or 0 (zero), - (dash), none or N/A on that line" or 0 (zero), - (dash), none or N/A on Page 1 or in any of Parts I - III.

    Exception:

    If a statement is attached indicating contributions from any one contributor did NOT exceed ≡ ≡ ≡ or more during the year, a Schedule B isn't required.

  2. Edit a Schedule B Indicator to the right of Part I, Line 1, if the tax period is 200112 or subsequent as shown below:

    If And Then
    The box in Part I, Line 2 is checked or is blank
    • A Schedule B is attached, containing contributor information (name(s) / amount(s)), or

    • The word "anonymous" , "various" , 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 is checked and/or an amount is present or 0 (zero), - (dash), none, or N/A on the line,

    Edit a Schedule B Indicator of "1" .
    The box in Part I, Line 2 is checked or is blank, and Part I, Line 1 is ≡ ≡ ≡ or less, or
    There is a statement indicating contributions from any one contributor did not exceed $5000
    A Schedule B isn't attached 1. Don't edit a Schedule B Indicator.
    2. Continue processing return.
    Part I, Line 2 is checked and Part I, Line 1 is ≡ ≡ ≡ or more A Schedule B isn't attached, or
    Is attached, but doesn't contain:
    • contributor information (name(s) / amount(s)), or

    • The word "anonymous" , "various," 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 isn't checked,

    1. Edit a Schedule B Indicator of "2" .
    2. Continue processing return.
    The box in Part I, Line 2 is blank and Part I, Line 1 is ≡ ≡ ≡ or more A Schedule B isn't attached, or
    Is attached, but doesn't contain:
    • contributor information (name(s) / amount(s)), or

    • The word "anonymous" , "various" , 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III, or

    • The third box under "Special Rules" , page 1 isn't checked,

    1. Correspond per IRM 3.11.12.7.11.
    2. Don't edit a Schedule B Indicator.

    Note:

    Contributor information means at least one name and amount for the same contributor is present. A "contributor" may also be listed as a "sponsor" or shown as a function. For example, the contribution may be shown as "bake sale" or "car wash" or another type of activity or function.

Schedule B
Correspondence (IRI Code 50)

  1. Correspond for Schedule B (Form 990–PF) if all of the following apply:

    1. Part I, Line 1, Form 990–PF, is ≡ ≡ ≡ ≡ or more.

    2. The box in Part I, Line 2 isn't checked.

    3. The tax period is 200112 or subsequent.

    4. Schedule B is one of the following:

      Schedule B is But And
      Missing
      Present doesn't contain contributor information (name(s) / amount(s)), or "anonymous" , "various" , 0 (zero), - (dash), none, or N/A on Page 1 or in Parts I - III
      The third box under "Special Rules" , page 1 isn't checked; or is checked, but an amount or 0 (zero), - (dash), none or N/A isn't present on that line.

      Note:

      Contributor information means at least one name and amount for the same contributor is present. A "contributor" may also be listed as a "sponsor" or shown as a function. For example, the contribution may be shown as "bake sale" or "car wash" or another type of activity or function.

Part I
Perfection

  1. Lines 6b and 10b: Perfect.

  2. Column (a): Perfect as follows:

    1. Lines 1–10c: Perfect. Don't bring forward any amounts from Schedule B to Line 1.

    2. Line 11: If blank, edit Line 12 to Line 11 if Line 12 is the first dollar entry in Part I.

    3. Line 12: If blank, 0 (zero), - (dash), none, or N/A, add Lines 1 - 11.

      Note:

      Edit "1" on Line 12, Column (a) if Column (a) has no dollar entries and you are not corresponding. Don't edit per 2) above.

    4. Line 13: If blank, edit from Part VIII, Line 1, Column (c).

    5. Lines 15, 16a, 16b, 17, 19, 20, 21, 22: Perfect.

    6. Line 24: If blank, add Lines 13-23.

    7. Line 25: If blank, edit from Part XV, Line 3a total line, or a total of the items in 3a if the total line is blank.

    8. Line 26: If blank, add Lines 24 and 25.

    9. Line 27a: If blank, subtract Line 26 from Line 12.

  3. Column (b), perfect as follows:

    1. Line 12: If blank, add Lines 3-11.

    2. Line 24: If blank, add Lines 13-23.

    3. Line 26: If blank, bring down Line 24.

    4. Line 27b: If blank, Line 12 minus Line 26. If Type of Organization Code is "4" or "7" , and the address is foreign, "X" Lines 24, 26, and 27. Edit Line 12 amount to Line 27.

    5. "X" Line 27b if negative.

  4. Column (c), perfect as follows:

    1. Line 12: If blank, add Lines 2-11.

    2. Line 26: If blank, add Lines 13-23.

    3. Line 27c: If blank, Line 12 minus Line 26. Note: "X" Line 27c if negative.

  5. Column (d), perfect as follows:

    1. Line 24: If blank, add Lines 13-23.

    2. Line 26: If blank, add Lines 24 and 25.

Part I
Correspondence (IRI Code 01)

  1. Correspond for Column (a) if Lines 1-27 are blank and cannot be perfected.

  2. Correspond for clarification as to whether the organization is foreign or domestic if the Organization Code is "4" or "7" , Line 26, Column (b) has a dollar entry, and the address isn't foreign.

Part II
Perfection

  1. Lines 1, 3 - 10c, 12 - 15, Columns (a) and (b): Perfect.

  2. Line 16, Column (b): If blank, 0 (zero), - (dash), none, or N/A, do one of the following:

    1. Add Lines 1-15.

    2. Add Lines 23 and 30.

    3. Edit from Line 30.

    4. Edit from Part III, Line 6.

    5. If unable to perfect per 1) - 4) above, and you are not corresponding for Part II, Column (b), edit a "1" .

  3. Line 16, Column (c): If blank, 0 (zero), - (dash), none, or N/A, do one of the following:

    1. Add Lines 1 - 15. If the entity section, Item I is missing, also edit the total to Item I.

    2. Edit from Item I of the entity section.

    3. If unable to perfect per 1) - 2) above, and you are not corresponding for Part II, Column (c), edit a "1" .

    Figure 3.11.12-10

    This is an Image: 33480506.gif

    Please click here for the text description of the image.

  4. Lines 17 and 18 Columns (a) and (b): Perfect.

  5. Line 21, Column (b): Perfect.

  6. Line 22, Column (a) and Column (b): Perfect.

  7. Line 23, Column (b):If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following:

    1. Add Lines 17-22.

    2. Line 16 minus Line 30, if both Line 16 and Line 30 have an amount.

    3. If Line 16 is the only line with an amount, leave Line 23 blank and edit the amount from Line 16 to Line 30.

  8. Line 30, Column (b): If blank, do one of the following:

    1. Line 16 minus Line 23.

    2. Add Lines 24 - 26.

    3. Add Lines 27 - 29.

Part II
Correspondence (IRI Code 02)

  1. Correspond for Column (b) if Lines 1-31 are blank.

  2. Correspond for Column (c) if all of the following apply:

    1. Column (c) is blank.

    2. Item I of the entity section is blank.

    3. Part VII–A, Line 7 is "yes" , or Part II, Line 16, Column (b) is ≡ ≡ ≡ ≡ or more.

    Note:

    Don't correspond if inactive. IRM 3.11.12.7.4 .

4940 Code

  1. Edit the 4940 Code in the middle of the top margin of page 4.

  2. Edit 4940 Code 2 if all of the following apply:

    1. The Type of Organization Code is 3 or 6.

    2. Organization is a SS03 with Foundation Code 02.

    3. Part I, Line 27b is more than $0.

    4. Part VI, Line 1 is blank, 0 (zero), - (dash), none, or N/A.

  3. Edit 4940 Code 3 if all of the following apply:

    1. Type of Organization Code is 3 or 6.

    2. The return isn't an initial return.

    3. Part I, Line 27b is more than $0.

    4. Part V, Line 8 is equal to or greater than Line 7.

      Caution:

      Don't Code 3 if Line(s) 7 and/or 8 are "0" or blank or if they are the only entries in Part V.

Part VI
Perfection

  1. Line 1: If blank, 0 (zero), - (dash), none, or N/A, and Line 2 has an amount, "X" these entries and edit Line 2 amount to Line 1.

  2. Line 2: Perfect.

  3. Line 4: Perfect.

  4. Line 5: If blank, add Line 1 and Line 2 and subtract Line 4.

  5. Line 6a-6d: Perfect. If credit is from either Form 1116 or Form 1118, "X" the amount. If blank and Line 7 has an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    Note:

    If Type of Organization is "3" or "6" , and an amount is on Line 6b, edit the amount to Line 6d.

  6. Line 8: If blank, and a Form 2220 is attached, do the following:

    1. Edit the dollar amount on Form 2220, from the following line number to Form 990-PF, Part VI, Line 8:

      2004 2005– 2007 2008 - Current
      Line # 38 34 38
    2. If the line shown in (a) above is blank, and there is an amount on the following line, compute the total amount and enter on Form 990-PF, Part VI, Line 8:

      2004 2005 - 2007 2008 - Current
      Line # 37, Column a-e 33, Column a-d 37, Column a-d
    3. If Form 2220, page 2 is missing, leave Form 990-PF, Part VI, Line 8 blank.

    4. Don't include any penalty or interest other than estimated tax penalty on Form 990-PF, Part VI, Line 8.

  7. Line 9 and 10: If blank, do the following in order:

    1. Line 5 minus Line 7, plus Line 8.

    2. Edit the positive result on Line 9 or the negative result on Line 10.

    3. If Line 9 contains a penalty or interest other than ES Penalty, subtract the penalty or interest and recompute Line 9.

    Note:

    If pre-computed penalty, interest, or other additional charge is evident, ensure that it has not been included on Line 5 or 9, or reduced Line 10.

  8. Line 11: Perfect the amount to the left of Line 11 (Credit Elect). Don't edit CCC "F" if Line 11 credit elect amount is present.

    Note:

    If either Line 10 or Line 11 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ or more, IRM 3.11.12.2.21 .

Part VI
Correspondence

  1. Correspond for Part VI, Lines 6a - 6d if Part VI, Line 7 has an entry of ≡ ≡ ≡ ≡ ≡ ≡ and Part VI, Lines 6a - 6d are blank and cannot be perfected.

Part VII–A
Perfection

  1. Always Code Line 9 to the right of the yes/no box on Line 9, as follows:

    1. Code 1 — Edit a "1" and perfect Part XIV if the Foundation Code is 02 or 03 including Inactive returns. "X" Parts XI and XIII.

    2. Code 2 — Edit a "2" and perfect Parts XI and XIII if the Foundation Code is other than 02 or 03. "X" Part XIV.

  2. Line 15: Place a check in the Line 15 box if all of the following apply:

    1. The box on Line 15 is blank,

    2. There is a dollar amount on Line 15,

    3. The Organization Code is "3" , "4" , or "5" .

Part VII-A
Correspondence (IRI Codes 05, 06, 07)

  1. Correspond for Part VII-A if (2) or (3) below apply.

  2. Line 11, if either of the following apply:

    1. Neither box is checked, both boxes are checked, or "N/A" use IRI 05.

    2. "Yes" is checked, but the attached schedule of controlled entities is missing use IRI 06.

  3. Line 12, if either of the following apply:

    1. Neither box is checked, both boxes are checked, or "N/A" use IRI 05.

    2. Line 11 is checked "Yes" and Line 12 is blank use IRI 07.

Part VIII
Correspondence (IRI Code 08)

  1. Correspond for Part VIII, Line 1 if it cannot be perfected and both of the following apply:

    1. Part I, Line 13, Column (a), is more than ≡ ≡ ≡ ≡ ≡ ≡ .

    2. No names are present in Part VIII, Line 1, Column (a) or on an attachment.

      Note:

      A 0 (zero), - (dash), none, or N/A is an acceptable entry.

  2. Correspond for Part VIII, Line 2 if it cannot be perfected and both of the following apply:

    1. Part I, Line 14, Column (a) is more than ≡ ≡ ≡ ≡ .

    2. A name is present in Part VIII, Line 2 and Column (c) is blank and not on an attachment.

      Note:

      A 0 (zero), - (dash), none, or N/A is an acceptable entry.

  3. Correspond for Part VIII, Line 3 if it cannot be perfected and both of the following apply:

    1. Part I, Lines 16a-16c, Column (a) are more than ≡ ≡ ≡ ≡ .

    2. A name is present in Part VIII, Line 3 and Column (c) is blank and not on an attachment.

      Note:

      A 0 (zero), - (dash), none, or N/A is an acceptable entry.

Part X
Perfection

  1. Line 1d: If blank, add Lines 1a-1c.

  2. Line 5: If blank, do one of the following:

    1. Edit from Part V, Line 4.

    2. Line 3 minus Line 4.

    3. If unable to perfect per 1) or 2) above, leave blank.

  3. Line 6: If blank, multiply Line 5 by .05.

Part X
Correspondence (IRI Code 10)

  1. Correspond for Part X if Part X is blank and all of the following apply:

    1. The Type of Organization Code is "3" or "6" , or the Type of Organization Code is "7" with Foundation Code 02 or 03.

    2. Part II, Line 16, Column (b) is more than ≡ ≡ ≡ ≡ ≡ or Part VII–A, Line 7 is "yes" .

    3. Part I, Line 27b, Column (b) is more than ≡ ≡ ≡ .

  2. Don'tcorrespond if the taxpayer states on the return or an attachment wording similar to the following:

    • "No assets are held for investment purposes."

    • "No assets are held for non-charitable purposes."

    • "Assets are held only for charitable purposes."

Part XI
Perfection

  1. Perfect Part XI if the Foundation Code is other than 02 or 03. "X" Part XI if the Foundation Code is 02 or 03 or Box D2 is checked in the entity section.

  2. Line 7: If blank, do one of the following:

    1. Edit from Part XIII, Line 1, Column (d).

    2. Line 5 minus Line 6.

    3. If unable to perfect per 1) or 2) above, leave blank.

Part XI
Correspondence (IRI Code 11)

  1. Correspond for Part XI if Part XI is blank and all of the following apply:

    1. You are also corresponding for Part X.

    2. Foundation Code is 04 or SS92.

    3. Box D2 isn't checked in the entity section.

    4. The 4942(j)(3) and (j)(5) box in Part XI isn't checked.

      Note:

      A 0 (zero), - (dash), none, or N/A is an acceptable entry.

Part XIII
Perfection

  1. Perfect Part XIII if the Foundation Code is other than 02 or 03. "X" Part XIII if the Foundation Code is 02 or 03 or Box D2 is checked in the entity section.

  2. Line 6f, Column (d) — If blank, do one of the following:

    1. Line 1d, minus Lines 4d and 5d.

    2. If Part XIII is blank, edit from Part XI, Line 7.

Part XIII
Correspondence (IRI Code 13)

  1. Correspond for Part XIII if all of the following apply:

    1. Foundation Code is 04 or SS 92.

    2. Box D2 isn't checked in the entity section.

    3. Part XIII is blank and you are also corresponding for Part X.

Part XIV
Perfection

  1. Perfect Part XIV if the Foundation Code is 02 or 03 including Inactive returns. "X" Part XIV if the Foundation Code is other than 02 or 03.

  2. Lines 2a, 2e, 3a(1), 3a(2), 3b, 3c(1), 3c(2) and 3c(4), Columns (a)-(d): Perfect.

  3. Column (e): If blank, add Columns (a)-(d) for each Line in (2) above.

  4. Line 2a, Columns (a) and (e) :

    1. If Line 2a columns (a) and/or (e) are 0 (zero), - (dash), none or N/A, delete the entry and edit "1" .

    2. If blank, edit the lesser amount from Part I, Line 27(c) or Part X, Line 6. Do not bring over negative amounts.

    3. If either Part I, Line 27(c) or Part X, Line 6 is 0 (zero), - (dash), none, N/A or a negative amount, edit a "1" on Line 2a Columns (a) and (e).

    4. If unable to perfect per (a) and (c) above and you are not corresponding for Part XIV, edit a "1" on Line 2a Columns (a) and (e).

  5. Line 3a(1), Columns (a) and (e):

    1. If 0 (zero), - (dash), none, or N/A, delete the entry and edit a "1" .

    2. If blank and Line 2a, Columns (a) and (e) has a dollar entry or has been edited with a "1" per (4) above, edit a "1" .

    3. If unable to perfect per 1) & 2) above, correspond for Part XIV.

Part XIV
Correspondence (IRI Code 14)

  1. Correspond for Part XIV if both of the following apply:

    1. Part XIV Lines 2a through 3c (4) Columns (a) through (e) are blank and you cannot perfect per IRM 3.11.12.7.28 (2)-(5).

    2. Part VII–A, question 9 is coded "1" .

Part XV
Perfection

  1. Perfect Part XV if Box D2 in not checked in the entity section. "X" Part XV, Lines 1a-3b if Box D2 is checked in the entity section.

  2. Line 3b: If blank, total the amounts in Part XV, Line 3b, and any amounts included in attachment(s) identified as "Future Grants" or "Grants Approved for Future Payment" and edit the total to Line 3b.

    Note:

    Don't perfect Line 3b if "X" ing Part XV.

Part XV
Correspondence (IRI Code 15)

  1. Correspond for Line 2a, b, c, and d if Type of Organization Code is "3" or "6" and all of the following apply:

    1. Part XV, Lines 2a-d are blank. A 0 (zero), - (dash), none, or N/A is an acceptable entry.

    2. Box D2 isn't checked in the entity section.

    3. Part I, Line 25, Column (a), is ≡ ≡ ≡ ≡ or more.

    4. Part II, Line 16, Column (b) is ≡ ≡ ≡ or more, or Part VII–A, Line 7 is "yes" .

    5. Part XV, Line 2 box isn't checked. Figure 3.11.12-11

    Exception:

    Don't correspond if the return or an attachment has wording similar to the following:

    • "We only contribute to pre-selected charities."

    • "We don't accept unsolicited applications."

    Figure 3.11.12-11

    This is an Image: 33480518.gif

    Please click here for the text description of the image.

  2. Correspond for Line 3a if Type of Organization is "3" or "6" and all of the following apply:

    1. Part XV, Lines 2a-2d has entries other than 0 (zero), - (dash), none, or N/A.

    2. Box D2 isn't checked in the entity section.

    3. Part I, Line 25, Column (a) is ≡ ≡ or more.

    4. Part II, Line 16, Column (b) is ≡ ≡ ≡ or more, or Part VII–A, Line 7 is "yes" .

    5. Part XV, Line 2 box isn't checked.

    6. Line 3(a) doesn't contain at least one name, purpose and amount. If more than one recipient is listed, a description of the purpose of the grant or contribution isn't needed for each recipient. A description of the purpose of the grant or contribution (such as scholarship, fellowship , indigent assistance, nursing service, etc.) must be present if Items (a)-(e) apply. The words grants, purpose , or contribution are not acceptable.

    Note:

    Don’t correspond if the purpose and amount can be found on an attachment.

    Figure 3.11.12-12

    This is an Image: 33480519.gif

    Please click here for the text description of the image.

Part XVI-A
Perfection

  1. Lines 1a-5a, 6-10, Column (d) and Column (e): Perfect.

Part XVII
Correspondence (IRI Code 17)

  1. Correspond for Line 1d, Columns (a)-(d), if they are blank and any of Lines 1a through 1c are "yes" .

  2. Correspond for Line 2b, Columns (a)-(c), if they are blank and Line 2a is "yes" .

♦Paid Preparer Section♦

  1. The Paid Preparer Checkbox is located next to the signature area at the bottom of Form 990–PF.

♦Paid Preparer PTIN♦
  1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 2009 and prior form revisions) at the bottom-right corner of Page 13 .

  2. No action is required on amended returns.

  3. The Preparer's SSN must be a nine-digit number. Circle the SSN if all zeroes or all nines.

  4. A PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX).

♦Firm's EIN♦
  1. The Firm's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 13.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine-digit number. Circle the EIN if all zeroes or all nines.

Form 990–T

  1. Form 990–T is filed by the following organizations:

    1. Organizations exempt under IRC 501(c), 501(e), 501(f), and 501(k), when the organization has unrelated taxable business income.

    2. Trusts filing under IRC 401(a).

    3. IRC 408 IRA Trusts.

  2. Form 990–T is subject to:

    1. Corporate income tax

    2. Alternative Minimum Tax

    3. Failure to file penalty

    4. Failure to pay penalty

    5. Estimated tax penalty

    6. Failure to Deposit (FTD) Penalty

General Instructions

  1. Always convert prior year return revisions, see Exhibit 3.11.12-13.

  2. Always follow the instructions for a "special return" .

  3. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave the T-line blank only if it cannot be perfected in the steps above.

  4. Put Form 990–T in the following order:

    1. Form 990–T, pages 1- 4 .

    2. Schedule I (Form 1041), Alternative Minimum Tax

    3. Schedule D (Form 1041), Capital Gains and Losses

    4. Form 4952, Investment Interest Expense Deduction

    5. Form 4136, Credit for Federal Tax Paid on Fuels

    6. Form 4626, Alternative Minimum Tax for Corporations

    7. Form 8941, Credit for Small Employer Health Insurance Premiums

    Note:

    Route any correspondence stating a valid reasonable cause for failing to deposit along with a photocopy of the first page of the return to OAMC, EO Accounts.

Special Returns

  1. Form 990–T special returns are:

    1. Consolidated Returns, IRM 3.11.12.8.3

    2. Form 8941 only, IRM 3.11.12.8.4


Consolidated Return

  1. A consolidated Form 990–-T combines the tax information of an exempt organization and its title holding corporation(s).

  2. Identify a consolidated return by one or more of the following:

    1. The return is notated "Consolidated" .

    2. Form 851, "Affiliations Schedule," is attached with the name, address, EIN, and prepaid credits of each organization included on Form 851.

    3. One or more Form(s) 1122, "Return of Information, Authorization, and Consent of Subsidiary Corporation in a Consolidated Return, " are attached.

    4. A list of title holding corporations is attached.

  3. Do both of the following if Form 851 or a list is attached:

    1. Request NAMEE/NAMEB research for the affiliate's EIN if it is missing.

    2. Request TC 590–014 input for the corporations included on the numbered or unnumbered consolidated return.

  4. Correspond for Form 851 if Form 851 or a list isn't attached to the return.

"8941 Only" - Credit For Small Employer Health Insurance Premiums Tax Return
2010 and Subsequent Form 990–T Revisions

  1. Taxpayers not liable to file a tax return may file to claim the Credit for Small Employer Health Insurance Premiums (8941 Only). These returns can be identified by having no significant entries on Lines 1–43 and Form 8941 is attached. The taxpayer may also write "Request for 45R Credit Only" across the top of Form 990-T.

    Exception:

    If Line 33 has an entry of ≡ ≡ ≡ ≡ ≡ , and no other significant entries are present on Lines 1-43, delete the entry on Line 33 and process as a 8941 credit only return.

  2. "8941 only" returns are not imaged. "8941 only" returns received without the word "scanned" stamped on the left margin of the return should not be returned to the Imaging function.

  3. The following data must be edited on all "8941 Only" returns:

    1. Name Control

    2. EIN

    3. Tax Period

    4. Subsection Code

    5. Type of Organization Code

    6. Edit CCC "C"

    7. IRS Received Date

    8. Signature

    9. Paid Preparer Information (if present)

    10. Form 8941

  4. If Form 8941, Line 2 and/or 14 is 25 or greater, "X" Form 8941.

  5. If Form 8941, Line 1 and/or 13 is 100 or more, circle the number and edit "99" next to Line 1 and/or 13.

  6. If multiple 8941's are present:

    1. If the amount on Line 44f is ≡ ≡ ≡ ≡ or less, allow the credit.

    2. If the amount on Line 44f is ≡ ≡ ≡ or more, "X" all Forms 8941. Don't recompute Line 44f. Edit ERS AC 211 to initiate correspondence for a consolidated Form 8941.

  7. Don’t correspond for missing information other than:

    1. Missing signature

    2. Missing "Form 8941" when a 2010 and subsequent revision of Form 990-T, Line 44f is ≡ ≡ ≡ ≡ ≡ .

Perfection, Editing, and Correspondence

  1. Attach edit sheet to Form 990–T if necessary.

  2. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.2.10

    2. Computer Condition Codes, (A, B, C, D, F, G, I, L, O, Q, R, T, V, W, X, Y, 3, 7, 8, and 9), IRM 3.11.12.2.11

      Note:

      CCC "V" is only valid for Form 990-T if Therapeutic Discovery Credit is claimed. IRM 3.11.12.2.11 .

      Note:

      Computer Condition Code "C" should always be edited on Form 990-T if an amount is present greater than zero on Line 44F, Form 8941 is attached or any indication the return is being filed for the Small Business Healthcare Credit.

    3. Entity Perfection, IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

    4. Imaging, IRM 3.11.12.2.19

    5. Penalty and Interest Code, IRM 3.11.12.2.14.1.3

    6. Received Date, IRM 3.11.12.2.14.1

    7. Tax Period, IRM 3.11.12.2.25

  3. If a Form 990-T is received with "Reinsurance Entity" or similar wording on the top of the form, route the return to Entity IRM 3.11.12.2.9.2 .

Subsection Code

  1. Edit a two-digit Subsection Code in Item B of the entity section.

  2. Determine the Subsection Code from the list below:

    1. Item B of the entity section. Perfect as follows:

      Box Checked Subsection
      501( )( ) XX (subsection taxpayer entered)
      408(e), 408A, 529(a), 220(e), 530(a) 00
    2. INOLES research

  3. If the taxpayer has entered a two digit subsection in the 501( )( ) box, underline the taxpayer's numeric entry.

    Example:

    If the taxpayer entered "(03)" in the Item B 501( )( ) area, underline "03" .

  4. If the taxpayer entered a one-digit subsection in the Item B, 501( )( ) box, edit the number to a two-digit entry.

    Example:

    If the taxpayer entered "(c)" "3" , edit to "03" .

  5. If the Subsection Codes conflict (e.g., INOLES shows SS03, but the taxpayer indicates otherwise in Item B), always use the Subsection on INOLES.

  6. If you are unable to determine the Subsection Code, edit "00" as the Subsection Code.

Type of Organization Code

  1. Edit the Type of Organization Code in the right margin of Form 990-T, page 1, next to items F and G of the entity section.

  2. The Type of Organization Code is determined from the boxes checked in Items B and G of the entity section.

  3. Edit a Type of Organization Code as follows:

    Type of Organization Code Description
    1
    • 501(c) trust box checked with a U.S. address, or

    • Trust with a U.S. address and SS90-SS92.

    2
    • 501(c) trust box checked with a foreign address, or

    • Trust with a foreign address and SS90-SS92.

    3
    • 401(a), 408A, 408(e), 220(e), 530(a), 529(a), or the "other trust" box is checked, or

    • Trust with no Subsection Code. The organization name may contain words similar to "pension" , "welfare" , "benefit" , "profit sharing" , "IRA" , or "retirement" .

    4
    • 501(c) corporation box checked with a U. S. address, or

    • Corporation with a U.S. address and SS 02-27, 50, 60, 70, or

    • No box is checked and research shows SS00 and the organization name may contain words indicating it is a state university.

    5
    • 501(c) corporation box checked with a foreign address, or

    • Corporation with a foreign address and SS 02-27, 50, 60, or 70.

    3
    • If after research, the filing requirement is 990–T-02, or

    • If unable to determine the Type of Organization Code (e.g., INOLES is SS00).

Item I (Entity Section)
  1. Perfect Item I of the Entity Section as follows:

    If And Then
    If Item I is checked Yes or both the yes and no boxes are checked The name and EIN is the same as the return name and/or EIN
    1. Circle out the name and EIN.

    2. Check the attachments for another name control and/or EIN.

    3. Edit (from attachments) the Name Control on Item I. If unable to locate a Name Control, edit "XXXX" .

    4. Edit (from attachments) the EIN on Item I. If unable to locate the EIN edit 12-9999999.

    Item I is checked yes or both the yes and No boxes are checked, The name and/or EIN is different from the return name and/or EIN Underline the Name Control and EIN on Item I.
    Item I is checked yes or both the yes and no boxes are checked There is no name and/or EIN present on Item I
    • Check attachments for name control and/or EIN.

    • Edit from attachments the name control on Item I. If unable to locate a name control, edit "XXXX" .

    • Edit from attachments the EIN on Item I. If unable to locate the EIN, edit "12-9999999" .

    Item I is checked no or neither box is checked a corporation name and/or EIN is present (must be different than that on the return)
    • Underline the Name Control on Item I.

    • Underline the EIN on Item I.

    Item I is checked no or neither box is checked a corporation name and EIN are not present No editing is necessary.

Part I
Perfection

  1. Line 1c, Column (A): If blank, do one of the following:

    1. Line 1a minus 1b.

    2. Add Lines 2 and 3.

  2. Line 2, Column (A): If blank, edit from Schedule A, Line 7.

  3. Line 9, Column (C): If blank, do one of the following:

    1. Line 9, Column (A) minus Column (B).

    2. Form 990–T, Schedule G, Column (2) total minus Column (5) total.

  4. Line 13, Column (A): If blank, do one of the following:

    1. Add Lines 3-12.

    2. Add Line 13, Columns (B) and (C).

    3. Edit Line 13, Column (C) to Column (A) if Column (B) has no dollar entries.

  5. Line 13, Column (B): If blank, do one of the following:

    1. Add Lines 6-11.

    2. Line 13, Column (A) minus Column (C) if both Line 13, Column (A) and Column (C) have an amount. If Line 13, Column (A) is the only amount, leave Line 13, Column (B) blank and edit the amount from Line 13, Column (A) to Line 13, Column (C).

  6. Line 13, Column (C): If blank, do one of the following:

    1. Add Lines 3-12.

    2. Line 13, Column (A) minus Column (B).

Part II
Perfection

  1. Line 29: If blank, add Lines 14-28.

  2. Line 31: Perfect. Don't bracket.

  3. Line 34: Perfect for legibility.

    Caution:

    If Line 34 is blank, don't compute. Leave Line 34 blank.

Part II
Correspondence

  1. Line 33: If the amount on Line 33 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , a detailed schedule must be attached in support of Line 33. If the information isn't attached, correspond.

Part III
Line 35
Perfection

  1. Edit "1" to the right of the box on Line 35 if all of the following apply:

    1. Part II, Line 34, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    2. The Type of Organization Code is "4" or "5" .

    3. A Controlled Group Plan is attached with the organization’s portion of the group’s allocation.

Part III
Lines 35a(1)–35b(2)
Perfection

  1. "X" Lines 35a(1)-35b(2) if Line 35 has not been edited with "1" and there are dollar entries present.

Part III
Lines 35c–40
Perfection

  1. Lines 35c or 36: Perfect.

  2. Line 37: Edit CCC "8" if a dollar entry is present. IRM 3.11.12.8.14 paragraph (2).

  3. Line 38: If blank:

    If the Type of Organization Code is a And the tax period is Then
    "1" , "2" , or "3" edit from Schedule I (Form 1041) Line 56.
    "4" or "5" 1996 and subsequent edit from Form 4626, Line 14.
  4. Line 40: If blank, add Line 37, Line 38 and Line 39 to either Line 35c or Line 36, whichever is present.

Part III
Correspondence

  1. Line 36: If an amount is present and the Schedule D, Form 1041 box is checked, a Schedule D, Form 1041 must be attached. If missing, correspond.

  2. Line 37: If an amount is present, a schedule showing the Line 37 computation must be attached. If missing, correspond.

    Exception:

    Don't correspond if the Subsection is 03.

  3. Line 38: If an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present, and the Organization Code is:

    • 1, 2, or 3, Schedule I, Form 1041 must be attached. If missing, correspond.

    • 4 or 5, Form 4626 must be attached. If missing, correspond.

Part IV
Perfection

  1. Lines 41a - 41d - If the organization has no taxable income, or there is an indication the organization is electing to carry forward an allowable credit, don't perfect or edit the credit amount to the credit line on the return or the edit sheet.

  2. Perfect for legibility. Never bracket. If the dollar entries can be determined to be misplaced entries, "X" the entry and edit to the correct T-line. Recompute Line 44.

    Example:

    If the filer has entered an amount on Line 41c for Form 4136, subtract the Form 4136 amount from Line 41c and recompute Line 44.

  3. If the credit claimed on a line is ≡ ≡ ≡ ≡ ≡ or more and the supporting schedule for that line is missing, correspond using A/C 211.

  4. Edit a missing schedule code on Line 8 of the edit sheet, if the supporting schedule is missing and all of the following apply:

    • The credit claimed is ≡ ≡ ≡ or more.

    • You are not corresponding for any other item.

    • Only one required credit form is missing.

  5. The table below shows the line number, missing form and missing schedule codes for each credit return:

    Line Number Missing Form MSC
    41a 1116, Foreign Tax Cr, Trust Part IV, Line 29 30
    1118, Foreign Tax Cr, Corp. Pt III Sch B, Line 6 29
    41b 5735 Possessions Cr./American Samoa Economic Cr. Part III, Line 17 (2003 revision) or Part II, Line 12 (2007 revision)8834, Qualified 37
    8834, Qualified Elect Vehicle Cr. Part II, Line 7 None
    8912, Clean Renewable Energy and Gulf Tax Bond Cr, Line 17 None
    41c (Corporations (Org 1, 2. 4 and 5) 3800, General Business Cr. Line 32 43
    41C (Trusts (Org 3)) 3800, General Business Cr Line 32 43
    6765, Research Cr. Line 65 40
    8586, Low income Housing Cr., Line 7 or Form 3800, Line 1d 44
    8835, Renewable Elec. Cr. and Refined Coal Prod. Section A, Line 12 or Section B, Line 38. If both lines have an amount total the amounts. 50
    8882, Empl. Child Care Cr. Line 9 59
    41d 8801, PY Min Tax, Line 15 46
    8827, PY Min Tax, Line 8b 46
  6. Line 41A: Perfect

  7. Line 41b - Move the credit amount from Form 5735 Possessions Cr/American Samoa Economic Cr Part III, Line 17 (2003 revision) or Part II, Line 12 (2007) revision to Box 10 of the edit sheet. Edit in dollars only.

  8. Line 41c (Corporations (Org 1, 2, 4 and 5):

    1. If Form 3800 Part III Line 1a has an entry and Form 3468, Line 9 contains an entry (not applicable for 2009 and prior revision of Form 3468) edit CCC "V" .

    2. If the credit is claimed, check to see if a credit of ≡ ≡ ≡ or more is claimed on Form 3800 Part III Line 4h. Subtract the amount of the credit shown on Form 3800, Part III line 4h from Form 990-T Line 41c and edit total to line 41c. Don't recompute 990-T line 48.

  9. Line 41c (Trusts (Org 3) - Move the credit amount from Form 8586 Section A, Line 12, or Section B, Line 38 to Box 11 of the edit sheet. If both line have amounts, total the amounts and edit the total to Box 11 of the edit sheet. Edit in dollars only.

  10. Line 41d perfect.

  11. Line 41e - If blank, add Lines 41a - 41d.

  12. Line 43: If blank, and Form 4255, 8611, 8697, 8866 or 8902 is attached, edit from:

    1. Form(s) 4255, Line 13.

    2. Form(s) 8611, Line 14. If Line 14 has an amount, edit CCC "9" .

    3. Form(s) 8697, Part I, Line 10 or Part II, Line 11.

    4. Form(s) 8866, Line 10.

    5. Form(s) 8902, Line 30.

  13. Line 44: If blank, add Lines 42 and 43. If Lines 42 and 43 are blank, edit Line 40 minus Line 41e.

  14. Lines 45a, 45b, and 45c: Perfect. Don't bracket.

  15. Line 45d: If blank, edit from Form 1042–S, Line 7 or similar statement.

  16. Line 45e: Perfect.

  17. Line 45f (2006 form revision):

    1. Delete Line 45f if an amount is present.

    2. Edit Action Code "450."

  18. Line 45f: If blank and a Form 8941 is attached, edit From Form 8941, Line 20. A Form 8941 must be attached if the amount of the credit is ≡ or more.

  19. Line 45g: "X" any credit claimed on Line 45g if the credit is from Form 2439, or Form 4136. Recompute Line 45g to include amounts for other credits claimed on Line 45g. Always move the Form 2439 credit to Box 9 of the edit sheet. Edit the credit in dollars only.

    Figure 3.11.12-13

    This is an Image: 33480520.gif

    Please click here for the text description of the image.

  20. Line 46: If Line 46 is the only entry for Lines 45a – 45g, edit the amount from Line 46 to Line 45g and correspond if ≡ ≡ ≡ ≡ ≡ ≡ ≡

  21. Line 47: If blank, and a Form 2220 is attached, do the following:

    1. Edit the dollar amount on Form 2220, from the following line number to Form 990-T, Part IV, Line 47:

      2004 2005 - 2007 2008 - Current
      Line # 38 34 38
    2. If the line shown in (a) above is blank, and there is an amount on the following line, compute the total amount and enter on Form 990-T, Part IV.

      2004 2005 - 2007 2008 - Current
      Line # 37, Column a-e 33, Column a-d 37, Column a-d
    3. If Form 2220, page 2 is missing, leave Form 990-T, Part IV, Line 47 blank.

  22. Line 48:"X" (or subtract) any penalty or interest other than the estimated tax penalty from Line 47.

  23. Lines 48 and 49: If blank, do both of the following:

    1. Add Lines 44 and 47 and subtract Lines 45a-45g.

    2. Edit the positive result on Line 48, or the negative result on Line 49.

      Caution:

      For refunds of ≡ ≡ ≡ ≡ ≡ or more, edit Action Code 341 per IRM 3.11.12.2.21.

      Note:

      If pre-computed penalty, interest or other additional charge is evident, ensure that it has not been included on Line 44 or 48, or reduced Line 49.

  24. Line 50: Don't edit CCC "F" if Line 50 credit elect amount is present.

Part IV
Correspondence

  1. Lines 41a - 41d and 45d - 45e: Correspond if the , credit claimed is ≡ ≡ or more and the required supporting form(s) or supporting schedules are missing.

    1. Edit a MSC per IRM 3.11.12.8.15(5) if not corresponding for other item(s).

    2. Edit an Action Code 211 if corresponding for other item(s).

  2. Line 45f: Correspond for Form 8941 if the credit claimed is ≡ ≡ or more.

    1. Edit an Action Code 211 .

  3. Line 45g:

    If Then
    Credit claimed is for Form 4136 and Form 4136 is missing Correspond for Form 4136.
    Credit claimed is for Form 2439 and Form 2439 is missing Correspond for Form 2439 if the credit claimed is ≡ ≡ ≡ ≡ or more.
    Credit claimed is for any other credit and the form to substantiate the credit is missing Correspond if credit claimed is ≡ ≡ ≡ ≡ or more.

♦Paid Preparer Section♦

  1. The Paid Preparer section is located below the Signature area at the bottom of Form 990-T.

♦Paid Preparer Checkbox Indicator♦
  1. The Paid Preparer Checkbox is located next to the taxpayer signature area. It indicates whether the taxpayer has elected, or not elected, to allow the Paid Preparer to represent them in order to answer questions about the return as it is processed.

  2. No action is required on amended returns.

  3. Take the following actions when an entry is present in the Paid Preparer Checkbox:

    If Then
    Only the "Yes" box is checked Take no action.
    The "No" box is checked,
    Neither of the boxes are checked, or
    Both boxes are checked
    Circle the Paid Preparer's Telephone Number, if present.
♦Paid Preparer PTIN♦
  1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 2009 and prior form revisions) at the bottom-right corner of Page 2.

  2. No action is required on amended returns.

  3. The Preparer's SSN is a nine-digit number. Circle the SSN if all zeroes or all nines.

  4. A PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX).

♦Firm's EIN♦
  1. The Firm's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 2.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine-digit numeric number. Circle the EIN if all zeroes or all nines.

♦Paid Preparer Telephone Number♦
  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner of Page 2.

  2. No action is required on Amended returns.

  3. If a complete Paid Preparer's Telephone Number is on the Preparer Telephone Number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10 - digits, review the return and all attachments.

    Note:

    If more than 10 digits are present continue processing. ISRP will input the first 10 digits only.

    If Then
    A complete Paid Preparer's Phone Number is located Edit to the "Phone No" line.
    A complete Paid Preparer's Telephone Number isn't located or the number is illegible Circle the incomplete or illegible phone number.

Schedule I
Form 1041
Alternative Minimum Tax

  1. "X" Schedule I, Form 1041, if the Organization Code is "4" or "5" .

  2. Lines 24 and 25: Perfect. Bracket only Line 24 if negative and the form doesn't reflect the line as a negative amount (-) or > .

    Note:

    For returns 2001 and prior, convert Line 7 to Line 24, and Line 8 to Line 25.

Schedule D (1041)
Capital Gains and Losses

  1. Always convert prior year return revisions, see Exhibit 3.11.12-14.

  2. Part III, Lines 17–18c, Column (2): Perfect.

  3. Part III, Line 19: Perfect.

  4. Part V, Line 45: If blank, edit the smaller of Line 32 or 33. Don't bracket if negative.

  5. If "Alternative Minimum Tax" is indicated in the margin of Schedule D (1041), "X" Schedule D.

Form 4952
Perfection

  1. Perfect Part II, Net Investment Income, as follows:

    1. Line 4e: Perfect. Don't bracket if negative.

    2. Line 4g: Perfect. Don't bracket if negative.

Form 4136
Perfection

  1. If Fuel Tax Credit is claimed on Form 990-T, Line 44g, Form 4136 must be attached.

  2. No editing is required for Form 4136 for TY2001 and subsequent.

Form 4626
Perfection

  1. "X" Form 4626 if the Organization Code is "1" , "2" , or "3" .

  2. Lines 3, 4e, 6, and 12: Perfect. Bracket only Lines 3 and 4e if negative and the form doesn't reflect the line as a negative amount (-) or > .

Form 6252
Installment Sale Indicator
Edit Sheet, Box 7

  1. An Installment Sale Indicator is used to report the sale of property on the installment plan.

  2. Codes are based solely on taxpayer response to Question 3 of Form 6252.

  3. Edit the Installment Sale Indicator code which corresponds with the answer to Form 6252, Question 3 in Box 7 of the edit sheet:

    1. Code 1 —"yes"

    2. Code 2 —"no"

    3. Code 3 — other than " yes" or "no"

  4. Edit CCC "B" if there is an indication on the return or attachment that the organization is opting out of the installment plan (e.g., "final lump sum payment" written across the top of Form 6252).

Form 8941

  1. If an amount of $50.00 or more is present, on Form 990-T, line 44f, Form 8941 must be present.

  2. If multiple 8941's are present and the amount on Form 990-T, Line 44f is≡ ≡ ≡ or less, allow the credit.

  3. If multiple 8941's are present and the amount of Form 990-T, Line 44f is ≡ ≡ ≡ ≡ or more, X all Forms 8941. Don't recompute Form 990-T, Line 44f. Edit ERS AC 211 to initiate correspondence for a consolidated Form 8941.

  4. If Form 8941, Line 2 and/or 14 is 25 or greater, "X" Form 8941.

  5. If Form 8941, Line 1 and/or 13 is 100 or more, circle the number and edit "99" next to Line 1 and/or 13.

Form 1041–-A

  1. Form 1041–-A is an information return filed by a trust claiming a contribution deduction under Section 642 of the IRC or Trust described in Section 4947(a).

General Instructions

  1. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

  2. Put Form 1041–-A in the following order: Pages 1 and 2.

Perfection, Editing, and Correspondence

  1. An edit sheet isn't used for Form 1041–-A.

  2. Refer to the following instructions to edit the following generic items on the return:

    1. Computer Condition Codes, (F, G, R, U, V, W, 3, and 7) IRM 3.11.12.2.11 . Edit the CCC below the OMB number.

    2. Daily Delinquency Penalty,IRM 3.11.12.2.14.1.2 . Edit the DDP amount paid to the right of Part II, Title, if the return was received within the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. Entity Perfection,IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

      Note:

      Perfect the name and EIN. Address perfection isn't required on this form.

    4. Received Date,IRM 3.11.12.2.14.1

    5. Tax Period,IRM 3.11.12.2.25

      Note:

      If tax period month is other than 12, correspond for a calendar year return using a 2696C letter. Exception: Don't correspond on "Final" returns.

Part I
Perfection

  1. Line 9: If blank, add lines 1-8.

Part IV
Perfection

  1. Line 38, Columns (a) and (b): If blank, do one of the following for each column:

    1. Add Lines 25 - 37.

    2. Add Lines 42 and 45.

    3. Edit from Line 45.

    Figure 3.11.12-14

    This is an Image: 33480513.gif

    Please click here for the text description of the image.

  2. Line 42, Columns (a) and (b): If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following for each column:

    1. Add Lines 39 - 41.

    2. Line 38 minus Line 45 if both Line 38 and Line 45 have an amount.

    3. If Line 38 is the only line with an amount, leave Line 42 blank and edit the amount from Line 38 to Line 45.

    Figure 3.11.12-15

    This is an Image: 33480514.gif

    Please click here for the text description of the image.

  3. Line 45, Columns (a) and (b): If blank, do one of the following for each column:

    1. Line 38 minus Line 42.

    2. Add Lines 43 and 44.

    Figure 3.11.12-16

    This is an Image: 33480515.gif

    Please click here for the text description of the image.

  4. Line 46, Columns (a) and (b): If blank, add lines 42 and 45 for each column.

Paid Preparer Section

  1. The paid preparer section is located below the signature on Form 1041-A.

Paid Preparer PTIN

  1. The Preparer's Tax Identification Number is located to the right of the Preparer's Signature in the PTIN box at the bottom right of page 2.

  2. No action is required on amended returns.

  3. The Preparer's PTIN must be a nine-digit number. Circle the PTIN if all zeroes or all nines.

  4. A PTIN begins with the alpha "P" followed by an eight digit number (e.g. PXXXXXXXX).

Firm's EIN

  1. The Firm's EIN is located below the Preparer's PTIN at the bottom right corner of Page 2.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine-digit numeric number. Circle the EIN if all zeroes or all nines.

Paid Preparer Telephone Number

  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner of Page 2.

  2. No action is required on amended returns.

  3. If a complete Paid Preparer's telephone number is on the Preparer Telephone Number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's phone number is incomplete, illegible or less than 10 digits, review the return and all attachments.

    Note:

    If more than 10 digits are present continue processing. ISRP will input the first 10 digits only.

    If Then
    A complete Paid Preparer's phone number is located Edit to the "Phone No" line.
    A complete Paid Preparer's telephone number isn't located or the number is illegible Circle the incomplete or illegible phone number.

Preparation Code

  1. No action is required on amended returns.

  2. Edit a Preparation code of "1" next to the Preparer's PTIN if data is present which indicates the return was prepared by a paid preparer in the paid preparer area of the return.

    Note:

    Data such as N/A or self prepared doesn't indicate the return was prepared by a paid preparer and should not be edited with a "1" .

Form 1120-POL

  1. Form 1120-POL is filed by the following organizations:

    1. A political organization, whether or not it is tax exempt, must file Form 1120-POL if it has any political organization taxable income.

    2. An exempt organization that isn't a political organization must file Form 1120-POL if it is treated as having political organization taxable income under section 527(f)(1).

  2. Form 1120-POL is subject to:

    1. Corporate income tax

    2. Failure to file penalty

    3. Failure to pay penalty

    4. Failure to Deposit (FTD) Penalty

General Instructions

  1. Always convert prior year return revisions, see Exhibit 3.11.12-15.

  2. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave the T-line blank only if it cannot be perfected in the steps above.

  3. Put Form 1120-POL in the following order:

    1. Form 1120-POL

    2. Form 4136, Computation of Credit for Federal Tax Paid on Fuels

Perfection, Editing, and Correspondence

  1. Attach Form 5800, Exempt Organization Return Forms Edit Sheet, to Form 1120-POL, if necessary. Edit Form 1120-POL data on the right side of the edit sheet.

  2. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.2.10

    2. Computer Condition Codes, (A, D, F, G, O, Q, R, W, X, Y, 3, 7, or 8), IRM 3.11.12.2.11 ,

    3. Entity Perfection, IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

    4. Penalty and Interest Code, IRM 3.11.12.2.14.1.3

    5. Received Date, IRM 3.11.12.2.14.1

    6. Tax Period, IRM 3.11.12.2.25

    Note:

    Route any correspondence stating a valid reasonable cause for failing to deposit along with a photocopy of the first page of the return to OAMC, EO Accounts.

Audit Code
Edit Sheet, Line 2

  1. Edit Audit Code 2 on Line 2 of the Edit sheet if:

    1. Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualifying Electing Fund, is attached and Part IV, Line 10a has an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    2. Form 1120-POL, Page 1, question 2, under "Additional Information" is answered "yes" .

    3. Form 5713, International Boycott Report, is attached and both Questions on Line 7(f) are answered "yes" .

    4. Forms 926, 5735, or 8873 is attached.

    5. Form 1118 reflects more than ≡ ≡ ≡ ≡ ≡ ≡ in foreign tax credit.


Candidate for U.S. Congress Only Box

  1. Edit a "1" to the right of "Candidate for U.S. Congress Only" , if the first box is checked.

  2. Edit a "2" to the right of "Candidate for U.S. Congress Only" , if the second box is checked.

  3. Edit a "3" to the right of "Candidate for U.S. Congress Only" , if neither box is checked.

  4. Correspond if the second box is checked and a signed statement containing all of the following isn't attached:

    1. Name and address of the candidate for Congress

    2. Taxpayer identification number

    3. Party affiliation and office sought

    4. District and State in which the office is sought

    5. Name and address of the principal campaign committee. If the designation was made in a prior year, a copy of the earlier designation must be attached.

Exempt Organization Master File (EOMF) Code

  1. Edit EOMF Code "1" in the right top margin of Form 1120-POL next to the year if the organization has indicated it is a section 501(c) or section 527(f)(3) by checking the box below the tax year ending line.

Lines 1-18
Perfection

  1. Lines 1-7: Perfect. If Lines 1-7 are blank, and Line 8 has an entry, edit the amount from Line 8 to Line 7. Circle brackets if present.

  2. Line 8: If blank, add Lines 1-7. Circle brackets if present.

  3. Lines 9-15: Perfect. If Lines 9-15 are blank, and Line 16 has an entry, edit the amount from Line 16 to Line 15. Circle brackets if present.

  4. Line 16: If blank, add Lines 9-15. Circle brackets if present.

  5. Line 18: Perfect. Circle brackets if present.

Lines 21-25
Perfection and Correspondence

  1. Line 21: Perfect. Circle brackets if present. If credit claimed is from Form 8941, remove the credit and recompute Line 21. Delete the Form 8941 and don't recompute Line 24. Correspond if Line 21 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the required supporting form(s) are missing:

    1. Edit a MSC of 43 (Form 3800) on the Edit Sheet, Line 8, if not corresponding for other item(s).

    2. Edit an Action Code if corresponding for other item(s).

  2. Line 22: If blank, subtract Line 21 from Line 20. Circle brackets if present.

  3. Line 23a: Perfect from attachments if necessary. Circle brackets if present.

  4. Line 23b: If an amount of ≡ ≡ ≡ ≡ ≡ or more is present, Form 2439 must be attached. Circle brackets if present. Correspond for Form 2439 if missing and the credit claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Line 23c: If an amount is present, Form 4136 must be attached. Correspond for Form 4136 if missing.

  6. Line 24 or 25: If blank, do the following:

    1. Line 22 minus Line 23d.

    2. Edit the positive result on Line 24, or the negative result on Line 25.

      Caution:

      For refunds of ≡ ≡ ≡ ≡ ≡ ≡ or more, edit ERS Action Code "341" per IRM 3.11.12.2.21.

    3. If Line 24 contains a penalty or interest other than ES Penalty, subtract the penalty or interest and recompute Line 24.

♦Paid Preparer Section♦

  1. The Paid Prepare section is located below the Signature area at the bottom of Form 1120-POL.

♦Paid Preparer Checkbox Indicator♦
  1. The Paid Preparer Checkbox is located next to the taxpayer signature area. It indicates whether the taxpayer has elected, or not elected, to allow the Paid Preparer to represent them in order to answer questions about the return as it is processed.

  2. No action is required on amended returns.

  3. Take the following actions when an entry is present in the Paid Preparer Checkbox:

    If Then
    Only the "Yes" box is checked Take no action.
    The "No" box is checked,
    Neither of the boxes are checked, or
    Both boxes are checked
    Circle the Paid Preparer's Telephone Number.
♦Paid Preparer PTIN♦
  1. The Paid Preparer's SSN or PTIN is located to the right of the Preparer's Signature in the PTIN box (Preparer's SSN or PTIN box for 2009 and prior form revisions) at the bottom-right corner of Page 1.

  2. No action is required on amended returns.

  3. The Preparer's SSN ia a nine-digit number. Circle the SSN if all zeroes or all nines.

  4. A PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX).

  5. Circle the Preparer's SSN or PTIN if it is an invalid number.

♦Firm's EIN♦
  1. The Firm's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 1.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine-digit number. Circle the EIN if all zeroes or all nines.

♦Paid Preparer Telephone Number♦
  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner of Page 1.

  2. No action is required on Amended returns.

  3. If a complete Paid Preparer's Telephone Number is on the Preparer Telephone Number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10 - digits, review the return and all attachments.

    Note:

    If more than 10 - digits are present continue processing. ISRP will input the first 10 - digits only.

    If Then
    A complete Paid Preparer's Phone Number is located Edit to the "Phone No." line.
    A complete Paid Preparer's Telephone Number isn't located or the number is illegible Circle the incomplete or illegible phone number.

Form 4136
Perfection

  1. If Fuel Tax Credit is claimed on Form 1120–POL, Line 23c, Form 4136 must be attached.

  2. No editing is required for Form 4136 for TY2001 and subsequent.

Form 4720/4720–A

  1. Form 4720 is best defined as an excise tax "penalty" form. This form is a supplementary annual taxable return used to compute and pay certain excise taxes which may be due under IRC chapter 41 or 42.

  2. A determination is based on the amounts in Part I or II-A whether the Form 4720 is being filed on behalf of:

    1. The Foundation/organization (Form 4720).

    2. For a personal tax liability (4720-A).

    3. For both the foundation/organization and for a personal tax liability.

  3. Make all required photocopies for Form 4720-A prior to perfection of Form 4720. IRM 3.11.12.11.10 for 4720-A perfection instructions.

  4. Process the return according to the amount(s) shown in Part I, Lines 1-13 and/or Part II-A, Lines a-c.

    If Then
    Only Part I contains an amount Process as a 4720
    Only Part II-A contains an amount Process as a 4720-A.
    Part I and Part II-A both contain amounts Process Part I as a 4720 and Part II-A as a 4720–A(s).
  5. Receipt and Control (R&C) will apply the remittance and process the return according to the entries in Part I and/or Part II-A. If R&C prepares a 4720-A, they will notate "4720-A prepared" in the left margin of the return and send a photocopy of the 4720 to Code & Edit. Use the following IF/THEN table to determine the actions to take:

    If Then
    the Form 4720 is signed and there is a TIN and dollar entries present in Part II-A X the photocopy and destroy per local procedures.
    the Form 4720 isn't signed and/or there is no TIN or dollar entries present in Part II-A initiate correspondence for the missing information. IRM 3.11.12.11.3 and IRM 3.11.12.11.10 . The return is processed through ISRP as a Form 4720 when initiating correspondence.

General Instructions

  1. Put Form 4720 in order pages 1 - 10.

  2. Always convert prior year return revisions, see Exhibit 3.11.12–16.

  3. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave the T-line blank only if it cannot be perfected .

  4. Refer to the following instructions to perfect the generic items on the return:

    1. Imaging IRM 3.11.12.2.19 .

    2. Penalty and Interest Code IRM 3.11.12.2.14.1.3 .

    3. Received date IRM 3.11.12.2.14.1 .

    4. Tax period IRM 3.11.12.2.25 .

Perfection, Editing

  1. If there are no correspondence issue make all required photocopies for Form 4720-A prior to perfection of Form 4720.

  2. Perfect the Name Control and EIN. Address perfection isn't required on this form.

  3. Edit Computer Condition Codes to the right of the preprinted year. Valid Computer Condition Codes are D, F, G, R, U, W, X, 3 and 7. See IRM 3.11.12.2.11.

  4. Edit Audit Code 4 (Form 4720 only) on the dotted portion of Line A, entity section, if either of the following apply:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Don’t correspond for a missing signature if audit code 4 is edited on an SFR return.

  5. Edit Audit Code 5 (Form 4720 only) on the dotted portion of Line A, entity section, if ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " following the preprinted "Form 4720" in the upper left corner of page 1.

  6. If both Audit Code conditions 4 and 5 are present, edit Audit Code 4.

Signature
Correspondence

  1. Correspond for a signature if any of the following apply:

    If (on original return) And
    Only Part I has an entry Signature of an Officer or Trustee is missing.
    Only Part II-A has an entry Signature of a Manager, Self-dealer, Disqualified Person, Donor, Donor Advisor, or Related Person is missing, process the return as a Form 4720 to initiate correspondence for the missing signature. See IRM 3.11.12.11.11.
    Part I and Part II-A have an entry A signature for an Officer or Trustee AND a manager, self-dealer, donor, donor advisor or related person (both are required) are missing.
    Part I and Part II-A have an entry Only one signature is present (Officer, Trustee or a manager, self-dealer, donor, donor advisor or related person, process the return as a Form 4720 and correspond for the signature of the missing person.

    Note:

    References to "signature" doesn't include the signature of an individual or firm preparing the return.

Remittance

  1. Returns received with remittance are batched in a "with remit" batch. Returns received without remittance are batched in a "non-remit" batch.

  2. If Form 4720 is batched in a "with remit" batch, proceed as follows:

    If And Then
    Only Part I contains an amount Processing as a Form 4720.
    Only Part II-A contains an amount, or
    Part I and Part II-A contain an amount
    Part II-A, Column (b), TIN is present and Form(s) 4720-A have not been prepared Pull the return and route back to Receipt and Control for Form 4720-A preparation and proper application of the remittance.

    Exception:

    Don't route the return to Receipt and Control if there is missing information. Instead, process the return and initiate correspondence for the missing information. IRM 3.11.12.11.11 .

    Only Part II-A contains amounts Part II-A, Column (b), TIN is missing and Form(s) 4720-A have not been prepared 1. Don't send the return back to Receipt and Control.
    2. Don't prepare a Form 4720-A.

    3. Process the return as a 4720 and initiate correspondence for the missing information. IRM 3.11.12.11.11

Form 4720/4720A Abatement Requests under IRC 4962

  1. Do all of the following on Form 4720/4720-A when "Request for Abatement under IRC 4962" is being requested:

    1. Correspond using CCC "U" for a reasonable cause statement if not attached. If corresponding, don't make photocopies per 2) below. Don't accept the Question B statement as an acceptable request for abatement under IRC 4962, IRM 3.11.12.11.7 .

      Note:

      If the TIN is missing in Part II-A, Column (b), IRM 3.11.12.11.11 .

    2. Photocopy all pages of the numbered or unnumbered return and all attachments (including copies of Forms 4720–A prepared).

    3. Write "Photocopy sent to EO Accounts" in the left margin of the Form 4720 or Form 4720-A.

    4. Route the photocopies to the Ogden IRS Campus, Attn: EO Accounts, via Form 4227 annotating "4962 abatement request."

    5. Process the original Form 4720 and/or Form 4720-A.

Type of Organization Code (Form 4720)

  1. Edit the Type of Organization Code in the space under the "990-EZ" box of the Entity section.

  2. Don’t edit a Type of Organization Code if you edited Audit Code 4.

  3. Edit a Type of Organization Code as follows:

    Form 4720
    Type of Organization Code Description
    1 Form 990-PF box is checked.
    2 Forms 990/990–EZ box is checked.
    3 Form 5227 box is checked.
  4. If no box is checked or more than one box is checked, request INOLES research for the EO filing requirements. If the Type of Organization Code cannot be determined , route to Entity.

Question B (Form 4720)
(Correspondence)

  1. Correspond using CCC "U" if Question B is answered "yes" or "no" , and a detailed statement describing what kind of corrective action was taken isn't attached.

  2. The Question B statement should describe the corrective action the taxpayer took to avoid filing and/or paying Excise Tax on Form 4720. Don't consider this statement when determining if Reasonable Cause applies to any other situation (e.g., IRC 4962, Failure to File, Failure to Pay).

Part I
Perfection
(Form 4720)

  1. Part I applies to an organization which allowed a disqualified expenditure or act.

  2. Compute the total for any of the schedule lines listed below if the line has not been totaled.

  3. Line 1: If blank, edit from Schedule B, Line 4.

  4. Line 2: If blank, edit from Schedule C, Line 7.

  5. Line 3: If blank, edit from Schedule D, Part I, Column (e).

  6. Line 4: If blank, edit from Schedule E, Part I, Column (g).

  7. Line 5: If blank, edit from Schedule F, Part I, Column (e).

  8. Line 7: If blank, edit from Schedule H, Part I, Column (e).

  9. Line 8 (2000 and subsequent form revisions): Perfect.

  10. Line 9: If blank, edit from the "total line" of Schedule J, Part I, Column (h).

  11. Line 10: If blank, edit from Schedule K, Part I, Column (f).

  12. Line 11: Perfect.

  13. Line 12: If blank, edit from Schedule M, line 3.

  14. Line 13, If blank, add lines 1 - 12.

Schedule G
Perfection
(Form 4720)

  1. Lines 1 and 2: If both lines are blank, and there is a Schedule A - 2007 or prior revision, or a Schedule C (2008 or subsequent revision of Form 990/990-EZ) is attached:

    1. Enter on Line 1 the amount from Schedule A (2007 or prior revision), Part VI-A, Column (b), Line 43, or Schedule C (2008 or subsequent revision), Part II-A, Column (a), Line 1h.

    2. Enter on Line 2 the amount from Schedule A (2007 or prior revision), Part VI-A, Column (b), Line 44 or Schedule C (2008 or subsequent revision), Part II-A, Column (a), Line 1i.

  2. Line 4: If blank, edit the larger of one of the following:

    1. Line 1 or 2, multiplied by 0.25., or

    2. The amount from page 1, Part I, Line 6.

Part II-A
Preparation/Perfection
(Form 4720–A)

  1. Form 4720-A is a Non-Master File return that is internally prepared when the return is being filed for a manager, self-dealer, disqualified person, donor, donor advisor, or related person.

  2. Part II-A applies to the person(s) who allowed a disqualified expenditure or act.

  3. If information is present in Part II-A, but the signature of a Manager, Self-Dealer, Disqualified Person, etc., is missing, don't prepare Form(s) 4720-A. IRM 3.11.12.11.11 for missing signature correspondence procedures.

  4. Do all of the following if Form 4720 contains dollar entries in Parts I and II-A or only Part II-A, and there is no phrase "Form 4720-A prepared" in the left margin of the return:

    If the return is batched as Then
    With remit Pull the return and route to Receipt and Control for Form 4720-A preparation and proper application of the remittance. IRM 3.11.12.11.4 .
    Non-remit
    1. Make a separate photocopy of all pages of Form 4720 and all attachments for each individual listed in Part II-A.

      Note:

      Cover up the DLN before photocopying if the Form 4720 has been numbered.

    2. Notate "4720-A prepared" in the left margin of Form 4720.

    3. Process as a Form 4720 and/or Form(s) 4720-A based on the dollar amount(s) in Part I and/or Part II-A.

  5. Prepare a separate Form 4720-A for each individual listed in Part II-A by doing the following on each photocopy:

    1. Edit the letter "A" after the form number (e.g. 4720-A).

    2. Circle the name and EIN of the organization in the entity section.

    3. Underline the name and TIN in Part II-A of the individual for which the Form 4720-A is being prepared. If the name and TIN isn't available, correspond IRM 3.11.12.11.11 .

    4. Edit the tax period to the left of the preprinted tax year if other than current processing year.

    5. Circle out the individual's name(s) in Part II-A, not applicable to the Form 4720-A being prepared.

    6. "X" all entries in Part II-A, Columns (c) - (l) not applicable to the 4720-A being prepared.

    7. X Lines 1 and 2 in Part II-B and edit Line 2 to equal Part II-A column (l) for the individual for which the Form 4720-A is being prepared.

  6. Route photocopies of prepared Forms 4720-A and any attachments to OAMC EO Accounts M/S 6552, if any of the following apply:

    • The Form 4720-A isn't timely filed (the due date is the same as for Form 4720).

    • The taxpayer has annotated "4962 abatement request" .

    • Any correspondence requiring action (e.g. tax payer is expecting a reply) is attached.

  7. Route all other prepared Forms 4720-A to CSPC Non-Master File.

Part II-A
Correspondence
(Form 4720–A)

  1. If Part II - A, Column (b) doesn't contain a TIN and you cannot perfect from attachments, initiate correspondence for the missing TIN using CCC U.

  2. If Part II - A is present but the return doesn't contain a signature of a Manager, Self-dealer, Disqualified Person, etc., initiate correspondence for the missing signature. Edit CCC "U" .

    Note:

    Don’t prepare the 4720-A if corresponding for TIN or signature.

♦Paid Preparer Section 4720/4720A♦

  1. The Paid Preparer section is located below the Signature area of Form 4720/4720-A.

♦Paid Preparer PTIN♦
  1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature at the bottom-right corner of Page 1.

  2. No action is required on amended returns.

  3. The Preparer's SSN must be a nine-digit number. Circle the SSN if all zeroes or all nines.

  4. A PTIN begins with the alpha "P" followed by an eight-digit number (e.g., PXXXXXXXX).

♦Firm's EIN♦
  1. The Firm's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 1.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine-digit number. Circle the EIN if all zeroes or all nines.

♦Paid Preparer Telephone Number♦
  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner of Page 9.

  2. No action is required on Amended returns.

  3. If a complete Paid Preparer's Telephone Number is on the Preparer Telephone Number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10 - digits, review the return and all attachments.

    Note:

    If more than 10 - digits are present continue processing. ISRP will input the first 10 - digits only.

    If Then
    A complete Paid Preparer's Phone Number is located Edit to the "Phone No." line.
    A complete Paid Preparer's Telephone Number isn't located or the number is illegible Circle the incomplete or illegible phone number.

Form 5227

  1. Form 5227 is the Split-Interest Trust Information Return used by trusts described in Section 4947(a)(2) that are subject in part to Section 508 and several of the Chapter 42 private foundation excise taxes.

General Instructions

  1. Always convert prior year return revisions, see Exhibit 3.11.12-17.

  2. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave the T-line blank only if it cannot be perfected in the steps above.

  3. Put Form 5227 in the following order: Pages 1-7.

Perfection, Editing, and Correspondence

  1. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.2.10

    2. Computer Condition Codes, (F, G, R, V, W, 3, and 7), IRM 3.11.12.2.11

    3. Daily Delinquency Penalty, IRM 3.11.12.2.14.1.2

    4. Entity Perfection, IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

    5. Imaging, IRM 3.11.12.2.19

    6. Penalty and Interest Code, IRM 3.11.12.2.14.1.3

    7. Received Date, IRM 3.11.12.2.14.1

    8. Tax Period, IRM 3.11.12.2.25

      Note:

      If tax period month is other than 12, correspond for a calendar year return using a 2696C letter. Exception: Don't correspond on "Final" returns.

Type of Entity

  1. Item B of the Entity section: Check box two (2) if:

    1. No box is checked; or

    2. More than one box is checked. Circle out the other boxes that are checked.

Part I
Perfection

  1. Item C of the Entity Section: If blank, edit from Part IV, Line 50, Column (c).

  2. Item D of the Entity Section: If blank, add Part I, Lines 8 and 13. For 2006 and prior revisions, circle out the date in Item D and enter the total of Part I, Lines 8 and 13.

  3. Line 8: If blank, do one of the following:

    1. Add Lines 1-7.

    2. Edit the amount from Item D to Line 8 if Line 13 is also blank and Line 13 cannot be perfected per (4) below.

  4. Line 13: If blank, add Lines 9 and 10.

  5. Line 22: If blank, add Lines 17 through 21.

Part III-A
Perfection

  1. Line 32: If blank, add Lines 30 through 31c.

Part III-B
Perfection

  1. Line 36: If blank, add Lines 35a through 35c.

Part IV
Perfection

  1. Line 50, Column (b): If blank, 0 (zero), - (dash), none, or N/A, do one of the following:

    1. Add Lines 38 - 49.

    2. Add Lines 56 and 59.

    3. Edit from Line 59.

    4. If unable to perfect per 1) - 3) above, and you are not corresponding for Part IV, edit a "1" .

      Note:

      Zero isn't considered a dollar entry for this line.

  2. Line 50, Column (c): If blank, do one of the following:

    1. Add Lines 38 - 49.

    2. Edit from item C of the entity section.

    3. If unable to perfect per 1) and 2) above, leave blank.

  3. Line 56, Column (b): If a negative symbol is present ( - , > , etc.), circle out the negative symbol. If blank, do one of the following:

    1. Add Lines 51 - 55.

    2. Line 50 minus Line 59 if both Line 50 and Line 59 have an amount.

    3. If Line 50 is the only line with an amount, leave Line 56 blank.

    Figure 3.11.12-17

    This is an Image: 33480508.gif

    Please click here for the text description of the image.

Part IV
Correspondence

  1. Correspond for Part IV if column (b) is blank and Part I has dollar entries.

    Note:

    Don't correspond if the return is blank or has all zeroes throughout.

Part V-A
Perfection

  1. Line 61b: Perfect

Part V-B
Perfection

  1. Line 65b: Perfect.

Paid Preparer Section

  1. The Paid Preparer section is located below the signature line on page 6 of Form 5227.

Paid Preparer PTIN

  1. The Preparer's Tax Identification Number (PTIN) is located to the right of the Preparer's signature in the PTIN box at the bottom right corner of page 6.

  2. No action is required on amended returns.

  3. A PTIN begins with the alpha "P" followed by an eight digit number (e.g. PXXXXXXXX).

Firm's EIN

  1. The Firm's EIN is located below the Preparer's PTIN at the bottom right corner of Page 6.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine digit numeric number. Circle EIN if all zeroes or all nines.

Paid Preparer Telephone Number

  1. The Paid Preparer's phone number is located below the Paid Preparer's PTIN at the bottom right hand corner of Page 6.

  2. No action is required on amended returns.

  3. If a complete Paid Preparer's telephone number is on the Preparer telephone number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's phone number is incomplete, illegible or less than 10 digits, review the return and all attachments.

    Note:

    If more than 10 digits are present continue processing. ISRP will input the first 10 digits only.

    If Then
    A complete Paid Preparer's phone number is located Edit to the Phone No line.
    A complete Paid Preparer's telephone number isn't located or the number is illegible Circle the incomplete or illegible phone number.

Preparation Code

  1. No action is required on amended returns.

  2. Edit a preparation code of "1" next to the Preparer's PTIN if data is present which indicates the return was prepared by a Paid Preparer in the Paid Preparer area of the return.

    Note:

    Data such as N/A or self prepared doesn't indicate the return was prepared by a Paid Preparer and should not be edited with a "1" .

Schedule A
Part I
Perfection

  1. Perfect Schedule A, if Form 5227, page 1, Item B, box 2 or 3 is checked.

  2. Line 2b, Columns (a) and (b): Perfect.

  3. Line 3, Column (a) excluded income:

    If And Then
    0 (zero), - (dash), none, or N/A, other entries are present on Schedule A Delete the entry and edit a "1" .
    Blank the return is blank or has all zeroes throughout Edit a "1" .
    Blank There are entries on Line 1, Column (a) excluded income and Line 2b, Column (a) excluded income Subtract 2b from 1, Column (a). Edit to Line 3 column (a) excluded income. If total equals zero, edit "1" .
    Blank Line 1, Column (a) and Line 2b, Column (a) are both blank and Part II, Line 29, Column (a) has an entry other than 0 (zero), - (dash), none, or N/A Edit the amount from Form 5227, Part II, Line 29, Column (a) excluded income to Line 3, Column (a) excluded income.
    Blank Line 1, Column (a) is blank and Line 2b, Column (a) excluded income has an amount and Part II, Line 29, Column (a) has an entry other than 0 (zero), - (dash), none, or N/A Compute Line 3 Column (a) by subtracting the amount on Line 2b column (a) excluded income from the amount on Form 5227 Part II Line 29 column (a) excluded income.
    Blank Line 1, Column (a), Line 2b excluded income, Column (a) excluded income, and Part II Line 29 Column (a) excluded income are all blank 0 (zero), - (dash), none, or N/A and there are other entries on Schedule A including 0 (zero), - (dash), none, or N/A, Edit a "1" on Line 3, Column (a) excluded income.
  4. Line 3, Column (b) excluded income: If blank, Line 1, Column (b) excluded income minus Line 2b excluded income, Column (b). If Line 1, Column (b) excluded income is blank, edit the amount from Form 5227, Part II, Line 29, column (b) excluded income to Line 3 Column (b) excluded income.

    Figure 3.11.12-18

    This is an Image: 33480521.gif

    Please click here for the text description of the image.

Schedule A
Correspondence

  1. Correspond for Schedule A (pg 7) if all of the following apply:

    1. Schedule A is blank or missing and cannot be perfected and the return contains dollar amounts.

    2. Item B box 2 or box 3 is checked.

    3. Form 5227 is a 2007 or subsequent revision.

Schedule A
Part III
Perfection

  1. Line 7d, Column (c): If blank, add Lines 7a-7c, Column (c).

Form 5578

  1. Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax. Every 501(c)(3) organization which operates, supervises, or controls a private school must file a certification of racial nondiscrimination.

Perfection, Editing, and Correspondence

  1. Refer to the following instructions to perfect the generic items:

    1. Computer Condition Codes, (U, 3), IRM 3.11.12.2.11 . Edit the CCC in the upper right corner of the return.

    2. Entity Perfection,IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

      Note:

      Perfect the name and EIN. Address perfection isn't required on this form.

    3. Tax Period,IRM 3.11.12.2.25 .

Instructions

  1. A 501(c)(3) organization which operates, supervises, or controls a private school must file a certification of nondiscrimination on Form 990/990–EZ, Schedule A, or Form 5578 if the school is a zero filer.

  2. Perfect Form 5578 as follows:

    1. Underline the name control on Line 1a.

    2. Perfect the EIN on Line 1b.

    3. If Line 1a is blank, perfect the name control and EIN on Line 3a and 3b.

    4. If Line 3a is blank, perfect the name control and EIN on Line 2a and 2b.

    5. Edit the tax period as shown unless current year. This includes future tax periods.

    6. A received date isn't required on this form.

  3. Edit CCC "U" in the upper right corner of Form 5578 to correspond for a missing signature.

  4. If the tax period is 18 months or more from today's date, edit CCC "U" and correspond for a future tax period.

Form 5768

  1. Form 5768 is an Election/Revocation of election by an eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation.

  2. Section 501(c)(3) provides that an organization exempt under that section will lose its tax-exempt status and its qualification to receive deductible charitable contributions if a substantial part of its activities are carried on to influence legislation.

Perfection, Editing, and Correspondence

  1. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS),IRM 3.11.12.2.10

    2. Entity Perfection,IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6 .

      Note:

      Perfect the name and EIN. Address perfection isn't required on this form.

    3. Received Date,IRM 3.11.12.2.14.1

    Note:

    A tax period isn't required on this form.

Instructions

  1. IRC 501(h) allows a 501(c)(3) organization (SS03) to elect or revoke an election to make limited expenditures to influence legislation.

  2. Perfect Form 5768 as follows:

    1. Underline the name control.

    2. Perfect the EIN.

    3. Edit the earliest received date.

    4. Line 1: Edit a "024" to the left of Line 1 and underline the YY if an election date is entered.

    5. Line 2: Edit a "023" to the left of Line 2 and underline the YY if a revocation date is entered.

  3. Edit an ERS Action Code in the bottom left margin of the return and correspond if any of the following apply:

    1. Lines 1 and 2 have no date.

    2. Lines 1 and 2 both have a date.

    3. Signature is missing.

Form 6069
(CSPC Only)

  1. All non-Master File forms are processed at CSPC. Form 6069 is a non-Master File return.

  2. Form 6069 is filed by coal mine operators to compute the IRC 192 deduction and the IRC 4953 taxes on excess contributions made to a Black Lung Benefit Trust (IRC 502(c)(21) trust).

  3. Form 6069 is subject to delinquency penalties unless the filer submits a valid reasonable cause for delinquency.

Perfection

  1. Perfect Form 6069 as follows:

    1. Perfect the name, address, and EIN of the mine operator.

    2. Math verify Form 6069, Schedules A and B. Place a check mark to the right of the amount if it agrees with the taxpayer's entry. Place an "X" to the right of the taxpayer's entry if the amount doesn't agree, and edit the correct amount to the left of the line being verified. Don't continue to math verify the remaining lines.

  2. Perfect Schedule A as follows:

    1. Line 1d: The smaller of Line 1a or 1b.

    2. Line 1e: The larger of Line 1c or 1d.

    3. Line 2c: Line 2a minus Line 2b.

      Note:

      Line 2c cannot be negative.

    4. Line 3: The larger of Line 1e or 2c.

  3. Perfect Schedule B as follows:

    1. Line 1b: Schedule A, Line 3.

    2. Line 1c: Line 1a minus Line 1b.

      Note:

      Line 2c cannot be negative.

    3. Line 3: Line 1c plus Line 2.

    4. Line 4: Line 1b minus Line 1a.

      Note:

      Line 4 cannot be negative.

    5. Line 6: Line 4 plus Line 5.

    6. Line 7: Line 3 minus Line 6.

      Note:

      Line 7 cannot be negative.

    7. Line 8: Line 7 multiplied by 0.05. Place an "X" to the right of the taxpayer's entry if your amount doesn't agree with the taxpayer's entry and edit the correct amount to the left of Schedule B, Line 8. Flag the return to notify non-Master File of a math error.

  4. Route all perfected Forms 6069 to CSPC for processing.

Form 8872

  1. Form 8872 is an information return that is filed by tax-exempt section 527 political organizations (unless exception applies) to report certain contributions received and expenditures made.

  2. Every section 527 tax-exempt political organization that accepts a contribution or makes an expenditure for a tax-exempt function during a calendar year must file Form 8872, except:

    1. a political organization that isn't required to file a Form 8871,

    2. a political organization that is subject to tax on its income because it did not file or amend a Form 8871, or

    3. a qualified state or local political organization (QSLPO).

General Instructions

  1. Perfect as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave a "T" line blank only if it cannot be perfected in the steps above.

Perfection, Editing, and Corresponding

  1. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.2.10

    2. Computer Condition Codes (F, G), IRM 3.11.12.2.11 ; Edit the CCC to the right of Line B.

    3. Entity Perfection, IRM 3.11.12.2.16 through IRM 3.11.12.2.16.6

      Note:

      If the "Change of Address" box is marked, route to Entity IRM 3.11.12.2.9.2 (1)(m).

    4. Imaging, IRM 3.11.12.2.19

    5. Received Date, IRM 3.11.12.2.14.1

    6. Tax Period, IRM 3.11.12.2.25

  2. A tax period must be edited on all 8872 returns including current year returns unless the period ending date is missing and you are corresponding for Line 8. In this instance, leave the tax period blank.

  3. If the tax period ending date is missing, perfect as follows in YYMM format:

    1. Line 8a - 8e: If checked, edit the "due by" pre-printed month as the month for the tax period and the year the return was received as the year for the tax period.

      Example:

      If Line 8b is checked the "due by" pre-printed month is (July), and the return was received in August 2016, the tax period would be edited as 1607.

    2. Line 8f: If checked and a month is present edit using the month that is written as the month for the tax period and the year the return was received as the year for the tax period.

      Example:

      If Line 8f is checked, and April is notated, and the return was received in July 2016, the tax period would be 1604.

    3. Line 8g: If checked and a month and year are present on 8g(2), edit the month and year as the tax period.

      Example:

      If 8g(2) has a date of August 24, 2016, the tax period would be 1608.

    4. Line 8h: If checked and a month and year are present on 8h(1), edit the month and year as the tax period.

      Example:

      If 8h(1) has a date of May 9, 2016, the tax period would be 1605.

Page 1
Perfection

  1. Line 8: Edit a "1" - "8" representing the box that is checked for "a" - "h" in the right margin of Line 8 by editing one of the following:

    1. 8a = 1

    2. 8b = 2

    3. 8c = 3

    4. 8d = 4

    5. 8e = 5

    6. 8f = 6

    7. 8g = 7

    8. 8h = 8

  2. If Line 8 has no box checked, but there is a date on Line 8(f)-8(h), edit a "6" , "7" or "8" representing the line a date is present per (1) above.

  3. If Line 8 is blank or has more than one box checked, don't code Line 8. Edit ERS Action Code 211 and correspond for the correct box.

  4. Line 9: If blank, perfect as follows:

    1. Edit the total from Schedule A.

    2. If the subtotal from Schedule A is blank, compute by adding the "Amount of Contribution" lines above the subtotal line and edit to Line 9.

  5. Line 9: If ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. If the organization indicates they could not file electronically because they did not have a user ID or password, continue processing the return.

    2. If the organization did not provide a reason for NOT filing electronically, attach Form 4227, notate "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " , and route to Entity.

  6. Line 10: If blank, perfect as follows:

    1. Edit the total amount from Schedule B.

    2. If the subtotal line from Schedule B is blank, compute by adding the "Amount of Expenditure" lines above the subtotal lines and edit to Line 10.

Page 1
Correspondence

  1. Correspond with the organization if they have filed a Form 8872 for the wrong year (odd or even) based on the box marked on Line 8.

    If the box checked is Then the tax period must be the following type of year
    8a-8c Even
    8d Even or Odd
    8e Odd
    8f Even or Odd
    8g & 8h Even
  2. Correspond if Line 8 is blank or has more than one box checked.

Schedule A
Correspondence

  1. If an amount of ≡ ≡ ≡ or greater is present on Line 9, a Schedule A must be attached. If missing, edit ERS Action Code 211 and correspond for the missing Schedule.

Schedule B
Correspondence

  1. If an amount of ≡ ≡ ≡ or greater is present on Line 10, a Schedule B must be attached. If missing, edit ERS Action Code 211 and correspond for the missing Schedule.

Action Codes (ERS)

q. EXHIBIT 01 — Action Codes (ERS)
Action Code Description Workday Suspense Period Function Used In
CE = Code and Edit
EC = Error Correction
S = Suspense
GEN = Computer Generated
001 Input Document 0 GEN
Correspondence
211 * First Correspondence (Domestic)
* Signature (Forms 990, 990-EZ, and 990-PF)
40 CE, EC, S
212 Second Correspondence 25 CE, EC, S
213 To other than Taxpayer 40 CE, EC, S
215 * First Correspondence (International) (ACI) Correspondence
* Signature (Forms 990, 990-EZ, and 990-PF)
45 CE, EC, S
225 Signature - Domestic (except Forms 990, 990-EZ, and 990-PF) 40 CE, EC, S
226 Signature - International (except Forms 990, 990-EZ, and 990-PF) 45 CE, EC, S
In-House Research
300 Examination (Fuel Tax Credit) 10 CE, EC, S
310 Statute Control 10 CE, EC, S
320 Entity Control 10 CE, EC, S
Criminal Investigation
331 Frivolous Review 3 CE, EC
332 QRDT Review 3 CE, EC
333 Prompt Audit 10 CE, EC, S
334 Joint Committee 10 CE, EC, S
335 Frivolous Case 10 CE, EC, S
336 QRDT Case 10 CE, EC, S
337 Other CID 10 CE, EC, S
Accounting
341 Manual Refund 10 CE, EC, S
342 Credit Verification 10 CE, EC, S
343 Other Accounting 10 CE, EC, S
344 Manual Refund-ERS 0 EC
KIF/MFTRA Research
351 TIN Research 0 EC, S
352 Name Research 3 CE, EC, S
353 Address Research 3 CE, EC, S
354 Filing Requirements Research 3 CE, EC, S
355 Other MFTRA Research 5 CE, EC, S
360 Other In-House Research 10 CE, EC, S
370 Examination 10 CE, EC, S
Management Suspense
410 Technical Assistance 0 EC
420 Management Suspense A 5 CE, EC, S
430 Management Suspense B 10 CE, EC, S
440 Management Suspense C 15 CE, EC, S
450 Management Suspense D 20 CE, EC, S
460 Management Suspense E 25 CE, EC, S
470 Complex Error Codes 0 EC
480 Early Filed Suspense 150 CE, EC, S
490 System Problem 5 CE, EC, S
Missing Document
510 Missing Document 0 CE
511 Missing Document - 1st Suspense 25 EC, S
512 Missing Document - 2nd Suspense 20 S
513 Missing Document - 3rd Suspense 20 S
515 Missing Document - Short Term 5 EC, S
Magnetic Tape
550 Magnetic Tape Return - Check for Attachments 0 CE
551 Magnetic Tape - Inconsistent Data 0 CE
Rejects
610 Renumber - Non-Remit 0 CE, EC
611 Renumber - Remittance 0 CE, CE
620 NMF / Non-ADP 0 CE, EC, S
630 Reinput 0 ES, C
640 Void 0 CE, EC, S
650 Assistant Commissioner (International) Document (ACI) 0 CE, EC, S
660 Data Control Delete (TEP Delete) 0 S
670 Rejected Missing Document 0 S
Duplicate DLN (Computer Generated Codes)
700 Duplicate Block DLN 0 GEN
711 Duplicate Doc DLN from Code and Edit 0 GEN
712 Duplicate Doc DLN from Error Correction 0 GEN
713 Duplicate Doc DLN from Unpostables 0 GEN
714 Duplicate DLN from Unworkable Suspense 0 GEN
715 Duplicate Doc DLN from Workable Suspense 0 GEN
800 NAP Linkage Problem 2 EC, S
900 Unpostable Record (Computer Generated Code) 0 GEN

Area Offices (EO) - Codes and States of Jurisdiction

q. EXHIBIT 02— Area Offices (EO) - Codes and States of Jurisdiction
EO Area Offices — Codes and States of Jurisdiction
01— Northeast Area
IRS
GPO Box 029162
625 Fulton Street
Brooklyn, NY 11201
Connecticut
Maine
Massachusetts
New Hampshire
New Jersey
New York
Rhode Island
Vermont
02 — Mid-Atlantic Area
IRS
200 Sheffield St
3rd Floor
Mountainside, NJ 07092-2314
Delaware
District of Columbia (Washington DC)
Maryland
New Jersey

North Carolina
Ohio
Pennsylvania
South Carolina
Virginia
West Virginia


Military
Foreign
03 — Great Lakes Area
IRS
230 S. Dearborn St
M/S 4900 CHI
Chicago, IL 60604
Illinois
Indiana
Iowa
Kentucky
Michigan
Minnesota
Nebraska
North Dakota
South Dakota


Wisconsin
04— Gulf Coast Area
IRS
401 W. Peachtree Street
Suite 1665
Atlanta, GA 30308
Alabama
Arkansas
Florida
Georgia
Kansas
Louisiana
Mississippi
Missouri
Oklahoma
Tennessee
Texas
05— Central Mountain Area: Effective June 26, 2005, Area 05 ceased operations. All states previously assigned to this area was realigned to one of the other 4 areas. 06 — Pacific Coast Area
IRS
1228 Willow Creek Rd
Prescott, AZ 86301-1429
Alaska
Arizona
California
Colorado
Hawaii
Idaho
Montana
Nevada
New Mexico
Oregon
Utah
Washington
Wyoming

Attachment Routing Guide

q. EXHIBIT 03 — Attachment Routing Guide

All attachments to the return must be reviewed before the return can be considered processable.

Attachments should only be detached when specifically instructed.

Detach documents with an ORIGINAL signature. See IRM 3.11.12.2.23 . Don't detach documents used to supplement or support the return to which it is attached to (e.g., Form 3800 is attached to a Form 990-T).

Refer to the Campus Mail Routing Guide or MOU's for proper disposition of attachments not found in this guide.

Edit Action Trail(s) (e.g., "2848 DETACHED" ) in the lower left corner going vertically up the side of the return.

Note:

When a document is detached and routed for processing, edit the name, address and EIN if not present. Also edit the Return Received Date (e.g., "Rec'd MMDDYY" ) of the detached document before forwarding.

Caution:

The Attachment Routing Guide is included as an exhibit only for use in assisting in the identification of possible forms or conditions that may require action or routing to other functions. The guide should not be used in place of the IRM governing those conditions, since space limitations don't always allow for full instructions in the Attachment Guide.

ATTACHMENT ROUTING GUIDE
FORM/DOCUMENT APPLICABLE FORMS DETACH ACTION
Acknowledgement Requests All No No action is required.
Adjustment to Another Document All Yes Route to appropriate function. Attachment must contain Name, Address, EIN and Received Date. Enter if missing.
CP 140 or 144, Delinquency Notice All No Route the notice and return to Entity.
CP 141C, 141I, or 141L, Notice of Balance Due, due to late and/or incomplete filing 990
990/EZ
990-PF
No Move to the front of the return, and route the notice and return to OAMC, EO Accounts.
CP 161, Notice of Balance Due All No Move to the front of the return, and route the notice and return to OAMC, EO Accounts.
CP 162, Notification that an additional penalty has been assessed All No Move to the front of the return, and route the notice and return to OAMC, EO Accounts.
CP 169, Notification that the return filed is missing and requesting Copy All No Move CP169 to the back of the return and process the return.
CP 211A, Approved first/second extension
CP 211B, Denied second extension (missing signature)
CP 211C, Denied first/second extension (not timely)

CP 211D, Denied second extension (reason unacceptable)

CP 211E, Denied second extension (other reasons)
All No If attached to a return, leave attached.
CP 259/959 (Spanish Version), Notices to Taxpayers All No Correspondence is attached or taxpayer’s response indicates any of the following:
  • Taxpayer disagrees that they are required to file the return.

  • Only page one of the return is attached.

  • EIN on notice does not match EIN on return.

  • Return requested on notice not the same as return submitted.

  • Taxpayer asking question(s) or requesting IRS take action(s) on their account.

  • Case involves any other IRS action(s) C&E not trained to complete.

Then, Route to Compliance Services Collection Operations (CSCO). Use return address on CP notice;
  • Brookhaven - Stop #662

  • Memphis - Stop #81

  • Philadelphia - 4-N31.142


If none of the above apply, correspondence or written response to the notice is not attached and/or, "599" is notated:
  1. Move the notice to the back of the return.

  2. Continue processing the return.

Note:

If the return is unsigned, but the taxpayer has signed the CP notice under the jurat, it is not necessary to correspond for the signature.

CP 259A–259H, Delinquency Notice All No If the form has been cleared by Entity, leave attached to return, and process the return.
If the form has not been cleared by Entity, move to the front of the return, and route the notice and return to Entity.
CP 284a and CP 285 All No Refer to IRM 3.11.12.2.25.2.1.
CP 299, How Does an Organization File an Annual Electronic Notice 990, 990–EZ No If the form has been cleared by Entity, leave attached to return, and process the return.
If the form has not been cleared by Entity, move to the front of the return, and route the notice and return to Entity.
CP 4XX, EO Taxpayer Delinquency Notices 990, 990–EZ No If the form has been cleared by Entity, leave attached to return, and process the return.
If the form has not been cleared by Entity, move to the front of the return, and route the notice and return to Entity.
CP 501–504, Balance Due Notices All No Move to the front of the return and route the notice and return to OAMC, EO Accounts.
CP 515–518, Notices to Taxpayers All No Move to the front of the return, and route the notice and return to the Collection Function.

Exception:

Don't route to Collections if "TC599" is notated.

CP 575, Notice of EIN Assignment All No If the taxpayer has written correspondence on the form, move it to the front of the return, and route the notice and return to Entity.
If nothing has been noted on the form, leave attached and process the return.
CP 2000, Unreported Income All No If the form is for the same year, leave attached to the return and process the return.
If the form is for a different year, move to the front of the return and route the notice and return to Underreporter.
CP 2501, Requesting Payer Information from Taxpayer All No If the form is for the same year, leave attached to the return and process the return.
If the form is for a different year, move to the front of the return and route the notice and return to Underreporter.
Extension Reconsiderations All Yes Route to OAMC, EO Accounts. Attachment must contain Name, Address, EIN and Received Date. Edit if missing.
Form 56 and 56–F, Notice Concerning Relationship and Notice Concerning Fiduciary Relationship of Financial Institution All Yes Route to Entity. Also route with Form 56 any of the following if attached to the return:
Certified will or codicil
Certified copy of court order appointing a fiduciary
Copy of valid trust instrument and attachments
Any other evidence of creation of fiduciary relationship.
Edit received date.
FinCEN Form 114, Report of Foreign Bank and Financial Accounts (formerly TD F 90-22.1) All Yes Route to Detroit Data Center
Form 843, Claim All Yes Route to OAMC, EO Accounts if there is no indication OAMC, EO Accounts has worked the claim. NOTE: Be sure that the name and EIN are legible. If Form 2439 is also attached, copy and route original with Form 843. Leave copy with return.
Form 851, Affiliations Schedule 990–T No Supports:
Form 990-T, Consolidated Return. See IRM 3.11.12.8.3.
Form 872, Form 872-B, Form 872–C, Consent to Extend Statute of Limitations 990–PF No Supports:
Form 990-PF, IRC 507 (b)(1)(B) Termination. See IRM 3.11.12.6.10.
All others Yes If Form 872, 872-B or 872-C appears to be an original and isn't signed by the District Director, detach and route to EOAM, M/S 6552.
All others No If Form 872, 872–B or 872–C is a copy, don't detach. In either case, continue to edit and process the return.
Form 911, Application for Taxpayer Assistance Order (ATAO) All Unnumbered - No

Numbered - Yes
Unnumbered - Forward entire return to TAS.

Numbered - Photocopy the return, mark the copy "COPY" , attach the copy to Form 911 and forward to TAS.
Form 926, Transfer of Stock or Securities to a Foreign Operation All No Leave attached and continue processing.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Form 990 Series All Yes If an original return, detach and process.
Form 1023, 1024, or 1028, Applications for Exemption All Yes Route to CSPC.
Form 1041–A, U.S. Information Return All Yes If an original return, detach and process.

Note:

If an original Form 5227 is attached, detach and process.

Form 1042, Return of Income Tax to be Paid at Source, and Form 1042–S (Copy A only), Income Subject to Withholding Under Chapter 3 of IRC All Yes 1. Write the received date of the return on Form 1042 or Form 1042–S (Copy A).
2. Photocopy Form 1042/1042-S (Copy A) and attach the copy to the return.
3. Route the original Form 1042/1042-S (Copy A) to Receipt and Control.
Form 1042–S (All other copies)Income Subject to Withholding Under Chapter 3 of IRC 990–PF, 990–T No Supports:
Form 990-PF, Part VI, Line 6b, and
Form 990-T, Part IV, Line 44d.
Form 1096 All Yes Route to IRP. Also route any 1099 forms that are also attached.
Form 1099 (Copy A Only), Information Return of Income and Payments 990-PF,
990-T)
No Supports:
Form 990-PF, Part VI, Line 6d
Form 990-T, Line 44e
All others Yes Route to Receipt and Control
Form 1116, Computation of Foreign Tax Credit 990–T No Supports:
Form 990-T, Line 40a.
Form 1118, Foreign Tax Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40a, and
Form 1120-POL, Line 21, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ "
Form 1120-POL,501(c) U.S. Income Tax Return for Certain Political Organizations 990
990-EZ
990-T
Yes If an original return, detach and process.
Form 1122, Affiliations Schedule 990–T No Supports:
Form 990-T, Consolidated Return. See IRM 3.11.12.8.3.
Form 1128, Application For Change in Accounting Period All No See IRM 3.11.12.2.25.2.1.
Form 1138, Extension of Time for Payment of Taxes by Corporation Expecting a Net Operating Loss Carryback All No Route return to OAMC, EO Accounts.
Form 1139, Corporation Application for Tentative Refund from Carryback of Net Operating Loss, etc. All No Route entire return to OAMC, EO Accounts.
Form 2220, Estimated Tax Penalty 990–PF, 990–T, 1120–POL No If Part II, "annualized income" installment method box is checked, CCC 8. If no estimated tax penalty is shown, CCC A. See Figure 3.11.12–2.
Form 2363-A, Request for IDRS Input for BMF-EO Entity Change All Yes Route to EO Entity.
Form 2439, Notice to Shareholder of Undistributed Long Term Capital Gains. 990–T
1120-POL
No Supports:
Form 990-T, Line 44g, and
Form 1120-POL, Line 23b.
If attached to Form 843, route to OAMC, EO Accounts.
All Other Forms Yes If attached to return other than 990–T or 1120-POL, "X" the amount if the filer attempted to claim this as a credit on the return. Recompute the balance due/overpayment line. Photocopy page 1 of the return and any additional pages containing lines where 2439 Credit is claimed. Attach Form(s) 2439 and copies and route to OAMC, EO Accounts.
Form 2848, Power of Attorney and Declaration of Representatives All Yes 1. Edit the taxpayer's name and EIN on Form 2848, if missing.
2. Edit the received date on Form 2848.
3. Route Form 2848 to the CAF unit.
4. Edit the action trail on the left of the tax return (e.g., "Form 2848 detached" ).
Form 3115, Application for Change in Accounting Method All No Leave attached and continue processing.
Form 3198, Special Handling Notice/Examination Case Processing All No Follow field instructions.
Form 3198–A, TE/GE Special Handling Notice All No Follow field instructions.
Form 3468, Investment Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40c
Edit CCC "V" if Line 9 contains an entry and Form 3800, Line 1a contains an entry. See IRM 3.11.12.2.11.
Form 1120-POL, Line 21.
Form 3552, Prompt Assessment Billing Assembly All No Refer to supervisor to contact Accounting for further instructions.
Form 3753, Manual Refund Posting Voucher 990–PF No Leave attached and continue processing.
Form 3800, General Business Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 4136, Credit for Tax Paid on Fuels 990–T
1120-POL
No Supports:
Form 990-T, Line 44f, and
Form 1120-POL, Line 23c.
Form 4255, Recapture of Investment Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 42, and
Form 1120-POL, Line 21.
Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax 990–PF,
990–T,
1120-POL
No Edit CCC "O" . See Figure 3.11.12-2.
Form 4506 and 4506A, Request for copy All Yes Route to RAIVS Unit.
Form 4562, Depreciation Schedule 1120-POL No Supports:
Form 1120-POL, Line 14.
Form 4571, Explanation for Filing/Paying Late All No Secured Returns: Follow Field Instructions.
Non-secured Returns: Consider for Reasonable Cause.
Form 4626, Alternative Minimum Tax/Environmental Tax for 198712-199611 990–T No Supports:
Form 990-T, Line 38 (see IRM 3.11.12.8.14 and 3.11.12.8.22).
Form 4720, Return of Certain Excise Taxes and other Persons under Chapters 41 and 42 of the IRC All Yes If Form 4720 has both an original signature and amounts, detach and process. CAUTION: When detaching Form 4720 from any other form, make sure you also detach any applicable statements or attachments relating to Form 4720.
No If Form 4720 doesn't have both an original signature and amounts, "X" and leave attached.
Form 4720–A, Prepared Return of Excise Taxes under Chapters 41 and 42 of the IRC All Yes
. Route photocopies of prepared 4720–A's to EO Accounts at M/S 6552 if the 4720–A requesting a "4962 abatement."
Form 4797, Sale of Business Property 990-T
1120-POL
No
No
Supports:
Form 990-T, Line 4b, and
Form 1120-POL, Line 6.
Form 4844, Request for Terminal Action All Yes Route to OSPC Collections/Compliance, M/S 5300.
Form 4952, Investment Interest Expense Deduction 990-T No See IRM 3.11.12.8.20.
Form 5227, Split Interest Trust Information Return All Yes If original return, detach and process.

Note:

If an original Form 1041-A is attached, detach and process.

Form 5471, Information Return of U.S. Person with Respect to Certain Foreign Corporations All No Leave attached and continue processing.
Form 5472, Information Return of a Return of a Foreign Owned Corporation All No Leave attached and continue processing.
Form 5500 and Form 5500-SF All Yes Route to Receipt and Control if original. If used as a substitute for areas on 990/990-EZ returns, leave attached. See IRM 3.11.12.4.3 and 3.11.12.6.3.
Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax 990
990-EZ
No If attached to a 990 and Schedule A is also attached, "X" Form 5578.
All Others Yes Detach and process.
Form 5597, EO IMF/BMF Request All Yes Photocopy page 1 of the return and any routing instructions (e.g., Form 13133) and route photocopies and Form 5597 to M/S 1110, Attn: Code and Edit Analyst.
Form 5713, International Boycott Report 1120-POL Yes If an original and a copy are attached, detach the original and route to OSPC SOI, Mail Stop 6112.
No Edit Audit Code "2" if both questions on Form 5713, Line 7(f) are answered "yes" .
Form 5734, Non Master File Assessment Voucher All Yes Route completed form to the Numbering Unit.
Form 5735, Possessions Tax Credit 990–T
1120–POL
No Supports:
Form 990-T, Line 40b, and
Form 1120-POL, Line 21, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " .
Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to make Expenditures to Influence Legislation All Yes If original return, detach and process.
Form 5792, Request for IDRS Generated Refund 990–T, 990–PF No Leave attached and continue processing.
Form 5884-A, Hurricane Katrina Employee Retention Credit 1120-POL No Supports:
Form 1120-POL, Line 21.
Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust All Yes Route to CSPC for non-Master File processing.
Form 6252, Installment Sale Income 990–T No Potential CCC "B" . See Figure 3.11.12-2 See IRM 3.11.12.8.23.
Installment sales indicator, See IRM 3.11.12.8.23.
Form 6478, Credit for Alcohol and Cellulosic Biofuel Used as Fuel 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 6765, Credit for Increasing Research Activities 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 6781, Future Contracts and Tax Straddles 990–T No Edit CCC "I" . See Figure 3.11.12-2.
Form 6793, Safe Harbor Leasing Information Return 990–T No Leave attached and continue processing.
Form 8109, Federal Tax Deposit Coupon 990–PF, 990–T No No action required.
Form 8109–A, Reorder Federal Tax Deposit Coupon All Yes No action required.
Form 8109–C, Federal Tax Deposit Coupon Address Change All Yes No action required.
Form 8271, Tax Shelter Registration 990, 990–EZ, 990–PF, 990–T No Edit CCC "T" . See Figure 3.11.12-2.
Form 8275, Disclosure Statement All No Leave attached.
Form 8282, Donee Information Return All Original — Yes Route to Exam Classification, Mail Stop 4140.
Form 8329, Lender's Information Return for Mortgage Credit Certificates (MCCs) All Original — Yes If able to determine return is a copy, leave attached. Route original to Batching.
Form 8330, Issuer's Quarterly Information Return for Mortgage Credit Certificates (MCCs) All Original — Yes If able to determine return is a copy, leave attached. Route original to Batching.
Form 8404, Computation of Interest, Charge of DISC Related Deferred Tax Liability All Yes Route to CSPC for non-Master File processing.
Form 8453-EO, Signature document for an electronically filed return All No Indicates filer may have attempted to file electronically.
Form 8453-X, Political Organization Declaration for Electronic Filing of Notice 527 Status 8871 Yes Route to Entity.
Form 8586, Low Income Housing Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Potential CCC "9" . See Figure 3.11.12-2 .
Form 8611, 8693, 8609 or 8609-A, Low Income Housing Credit 990–T No Potential CCC "9" . See Figure 3.11.12-2.
Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Companies All Yes Route to CSPC for non-Master File processing.
Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies All Yes Route to CSPC for non-Master File processing.
Form 8621, Return of a Shareholder Passive Foreign Investment 1120–POL No ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See IRM 3.11.12.10.3.
Form 8697, Interest Computation under Look Back Method All Yes Refer to supervisor for Non-Master File processing.
Form 8703, Annual Certification of a Residential Rental Project All Original — Yes If able to determine return is a copy, leave attached. Route original to Batching.
Form 8718, User Fee for Exempt Organization Determination Letter Request All Yes Route to CSPC. If attached to Form 1023, 1024, or 1028 route both forms to CSPC.
Form 8734, Support Schedule for Advance Ruling Period All Yes Route to CSPC.
Form 8752, Required Payment or Refund Under Section 7519 All Yes Route to Receipt and Control.
Form 8801, Prior Year Minimum Tax 990-T No Supports:
Form 990-T, Line 40d.
Form 8809, Extension for form W-2 All Yes Route to MCC.
Form 8820, Orphan Drug Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8821, Tax Information Authorization and Declaration of Representatives All Yes 1. Edit the taxpayer's name and EIN of Form 8821, if missing.
2. Edit the received date on Form 8821.
3. Route Form 8821 to the CAF unit.
4. Edit the action trail on the left of the tax return (e.g., "Form 8821 detached" ).
Form 8822, Part II, Change of Address (attached to a TE/GE return) All Yes If the address is different, detach and route to Entity.
No If the address is the same, leave attached.
Form 8822, Part II, Change of Address (not attached to a TE/GE return) All Yes Route to Entity Control.
Form 8826, Disabled Access Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8827, Credit for Prior Year minimum Tax 990–T No Supports:
Form 990-T, Line 40d.
Form 8830, Enhanced Oil Recovery Credit 1120-POL No Supports:
Form 1120-POL, Line 21.
Form 8833, Treaty-Based Return Position Disclosure 990, 990–EZ, 990–T No Edit CCC "L" . See Figure 3.11.12-2.
Form 8834, Qualified Electric Vehicle Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40b, and
Form 1120-POL, Line 21.
Form 8835, Renewable Electricity Production Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8846, Credit for Employer Social Security Taxes Paid on Certain Employee Cash Tips 1120-POL No Supports:
Form 1120-POL, Line 21.
Form 8847, Credit for Contributions to Certain community Development Corporations 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8864, Biodiesel Fuels Credit 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships All No Leave attached and continue processing.
Form 8868, Application for Extension of Time to File an Exempt Organization Return All Original 1) If the "type of return" or tax period shown on Form 8868 is the same as the return is it attached to, Leave attached.
2) If the type of return or tax period shown on Form 8868 is different than the return it is attached to, detach and process.

Exception:

If a Form 8868 is attached to a Form 990 or 990-EZ and the extension is for either a 990 or 990-EZ for the same tax period, leave attached to the return. This is because the tax payer may not know if their gross receipts make them a 990 or a 990-EZ filer at the time the extension is filed.

Copy Leave attached.
Form 8870, Information Return for Transfers Associated with Certain Personal Benefit Contracts All Yes Route to EOCU, Ogden IRS Center, Mail Stop 1112.
Form 8871, Political Organization Notice of Section 527 Status All Original — Yes If a copy, leave attached. If original, detach and route to Entity.
Form 8872, Report of Contributions and Expenditures All Original — Yes If a copy, leave attached. If original, detach and route to Receipt and Control.
Form 8873, Extraterritorial Income Exclusion 990-T
1120–POL
No Supports:
Form 990-T, Line 28.
Form 1120-POL, Line 15, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡
Form 8879-EO, IRS e-file Signature Authorization for an Exempt Organization 990, 990-EZ, 990-PF, 1120-POL, 8868 No Indicates the organization officer used a PIN to electronically sign the organization's electronic return.
Form 8881, Credit for Small Employer Pension Plan Startup Costs 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8882, Credit for Employer-Provided Child Care Facilities and Services 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8884,
NY Lib. Zone Credit
1120–POL No Supports:
Form 1120-POL, Line 21.
Form 8886, Reportable Trans Discl. Statement All 1. If attached to a return, leave attached and continue processing.
2. If received separately, route to OTSA m/s 4915.
Form 8886–T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction All Yes Route to Entity.
Form 8896, Low Sulfur Diesel Fuel Production Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8899, Information Return of Income of Donated Intellectual Property All Yes Route to EOCU, Ogden IRS Center, MS 1112.
Form 8900, Qualified Railroad Track Maintenance Credit 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8902, Qualifying Shipping Activities 990-T No Supports:
Form 990-T, Line 42.
Form 8903, Domestic Production Activities 990-T No Supports:
Form 990-T, Line 28.
Form 8906, Distilled Spirits Credit 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8907, Non-Conventional Source Fuel Credit 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8908, Energy Efficient Home Credit 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8909, Energy Efficient Appliance Credit 990–T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8910, Alternative Motor Vehicle Credit 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8911, Alternative Fuel Vehicle Refueling Credit 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8912, Clean Renewable Energy and Gulf Tax Bond Credit 990-T No Supports:
Form 990-T, Line 40b.
Form 8913, Credit for Federal Telephone Excise Tax Paid 990–T, 1120–POL No Supports:
Form 990-T, Line 44f (2006 revision), and
Form, 1120-POL, Line 23d (2006 revision).
All Others Yes If received separately or attached to another EO return, detach and route to OAMC, EO Accounts.
Form 8921, Applicable Insurance Contracts Information Return All Yes Route to Entity.
Form 8925, Report of Employer-Owned Life Insurance Contracts 990
990–T
No Supports:
Form 990, and
Form 990–T, Line 12.
Form 8931, Agricultural Chemicals Security Credit 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8932, Credit for Employer Differential Wage Payments 990-T
1120-POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit 990–T
1120–POL
No Supports:
Form 990-T, Line 40c, and
Form 1120-POL, Line 21.
Form 8941, Credit for Small Employer Health Insurance Premiums 990-T No Supports:
Form 990-T, Line 44f (2010 and subsequent revisions).
All Others Yes If received separately or attached to another EO return, detach and route to OAMC, EO Accounts.
Form 9465, Installment Agreement Request 990–PF, 990–T, 4720 Yes Route to Collections.
Form 11249, Taxpayer Advocate Expedite All No Don't correspond or contact the taxpayer. Notify your manager.
Form 13133, Expedite Processing Cycle All No Follow field instructions.
Form T (Timber), Forest Industry Schedule All No Leave attached and continue processing.
Letters 2694C, 2695C, 2696C, 2697C, 2698C, 2699C, 3875C Misc. No Route to Rejects, see IRM 3.11.12.2.12.2.
LM–2, Labor Organization Financial Report, LM–3, Short Form Labor Organization Financial Report 990, 990–EZ No A substitute for areas on Form 990 and Form 990–EZ returns, see IRM 3.11.12.4.3 and 3.11.12.6.3.
Other Tax Returns (Original Signature) All Yes 1. Edit the Received Date to the detached return.
2. Route to appropriate function unless specifically directed otherwise.

Exception:

Returns attached to a consolidated return will NOT be detached.

Protective Claims, Protective Refund, Protective Claims for Refund All No Route to EO Accounts Management.
Remittance Found All No Immediately hand carry return and remittance to supervisor.
Request for Blank Forms or Schedules All Yes If requesting current year forms and you are not corresponding for the requested blank form or schedule:
1. Prepare Form 4190.
2. Forward to National Distribution Center (NDC) for processing.

If requesting prior year forms and you are not corresponding for the requested blank form or schedule:
1. Prepare Form 6112.
2. Forward to National Distribution Center (NDC) for processing.

Note:

Form 4190 and Form 6112 are generally used for IMF requests. Therefore, enter the requested forms and/or schedules in the "WRITE-IN" portions of the forms.

Request for Copies of Previously Filed Returns All Yes Route to RAIVS.
Request for e-File Waiver 990
990–PF
Yes Route to OSPC, e-File Help Desk at Mail Stop 1057.
Request for Information or Inquiries All Yes 1. Photocopy any data necessary to process the return.
2. Attach the photocopy to the return.
3. Route original attachment to the proper office for necessary action.
Request for Money Transfer All No If the organization notates transfer of money "TO" the return you are processing:
1) Prepare Form 3465 and:
a) Indicate in the "Routing" box "Rejects" .
b) Notate "See attached money transfer request" in the box.
2) Edit Action Code 450 or CCC "U" to route the request to Rejects.
All Yes If the organization notates transfer of money "FROM" the return you are working:
1) Edit CCC "X" to freeze the overpayment.
2) Prepare Form 3465 and :
Indicate in the "Routing" box "Adjustments" .
b) Notate the requested action in the "Remarks" box.
3) Attach Form 3465 to the request and route to EOAM.
4) Continue editing the return.
Schedule I, Form 1041 990–T No See IRM 3.11.12.8.18.
Schedule O, Form 1120 990-T No Supports:
Form 990-T, Lines 35a and 35b.
SS–4 , Application for Employer Identification Number All No If attached to Form 1023, 1024, 1028, or 8718, leave attached and route the return to CSPC.
In all other cases, route the return to Entity Control.
State Tax Returns, original or copy, with an original signature All Yes Route to Receipt and Control.
State Tax Returns, photocopy, facsimile or no signature All No Leave attached.
90–22.1, Report of Foreign Bank & Financial Accounts User Fees All Yes Route to Detroit Data Center.

Due Date Chart

q. EXHIBIT 04 - Due Date Chart
DUE DATES
990, 990-BL, 990-EZ, 990-PF, 990-T (Org 1, 2, and 5) Corp, 4720 (Org 1 and 2), 6069
Tax Period Return Due Date (weekends and holidays considered) Delinquent Date Extended Due Date - 3 mo. (weekends and holidays considered) Extended Due Date - 6 mo. (weekends and holidays considered)
201602 07–15–2016 ≡ ≡ ≡ ≡ ≡ ≡ ≡ 10–17–2016 01–17–2017
201603 08–15–2016