3.11.20 Exempt Organization and Employee Plan Applications for Extension of Time to File

Manual Transmittal

December 6, 2016

Purpose

(1) This transmits a revised IRM 3.11.20, Returns and Document Analysis, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns.

Material Changes

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

(2) Updated to plain language throughout.

(3) IRM 3.11.20.1.3.1 IPU 16U0003 issued 01-04-2016 - Added (1) additional information for TAS.

(4) IRM 3.11.20.1.3.5 - Removed Note: The CADE Master File retired at the end of 201152.

(5) IRM 3.11.20.2.4 - Removed information about first and second extension requests.

(6) IRM 3.11.20.2.6(6)(f) - Updated Rev. Rul. to 18 IRB 812.

(7) IRM 3.11.20.2.17(1) - Removed Form 8868 Part II.

(8) IRM 3.11.22.3.6(2)(a) - Removed information regarding three month extensions, 990-T, and Notice Code 3.

(9) IRM 3.11.22.4.1(3) - Removed information regarding three month extensions and 990-T and removed (4) regarding Page 2 of Form 8868.

(10) IRM 3.11.22.4.1(7) - Removed Exception to "X" Part II.

(11) IRM 3.11.20.4.2(1) and Table - Removed table and instructions for Page 2 of Form 8868.

(12) IRM 3.11.20.4.2(2) - Removed information regarding three month extensions and 990-T exception.

(13) IRM 3.11.20.4.2(7) Table - Removed instructions for Form 8868 Part II.

(14) IRM 3.11.20.4.2.1(2) - Removed Part I or Part II.

(15) IRM 3.11.20.4.2.1(2) Table - Added Do not edit a group code in the Edit Group Code column.

(16) IRM 3.11.20.4.2.2(3) - Removed Part 1.

(17) IRM 3.11.20.4.2.2(3)(a) - Added timely and in note changed three to six and removed 990-T information.

(18) IRM 3.11.20.4.2.2(4) - Removed (4) all instructions for Part II.

(19) IRM 3.11.20.4.3 Title & (1) - Removed references to Part I and changed three month to six month. Added Note with instructions for Form 8868 revision date January 2014.

(20) IRM 3.11.20.4.3(2) - Removed reference to Exhibits 3.11.20-2 and 3.11.20-3.

(21) IRM 3.11.20.4.4 Title & (2) - Removed references to Part I and changed three month to six month and removed 990-T information. Added Note with instructions for Form 8868 revision date January 2014.

(22) IRM 3.11.20.4.5 Title & (1) - Removed references to Part I, changed three month to six month, removed 990-T information and removed reference to Exhibits 3.11.20-2 and 3.11.20-3.

(23) IRM 3.11.20.4.6 Title - Removed Part I.

(24) IRM 3.11.20.4.7 - Removed all instructions regarding Form 8868 Part II.

(25) IRM 3.11.20.4 8 - Removed all instructions regarding Form 8868 Part II.

(26) IRM 3.11.20.4.9 - Removed all instructions regarding Form 8868 Part II.

(27) IRM 3.11.20.4.10 - Removed all instructions regarding Form 8868 Part II.

(28) IRM 3.11.20.5(7) Table - Removed And column.

(29) IRM 3.11.20.5(9) IPU 15U1680 issued 11-18-2015 - Removed requirement to write "dummy(ies) prepared" .

(30) IRM 3.11.20.5(11) Table - Removed And column.

(31) IRM 3.11.20.7.3(5) Table - Removed wording Part I or Part II and Action Code 420 for Part II.

(32) IRM 3.11.20.8.3.2 Table - Removed And column.

(33) IRM 3.11.20.8.7.2(4) Table - Removed And column.

(34) IRM 3.11.20.8.9.2(3) Table - Removed the extension is.

(35) IRM 3.11.20.9.1.3(3) Table - Removed And column.

(36) IRM 3.11.20.9.2.3(4) Table - Removed And column.

(37) IRM 3.11.20.10.3.2(1) Table - Removed And column.

(38) IRM 3.11.20.10.12.2(4) Table - Removed the extension request is.

(39) IRM 3.11.20.11.1.3(3) Table - Removed And column.

(40) IRM 3.11.20.11.3.3(5) Table - Removed And column.

(41) IRM 3.11.20.11.6.3(1)(a) & (b) - Removed references to Part I and Part II.

(42) IRM 3.11.20.12.2(1) Table - Removed reference to Part I.

(43) IRM 3.11.20.12.7.2(1)(a) - Removed references to Part I and Part II.

(44) IRM 3.11.20.12.14.1(2) - Removed through 9 and added or 2.

(45) IRM 3.11.20.12.14.2(1) - Removed references to first or second extensions and Part I or Part II and updated Exhibit number. Removed (b) & (c).

(46) IRM 3.11.20.12.14.2(2) Table - Removed instructions for second extensions.

(47) IRM 3.11.20.13.3.3(5) Table - Removed research indicates.

(48) IRM 3.11.20.13.4.3(2)(a) & (b) - Removed instructions for Part II and references to first extension or second extension and Exception.

(49) IRM 3.11.20.13.4.3(5) - Added more instructions for 52-53 week rule and (a) & (b).

(50) IRM 3.11.20.13.4.3.2(1) - Removed references to Part I or Part II.

(51) IRM 3.11.20.13.4.3.4(3) Table - Removed And column.

(52) IRM 3.11.20.13.4.3.4.1(4)(c) - Removed reference to first extension and instructions for second extension.

(53) IRM 3.11.20.13.11.2 - Removed 1st.

(54) IRM 3.11.20.13.11.3(2) - Corrected Exhibit numbers and removed first.

(55) IRM 3.11.20.13.12.3 - Removed instructions for Part II extensions.

(56) IRM 3.11.20.13.13 through 3.11.20.13.13.3 - Removed instructions for Part II extensions.

(57) IRM Exhibit 3.11.20-1 - Removed references to Part I and II, 990-T information and three months.

(58) IRM Exhibit 3.11.20-2 and 3.11.20-3 - Removed exhibits.

(59) Exhibit 3.11.20-2 - Changed title and Part II information. Added information for 1041-A and 5227 and removed 990-T information.

(60) Exhibit 3.11.20-6 - Removed reference to Part I and Part II.

(61) Exhibit 3.11.20-7 IPU 16U1321 issued 08-24-2016 - Issued disaster Louisiana.

(62) Exhibit 3.11.20-12 - Removed Exhibit.

(63) Exhibit 3.11.20-12 - Added Part II conversion.

Effect on Other Documents

This supersedes IRM 3.11.20 dated December 08, 2015. IRM 3.11.20 also incorporates the following IRM Procedural Updates (IPU) - "15U1746" , "15U1680" , "16U0003" , "16U0616" , "16U0651" , and "16U0875" .

Audience

Code & Edit and Error Correction employees:
Large Business and International Division (LB&I)
Small Business/Self-Employed (SB/SE)
Tax Exempt/Government Entities (TE/GE)
Wage & Investment (W&I)

Effective Date

(01-01-2017)

Sean O’Reilly,
Acting Director, Business Systems Planning
Government Entities and Shared Services
Tax Exempt and Government Entities

Overview

  1. IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns, contains Code and Edit (C&E) and Error Resolution System (ERS) procedures for processing Form 8868, Application for Extension of Time to File an Exempt Organization Return, and Form 5558, Application for Extension of Time to File Certain Employee Plan Returns.

Purpose and Scope

  1. Included in IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns, are instructions for editing and correcting errors on Forms 8868 and 5558.

  2. Instructions in IRM 3.11.20.2, Document Perfection Procedures, through IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only), are procedures specific to the C&E function.

  3. Instructions in IRM 3.11.20.6, Error Resolution/Reject Procedures - General, through IRM 3.11.20.13, Error Codes Form 8868, are procedures specific to the Error Correction and Rejects functions.

Forms Covered by this Internal Revenue Manual (IRM)

  1. The following Business Master File (BMF) forms are covered by IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns:

    1. Form 8868, Application for Extension of Time to File an Exempt Organization Return.

    2. Form 5558, Application for Extension of Time to File Certain Employee Plan Returns.

Taxpayer Advocate Service (TAS)

  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage & Investment (W&I) Division, Small Business & Self-Employed (SB/SE) Division, Tax Exempt & Government Entities (TE/GE) Division, Criminal Investigation (CI), Appeals and Large Business and International Division (LB&I) Divisions. This Service Level Agreement (SLA) outlines the procedures and responsibilities for the processing of Taxpayer Advocate Service (TAS) casework when either the statutory or the delegated authority to complete case transactions is outside TAS.

  2. The SLAs are located at tas.web.irs.gov under the heading "Policy/Procedures/Guidance" .

TAS is an Independent Organization
  1. Per the Taxpayer Bill of Rights, taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels.

  2. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers experiencing economic harm, seeking help in resolving tax problems that have not been resolved through normal channels, or believe that an IRS system or procedure is not working properly.

  3. TAS criteria include economic burden, systemic burden, best interest of the taxpayer, and public policy (as determined solely by the National Taxpayer Advocate (NTA)). TAS is responsible for assisting taxpayers who have unresolved problems with the IRS. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, if additional information is required.

Same Day Resolution
  1. A referral to a TAS office is not necessary even if a TAS case criterion is met if an Operating Division or Function can immediately resolve the issue within 24 hours. All IRS employees must handle potential TAS cases in the taxpayer’s best interest. More information on "24 hour" same day resolution is in IRM 13.1.7.4, Same Day Resolution by Operations.

  2. If you can take action within 24 hours to resolve the taxpayer’s issue, however, the taxpayer still requests TAS assistance or is not satisfied with the service provided, refer the taxpayer to the NTA toll-free number, 1-877-777-4778 or TTY/TDD 1-800-829-4059. Refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, for more information.

Referral to TAS
  1. If the IRS employee receives taxpayer contact that meets TAS criteria, and the employee cannot initiate action to resolve the taxpayer's inquiry or provide the relief requested by the taxpayer, refer the case to TAS. A taxpayer should not have to request TAS assistance to be referred to TAS. IRS employees advise taxpayers of the option to seek TAS assistance when appropriate. TAS requests documentation from the taxpayer to support the requested relief, or when required by the IRM.

  2. In preparation for a case being referred to a W&I Division function, TAS:

    1. Prepares Form 12412, Operations Assistance Request (OAR);

    2. Secures all necessary supporting documentation;

    3. Forwards Form 12412 and documentation on Form 3210, Document Transmittal, to the W&I Division Liaison;

    4. Clearly identifies an OAR requiring expedited processing.

  3. W&I Division:

    1. Assigns a liaison in each office or campus where a Taxpayer Advocate is located;

    2. Acknowledges receipt of the case via Form 3210 within one workday for expedite processing and within three workdays for non expedite cases;

    3. Reviews the case for appropriate assignment;

    4. Assigns the case to the appropriate employee within the function;

    5. Provides TAS with the name and phone number of the W&I employee assigned the case;

    6. Determines a reasonable time frame for case resolution;

    7. Provides TAS with written approval to input an adjustment or issue a manual refund, in accordance with TAS delegated authorities, after a W&I determination has been made;

    8. Responds to TAS within three workdays in writing via fax or hand delivery of resolution in cases requiring expedited processing.

    9. Returns Form 12412 within three workdays from the date all actions have been completed and transactions input.

  4. For additional information, see IRM 13.1.19, TAS Operations Assistance Request (OAR) Process.

Exceptions to TAS Criteria Cases
  1. Do not refer these types of cases to TAS:

    1. The taxpayer's complaint or inquiry only questions the constitutionality of the tax system.

    2. 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.

CADE 2
  1. The Customer Account Data Engine (CADE) 2 Program Office in Headquarters has the primary goal to implement a single, modernized programming solution which provides daily processing of taxpayer accounts.

  2. The CADE 2 solution has several components, to modernize the IRS to daily processing environment with several Transition States.

  3. The BMF, EO and EPMF campus cycles are:

    1. Campus Cycle: Thursday - Wednesday.

    2. Master File Processing: Friday-Thursday.

    3. Notice Review Saturday: Monday (8+ days).

  4. BMF, EO and EPMF transaction posting time frames are outlined:

    1. Transactions are viewable using CFOL command codes on Saturday following the weekly Master File processing run on Thursday.

      Note:

      With the acceleration of the Integrated Data Retrieval System (IDRS) weekly analysis occurring the weekend directly after the Master File processing on Thursday, transactions post instead of being in pending status on Monday.

  5. Cycle posting dates reflect a format of YYYYCCDD. YYYY indicates the year. CC indicates the posting cycle. For IMF transactions, the values for DD are:

    • 01 = Friday

    • 02 = Monday

    • 03 = Tuesday

    • 04 = Wednesday

    • 05 = Thursday

    Note:

    BMF, EO and EPMF cycle posting dates on BMFOL continue to reflect YYYYCC. YYYY indicates the year. CC indicates the posting cycle. BMF cycle posting dates in TXMOD reflect a format of YYYYCCDD. The DD value is 08.

Document Perfection Procedures

  1. See instructions below for processing exempt organization and employee plan returns in the IRS Processing Center C&E Function.

Do Not Math Verify

  1. Document Perfection’s purpose is not to math verify or to validity check the documents being processed. The computer normally performs this function if the documents are coded and edited as outlined in this manual.

Letter Requests

  1. A taxpayer seeking an extension of time for filing a return may submit a letter to the submission processing center where the return is to be filed.

  2. If the letter request is for a Non Master File (NMF) form, forward to CSPC NMF Accounting. See IRM 3.11.20.2.3, Shipping Extensions, for the list of NMF forms.

  3. The submission processing center may process the letter application in one of two ways. They may input the extension information as a TC 460 directly into IDRS, or they may prepare a "dummy" IRS extension form from the information in the letter and input it to the system as a paper extension form.

    1. Follow normal approval/denial criteria. All information required by a form is also required if the request is made via a letter.

    2. Correspond with the taxpayer about the application’s status and the correct form for future use, unless instructed otherwise in the specific application form instructions.

Shipping Extensions

  1. Ship BMF extensions if received in an IMF site, and vice versa. See the Transshipping Page on the link on the Submission Processing Web Site http://win.web.irs.gov/SP/Programs_Information/Transshipping.htm

  2. We do not have to process extension requests in the same submission processing center where the return will be processed, but we must ship a few requests to the appropriate campus for processing. Unless specified below, process the extension request in the receiving center.

  3. Ship all NMF extension requests to CSPC:

    1. Form 8868 for Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Person.

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

    3. Form 4720, Return Code 03.

  4. Ship Forms 5558 and 8868 to Ogden Submission Processing Center (OSPC).

    Note:

    Form 8868 for Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts, (Return Code "12" ) is routed to OSPC Exempt Organizations Compliance Area (EOCA) Mail Stop 1112.

  5. The table below condenses these instructions:

    Form Number Route to
    8868 for 990-BL, 6069, and 4720 with Return Code 03 CSPC
    8868

    Exception:

    8868 for 990-BL, 6069 and 4720 with Return Code 03 (see above)

    OSPC
    5558 OSPC
    8868 for Form 8870 OSPC - EOCA Mail Stop 1112
  6. When shipping extensions to another campus, do not send Letter 86-C, Referring Taxpayer Inquiry/Forms to Another Office. Extensions are exempted from P 21-3, which requires the Letter 86-C.

Six Month Extension Limit

  1. Under normal circumstances, an extension of time to file can legally be granted for no longer than a total of six months from the due date of the return. IRC 6081(a) and Treas. Reg. 1.6081-1 (a) state that an extension of time to file generally "shall not be granted for more than 6 months" from the due date of the return required to be filed.

  2. OSPC may grant an extension longer than six months for business taxpayers. Process these requests through IDRS using command code REQ77. Enter "60" in the ULC field on line 9 of the FRM77 screen. For input instructions, see IRM 2.4.19, Command Codes REQ77, FRM77 and FRM7A.

Reconsiderations/Amendments/Correspondence From the Taxpayer

  1. The guidelines in Document 11426, IRS Correspondence Manual, govern all taxpayer correspondence.

  2. If the taxpayer’s correspondence requests an extension of time to file, see IRM 3.11.20.2.2, Letter Requests.

  3. If an extension request is returned to IRS for reconsideration or if the correspondence requests a reconsideration of a previously denied extension request, route to Accounts Management.

    Correspondence Reconsideration

    If Then
    The taxpayer indicates the extension attached to correspondence is a copy, or the attached extension is for a prior year's tax return, Route the entire submission to Accounts Management.
    Taxpayer does not indicate the extension attached to correspondence is a copy, and the extension is for the current year's return, Detach the correspondence, route it to Accounts Management, and process the extension request.

  4. If a taxpayer files an amended application for any reason, route to Accounts Management.

Determination of Timely Filing - General

  1. C&E must be careful in determining when the extension request was filed because timely filing is an important requirement for approving the extension request. Erroneously denied extensions affect both the taxpayer and the Service by resulting in erroneous notices, increased calls to Customer Service lines, and increased volume of reconsiderations.

  2. Treat all extensions with a timely postmark date as timely filed, no matter when received.

  3. The received date is the date the extension request was delivered to the IRS. It is unnecessary to review the postmark date if the extension has a timely received date.

    1. All BMF extensions will be stamped with an IRS received date.

      Exception:

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      Example:

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  4. For all extension requests with a late received date, C&E must review the extension form for indications the extension may have a later due date.

  5. If the taxpayer is affected by an officially declared disaster that allows for a postponement of the normal due date, the extension request must be postmarked on or before the date the disaster period ends for treatment as a timely filed extension, Exhibit 3.11.20-7, Disaster Extension Due Dates - Alphabetical by State.

    Note:

    An alert is issued whenever there is a delayed due date because of a declared disaster.

  6. For all extension requests with a late received date, C&E must review for a timely postmark date.

    1. The postmark date is the date the United States Postal Service (USPS) or other designated delivery service has stamped the envelope to indicate the date the item was mailed.

    2. Receipt and Control attaches the envelope to any extension with a late received date. If more than one extension request was included in an envelope, the postmark date is stamped on each additional extension.

    3. IRC 7502 contains the "timely mailing treated as timely filing/paying" rule. This rule says to treat any document or payment as timely filed even if it is received after the due date if the postmark date is on or before the due date.

    4. If the request has a postmark date on or before the due date, the extension is timely filed.

      Caution:

      When the due date falls on a weekend or holiday, treat the extension request as timely filed if it is postmarked by the next day that is not a weekend or holiday.

    5. Consider any postmark when making this determination.

    6. Treat an extension with a timely foreign postmark as timely filed based on Rev. Rul. 2002-18 IRB 812.

  7. Exception for weekends and holidays - if the due date falls on a Saturday, Sunday, or legal holiday, the legal due date does not change. Treat the extension request as timely filed if postmarked by the next day that is not a weekend or holiday.

    Example:

    If the due date is April 15, and April 15 is a Saturday, the extension would be timely filed if postmarked by April 17 (the following Monday).

  8. The due date of the extension request is the Return Due Date (RDD) of the type of return the request covers for the taxpayer's tax year ending. The tax year ending is the Tax Period of the extension.

    1. Form 5558 - See IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only), for specific instructions.

    2. Form 8868 - See IRM 3.11.20.4, Form 8868 Document Perfection Procedures (OSPC Only), for specific instructions.

  9. If you determine the extension request is late based on examination of the received date and postmark date, there is no reasonable cause for late filing extensions attached, the extension will not be approved.

Error Resolution System Coding (ERS)

  1. Forms 8868 and Forms 5558 are processed on the ERS.

  2. C&E assigns action codes for ERS returns. They are transcribed into the record and used to suspend the case for correspondence and for routing within the campus. Descriptions for each action code are generally sufficient with no further explanation except for "Other Research" when an explanation about the missing information must be attached to the return.

  3. Modernized e-File (MeF) system also generates action codes for Form 8868 only. Process the MeF extensions using the same procedures used for paper extensions in IRM 3.11.20.7.3Action Codes.

  4. The presence of a valid action code will send the record to the Rejects Suspense Inventory, either workable or unworkable.

  5. If the action code assigned by document perfection is invalid or incomplete, assign the record to the Error Inventory for correction or deletion of the code. Only one action code may be assigned at one time to a record. The priority of the action codes will be 310, 4XX, 6XX, 3XX, 2XX.

Error Resolution System Action Codes

  1. Below is a complete list of ERS action codes, showing which codes are valid for Error Resolution (EC), and which codes are not. Use the suspense period for controlling suspense documents, not for determining which code to assign.

    Action Codes

    Action Codes: Description: Suspense Period: Function Used In:
    001 Input Document 0 EC
    211 First Correspondence 40 CE, EC, S
    213 Correspondence to other 40 CE, EC, S
    215 International Correspondence 45 CE, EC, S
    220 Correspondence Input 21 CE, EC, S
    225 Signature Only-Domestic 40 CE, EC, S
    226 Signature Only-International 45 CE, EC, S
    310 Statute Control 10 CE, EC, S
    320 Entity Control 10 CE, EC, S
    331 Frivolous Filer 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 Filer Case 10 CE, EC, S
    343 Other Accounting 10 CE, EC, S
    351 TIN Research 0 EC, S
    352 Name Research 3 CE, EC, S
    353 Address Research 3 CE, EC, S
    354 Filing Requirement Research 3 CE, EC, S
    355 Other MFTRA Research 5 CE, EC, S
    360 Other In-House Research 10 CE, EC, S
    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
    480 Early Filed 150 CE, EC, S
    490 System Problem 5 EC, S
    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
    550 Mag Tape Attachments 3 CE
    551 Mag Tape Inconsistent Data 3 CE
    610 Renumber 0 CE, EC
    611 Renumber with-remit 0 CE, EC
    620 NMF/Non-ADP 0 CE, EC
    630 Reinput 0 EC
    640 Void 0 CE, EC
    650 International 0 CE, EC
    651 International-AUSPC 0 CE, EC
    660 Data Control Delete (TEP Delete) 0 CE, EC, GEN
    670 Rejected Missing Documents 0 EC, S
    700 Duplicate Block DLN 0 GEN
    711 Duplicate Document DLN from CE NA GEN
    712 Duplicate Document DLN from Error NA GEN
    713 Duplicate Document DLN from Unpostables NA GEN
    714 Duplicate Document DLN from Unworkable Suspense NA GEN
    715 Duplicate Document DLN from Workable Suspense NA GEN
    900 Unpostable Record 0 GEN


Undeliverables

  1. When approval/denial notification or correspondence is returned to the Service because of an erroneous address, and there is another address included on the returned documents, re-send the correspondence to that address.

    Note:

    Do not research undeliverable CP 211A, Application for Extension of Time to File an Exempt Organization Return - approved, and CP 216F, Application for Extension of Time to File an Employee Plan Return Approved, give to your manager for proper preparation of documents for destruction.

  2. If no better address is included in the correspondence returned to the Service, research IDRS for a better address. See IRM 3.11.20.2.15, Research Command Codes.

    Research If/Then

    If research Then
    Indicates a better address, Re-send the letter to that address.
    Does not indicate a better address or if the "resent" letter comes back again, Give to your manager for proper preparation of documents to be destroyed.


  3. Do not input address changes based on address changes on the extension. The taxpayer is instructed to file Form 8822, Change of Address. If the taxpayer has attached a Form 8822, detach and forward to the Entity function.

Erroneous & Unidentified Documents

  1. If an original tax return is attached to an extension request, with no explanation, and both documents are for the same taxpayer, Master File Tax (MFT) Code and tax period, leave the extension attached to the back of the tax return and batch the tax return for processing.

  2. If we receive a schedule or other form normally attached to a tax return and it is stapled to the extension request, leave it attached to the back of the extension and continue processing.

  3. Form 9465, Installment Agreement Request, is attached to the extension document, refer to IRM 3.11.20.2.12, Installment Agreement.

  4. If additional information is needed (such as whether a first extension was filed, or an explanation for the delay), research and/or correspond with the taxpayer unless instructions for a specific extension form specify otherwise. See IRM 3.11.20.2.16, Correspondence, for correspondence instructions.

  5. If correspondence is necessary, allow 10 workdays for a response:

    1. When a reply is received, process the extension.

    2. If no reply is received after 10 workdays, process the extension as denied.

    Note:

    If the Taxpayer Identification Number (TIN) and taxpayer's name are missing or illegible so that the extension cannot be processed, nor correspondence issued, give it to your supervisor for preparation for destruction.

Erroneously Detached Copies of Extension Forms

  1. If the extension form appears to be a copy that may have been detached from the taxpayer's return in error and it is more than one month delinquent, examine the extension form for any of the following:

    1. The word "copy" or "photocopy" ;

    2. No received date; or

    3. Signature is not original ink/stamp.

  2. If any of the above indications are present, research for TC 460 posted to the account for the same MFT and Tax Period as the extension. If research indicates a TC 460 is present, pull from batch and give to your supervisor for proper preparation of documents to be destroyed.

  3. If no TC 460 indicated, process as an original request per instructions outlined in IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns.

Installment Agreement

  1. If a Form 9465, or letter requesting an installment agreement is attached to an extension, route the Form 9465 or letter to Collections. Note on the transmittal the extension form that was attached to Form 9465. Before routing the Form 9465 to Collections, verify that the taxpayer(s) name, Social Security Number (SSN), form number and tax period are on both the installment agreement and the extension. Continue processing the extension request using established procedures.

Access to IDRS

  1. When using IDRS, only access those accounts required in your official duties. Unauthorized accesses or browsing of tax accounts by employees to satisfy personal curiosity or for fraudulent reasons are prohibited by IRS and subject to disciplinary actions.

Notification to Taxpayer

  1. Notification of disapproved extension requests must be returned to the taxpayer within 10 days of the day the extension is disapproved.

  2. On BMF Form 5558 (MFT 76), all Forms 8868, and on EPMF Form 5558 (MFT 74) a notice is automatically sent to the taxpayer based on the edited notice code when the extension transaction posts.

Research Command Codes

  1. Command Code INOLE definer S (INOLES) with the taxpayer's Employer Identification Number (EIN) or SSN is used to find:

    1. Taxpayer's name and address.

    2. Taxpayer's name control.

    3. Filing requirements (for BMF and EPMF taxpayers).

    4. Fiscal Year Month (FYM) - this is the month the taxpayer's tax year ends.

      Example:

      If the taxpayer's FYM is 12, his tax year ends in December.

    5. See IRM 2.3.47, Command Codes INOLE, EOGEN and SPARQ, for more information on the use of this command code.

  2. Command code BMFOL definer I (BMFOLI) with the taxpayer's EIN or SSN (the SSN must be followed by a "V" ) is used to find the following information for a BMF taxpayer:

    1. Taxpayer's name control.

    2. Taxpayer's filing history. BMFOLI will list the tax periods on the master file and whether a return has posted to the tax period. A Y under RET PST column indicates that a return (TC 150) has posted to that module.

      Note:

      Use definer T to display information from a specific Tax Period.

    3. See IRM 2.3.59, Command Codes BMFOL and BMFOR, for more information on the use of this command code.

  3. Command Code ENMOD with the taxpayer's EIN or SSN is used to find:

    1. Taxpayer's name control.

    2. Pending entity transactions such as TC000 which establishes the taxpayer's account, name changes (TC013) which may change the name control, or transactions that may change the taxpayer's tax year (such as TC053).

    3. See IRM 2.3.15, Command Code ENMOD, for more information on the use of this command code.

  4. Command Codes NAMEE and NAMES, NAMEI and NAMEB, FINDS and FINDE.

    1. Research for a taxpayer's EIN or SSN on the BMF or EPMF using the taxpayer's name (and any known address information).

    2. Research for a taxpayer's SSN on the IMF by entering the taxpayer's name (and address information if known).

    3. The most efficient search uses the taxpayer's name and ZIP Code.

      Note:

      If researching for an SSN and the taxpayer is using a foreign address, enter the fully spelled country name or a double asterisk (**) in the country field of CC NAMES to access the International Account Profile.

    4. Command Code NAMEI is used to research for the taxpayer's SSN.

    5. Command Code NAMEB is used to research for the taxpayer's EIN or SSN for a BMF entity.

    6. Command Codes FINDS (SSN) and FINDE (EIN) are used to find a name and address for a TIN.

    7. See IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE and TPIIP, for more information on the use of these command codes.

Correspondence

  1. Following are letters to use when corresponding with the taxpayer. The employee must determine the letter best suited to the particular situation and to choose the appropriate paragraphs:

    1. Letter 3699C, Extension of Time to File (BMF) - is used for correspondence on BMF extensions of time to file. Use it to request additional information, to notify the taxpayer of the correct extended due date, to notify the taxpayer of the correct extension form to use, or to notify the taxpayer that the extension is disapproved.

    2. Letter 296C, Extension of Time to File (IMF/BMF) Incomplete for Processing, is for requesting additional information for both IMF and BMF extensions.

    3. Letter 297C, Extension of Time to File (IMF/BMF); Denial Explained, is used to notify the taxpayer that the extension request was disapproved.

    4. Letter 333C, Extension of Time to File (IMF/BMF) Approved, is for requesting information and to notify the taxpayer of the new due date for both IMF and BMF extensions.

  2. When using one of these letters, prepare Form 3696, Correspondence Action Sheet, or other local use correspondence action sheet.

    1. Enter the taxpayer's name, address, and TIN.

      Exception:

      If the extension indicates that the taxpayer wants notification or correspondence to be sent to a name and/or address other than the taxpayer's, enter that name and address on the correspondence action sheet.

    2. Enter the number of the letter to be used and list the appropriate paragraphs and fill-ins for the letter.

    3. Note on the extension form the letter that was sent. For example, "3699C letter sent" .

    4. Reject the extension document by entering Action Code 211 in the bottom left corner of the form and leave the form in the batch.

  3. Use Form 6513, Extension of Time to File, when appropriate in place of a correspondex letter. It is unnecessary to reject the document when this form is used.

    1. When notifying the taxpayer that the extension request is approved, always check the first box on Form 6513.

    2. When notifying the taxpayer that the extension request is not approved, always check the second box on Form 6513. Also check the appropriate box to indicate the reason for disapproval.

    3. To use Form 6513, you must either photocopy the extension request or attach a label with the name and address to which the form will be mailed. It is the option of the campus to decide how this is done.

  4. Form 6401, Request for Missing Information, may also be used in place of a correspondex letter when appropriate. It is not necessary to reject the document when this form is used. Enter the current date in the date block at the top of the form.

Acceptable Signature

  1. A signature is required on Form 5558 extension for Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, .

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

  3. Tax examiners are not expected to be handwriting experts. Treas. Reg. 301.6064-1 allows us to presume that the signature is the true signature of the person whose name it appears to be.

Document Perfection - General

  1. See instructions below for general document perfection information for processing extension requests.

  2. Follow these general instructions for processing all extension requests unless the procedures for a specific form contain differing instructions. In that case, the specific instructions take precedence.

Name Control

  1. Underline the Name Control of the taxpayer. The ampersand (&) and hyphen (-) are the only special characters allowed in the Name Control.

  2. If the name is not present on the name line but can be determined from elsewhere on the extension or on attachments, edit the name control to the name line. If it is undetermined:

    • On a numbered request, take no action;

    • On an unnumbered request, research for the taxpayer's name using the TIN.

  3. If name and address and TIN are all missing, treat the document as unable to be processed. Give to your manager for preparation for destruction.

  4. For Forms 5558 filed for Forms 5500 (MFT 74), always perfect the name control by underlining or editing the first four characters of the name Part 1 Section A as follows:

    Note:

    The Name Control for these returns must ALWAYS be the first four characters of the name of the plan listed in Part 1 Section A of Form 5558; see IRM 3.11.20.3.1(4) and IRM 3.11.20.3.1(5) below.

    1. If the plan belongs to an individual, use the first four characters of the individual's first name.

      Note:

      IRS accepts the primary name line information received if there is no impact to the filer and name controls the first four characters. Do not change the EPMF primary name line based on BMF name line rules. Treat the posting as filer's intent.

    2. If the plan belongs to a partnership, LLC or corporation, use the first four characters of the partnership, LLC or corporation name.

    3. If the plan belongs to a Trust or 401K, use the first four characters of the Trust or 401K.

    4. Disregard the word "The" in the Name control only when more than one word follows. Example: The Flamingo Tree, Name Control: FLAM.

    5. Include the word "The" when it is only followed by one word. Example: Name: The Hawk, Name Control: THEH.

    6. Employee Plans specific name control examples to be used are:

    1. Jim Snow Profit Sharing Plan - Edit JIMS.

    2. Retirement Plan for A Tree Inc - Edit RETI.

    3. Jane Doe Trust - Edit JANE.

    4. John Doe 401K Plan - Edit JOHN.

  5. If unable to determine the name control by following the instructions above, route to entity.

  6. For Form 8868:

    1. The Name Control consists of four alpha and/or numeric characters.

    2. The Name Control can have less than, but no more than, four characters.

    3. Blanks may only be present at the end of a Name Control (i.e. no character may follow a blank).

  7. The Name Control for an estate (indicated by "Estate" or "Est." in the name line) is the first four characters of the last name of the decedent.

    Example:

    Estate of Fred Maple - name control MAPL. Janice Elm Est.- name control ELM

  8. The Name Control for a trust is edited in this priority:

    1. Individuals - the first four characters of an individual's last name. Michael I. Azal ea Trust.

    2. Businesses - the first four characters of the business name if the name of the trust is a business instead of an individual. Maple Corporation Employee Benefit Trust.

    3. GNMA Pools - the first four digits of the trust number, disregarding any leading zeroes and/or trailing alphas. If there are fewer than four numbers, use the letters GNMA to complete the name control.

      Example:

      0000941 G NMA Pool-Name Control 941G, GNMA Pool No. 00100A - Name Control 100G.

    4. For Forms 1041-A and Forms 5227, Return Codes 08 or 10, trust name control rules apply even if Fund or Foundation is in the organization's name.

  9. See IRM 3.11.12, Exempt Organization Returns, for more examples.

Taxpayer Identification Number (TIN)

  1. Follow these instructions unless specific instructions for the form instruct otherwise.

  2. If illegible, other than nine digits, or missing, check attachments.

    TIN If/Then

    If TIN is not found or there are multiple TINs and extension is Then
    Numbered Take no action.
    Unnumbered Send to Entity for assignment of EIN.


Tax Period

  1. The Tax Period is four digits (YYMM) indicating the year and month in which the taxpayer's tax year ends (e.g. if the tax year ending is September 30, 2016, edit Tax Period 1609). The Integrated Submission and Remittance Processing (ISRP) program generates the rest of the year (20) when the extension document is input through Data Conversion.

  2. Edit the Tax Period in YYMM format in the upper right portion of the form unless otherwise indicated in specific instructions for the form.

    Exception:

    It is not necessary to edit the Tax Period if the taxpayer's year end is the current calendar year (1612).

  3. Determine the Tax Period from:

    1. The taxpayer's entry on Line 1 check box, of the Form 8868

      Exception:

      On extensions for Form 1041-A, U.S. Information Return Trust Accumulation of Charitable Amounts, and Form 5227, Split-Interest Trust Information Return, the Tax Period is always calendar year (no editing is necessary).

    2. The taxpayer's entry on Section C plan year ending block of Form 5558.

    Note:

    If the taxpayer appears to have erroneously entered a prior year as the year on a calendar year extension, because all other items that are present (received date, postmark date, DLN Julian date, signature date) on the extension indicate that the extension is for the current calendar year, assume the extension is for the current calendar year, so no tax period editing is necessary.

  4. The tax period should end on the last day of a month and must be for 12 months or less, except as otherwise specified below (ignore a minor discrepancy such as October 30 instead of October 31). If the ending date is other than as specified, then follow procedures outlined in 3.11.20.3.3(10), (11), and (12) below.

  5. A calendar year is 12 months that ends in December (Tax Period 1612 - unnecessary to edit).

  6. A fiscal year is 12 months that ends in any month other than December (edited Tax Period could be 1601 through 1611).

  7. 52-53 Week Rule - Tax periods reported under the 52-53 Week Rule end on a particular day of the week nearest to the last day of that month. This tax period may end not more than six days before, and not more than three days after, the end of a month.

    1. When editing these tax periods, use the numeric designation of the month, the last day of which is closest to the actual ending date.

      Example:

      If the ending date is October 3, use the numeric designation for September (1609). If the ending date is October 25, use the numeric designation for October (1610).

    2. If the tax period is for more than 12 months or 53 weeks, follow procedures in IRM 3.11.20.3.3(11), (12) and (13) below.

  8. Short tax year - This is a tax year shorter than 12 months.

  9. If the taxpayer indicates that a final, short period tax return ("Final return" box is checked and a short year is indicated) will be filed, the tax year ends on the date the taxpayer went out of business and may be any day of the month.

    1. Edit the short tax period, as indicated by the taxpayer, in YYMM format.

    2. If the date the taxpayer went out of business is indeterminable, use the calendar month that precedes the received date.

      Exception:

      Extensions for Form 1041-A, and Form 5227 are always calendar year.

    3. Edit CCC "W" on Form 8868.

  10. If the taxpayer indicates that an initial short period return will be filed, edit the short period as indicated by the taxpayer, in YYMM format.

  11. The following examples are of the Tax Period Format:

    Tax Period Format

    Tax Period Ends Numeric Designation
    Dec. 31, 2016 1612 (do not edit)
    Nov. 30, 2016 1611
    Feb. 28, 2017 1702
    Oct. 3, 2016 (52-53 week document) 1609
    Oct. 3, 2016 ( Final Short period) 1610
    Oct. 25, 2016 (52-53 week document) 1610
    Oct. 25, 2016 ( Final Short period) 1610


  12. If the Tax Period is missing, illegible, invalid, or is longer than one year, assume the Tax Period to be the current calendar year if it makes the form timely.

  13. If the tax period is missing, illegible, invalid, or is longer than one year, and the extension is not timely filed for the current calendar year:

    1. Request research to determine correct FYM.

    2. If determined, edit the correct tax period on the extension form. If this causes the form to be untimely, follow normal denial procedures for that form.

    3. If the tax period is undetermined through IDRS research, correspond with the taxpayer. See IRM 3.11.20.2.16, Correspondence. The application need not be sent back to the taxpayer.

  14. Replies to tax period correspondence - edit the Tax Period indicated by the taxpayer and continue processing.

  15. No replies to tax period correspondence - follow local procedures to destroy the document.

Received Date

  1. Every extension request form received by the IRS should be stamped or edited in MMDDYY format on the front of the first page by the receiving area (usually Receipt and Control) indicating the date it was received.

  2. The received date is used to determine if the extension request was timely filed.

  3. If more than one received date is stamped on the form, circle all but the earliest received date.

  4. Circle the received date entered on the form if it does not contain "IRS" or "Internal Revenue" . It is not a valid received date.

  5. If the received date makes the extension delinquent, and the postmark date is timely, circle the received date and edit the received date to agree with the postmark or shipment date. See IRM 3.11.20.2.6, Determination of Timely Filing - General.

    Note:

    A timely foreign postmark also makes the extension timely.

  6. If the date stamping area has failed to date stamp the form or the date is illegible, and an Area Office date stamp is not present, determine and enter the received date in MMDDYY format in the center of the form. Determine the received date using this priority:

    1. Legible USPS postmark date, private meter postmark, or date from a designated private delivery service.

    2. Revenue Officer's signature date.

    3. Service Center Automated Mail Processing System (SCAMPS) Date - the IRS SCAMPS machine date generated on the envelope.

    4. Signature date.

    5. DLN control (Julian) date minus 10 days.

    6. Current date minus 10 days.

  7. If the extension request was addressed and mailed to a state agency by the taxpayer, accept only the IRS received date on the return. If the extension request was addressed to the IRS by the taxpayer, but was incorrectly delivered to a state agency, use the postmark on the envelope as the received date.

  8. If a Form 5558 is received from EBSA/DOL/Other Government Agencies that deals with the Form 5500, IRS accepts the filing.

    1. If the Form 5558 is timely filed based on the postmark date, approve the extension.

    2. If the Form 5558 is not timely filed based on the postmark date, deny the extension.

    3. If other non-Governmental organization such as the gas company, phone company, etc. is received and is not timely filed, deny the extension.

Computer Condition Codes

  1. A Computer Condition Code (CCC) may be used on Form 8868.

  2. The only valid code for Form 8868 is W edited in the top middle margin.

    CCC

    CODE FORMS USAGE
    W 8868 Edit if form covers a short tax period. This bypasses the ERS check on tax period mismatches.


  3. A CCC is not edited on Form 5558.

Extended Due Dates

  1. The Extended Due Date is the date the extension period ends. It is only edited on Form 5558 extensions for Form 5500 series or Form 8955-SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits.

  2. On all approved Forms 5558 extensions and Forms 8868, the extended due date is generated by the master file when the extension transaction posts.

    1. On approved Forms 8868, the extended due date is generated as return due date plus six months when Notice Code 1 is edited.

    2. On approved Forms 5558 for Form 5330, the extended due date is generated as return due date plus the appropriate number of months per Exhibit 3.11.20-3, Due Dates - Form 5558 for MFT 76 (Form 5330),when Notice Code 1 is edited.

    3. On approved Forms 5558 for Form 5500 series, the extended due date is generated as return due date plus 2 1/1 months when Notice Code 1 is edited.

Form 8868 Document Perfection Procedures (OSPC Only)

  1. IRM 3.11.20.4, Form 8868 Document Perfection Procedures (OSPC Only), contains instructions for Forms 8868.

General Information

  1. Form 8868 filer enters a two-digit return code indicating the return to be extended. C&E will no longer edit the Return Code unless it was not entered by the filer or is illegible.

    Caution:

    A return code must be present. The MFT code and extended return due date are generated based on the return code (Edited below the name and address section on prior versions).

  2. Form 8868 is filed to request an extension for:

    • Form 990, 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.

      Note:

      Form 990-BL is processed by Non-Master File (NMF) in CSPC.

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

    • 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.

      Note:

      An extension for Form 990-T could be for a corporation (Return Code 07), Sec. 401(a) or 408(a) trust (Return Code 05), or other trust (Return Code 06).

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

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

      Note:

      Form 4720 may be filed by an individual (Return Code 03) or other than individual (Return Code 09). Form 4720 filed for an individual (Return Code 03) are processed by NMF) in CSPC.

    • Form 5227, Split-Interest Trust Information Return.

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

      Note:

      Form 6069 is processed by NMF in CSPC.

    • Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts.

      Note:

      If Form 8868 is received for Form 8870 (Return Code "12" ), forward to Ogden EOCA Mail Stop 1112.

  3. Form 8868 is for requesting an automatic six month extension for all forms.

  4. Form 8868 filed for Forms 990-BL, 6069 and 4720 with Return Code 03, must be processed to NMF in CSPC. Ship if filed at another campus.

  5. Extensions on Form 8868 may not be granted for more than six months.

  6. If duplicate Forms 8868 are received (same EIN, name, type of return, and tax period), do not process separately. Cross out ("X" ) the duplicate and attach to the back of the original.

  7. If the filer attached a Form SS-4, Application for Employer Identification Number, to the Form 8868, route both forms to Entity to have an EIN assigned before determining approval or denial.

Document Perfection

  1. Perfect Form 8868 as follows: (See Exhibit 3.11.20-9, Form 8868 T-Lines, .

  2. The taxpayer may receive a six-month extension for a timely filed Form 8868.

  3. If Form 8868 is filed for a form other than those listed in IRM 3.11.20.4.1(2) above, take this action:

    Exception:

    If there is an indication Form 8868 is being filed to extend Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not Required to file Form 990 or Form 990-EZ, treat the extension as though it were for a Form 990 and Edit Return Code "01" per 3.11.20.4.2(5) below.

    Form 8869 Other Forms Attached

    If Then
    Unnumbered Remove from the batch and follow local procedures to ensure the return is re-batched correctly.
    Numbered Edit ERS Action Code "610" to Reject and attach Form 4227, Intra-SC Reject or Routing Slip, to Form 8868. Note" renumber" on Form 4227.


  4. Perfect the name control, EIN, tax period, and received date as outlined in IRM 3.11.20.3Document Perfection - General.

  5. Perfect the two-digit return code entered in the boxes below the name and address section only if blank or illegible.

  6. If the taxpayer indicates the Form 8868 is for the "45R Credit Only" and the return code is blank, enter 07 in the return code box, otherwise DO NOT change the return code.

  7. If you are unable to determine the return code, research for the organization's filing requirement and enter the return code that corresponds to the filing requirement as follows:

    Determine Return Code

    Organization's Filing Requirement: Form 8868 Return Code: Organization's Filing Requirement: Form 8868 Return Code:
    Form 990/Form 990–EZ 01 Form 990-T (corporation) 07
    Form 990-BL 02 Form 1041-A 08
    Form 4720 (Individual) 03 Form 4720 (Corporation) 09
    Form 990-PF 04 Form 5227 10
    Form 990-T (sec. 401(a) or 408(a) trust 05 Form 6069 11
    Form 990-T (trust other than above) 06 Form 8870 12*


    Reminder:

    *If return code is 12, send to OSPC, EOCA M/S 1112.

    Note:

    A return code

    MUST be present. The MFT code and extended return due date are generated based on the return code. Always convert prior year return revisions using the current year T-Lines; see Exhibit 3.11.20-8, Prior Year MFT/Return Code Conversion Chart.

  8. If the taxpayer has indicated multiple return types, and research shows only one filing requirement, enter the return code that corresponds to the filing requirement.

  9. If the taxpayer has indicated multiple form types, and research shows they have matching multiple filing requirements, a "dummy" extension must be prepared for each return code.

    1. Photocopy the Form 8868.

    2. Edit one return code per copy.

    3. Make additional photocopies if necessary, so there is a separate Form 8868 for each return code.

  10. If, after research, you are unable to determine the organization's filing requirement, route to Entity. Entity determines the return code and forward to C&E to continue processing.

  11. Extension requests for Forms 6069, 990-BL, and 4720 with Return Code 03, must be processed to NMF in CSPC.

    1. Follow normal approval/denial procedures.

    2. Extensions for Forms 6069 and 990-BL are due on or before the 15th day of the fifth month after the end of the Tax Period (05/15/2016 for Tax Period 201512).

    3. A copy of the approved or denied extension should be mailed to the taxpayer.

    4. The IRS original should be forwarded to NMF Accounting.

  12. If the extension request is for a Form 990, or if meets one of the following conditions, you may also need to edit a group code. See IRM 3.11.20.4.2.1, Group Return/IRA Trusts.

    1. A GEN is present.

    2. The whole group box is checked.

    3. The part of the group box is checked.

    4. A list of subordinates is attached.

    5. Group Return is indicated on the extension.

  13. If the extension request is for a Form 990-T (sec. 401(a) or 408(a) trust), the extension may be for an Individual Retirement Account (IRA) trust. See IRM 3.11.20.4.2.1. Group Return/IRA Trusts.

Group Return/IRA Trusts
  1. Treat Form 8868 as a group return if any of the following apply:

    1. A GEN is present.

    2. The "whole group" box is checked.

    3. The "part of the group" box is checked.

    4. A list of subordinates is attached.

    5. "Group Return" is indicated on the extension.

    Note:

    A group return can only be filed on Form 990. If other than the Form 990 box is checked, and any of a) through e) above apply, research for the organization's filing requirements. If the filing requirement is other than "03" , do not treat the extension as a group return and do not edit a group code or follow group return processing instructions. If the filing requirement is "03" , change the return code to 01 and process the extension as a Form 990 group return.

  2. If the extension is a Group Return, in addition to normal editing of the return, also edit Group Code "8" in the middle right margin, as follows:

    Group Returns

    If And Edit Group Code Then:
    The GEN is present A list of subordinates is not attached, Do not edit a group code.

    Exception:

    Edit Group Code 8 if GEN 0229 is present.

    Continue processing.
    The GEN is present and the "whole group" box is not checked A list of subordinates is attached, 8

    Exception:

    Do not edit a group code for GEN 0928.

    Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
    The "whole group" box is checked A list of subordinates is not attached, Do not edit a group code Continue processing.
    The "whole group" box is checked A list of subordinates is attached, Do not edit a group code Continue processing.
    The "part of the group" box is checked A list of subordinates is not attached, Do not edit a group code Research for the organization's filing requirement.
    1. If filing requirement is other than "03" , do not edit a Group Code.

    2. If filing requirement is "03" , correspond for a list of subordinates to be included in the request for an extension.

    The "part of the group" box is checked A list of subordinates is attached, 8

    Exception:

    Do not edit a group code for GEN 0928.

    Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
    The return appears to be a group return but neither of the group return boxes are checked and a GEN is present A list of subordinates is attached, 8

    Exception:

    Do not edit a group code for GEN 0928.

    Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
    The return appears to be a group return but neither of the group return boxes are checked and a GEN is not present A list of subordinates is attached, 8

    Exception:

    Do not edit a group code for GEN 0928.

    Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.


  3. Treat Form 8868 as an IRA Trust if all of the following apply:

    1. The organization name includes "IRA" and/or "Trust" .

    2. The Form 990-T sec. 401(a) or 408(a) trust box is checked.

    3. A GEN is not present.

    4. Neither the "whole group" nor "part group" box is checked.

    5. A list of names with EINs is attached.

  4. Process an IRA Trust extension as follows:

    IRA Trust Extensions

    If Then
    Form 8868 is approved and an EIN of the trust is present, Edit Action Code 360, attach 4227, note "Group Return" to route to Rejects to input the TC 460, leave in batch and continue processing.
    Form 8868 is approved and an EIN of the trust is not present, Route to Exempt Organization (EO) Entity via Form 4227 to research for an EIN for the trust. Entity determines the EIN of the trust, annotate the extension, and forward to C&E to continue processing.
    Form 8868 is not approved, Follow denial procedures for Form 8868 as applicable.


Approval/Denial Notice Code
  1. Edit a notice code on Forms 8868 to indicate whether the application is approved or denied, and the reason for the denial.

    1. The notice code causes a notice to generate to the taxpayer and generates the appropriate extended due date.

    2. If the extension request is denied, the generated notice explains the reason for the denial based on the notice code.

      Example:

      Notice Code 2 generates a notice explaining that the extension request was denied because it was not filed by the due date.

  2. Edit the notice code in the top middle margin of Form 8868 according to whether the application is approved or disapproved.

  3. Edit only one notice code:

    1. 1 - Approved first extension - timely.

      Note:

      This notice code generates a six -month extension.

    2. 2 - Disapproved first extension - not timely.

Form 8868, - Approval Criteria

  1. A request for an automatic six-month extension of time to file an exempt organization return , will be approved if there is a timely postmark or the received date is on or before the return due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    Note:

    A request for extension is received on Form 8868 with revision date of January 2014 on Part I and/or Part II, will be approved if there is a timely postmark or the received date is on or before the return due date. SeeExhibit 3.11.20-12 , Part II Conversion chart.

    Note:

    Rejected electronically filed extension request - if there is an indication that the taxpayer attempted to file the extension electronically and it was rejected, the paper request is timely if postmarked by the regular due date or five calendar days after the date the taxpayer was notified that the electronic submission was rejected, whichever is later.

  2. See Exhibit 3.11.20-2, Due Dates - Form 8868 Extensions, to determine whether the extension is timely:

Form 8868 - Approval Actions

  1. If the request is timely filed, edit Notice Code 1.

  2. When the extension transaction posts to the Master File, Notice Code 1 generates a six-month extension of time to file for all return types.

    Note:

    It is not necessary to take any other action if the taxpayer has requested more than six-month extension. The notice will notify the taxpayer of the length of the extension.

    Note:

    A request for extension is received on Form 8868 with revision date of January 2014 on Part I and/or Part II, will be approved if there is a timely postmark or the received date is on or before the return due date. SeeExhibit 3.11.20-12 , Part II Conversion chart.

Form 8868 - Disapproval Criteria

  1. Disapprove a request for an automatic six-month extension of time if the received date is after the return due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , unless timely postmarked. See Exhibit 3.11.20-2, Due Dates - Form 8868 Extensions .

    Note:

    A request for extension is received on Form 8868 with revision date of January 2014 on Part I and/or Part II, will be approved if there is a timely postmark or the received date is on or before the return due date. See Exhibit 3.11.20-12 , Part II Conversion chart.

Form 8868 - Disapproval Actions

  1. If the extension request is not approved, edit Notice Code 2.

  2. Notice Code 2 causes a notice to be sent to tell the taxpayer the extension has been denied because the application was not filed on time.

Form 5558 Document Perfection Procedures (OSPC only)

  1. Form 5558 is processed at Ogden Submission Processing Center (OSPC) only. If received in another center, ship.

  2. Processing of extensions must be completed within 16 days of the initial received date as outlined in IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates.

  3. Extension requests for Form 5500 Series and Form 8955-SSA are processed and posted to the EPMF as MFT 74. The MFT is not edited on this form; see Exhibit 3.11.20-10, Form 5558 T-Lines for Form 5500 Series and 8955-SSA, for T-Lines.

  4. Extension requests for Form 5330 are processed and posted to the BMF as MFT 76. The MFT is not edited on this form see Exhibit 3.11.20-11, Form 5558 T-Lines for Form 5330, for T-lines.

  5. Form 5558 extensions are processed through on-line ERS.

  6. Box B of the Form 5558 contains fields for an EIN and SSN.

    Note:

    An SSN can be entered by the filer filing an extension for Part III only.

    EIN/SSN Procedures

    If Then
    An SSN is present and only Part II has an entry, Send to Entity. Entity determines the EIN and returns to C&E to continue processing.
    Both an EIN and SSN are present and only Part II has an entry, Circle out the SSN and continue processing.
    Both an EIN and SSN are present and only Part III has an entry, Send to Entity. Entity determines the correct TIN and returns to C&E to continue processing.


  7. Use the following criteria to determine the type of extension:

    If Then
    Part II has an entry on line 2 and line 3,

    Note:

    On form version 06-2011 use Part II Lines 1 and 2.

    Process the extension for a Part II Form 5500 Series and Form 8955–SSA.
    only Part II (line 2 and/or line 3) has an entry

    Note:

    On form version 06-2011 use Part II Lines 1 and 2 and Part III Lines 3a, 3b, 3c and 4.

    and Part III (lines 4a, 4b, 4c, and 5) has only blank, hyphen, or zero,

    Note:

    On form version 06-2011 use Part III Lines 3a, 3b, 3c and 4.

    Process the extension for Part II Form 5500 Series and Form 8955-SSA. See IRM 3.11.20.5.2. Form 5558 for Form 5500 Series and Form 8955-SSA
    If only Part III (lines 4a, 4b, 4c, and 5) has entries

    Note:

    On form version 06-2011 use Part III Lines 3a, 3b, 3c and 4.

    and Part II (line 2 and line 3) is blank,

    Note:

    On form version 06-2011 use Part II Lines 1 and 2.

    Process the extension for Part III Form 5330. See IRM 3.11.20.5.1, Form 5558 for Form 5330 - Approval/Disapproval Criteria and Action
    If both Part II and Part III has entries See (8) below.
    unable to determine, Process as an extension for Part II Form 5500 Series and Form 8955-SSA.
  8. If a single Form 5558 requests an extension for both a Part II Form 5500 Series or Form 8955-SSA and a Part III Form 5330, a "dummy" extension must be prepared for the Form 5330 extension. Both forms must be processed separately following the specific instructions for each type. See IRM 3.11.20.5.1, Form 5558 for Form 5330 - Approval/Disapproval Criteria and Action, and IRM 3.11.20.5.2, Form 5558 for Form 5500 Series and Form 8955-SSA.

    1. Photocopy Form 5558.

    2. "X" out Part III on the original and Part II on the photocopy.

    3. Both forms must be processed separately following the specific instructions for each type. See IRM 3.11.20.5.1, Form 5558 for Form 5330 - Approval/Disapproval Criteria and Action, and IRM 3.11.20.5.2, Form 5558 for Form 5500 Series and Form 8955-SSA.

  9. On form version 06-2011, the filer may include up to three plans on one Form 5558; if there is more than one plan number on the Form 5558, a "dummy" extension must be prepared for each of the additional plan numbers.

    1. Photocopy Form 5558 and circle all but one plan number. Make additional photocopies if necessary so there is a separate Form 5558 for each plan number.

    2. If unable to determine Plan Number, attach Form 4227, note "plan number" , and route to Entity. Entity determines the plan number and return to C&E to continue processing.

  10. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  11. If the taxpayer attaches a list; detach and send the list back to the filer and continue processing the Form 5558.

    Note:

    For lists indicating Forms 5558 have been sent for each plan number listed, treat the list as classified waste and destroy.

    Lists Attached

    If: Then:
    Correspondence attached Detach list and return to sender:
    1. To the attention of the person who signed the correspondence if available and legible

    2. Use the mailing address listed on the correspondence.

    No correspondence attached and there is an envelope attached with a return address Detach list and return to sender using the envelope address.
    No correspondence attached and no envelope attached or no return address on envelope. X the list and leave attached behind the Form 5558.

    Note:

    DO NOT send the list to the filer or address listed on Form 5558.


  12. If correspondence is necessary and there is no address for the filer on the Form 5558, correspondence should be sent to the taxpayer's address of record.

Part III Form 5558 for Form 5330 - Approval/Disapproval Criteria and Action

  1. Approve the extension up to six-months if meets all these conditions:

    • Extension is timely, and

    • An acceptable reason for delay is given.

    • The extension request is signed.

  2. Determine if the extension was timely filed.

    1. The IRC section imposing the tax entered on line 4a determines the return due date of Form 5558 filed for Form 5330.

    2. If no code section is entered or is not valid, edit Action Code 211 in left bottom margin and initiate correspondence for the code section using Letter 3938-C, Form 5330 & 5558 Incomplete for Processing (BMF).

      Exception:

      Do not correspond for the code section if there is no signature or no acceptable reason. Follow disapproval procedures.

    3. If the due date falls on a weekend or holiday, treat the extension timely filed if the extension is postmarked on or before the next business day. See Exhibit 3.11.20-3, Due Dates - Form 5558 for MFT 76 (Form 5330), to determine whether the extension is timely:

  3. Approval Action - edit Notice Code 1 in the top middle margin of the Form 5558.

  4. Disapproval Criteria - Deny requests for extension of time to file if all the requirements for approval in paragraph (1) are not met.

  5. Disapproval Actions:

    Disapproval Codes for Part II

    If Then
    The extension is not timely, edit Notice Code 2
    The extension is not signed, edit Notice Code 8
    The extension does not have an acceptable reason, edit Notice Code 9


    Note:

    Only one notice code may be edited. If the request meets more than one of the disapproval criteria, choose the notice code in the order listed above.

  6. Editing Form 5558 for Form 5330:

    1. Underline or edit the name control. See IRM 3.11.20.3.1, Name Control.

    2. Edit the tax period. See IRM 3.11.20.3.3, Tax Period.

    3. Check for valid TIN. See IRM 3.11.20.3.2, Taxpayer Identification Number (TIN).

    4. If the TIN is an SSN (entered in the SSN block on the form), edit a 0 (zero) at the end of the SSN.

    5. Ensure there is a three-digit plan number in line 2 plan number box. If no plan number is present, or it is more or less than three digits, edit Action Code 320 in left bottom margin. Attach Form 4227, note "plan number" , and route to EP Entity. If there is more than one plan number present, see IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only).

    6. Ensure a received date is present. See IRM 3.11.20.3.4, Received Date.

    7. Edit the notice code per IRM 3.11.20.5.1(3) & (5) above.

Part II Form 5558 for Form 5500 Series and Form 8955-SSA

  1. All Forms 5558 for Form 5500 Series or 8955-SSA are processed and posted to the EPMF.

  2. If the filer submitted a Form 5558 with a remittance, not designated as an extension for Form 5330, a manual deposit Form 3244, Payment Posting Voucher, should be prepared for NMF Accounting. If a money amount is edited on the Form 5558 or a "green rocker" is present indicating a remittance, continue processing. If a copy of the Form 3244 is attached, do not mail it back to the filer. NMF Accounting should process the original Form 3244. Route the original Form 3244 to NMF and keep a copy with the extension.

  3. Determine if the extension request was received timely.

    1. The return due date for Forms 5558 for Form 5500 Series and Form 8955-SSA is the last day of the seventh month after the end of the plan year.

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. See Exhibit 3.11.20-4Due Dates - Form 5558 for Form 5500 Series and Form 8955-SSA, to determine whether the extension is timely.

  4. On form version 06-2011, Employers may request extensions for up to three plans on one Form 5558 if all the plan years end on the same date. Follow the approval/denial criteria as outlined in IRM 3.11.20.5.2(7) through (12) below.

    Note:

    "Dummy" extensions must be prepared so each has only one EIN and plan number, see IRM 3.11.20.5(8)

    .

  5. Extensions cannot be amended. Treat any extensions marked "amended" as a reconsideration and follow procedures in IRM 3.11.20.5.2(6)(d) below.

  6. Routing of miscellaneous forms and attachments:

    1. Leave Schedules A, B, C, D, E, F, G, H, I, P, R, or T (these schedules are filed with Form 5500) attached to the Form 5558.

    2. If Form 8955-SSA is attached, detach and route to Extracting.

    3. Detach lists of additional plans from Form 5558, and return to the filer. See IRM 3.11.20.5(11).

    4. Route correspondence concerning penalties, returned Letter 3699C, reconsideration of denied extensions, or timeliness to EP Accounts.

    5. Detach Form 8822 and route to Entity.

    6. Detach original Form 2848, Power of Attorney and Declaration of Representative, edit a received date, and route to the POA (Power of Attorney) Unit.

    7. If there is a request for forms attached to the extension, copy the Form 5558. Detach the correspondence request and attach it to the photocopy of the Form 5558. Route to CRX Letters and continue to process the original Form 5558.

    8. Leave CP 213, EPMF Proposed Penalty Notice, attached. Move the extension request to the back and forward the entire package to EP Accounts.

  7. Route the Form 5558 to Entity if:

    1. There is a name change.

    2. There is an EIN change.

    3. The EIN is missing and the Form 5558 is not timely.

    4. The filer attached a Form SS-4 to the Form 5558, route both forms to Entity to have an EIN assigned before determining approval or denial.

    5. There is not a three digit plan number on Line 2, or it is more or less than three digits.

      Note:

      If there is more than one plan number present, see IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only).

    6. Part II Line 1 check box is checked, route to Entity to establish the account before determining approval or denial.

    Form 5558 Approved/Denied Actions

    Required Approve Denied
    Determine due date. See Exhibit 3.11.20-4, Due Dates - Form 5558 for Form 5500 Series and Form 8955-SSA, Timely filed Not timely filed
    Name control. See IRM 3.11.20.3.1, Name Control. Underline or edit Underline or edit
    Tax period. See IRM 3.11.20.3.3, Tax Period. Edit Edit
    TIN. See IRM 3.11.20.3.2, Taxpayer Identification Number (TIN). Ensure valid Ensure valid
    Plan number. See (7)(e) above. Ensure 3 digits Ensure 3 digits
    Received date. See IRM 3.11.20.3.4, Received Date. Ensure present Ensure present
    Signature Not required Not required
    Notice Code edit in the upper center margin of the form. 1 2


    Exception:

    The Department of Labor (EFAST2) vendor is sending some of the Forms 5558 to the IRS. These forms will not have an envelope attached, normally have staple holes in the upper left margin, and are at least one month delinquent. Extensions for Form 5500 Series and Form 8955-SSA are not required to be signed, but if there is a signature present, check the signature date. Consider these extensions received from the vendor as timely if the signature date is timely.

Error Resolution/Reject Procedures - General

  1. IRM 3.11.20.6, Error Resolution/Reject Procedures - General, through IRM 3.11.20.13, Error Codes for Form 8868, includes instructions to correct errors on applications for extensions of time to file.

  2. Use IRM 3.11.20.6, Error Resolution/Reject Procedures - General, through IRM 3.11.20.13, Error Codes for Form 8868, in conjunction with Document Perfection IRM 3.11.20.1, Overview, through IRM 3.11.20.5, Form 5558 Document Perfection Procedures (OSPC only), above.

  3. Included are instructions for ERS.

  4. The instructions in IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns, cover the processing of the following forms:

    Forms Processed

    Form Title
    5558 Application for Extension of Time To File Certain Employee Plan Returns
    8868 Application for Extension of Time To File an Exempt Organization Return


  5. Form 5558 extensions for Form 5330 (BMF MFT 76) are processed on ERS using program number 15560.

    1. Form 5558 is numbered with Tax Class 4 in the DLN. Document Code is 04, Blocking Series is 000-499, Transaction Code is 620.

    2. The MFT 76 is generated for each record based on the program 15560.

    3. A notice code is edited on each Form 5558 by C&E to indicate whether the extension request has been approved or not and if not, the reason for denial.

    4. When the extension transactions posts to the BMF, the notice code causes a notice to go to the taxpayer and explains the denial; no manual response to the taxpayer is required.

    5. The notice code also causes the generation of the extended due date. The extended due date is not edited or input.

  6. Form 5558 extensions for Form 5500 Series and Form 8955-SSA (EPMF MFT 74) are processed on ERS with program number 72880.

    1. Form 5558 is numbered with Tax Class 0 in the DLN, Document Code is 55, Blocking Series is 100-699, Transaction Code is 460.

    2. The MFT 74 is generated for each record based on the program 72880.

    3. The extension will be automatically approved unless it is not timely filed.

    4. A notice code is edited on each Form 5558 by C&E to indicate whether the extension request has been approved or denied.

    5. When the extension transactions posts to the EPMF, the notice code causes a notice to go to the taxpayer and explains the denial; no manual response to the taxpayer is required.

    6. The notice code also causes the generation of the extended due date. The extended due date is not edited or input.

  7. Form 8868 is processed on ERS using Program 15540 for paper returns and Program 15550 for returns filed electronically via the Modernized e-File MeF system. MeF returns can be identified by a File Location Code of 93 or 92 in the DLN.

    1. Form 8868 is numbered with Tax Class 4 in the DLN. Document Code is 04, Blocking Series is 500-999, Transaction Code is 620.

    2. The return code is edited and transcribed on each record. The MFT is generated based on the return code.

    3. A notice code is edited on each Form 8868 by C&E to indicate whether the extension request has been approved or not and if not, the reason for denial.

    4. When the extension transactions posts to the BMF, the notice code causes a notice to generate to the taxpayer with the appropriate text to explain the denial; no manual response to the taxpayer is required.

  8. All money amount fields are transcribed in dollars and cents.

Related Forms

  1. The following forms may be referred to in this section. The chart below shows their form number, form title and use. Refer to IRM 3.12.212, Applications for Extensions of Time to File Tax Returns, for more information on these forms.

    Related Forms

    Form Title Use
    Form 3244 Payment Posting Voucher To post payments on accounts
    Form 3696 Correspondence Action Sheet To initiate correspondence to the taxpayer
    Form 4227 Intra-SC Reject or Routing Slip To identify the unable to be processed condition
    Form 6401 Request for Missing Information To inform taxpayer of erroneous filed extensions
    Form 8161 ERS Return Charge-Out To charge out returns on the new Suspense List, Rejected Records List and Duplicate Document DLN Register. Input Correction Operation also uses as a routing slip and history item.
    Form 6882 IDRS/Master File Information Request To request IDRS research
    Form 13482 Letter 3699C Extension Correspondence Action Sheet To initiate correspondence to the taxpayer using 3699C letter


ERS Inventories

  1. Records will be placed either in the error inventory or the workable suspense inventory for correction. Once the ERS tax examiner accesses the record and it displays on the screen, either fully correct it, place it in suspense for additional information, or reject it from pipeline processing. Corrections include correcting errors in editing or transcription.

  2. IRM 3.11.20, Applications of Extension of Time to File Exempt Organization and Employee Plan Returns, is the main source of information to correct the record on the screen and the related return. Procedures are also in IRM 3.12.38, BMF General Instructions, which contains general instructions for correcting records on the screen, document control, inventories, and management reports.

Error Inventory Report

  1. Each day the Error Inventory Report is provided showing the blocks by the block control number and block Document Locator Number (DLN) in DLN order. Each batch is on separate pages. Blocks received from Block Out of Balance (BOB) Correction are also listed separately.

  2. A copy of the Error Inventory Report can be placed on the carts of documents and used as a charge-out. This helps determine when a cart is completed.

  3. The first line of the Error Inventory Report shows the number of working days the records on that page have been in the Error Inventory to assign priority.

Workable Suspense Inventory Report

  1. Each day the Workable Suspense Inventory Report is furnished showing the records by program in DLN order for various statuses. Separate pages for each program with totals are provided.

  2. The first line of the report will show the number of working days that the records have been in the workable suspense inventory. This assigns priority to the older work.

Unprocessable Documents

  1. Error Resolution System (ERS) - When perfection of a document is not possible because it is necessary to correspond, perform research or refer the document to another area of the Campus, suspend the unable to be processed record by entering Command Code SSPND followed by the appropriate action code.

  2. Error Register - Any time a document is unable to be processed, enter an Action Code 3 to the left of Section 01 on the Error Register and charge the document out of the block, indicating "Rejecting U" , and date. Attach and prepare Form 3696, Form 4227, or Form 6882, to the rejected document.

Non Master File Extensions

  1. When an ERS document is for a non-ADP (Automated Data Processing) period (prior to 1962) or is extending the time to file a Non Master File (NMF) return (Form 990-BL, 6069 or 4720 with Return Code 03, the record must be rejected from ERS.

    1. For non-remittance NMF items SSPND 620. If necessary, Rejects suspends with Command Code (CC) RJECT.

    2. For the NMF item with payment follow instructions in IRM 3.12.38, BMF General Instructions, by first SSPND 343 to Accounting for research before finally rejecting from ERS and transferring to NMF or Unidentified, depending on the instruction from Accounting.

  2. When an Error Register document is found to be Non-ADP, charge it out of the block as "Non-ADP" with the date. Prepare a Form 4227, attach it to the document and enter Action Code 3 to the left of Section 01 on the error register.

  3. For international returns with and without remittance refer to instructions in IRM 3.12.38, BMF General Instructions.

Perfection of Attachments

  1. If unrelated or unanswered taxpayer correspondence or questions are attached or written on the document and no action has been taken, detach or photocopy and route to the appropriate area.

  2. If unanswered taxpayer correspondence relating to the extension application forms is attached, make a photocopy of the attachment and forward it to the appropriate area.

  3. Be sure that any attachment or photocopy of an attachment routed elsewhere contains name, address, TIN, received date, and an audit trail is noted on the extension form.

Research

  1. Command Code (CC) INOLE definer S (INOLES) with the taxpayer's EIN or SSN is used to find:

    1. Taxpayer's name and address.

    2. Taxpayer's name control.

    3. Filing requirements (for BMF and EPMF taxpayers).

    4. FYM - the month the taxpayer's tax year ends.

      Example:

      If the taxpayer's FYM is 12, his tax year ends in December.

    5. See IRM 2.3.47, Command Codes INOLE, EOGEN and SPARQ, for more information on using this command code.

  2. Command Code BMFOL definer I (BMFOLI) with the taxpayer's EIN or SSN is used to find:

    1. Taxpayer's name control.

    2. Taxpayer's filing history. BMFOLI lists the tax periods on the master file and whether a return has posted to the tax period.

    3. See IRM 2.3.59, Command Codes BMFOL and BMFOR, for more information on using this command code.

  3. CC ENMOD with the taxpayer's EIN or SSN is used to find:

    1. Taxpayer's name control.

    2. Pending entity transactions such as Transaction Code (TC) 000 which establishes the taxpayer's account, name changes (TC 013) which may change the name control, or transactions that may change the taxpayer's tax year (such as TC 053).

    3. See IRM 2.3.15, Command Code ENMOD, for more information on using command code.

  4. Command Codes NAMEE and NAMES, NAMEB and NAMEI, and FINDE and FINDS.

    1. Research a taxpayer's EIN or SSN on the BMF or EPMF using the taxpayer's name (and address information if known).

    2. Research a taxpayer's SSN on the IMF by entering the taxpayer's name (and address information if known).

    3. The most efficient search uses the taxpayer's name and ZIP Code.

    4. Command Code NAMEI is used to research the taxpayer's SSN.

    5. Command Code NAMEB is used to research the taxpayer's EIN or SSN for a BMF entity.

    6. Command Codes FINDS (SSN) and FINDE (EIN) are used to find a name and address for a TIN.

    7. See IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP, for more information on the using these command codes.

Error Resolution System (ERS)

  1. The following extension forms are processed on ERS:

    1. Form 5558, Application for Extension of Time To File Certain Employee Plan Returns,

    2. Form 8868, Application for Extension of Time To File an Exempt Organization Return

Type of Errors

  1. ERS will identify errors according to type and priority. The record heading shows the type of error.

  2. IRM 3.11.20.8, Form 5558 Error Correction MFT 74 through IRM 3.11.20.13.15, Group Return TC 460 Procedures (Rejects Only), will furnish the solution for the errors. There may be records where the tax examiner finds that programming has not provided a necessary section to correct an error. The tax examiner can use CC GTSEC. Report this to the National Office to correct the display.

    1. Action Code Error - (Priority I).

    2. Section Error - (Priority II) ISRP problem code.

    3. Validity Error - (Priority III)

    4. Math/Consistency Error (Error Codes) - (Priority IV)

Status Codes

  1. Records for the documents in the ERS are controlled by status codes. The status is updated when the records are placed in specific inventory.

  2. Below is a list of the status codes and brief explanation:

    1. Status 100 is an error awaiting correction. Records are in the error inventory.

    2. Status 2XX is a record awaiting information. Records are in the suspense error inventory.

    3. Status 3XX is used when the suspense period expired without a response. Records are in the workable suspense inventory.

    4. Status 4XX is a record with information, awaiting correction. Records are in the workable suspense inventory.

    5. Status 900 is when the record is on the unselected inventory.

  3. The final two positions of the Status Code consist of the first two positions of the action code. This groups similar work on the workable suspense inventory.

    Example:

    321-Suspense period expired, no response to taxpayer correspondence. If a record was selected for Quality Review, the positions 2 and 3 are "QA" .

Action Codes

  1. The ERS Action Code indicates that specific information is missing or that the record will be rejected from processing. The code indicates if sending correspondence to the taxpayer or the specific in-house research or action required.

  2. For paper returns, C&E employees assign action codes to numbered returns when they determine that the document is unable to be processed because it either needs additional information or some required manual intervention. This code will be entered on the bottom of the extension.

  3. Correspondence Action sheets (Form 3696 and Form 13482) used for initiating correspondence is attached by Document Perfection. For routing within the campus (in-house research), an explanation of the missing information needs to be attached to the return.

  4. The action code assigned by C&E is transcribed into the record of the document.

  5. For MeF returns, take the following action for MeF-generated action codes:

    Action Codes If/And/Then

    If Action Code And Then
    320 Form 8868 check box InitialFinal or Change in Accounting is checked, Route to Entity
    420 Return Code is 12 (Form 8870) Send Form 8870 to OSPC, EOCA, M/S 1112
    430 Partial Group check box is checked and a list of subordinates is attached, Follow Group Return procedures in IRM 3.11.20.4.2.1,, Group Return/IRA Trusts, SSPND 360 and send to Rejects. Rejects will input a TC 460 for each subordinate organization on the list.
    460 Return Code is 02 (Form 990-BL) or 11 (Form 6069), Complete Form 13538 and route to CSPC for non-Master File processing.


  6. The presence of a valid action code other than 001 will place the record in the Suspense Inventory, either workable or unworkable.

  7. A Form 8161(C), ERS Return Charge-Out, is computer generated for all new suspense items. The charge-out is used for pulling documents as well as routing and controlling documents while the record is in suspense and for use in associating the document with the workable suspense inventory when the record becomes workable.

  8. When a record appears on the workable suspense inventory with the action code as first priority:

    1. Add information received to the record or follow the IRM instructions for the "no reply" and clear the action code by entering a "C" in the Clear Field and transmitting.

    2. Once the action code is cleared, any validity, section or math/consistency errors will be displayed for correction.

    3. Records may have been unable to be processed and again require suspension for additional information. A charge-out will not be generated for resuspended items. Note the charge-out in the appropriate block by entering the action code and date.

    4. Some action codes may not be resuspended. If this occurs the charge-out should be noted in the appropriate block by entering the correct action code and date.

  9. When perfection is not possible, the record may be rejected from ERS and action initiated to have the DLN voided. If remittance is involved, the remittance may have to be transferred to the "Unidentified Remittance File" .

  10. Perfection may be possible but the record may require renumbering or uncorrectable fields may need correcting and the record will require rejecting for reinput. Reject the record by entering the CC RJECT followed by the Action Code 630 (reinput) or 640 (void). If a new DLN will be assigned, select CC NWDLN with the appropriate Action Code and new DLN Master File ID Code if required.

  11. A charge-out generates for all rejected records. The charge-out will remain in the campus files for future reference.

    Note:

    If the DLN was incorrectly transcribed and is wrong on the screen, the DLN appearing on the charge-out is erroneous. Note the correct DLN on the charge-out to use to pull the document. Tell your supervisor the block involved, and physical location of the document.

  12. ERS automatically controls most of the adjustments to Service Center Control File (SCCF). If you need manual adjustment, use Form 4028, Service Center Control File Adjustment Record (SCCF Format Code 216).

  13. Only one action code at a time may be assigned to a record. The priority of the action code will be 310, 4xx, 6xx, 3xx, 2xx. An ERS tax examiner may enter an action code on a record, delete or correct an invalid code or may overlay the present action code with another to either resuspend or reject from ERS. This is done by entering the valid action code with the Command Code RJECT, SSPND, or NWDLN.

  14. An ERS tax examiner entering a valid action code with SSPND will be clearing the record from the screen and places the record in either workable suspense or unworkable suspense.

  15. A Suspense Correction tax examiner entering a valid action code with CC RJECT deletes the record from ERS. Generally SCCF will automatically update for the rejected records.

Action Codes Chart

  1. See the following Action Code Chart below:

    Note:

    EC=Error Correction, CE=Code and Edit, S=Suspense Correction, and GEN=Computer Generated.

    Action Codes Chart

    Action Code: Description: Suspense Period: Function Used In:
    001 Input Document 0 EC
    211 First Correspondence 40 CE, EC, S
    212 Second Correspondence 25 CE, EC, S
    213 Correspondence to other 40 CE, EC, S
    215 International Correspondence 45 CE, EC, S
    220 Correspondence Input 21 CE, EC, S
    300 Fuel Tax Credit 10 CE, EC, S
    310 Statute Control 10 CE, EC, S
    320 Entity Control 10 CE, EC, S
    331 Protest 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 Protest Case 10 CE, EC, S
    336 QRDT 10 CE, EC, S
    337 Other CID 10 CE, EC, S
    341 Manual Refund 10 CE, EC, S
    342 Credit Verification 10 CE, EC, S
    343 Other Accounting 10 CE, EC, S
    344 Manual Refund by ERS 0 EC
    351 TIN Research 0 EC, S
    352 Name Research 3 CE, EC, S
    353 Address Research 3 CE, EC, S
    354 Filing Requirement 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
    380 Amended-Consolidated 30 CE, EC, S
    383 1040EZ Audit Code 0 CE
    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, S
    480 Early Filed 150 CE, EC, S
    490 System Problem 5 CE, EC, S
    510 Missing Documents 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
    550 Mag Tape Attachments 3
    551 Mag Tape Inconsistent Data 3 CE
    610 Renumber 0 CE, EC
    611 Renumber with-remit 0 CE, EC
    620 NMF/Non-ADP 0 CE, EC
    630 Reinput 0 EC
    640 Void 0 CE, EC
    650 International 0 CE, EC
    651 International-AUSPC 0 CE, EC
    660 Data Control Delete (TEP Delete) 0 CE, EC, GEN
    670 Rejected Missing Documents 0 EC, S
    700 Duplicate Block DLN 0 GEN
    711 Duplicate Document DLN from CE NA GEN
    712 Duplicate Document DLN from Error NA GEN
    713 Duplicate Document DLN from Unpostable NA GEN
    714 Duplicate Document DLN from Unworkable Suspense NA GEN
    715 Duplicate Document DLN from Workable Suspense NA GEN
    900 Unpostable Record 0 GEN


Clear Code "C" and "000"

  1. "C" is used as a Clear Code for Error Codes when the error condition does not require a change or correction to the displayed record. The screen display will include a clear field labeled "CL" to indicate the possible need of a clear code.

  2. Error Codes are cleared by either correcting the condition or entering a "C" in Field CL to indicate no correction is needed.

  3. Code "C" is also used to clear the action code from the screen after corrections are complete, or as with Action Codes 410 and 700, the action code must be cleared initially, so other errors in the record can be resolved. The presence of the "C" with a priority I error indicates that you have made the corrections to the action code and now wish to have any other errors on the record displayed.

  4. The "000" is also used as a Clear Code when deleting action codes. It is only used for erroneous action codes when there is no reason to suspend the record. The "000" cannot be used in suspense correction.

  5. Programming erases all "C" Clear Codes for Error Codes when a record is suspended with the CC SSPND.

  6. Programming erases all "C" Clear Codes for Error Codes and Action Codes for the new day's Error Inventory and Workable Suspense Inventory. Unfinished records from the previous day will contain none of the "C" Clear Codes assigned to a record that was not completely worked.

  7. Error Codes (including the ones which may require a "C" Clear Code) are numbered consecutively for correcting.

    1. There may be instances when you as an ERS tax examiner are correcting errors at the terminal and create an Error Code with a higher priority than the one(s) you have cleared with a "C" Clear Code. If this occurs, programming erases all "C" Clear Codes for Error Codes with a lower priority than the one created.

    2. Beginning with the higher priority Error Code you created, programming continues displaying Error Codes for the record. Screen displays with the corrected data may often be different from those previously displayed.

    3. There may be instances when you will make a correction erasing an Error Code you previously cleared with a "C" and now the error condition no longer exists. If this happens, the "C" Clear code for this error and for all subsequent errors in the record are deleted.

    4. If after deleting the "C's" , errors remain on the record, they are displayed for resolution whether they were previously displayed.

  8. The "C" Clear code will prevent any other record corrections. If a correction must be entered but you have already transmitted the "C" Clear Code, and the error is no longer displayed, then use CC GTRECW to make any corrections.

Correspondence

  1. Correspondence may be necessary if C&E has not already corresponded for missing or contradictory information.

  2. This table shows the available IDRS Correspondex Letters to be used if corresponding to the taxpayer is necessary.

    Letter: Title:
    296C Extension of Time to File (IMF/BMF) Incomplete for Processing
    320C FTD Payment Information/Verification Requested
    3699C Extension of Time to File - BMF
    3938C Form 5330 Incomplete for Processing

    Note:

    Use when code section is missing on Form 5558 line 4a.

    Note:

    Use other letters or forms for correspondence if appropriate.

  3. When the taxpayer replies to correspondence, enter the correct information provided by the taxpayer.

  4. When there is no reply from the taxpayer for correspondence requesting information needed to process the extension, follow the no reply instructions for the Error Code, and ensure an Audit Trail is noted on the extension form. If the document carries a remittance, reinput the form as a non-remittance document and prepare Form 3244, Payment Posting Voucher, with TC 670 to post the payment to the appropriate account. If unable to determine the appropriate account, send payment to Unidentified Remittance Unit.

  5. Undeliverable correspondence - when correspondence is returned as undeliverable, research attachments and IDRS for another address. If found, send the correspondence to the new address. If no new address is found:

    1. If the correspondence was requesting information, follow "no reply" procedures.

    2. If the correspondence was notification to the taxpayer that the extension request was not approved, destroy the correspondence.

Field Errors

  1. Any field that does not meet requirements for that field appears as a field error. Some reasons for this error are:

    1. Non alphabetical character in an alpha field.

    2. Blank space in a numeric field.

    3. Blank in the first position of an alpha field.

  2. All fields with a field error display in the order found in the record. The action code never displays as a field error.

Section Errors

  1. There are two types of errors identified as section errors-ISRP and Terminus errors.

  2. ISRP errors are errors detected by the ISRP System. This table shows the codes that identify what type of ISRP error is being displayed.

    Section Errors

    Code Meaning
    1 Split screen transmission. Key verifier attempted to change check digit, key verifier changed 4 or more digits of TIN, or the original entry operator entered required section as missing.
    2 Not used at this time.
    3 Invalid section ending point.
    4 Invalid field length.
    5 Questionable Section—the ISRP operator input the same section more than once. The computer program will drop all duplicate sections and display the first one encountered on the error screen.


  3. When displayed, an ISRP error displays all input fields except for the remittance in Section 01 of the section in error. Transcribed data will be present. Computer generated data will not be present.

    1. Check all fields of the section when this condition exists to verify all data is entered as coded.

    2. If no correction is needed, or once the section is correct, enter a "C" in the Clear Code Field.

  4. Terminus Errors are caused by a section with variable length input fields containing an erroneous size field.

    1. This type of error shows all input fields of the terminus section. Transcribed data is present, computer generated fields or remittance field for Section 01 is not present.

    2. All section fields present must be examined and the necessary correction(s) made to all fields.

    3. When all fields have been verified and/or corrected, go to the bottom and transmit to clear the terminus error.

ERS Error Codes General

  1. An error code is computer generated to a record and assigned in numerical order.

  2. Error codes display in ascending numerical order.

  3. Error codes require you to take one of three actions:

    1. Correct the invalid field/math error.

    2. Verify and enter a "C" in the Clear Code Field.

    3. Suspend the document with the appropriate action code.

Form 5558 Error Correction MFT 74

  1. See instructions below for correcting ERS screens for Form 5558 extension requests MFT 74.

Section 01

  1. Listed below are the contents of Section 01.

    Section 01

    Field: Length: Title: Location:
    01TC 3 Transaction Code GMF-HDR
    RMIT 11 Remittance Part III line 4b
    01NC 4 Name Control Name Line
    <<<< 4 Name Control Underprint
    01TIN/01EIN 9 Taxpayer Identification Number Filer's identifying number block B.

    Note:

    This field may contain an SSN for MFT 76 only.

    01TNT 1 TIN-Type End of TIN (edited on Form 5558 (MFT 76) SSN only)
    01PYD 6 Plan Year End Right of the form title.
    <<<< 2 Plan Year End
    Underprint
    Never present on Form 5558.
    01MFT 2 MFT Code MFT 74
    01PL 3 5558 Plan Number Plan number column
    01RCD 8 Received Date IRS date stamp in center of form
    01NOT 1 Notice Code Center Top Margin
    01TTX 16 Reserved Not transcribed - always zero filled
    01CRT 16 Reserved Not transcribed - always zero filled
    01CCC 1 Computer Condition Code Not transcribed - always blank.
    01CAF 1 Centralized Authorization File (CAF) Indicator No longer edited.


Transaction Code -01TC

  1. TRANS-CD - This 3 numeric field must be present and must be 460.

Validity Check for Transaction Code - 01TC
  1. Must be 460.

Correction Procedures for Transaction Code - 01TC
  1. Enter 460 in Field TRANS-CD.

Name Control—01NC

  1. Name Control - This four position alpha numeric field must be present.

Validity Check for Name Control - 01NC
  1. This field must contain one to four characters, (alpha, numeric hyphen, ampersand) and may contain one to three blanks.

  2. The first position must be alpha or numeric.

  3. The remaining positions may be alpha, numeric, hyphen, ampersand or blank. No character may follow a blank.

Correction Procedures for Name Control - 01NC
  1. Correct the name control using this table:

    Name Control

    If Then
    The name control is invalid or blank Check for transcription errors and bring up under printed Name Control in 01NC and enter the correct data.
    The Name Control was edited and transcribed correctly Determine if the filer has changed the order of the name but there was no name change. Bring up the under print Name Control in 01NC and correct to what is on Master File using the first four characters.
    the Name Control has not been edited or transcribed correctly from Part I section C and the correct Name Control matches the under printed Name Control Edit the correct Name Control in Part 1 section C and bring up the under printed Name Control in 01NC.
    the Name Control was edited and transcribed correctly and the filer changed the order of the name but there was no name change Bring up the under print Name Control in 01NC.
    the filer did not change the order of his name and there was no name change input and the under print Name Control matches the Name Control in Part 1 section A; (Name of filer, plan administrator, or plan sponsor) Edit the Name Control in Part 1 section A (Name of filer, plan administrator, or plan sponsor) and bring up the under printed Name Control in 01NC
    The name control cannot be determined Research using IDRS command codes INOLE, NAMEE, NAMEB, and ENMOD.
    1. If correct name control is found, bring up the under printed Name Control in 01NC.

    2. If you still cannot determine the name control, SSPND 320 to Entity control

    3. If IDRS is not available, SSPND 351.


  2. The below INOLE screens with definer codes display the BMF and/or EPMF entity information of the requested EIN.

    INOLE

    INOLE Format: Description:
    INOLESNN-NNNNNNNP CC INOLES with a P at the end of the TIN, displays the current EPMF plan information: the filer name, address and plans established for the TIN.
    INOLETNN-NNNNNNN Displays the name line and address information for all accounts with the same TIN.
    INOLEPNN-NNNNNNN Displays the EPMF plan information. A total of ten plan names can be shown on one screen.

Taxpayer Identification Number/Employer Identification Number - 01EIN

  1. See instructions below for Employer Identification Number-01EIN.

Validity Check For Taxpayer Identification Number/Employer Identification Number—01TIN/01EIN
  1. The EIN is located in the Taxpayer identification number box on the form.

  2. This field must contain nine numerics and cannot begin with 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89. Field 01EIN cannot be all zeroes or nines.

Correction Procedures For Taxpayer Identification Number/Employer Identification Number—01EIN
  1. If Field 01EIN is invalid or missing, check for transcription errors and enter the correct EIN in Field 01EIN.

  2. If no transcription error, examine the form or attachments for another (presumed valid) EIN. If found, enter in Field 01EIN.

  3. If another EIN cannot be found, correct per Error Code 004 instructions. IRM 3.11.20.13.3Error Code 004 - EIF/NAP Mismatch.

  4. If EIN is determined but plan number has not been established, SSPND 320 and note "Plan Number" on Form 4227 and route to EP Entity for plan number establishment.

Tax Period - 01PYD

  1. The following subsections give validity check and perfection procedures for Plan Year End Field 01PYD.

  2. Plan year end is the date in the "Plan year ending" column in section C.

Validity Check for Tax Period—01PYD
  1. C&E will not edit the plan year end on current calendar year extensions (i.e. 201612)

  2. The Plan Year End cannot be later than the current processing date.

  3. Field 01PYD must be 6 numeric digits.

  4. The last two digits (the month) must be 01-12.

Correction Procedures For Tax Period Ending—01PYD
  1. If the correct plan year ending is indeterminable through research, take this action:

    If Then
    The request is timely for the current calendar year enter 201612 in Field 01PYD
    The request is not timely for the current calendar year SSPND 211 and correspond for clarification of the Tax Period (plan year ending)
  2. Suspense Correction Procedures: Change the plan year end on the extension form and in Field 01PYD to agree with the taxpayer's response to correspondence.

  3. If no reply or reply is inconclusive, enter 201612 in Field 01PYD. If this makes the request late filed and 01NOT is 1, change 01NOT to 2.

Master File Tax Code-01MFT

  1. The MFT Code is a two position field that indicates the type of tax return the extension is for.

  2. MFT 74 is automatically generated for program 72880 (Form 5500).

Validity checks for Master File Tax Code-01MFT
  1. Invalid unless MFT is 74.

Correction Procedures for Master File Tax Code-01MFT
  1. If extension is for Form 5500 Series and Form 8955-SSA, enter 74 in Field 01MFT.

Plan Number - 01PL

  1. Plan number is entered by the filer under the "Plan number" column in section C on Form 5558 and must be present.

Validity checks for Plan Number - 01PL
  1. Must be 001-999.

Correction procedures for Plan Number - 01PL
  1. Check the form for transcription or coding errors and correct.

  2. If no plan number is on the form, or it is more or less than three numbers, research INOLE, INOLEP, EMFOL, NAMEE and/or ENMOD. If no determination can be made, SSPND 320 for research. Note "plan number" on Form 4227.

  3. The filer may include up to three plans on one Form 5558 (version 06-2011).; If there is more than one plan number on the Form 5558, a dummy extension must be prepared for each additional plan numbers.

    1. Photocopy the Form 5558 for each additional plan number and circle all but one plan number on the copies. Make sure each copy lists a different plan number.

    2. Circle all but one plan number on the original Form 5558. Make sure it has a different plan number than the copies.

      Example:

      Original Form 5558 has plan number 001, 021, and 023. Make two copies. Circle all plan numbers except 001 on the original, and all but 021 on one copy and all but 023 on the other copy.

    3. Enter SSPND 351, attach 4227 and send the photocopies to the Rejects function for processing as original documents.

    4. Enter the plan number for the original Form 5558 in Field 01PL.

  4. If the taxpayer writes "see attached list" or something similar; detach and send the list back to the filer, and continue processing the Form 5558.

    Attached Lists

    If Then
    Correspondence attached Detach list and return to sender:
    1. To the attention of the person who signed the correspondence if available and legible

    2. Use the mailing address listed on the correspondence.

    No correspondence attached and there is an envelope attached with a return address Detach list and return to sender using the address shown on the envelope.
    No correspondence attached and no envelope attached or no return address on envelope, X the list and leave attached behind the Form 5558.

    Note:

    DO NOT send the list to the filer or address listed on Form 5558.


Received Date - (YYYYMMDD) 01RCD

  1. The following subsections give validity check and perfection procedures for Received Date Field 01RCD.

Validity checks for Received Date - 01RCD
  1. The field must be blank or eight numerics.

  2. Valid format is YYYYMMDD.

  3. The fifth and sixth digits must be valid month designations (01-12).

  4. The seventh and eighth digits must be a valid day designation and a valid day for the month

    Example:

    31 is invalid for month 06 because June has only 30 days.

  5. The date cannot be later than the current processing date.

  6. The date cannot be earlier than 01/01/1983.

Correction procedures for Received Date - 01RCD
  1. Check the form for transcription or coding errors and correct.

  2. If the date is invalid, and the date stamp on the extension is missing, invalid, illegible, or later than the process date, determine the received date using the instructions in IRM 3.11.20.3.4, Received Date.

  3. If the date is before 01/01/1983, SSPND 620. Attach Form 4227 stating "Non-ADP record"

    Note:

    For further information, refer to IRM 3.10.72, Receiving, Extracting, and Sorting, and IRM 3.11.20.2, Document Perfection Procedures.

Notice Code - 01NOT

  1. This is a one-numeric field that must be present.

Validity Checks for Notice Code - 01NOT
  1. Must be 1 or 2.

  2. Only one notice code may be present.

Correction Procedures for Notice Code - 01NOT
  1. If no notice code is edited, review the extension for approval criteria.

  2. Will be approved if it is timely see IRM 3.11.20.5.2, Form 5558 for Form 5500 Series and Form 8955-SSA.

  3. Enter the correct notice code in Field 01NOT

    Notice Codes

    If Then enter notice code
    Approved 1
    Denied 2


Computer Condition Codes—01CCC

  1. Validity check:

    1. Must be blank.

  2. Correction procedures:

    1. Delete any entry in Field 01CCC.

Error Codes for Form 5558

  1. See instructions below for resolving specific error codes for Form 5558 MFT 74.

Error Code 002 - Name Control Mismatch

  1. The following sections provide instructions for Error Code 002.

Error Code Fields Display
  1. The field display for Error Code 002 follows

    Error Code Fields Display

    AFD Field Name
    CL CLEAR CODE
    01NC NAME CONTROL/CHECK DIGIT
    <<<< NAME CONTROL UNDERPRINT
    01EIN TIN (TAXPAYER IDENTIFICATION NUMBER) EIN (Employer Identification Number)
    01PYD PLAN YEAR END
    <<<< PLAN YEAR END UNDERPRINT


Error Code 002 Invalid Condition
  1. The Name Control mismatched against the National Account Profile (NAP) or the Entity Index File (ElF).

Error Code 002 Correction Procedures
  1. Before preforming additional research, go to the bottom of the screen and transmit. This ensures that any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the following correction procedures.

  2. Compare the displayed fields with the extension. If incorrect, overlay the screen with the correct information.

  3. If the name control transcribed in Field 01NC and the name control on the document are the same, but differ from the underprint in Field 01NC, research Command Codes INOLE, NAMEE, NAMEB or ENMOD (for pending TC 000 or 013) to determine the correct Name Control/TIN.

    Note:

    When corrections are made to Field 01NC or Field 01TIN, the computer will revalidate the entries with the NAP and reset the One-Line Entity (OLE) indicators as appropriate on transmitting the ERS screen. If Error Code 002 reappears, an unpostable condition may still exist. Re-verify the entries and refer to the remainder of the correction procedures.

    Name Control Research

    If Then
    The name control on the document matches the name control at Master File, with no name change, Enter "C" in the Clear Code Field and transmit.
    A different Name Control than what is in Field 01NC but is the same as shown on the document (Part 1 section A, Plan name), Verify the Name Control on CC INOLE. If they agree, enter the INOLE Name Control in Field 01NC. If they disagree, research CC NAMEB or NAMEE for a different EIN.
    Name Control found during research agrees with Name Control on document, Enter the INOLE Name Control Field 01NC.
    INOLE Name Control differs from Name Control on document
    1. Research CC ENMOD for a pending TC 013. If the name control agrees with the transcribed name control, enter a "C" in the Clear Code Field.

    2. Research attachments and NAMEB for a different EIN.

    3. If a different EIN is found on the attachment, or a cross-reference EIN on INOLE or BRTVU, verify the EIN on INOLE for presence at Master File.

    4. Ensure that the entity information matches the taxpayer on the extension. If these conditions are met, overlay Field 01TIN with the new EIN found on Master File.

    The Name Control on Master File is not correct and the entity on Master File needs to be corrected, SSPND 320 to route the return to Entity Control for additional research. Attach Form 4227, notating why the return is being suspended.
    The Name Control has not been edited or transcribed correctly from Part I section A and the correct Name Control matches the under printed Name Control Edit the correct Name Control in Part 1 section A and bring up the under printed Name Control in 01NC.
    The Name Control was edited and transcribed correctly and the filer changed the order of the name but there was no name change, Bring up the under print Name Control in 01NC.
    The filer did not change the order of his name and there was no name change input and the under print Name Control matches the Name Control in Part 1 section C; (Plan Name) Edit the Name Control in Part 1 section C (Plan Name) and bring up the under printed Name Control in 01NC
    A name change has occurred, SSPND 320 to route the return to Entity Control for a TC 013. Attach Form 4227 requesting a name change (TC 013).
    IDRS research is not available, SSPND 351 or 355.
    the Name Control still can not be determined SSPND 320 to route the return to Entity Control for additional research. Attach Form 4227, notating why the return is being suspended.
    Research indicates that there are multiple EINs, SSPND 320 and route to Entity for further action.


Error Code 004 — Name Control

  1. This section provides instructions for Error Code 004.

Fields Displayed for Error Code 004
  1. Field Display Follows:

    Fields Display Error Code 004

    AFD Field Name
    CL CLEAR CODE FIELD
    01NC NAME CONTROL/CHECK DIGIT
    <<<< NAME CONTROL UNDERPRINT
    01EIN EMPLOYER IDENTIFICATION NUMBER


Invalid Conditions for Error Code 004
  1. The EIN was not present at NAP. An "XXXX" underprint indicates there is no account on the master file matching this EIN.

  2. The ElF and the NAP were not accessed or were not operational. A blank underprint indicates that the NAP was not accessed or was not operational.

Correction Procedures for Error Code 004
  1. Before performing other research, go to the bottom of the screen and transmit. This ensures that any prior changes to the Name Control/TIN have posted to the NAP. If Error Code 004 reappears, continue with the following correction procedures.

  2. Compare the displayed fields with the extension. If incorrect, overlay the screen with the correct information.

  3. If the Name Control transcribed in Field 01NC and the Name Control on the document are the same, but differ from the underprint in Field 01NC, research to determine the correct name control/TIN using command codes INOLE, NAMEE, NAMEB and ENMOD.

  4. Follow these research instructions:

    Name Control Research

    If research indicates: Then:
    A pending transaction (TC 000 or TC 013) on CC ENMOD or NAMEB, with a name control that agrees with the transcribed name control, Enter a "C" in the Clear Code Field.
    The Name Control on the document matches the Name Control at Master File with no name change, Enter "C" in the Clear Code Field.
    A different Name Control than what is in Field 01NC but is the same as shown on the document (Part 1 Section C, Plan Name) Verify the Name Control via CC INOLE. If they agree, enter the INOLE Name Control in Field 01NC. If they disagree, research CC NAMEB or NAMEE for a different EIN.
    If a different EIN is found on an attachment, or on CC INOLE or BMFOL, Verify the EIN on CC INOLE for presence at Master File. Ensure that the entity information matches that which the taxpayer is using on the extension. If these conditions are met, overlay Field 01TIN with the new EIN found on Master File.
    The Name Control has not been edited or transcribed correctly from Part I section C and the correct Name Control matches the under printed Name Control Edit the correct Name Control in Part 1 section C and bring up the under printed Name Control in 01NC.
    The Name Control was edited and transcribed correctly and the filer changed the order of the name but there was no name change Bring up the under print Name Control in 01NC.
    The filer did not change the order of his name and there was no name change input and the under print Name Control matches the Name Control in Part 1 section A; (Name of filer, plan administrator, or plan sponsor) Edit the Name Control in Part 1 section A (Name of filer, plan administrator, or plan sponsor) and bring up the under printed Name Control in 01NC


  5. If, after researching, you determine that the name control on Master File is not correct and the entity on Master File needs correction, SSPND 320 to Entity Control for additional research; attach Form 4227, notate why the extension is being suspended.

  6. When there is no account present or pending, SSPND 320 to Entity Control, attach Form 4227 and notate "no account" .

  7. When IDRS is not available, SSPND 351 or 355.

Error Code 005 - Missing Received Date

  1. This section includes the instruction for the Error Code 005.

Screen Display for Error Code 005
  1. Screen Display follows:

    Screen Display Error Code 005

    AFD Field Name
    01PYD Plan Year End
    01RCD Received Date


Invalid Condition for Error Code 005
  1. Invalid condition occurs when the processing date is later than the plan year end ending by more than seven months and the received date is not present in Field 01RCD.

Correction Procedures for Error Code 005
  1. Compare the information in Field 01PYD and Field 01RCD with the plan year end and the received date on the extension. If the displayed information doesn't match the document, overlay the screen with the correct information.

  2. If the plan year end is truly seven months before the processing date, review the received date:

    Received Date

    If Then
    The date stamp is missing, illegible or later than the processing date, Determine the date as shown in IRM 3.11.20.6.8, Research. Enter the correct Received Date in Field 01RCD.
    Multiple received dates are on the document, Use the earliest date and circle out the others.


Error Code 007 - Received Date

  1. This section provides instruction for the Error Code 007.

Screen Display for Error Code 007
  1. Screen display follows:

    Screen Display Error Code 007

    AFD Field Name
    CL Clear Screen
    01PYD Plan Year End
    <<<< Under print
    01RCD Received Date


Invalid Conditions for Error Code 007
  1. The year and month of the received date is earlier then the year and month of the plan year end.

Correction Procedures for Error Code 007
  1. Compare the displayed fields with the information on the extension. If the displayed field does not match the extension, overlay the screen with the correct information.

  2. If the displayed fields match what is on the extension, see IRM 3.11.20.3.4, Received Date, for instructions to determine the correct received date.

  3. If the received date was mailed timely, delete the received date from 01RCD.

  4. If this caused EC005 to display, enter the timely postmark date for the plan year end from chart in 01RCD; see IRM 3.11.20.5.2(3)(c).

  5. If the extension is early filed SSPND 480.

Error Code 026 - Plan Year End

  1. IRM 3.11.20.9.5.1, Screen Display for Error Code 026, provides instructions for the Error Code 026.

Screen Display for Error Code 026
  1. Screen display follows:

    Screen Display Error Code 026

    AFD Field Name
    CL Clear Code
    01EIN Employer Identification Number
    01PYD Plan Year End
    <<<< Under print
    01CCC Computer Condition Code


Invalid Conditions for Error Code 026
  1. Tax period is greater than the process date plus 11 months.

Correction Procedures for Error Code 026
  1. Check for coding and transcription errors and make any necessary corrections.

  2. If the tax period is greater than the process date plus 11 months, process using the current year.

  3. If Field 01PYD is blank, determine the year end from the Plan Year Date.

    1. If Plan Year Date is blank, use current year.

Error Code 100 - Incorrect Extended Due Date

  1. This section provides instructions for the Error Code 100.

Screen Display for Error Code 100
  1. Screen display follows:

    Screen Display Error Code 100

    AFD Field Name
    CL Clear Code
    01PYD Plan Year End
    <<<< Under print
    01RCD Received Date
    01NOT Notice Code


Invalid Conditions for Error Code 100
  1. Received date is less than seven months plus seven days or less after the plan year end and the extended due date is the Notice Code is 02.

Correction Procedures for Error Code 100
  1. Check for coding and transcription errors and make any necessary corrections.

  2. If the received date is greater than seven months plus seven days after the Plan Year End and the 01NOT is 1, change 01NOT to 2.

  3. If the received date is less than seven months plus seven days or less after the Plan Year End and 01NOT is 2, change 01NOT to 1.

Error Code 999 - End of Year Format

  1. This section provides instruction for Error Code 999 (End of Year Format).

Screen Display Error Code 999 - End of Year Format
  1. Screen Display for Error Code 999, End of Year Format, is:

    Screen Display 999

    AFD Field Name
    01PYD Plan Year End


Invalid Condition Error Code 999 - End of Year Format
  1. Error Code 999 generates for all extensions on ERS in error status at the end of the processing year.

Correction Procedures Error Code 999 - End of Year Format
  1. To correct, transmit.

Form 5558 Error Correction MFT 76

  1. See instructions below for correcting ERS screens for Form 5558 extension requests MFT 76.

Section 01

  1. Listed below are the contents of Section 01.

    Section 01

    Field Length Title Location
    RMIT 11 Remittance Part III line 2b
    01NC 4 Name Control Name Line
    <<<< 4 Name Control Underprint
    01TIN/01EIN 9 Taxpayer Identification Number Filer's identifying number block B.

    Note:

    May contain either and SSN or EIN.

    01TNT 1 TIN-Type End of TIN (edited on Form 5558 SSN only)
    01TXP 6 Tax Period Right of the form title.
    <<<< 2 Tax Period
    Underprint
    Never present on Form 5558.
    01MFT 2 MFT Code MFT 76
    01PL 3 5558 Plan Number Plan number column
    01RCD 8 Received Date IRS date stamp in center of form
    01TTX 16 Reserved Not transcribed - always zero filled
    01CRT 16 Reserved Not transcribed - always zero filled
    01CCC 1 Computer Condition Code Not transcribed - always blank.
    01CAF 1 CAF Indicator No longer edited.
    01NOT 1 Notice Code Top center margin


Remittance —RMIT

  1. May carry a remittance.

  2. This field is blank for non remittance forms.

Name Control—01NC

  1. Name Control - This four position alpha numeric field must be present.

Validity Check for Name Control - 01NC
  1. This field must contain one to four characters, (alpha, numeric hyphen, ampersand) and may contain one to three blanks.

  2. The first position must be alpha or numeric.

  3. The remaining positions may be alpha, numeric, hyphen, ampersand or blank. No character may follow a blank.

Correction Procedures for Name Control - 01NC
  1. Correct the name control using this table:

    Correct Name Control

    If Then
    The name control is invalid or blank Check for transcription errors and bring up under printed Name Control in 01NC and enter the correct data.
    The Name Control was edited and transcribed correctly Determine if the filer has changed the order of the name but there was no name change. Bring up the under print Name Control in 01NC and correct to what is on Master File using the first four characters.
    the Name Control has not been edited or transcribed correctly from Part I section C and the correct Name Control matches the under printed Name Control Edit the correct Name Control in Part 1 section C and bring up the under printed Name Control in 01NC.
    the Name Control was edited and transcribed correctly and the filer changed the order of the name but there was no name change Bring up the under print Name Control in 01NC.
    the filer did not change the order of his name and there was no name change input and the under print Name Control matches the Name Control in Part 1 section A; (Name of filer, plan administrator, or plan sponsor) Edit the Name Control in Part 1 section A (Name of filer, plan administrator, or plan sponsor) and bring up the under printed Name Control in 01NC
    The name control cannot be determined Research using IDRS command codes INOLE, NAMEE, NAMEB, and ENMOD.
    1. If correct name control is found, bring up the under printed Name Control in 01NC.

    2. If you still cannot determine the name control, SSPND 320 to Entity control

    3. If IDRS is not available, SSPND 351.


  2. The INOLE screens with definer codes shown below displays the BMF and/or EPMF entity information of the requested EIN.

    INOLE

    INOLE Format Description
    INOLESNN-NNNNNNNP CC INOLES with a P at the end of the TIN, displays the current EPMF plan information: the filer name, address and plans established for the TIN.
    INOLETNN-NNNNNNN Displays the name line and address information for all accounts with the same TIN.
    INOLEPNN-NNNNNNN Displays the EPMF plan information. A total of ten plan names can be shown on one screen.


TIN-Type - 01TNT

  1. A "2" is generated in this field unless ISRP has transcribed a "0" to indicate that the TIN is an SSN.

Validity Check for TIN-Type - 01TNT
  1. Invalid if other than "0" (zero) or "2" .

  2. Field 01TNT should only be "0" if the TIN is an SSN.

Correction Procedures for TIN-Type - 01TNT
  1. Review the document for transcription and coding errors.

  2. If the TIN is entered under "Social security number" in block B, enter a "0" in Field 01TNT.

  3. All others, enter a "2" in Field 01TNT.

Taxpayer Identification Number/Employer Identification Number—01TIN/01EIN

  1. See the subsections below for Employer Identification Number-01TIN instructions.

Validity Check For Taxpayer Identification Number/Employer Identification Number—01TIN/01EIN
  1. The TIN/EIN is located in the Taxpayer identification number box indicated on the form.

    Note:

    This field may contain either an SSN or EIN.

  2. If the TIN is an EIN, this field must contain nine numerics and cannot begin with 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89. Field 01TIN/01EIN cannot be all zeroes or nines.

  3. If the TIN is an SSN, this field must be all numeric, and cannot be all zeroes or all nines.

Correction Procedures For Taxpayer Identification Number/Employer Identification Number—01TIN/01EIN
  1. If Field 01TIN/01EIN is invalid or missing, check for transcription errors and enter the correct TIN/EIN in Field 01TIN/01EIN.

  2. If no transcription error, examine the form or attachments for another (presumed valid) TIN/EIN. If found, enter in Field 01TIN/01EIN.

  3. If an SSN is entered in block B, Field 01TNT should be "0" (zero).

  4. Use CC GTSEC01 and correct Field 01TNT if necessary.

  5. If another TIN/EIN cannot be found, correct per Error Code 004 instructions. IRM 3.11.20.13.3Error Code 004 - EIF/NAP Mismatch.

Tax Period - 01TXP

  1. The following subsections give validity check and perfection procedures for Tax Period Field 01TXP.

  2. Tax Period is the date in the "Plan year ending" column in section C.

Validity Check for Tax Period—01TXP
  1. C&E will not edit the tax period on current calendar year extensions (i.e. 201612)

  2. The tax period cannot be later than the current processing date.

  3. Field 01TXP must be six numeric digits.

  4. The last two digits (the month) must be 01-12.

Correction Procedures For Tax Period Ending—01TXP
  1. If the correct plan year ending is indeterminable through research, take the following action:

    IF/Then Plan Year Ending

    If Then
    The request is timely for the current calendar year Enter 201612 in Field 01TXP
    The request is not timely for the current calendar year SSPND 211 and correspond for clarification of the Tax Period (plan year ending)


  2. Suspense Correction Procedures: Change the tax period on the extension form and in Field 01TXP to agree with the taxpayer's response to correspondence.

  3. If no reply or reply is inconclusive, enter 201612 in Field 01TXP - if this makes the request late filed, GTSEC01 and enter 2 in Field 01NOT.

Master File Tax Code-01MFT

  1. The MFT Code is a two position field that indicates the type of tax return the extension is for.

  2. MFT 76 is automatically generated for program 15560 (Form 5330).

Validity checks for Master File Tax Code-01MFT
  1. Invalid unless MFT is 76.

Correction Procedures for Master File Tax Code-01MFT
  1. If extension is for Form 5330 enter 76 in Field 01MFT.

Plan Number - 01PL

  1. Plan number is entered by the filer under the "Plan number" column in section C on Form 5558 and must be present.

Validity checks for Plan Number - 01PL
  1. Must be 001-999.

Correction procedures for Plan Number - 01PL
  1. Check the form for transcription or coding errors and correct.

  2. If there is no plan number on the form, or it is more or less than three numerics, research INOLE, INOLEP, EMFOL, NAMEE and/or ENMOD. If no determination can be made, SSPND 320 for research. Notate "plan number" on Form 4227.

  3. The filer may include up to three plans on one Form 5558 (Version 06-2011). If there is more than one plan number on the Form 5558, a dummy extension must be prepared for each additional plan number.

    1. Make a photocopy of Form 5558 for each additional plan number and circle all but one plan number on the copies. Make sure each copy has a different plan number.

    2. Circle all but one plan number on the original Form 5558. Make sure it has a different plan number than the copies.

      Example:

      Original Form 5558 has plan number 001, 021, and 023. Make two copies. Circle all plan numbers except 001 on the original, and all but 021 on one copy and all but 023 on the other copy.

    3. Enter SSPND 351, attach 4227 and send the photocopies to the Rejects function for processing as original documents.

    4. Enter the plan number for the original Form 5558 in Field 01PL.

Received Date - (YYYYMMDD) 01RCD

  1. The following subsections give validity check and perfection procedures for Received Date Field 01RCD.

Validity checks for Received Date - 01RCD
  1. The field must be blank or eight numerics.

  2. Valid format is YYYYMMDD.

  3. The fifth and sixth digits must be valid month designations (01-12).

  4. The seventh and eighth digits must be a valid day designation and a valid day for the month.

    Example:

    31 is invalid for month 06 because June has only 30 days.

  5. The date cannot be later than the current processing date.

  6. The date cannot be earlier than 01/01/1983.

Correction procedures for Received Date - 01RCD
  1. Check the form for transcription or coding errors and correct.

  2. If the date is invalid, and the date stamp on the extension is missing, invalid, illegible, or later than the process date, determine the received date per the instructions in IRM 3.11.20.3.4, Received Date.

  3. If the date is prior to 01/01/1983, SSPND 620. Attach Form 4227 stating "Non-ADP record" .

    Note:

    For further information, refer to IRM 3.10.72, Receiving, Extracting, and Sorting, and IRM 3.11.20.2, Document Perfection Procedures.

Computer Condition Codes—01CCC

  1. Validity check:

    1. Must be blank.

  2. Correction procedures:

    1. Delete any entry in Field 01CCC.

CAF Indicator - 01CAF

  1. The CAF Indicator is no longer edited by Document Perfection. If an entry displays in Field 01CAF, delete the entry.

Notice Code - 01NOT

  1. The notice code is a one position numeric code that is edited on the top center margin.

  2. The notice code indicates whether the extension request is approved or denied and if denied, the reason.

  3. When the extension posts to the BMF, the notice code causes the appropriate notice to generate to the taxpayer to tell whether the extension is approved or denied, and if it is denied, to give the reason.

  4. If a notice code for an approved extension is used (Notice Code 1), the extended due date generates when the extension transaction posts to the BMF.

Validity Checks for Notice Code - 01NOT
  1. Notice code must be 1 through 9.

  2. Only one notice code may be present.

Correction Procedures for Notice Code - 01NOT
  1. If no notice code is edited, review the extension for approval criteria. If the code section is missing from the extension request, C&E is instructed to correspond for the missing code section. See paragraph 3.11.20.10.12.2(3) below.

  2. Will be approved if it is timely, signed, and has an acceptable reason. See Exhibit 3.11.20-5, Guidelines for Acceptable Reason for Needing an Extension of Time to File - Used for Form 5558 (MFT 76) and Form 8868 only.

  3. Correspondence for missing code section:

    Missing Code Section

    If And Then
    The reply provides the code section Extension is timely based on the code section. See Exhibit 3.11.20-9, Form 8868 T-Lines, Page 1. Enter Notice Code 1 in Field 01NOT.

    Note:

    C&E should not have corresponded for the code section if there was no signature or acceptable reason.

    The reply provides the code section Extension is NOT timely based on the code section. See Exhibit 3.11.20-9, Form 8868 T-Lines, Page 1 Enter Notice Code 2 in Field 01NOT.
    No reply, or reply doesn't supply a valid code section Assume the due date is the last day of the seventh month after the end of the tax period (if tax period is 201612 you will use 20170731) The extension was filed timely based on this due date. Enter Notice Code 1 in Field 01NOT.
    No reply, or reply doesn't supply a valid code section Assume the due date is the last day of the seventh month after the end of the tax period (if tax period is 201612 you will use 20170731) The extension was NOT filed timely based on this due date. Enter Notice Code 2 in Field 01NOT.

  4. Enter the correct notice code in Field 01NOT:

    Notice Codes

    If Then enter Notice Code
    Approved extension 1
    Denied - not timely 2
    Denied - missing signature 8
    Denied - no acceptable reason 9

  5. Only one notice code may be used for each document. If there is more than one reason for denial of the second extension, use the order listed in the table to determine which code to use.

  6. If there is no return code see IRM 3.11.20.4.2(7).

Error Codes for Form 5558

  1. See instructions below for resolving specific error codes related to Form 5558 MFT 76.

Error Code 002

  1. This section provides instructions for Error Code 002.

Error Code 002 Fields Display
  1. The field display for Error Code 002 follows

    Error Code 002 Fields Display

    AFD Field Name
    CL CLEAR CODE
    01NC NAME CONTROL/CHECK DIGIT
    <<<< NAME CONTROL UNDERPRINT
    01TIN/01EIN TIN (TAXPAYER IDENTIFICATION NUMBER) EIN (Employer Identification Number)
    01TXP TAX PERIOD
    <<<< TAX PERIOD UNDERPRINT

Error Code 002 Invalid Condition
  1. The Name Control mismatched against the NAP or the ElF.

Error Code 002 Correction Procedures
  1. Before performing additional research, go to the bottom of the screen and transmit. This ensures that any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the following correction procedures.

  2. Compare the displayed fields with the extension. If incorrect, overlay the screen with the correct information.

  3. If the name control transcribed in Field 01NC and the name control on the document are the same, but differ from the underprint in Field 01NC, research Command Codes INOLE, NAMEE, NAMEB or ENMOD (for pending TC 000 or 013) to determine the correct Name Control/TIN.

    Note:

    When corrections are made to Field 01NC or Field 01TIN, the computer revalidates the entries with the NAP and reset the OLE indicators as appropriate on transmitting the ERS screen. If Error Code 002 reappears, an unpostable condition may still exist. Re-verify the entries and refer to the remainder of the correction procedures.

    Name Control If/And/Then

    If Then
    The name control on the document matches the name control at Master File, with no name change, Enter C in the Clear Code Field and transmit.
    A different Name Control than what is in Field 01NC but is the same as shown on the document (Part 1 section C, Plan name), Verify the Name Control on CC INOLE. If they agree, enter the INOLE Name Control in Field 01NC. If they disagree, research CC NAMEB or NAMEE for a different EIN.
    Name Control found during research agrees with Name Control on document, Enter the INOLE Name Control Field 01NC.
    INOLE Name Control differs from Name Control on document
    1. Research CC ENMOD for a pending TC 013. If the name control agrees with the transcribed name control, enter a "C" in the Clear Code Field.

    2. Research attachments and NAMEB for a different EIN.

    3. If a different EIN is found on the attachment, or a cross-reference EIN on INOLE or BRTVU, verify the EIN on INOLE for presence at Master File.

    4. Ensure that the entity information matches the taxpayer on the extension. If these conditions are met, overlay Field 01TIN with the new EIN found on Master File.

    The Name Control on Master File is not correct and the entity on Master File needs to be corrected, SSPND 320 to route the return to Entity Control for additional research. Attach Form 4227, notating why the return is being suspended.
    The Name Control has not been edited or transcribed correctly from Part I section C and the correct Name Control matches the under printed Name Control Edit the correct Name Control in Part 1 section C and bring up the under printed Name Control in 01NC.
    The Name Control was edited and transcribed correctly and the filer changed the order of the name but there was no name change Bring up the under print Name Control in 01NC.
    The filer did not change the order of his name and there was no name change input and the under print Name Control matches the Name Control in Part 1 section A; (Name of filer, plan administrator, or plan sponsor) Edit the Name Control in Part 1 section A (Name of filer, plan administrator, or plan sponsor) and bring up the under printed Name Control in 01NC
    A name change has occurred, SSPND 320 to route the return to Entity Control for a TC 013. Attach Form 4227 requesting a name change (TC 013).
    IDRS research is not available, SSPND 351 or 355.
    the Name Control still is undetermined SSPND 320 to route the return to Entity Control for additional research. Attach Form 4227, notating why the return is being suspended.


  4. If the request is filed using a SSN instead of an EIN, use CC GTSEC01 and enter "0" (zero) in Field 01TNT.

Error Code 003 - Invalid Check Digit

  1. This subsection provides instructions for Error Code 003.

Fields Displayed for Error Code 003
  1. Screen Display for Error Code 003 follow:

    Fields Displayed Error Code 003

    AFD Field Name
    01NC Name Control/Check Digit
    01TIN Taxpayer Identification Number


Invalid Condition for Error Code 003
  1. The Check Digit is present but is not valid for the Taxpayer Identification Number.

  2. The letters E, G or M are invalid in the check digit.

  3. The first two positions of the field are not blank

  4. The last two positions are not alphabetic.

Correction Procedures for Error Code 003
  1. If the check digit is invalid, enter the Name Control from the extension in Field 01NC.

  2. If it appears that the taxpayer has used the wrong EIN, follow these procedures for EIN correction:

    Correction Procedures Error Code 003

    If Then
    The EIN on the extension is not legible, Research using CC NAMEB or NAMEE for a valid EIN. If IDRS is not available, SSPND 351.
    Unable to locate the EIN, SSPND 320 for referral to Entity Control.
    The EIN and check digit are both legible but do not match, Research for a valid EIN.
    Another EIN is found for the entity on the return or through research, Change Field 01TIN to the correct EIN


Error Code 004 — Name Control

  1. This subsection provides instructions for Error Code 004.

Fields Displayed for Error Code 004
  1. Field Display Follows:

    Fields Display Error Code 004

    AFD Field Name
    CL CLEAR CODE FIELD
    01NC NAME CONTROL/CHECK DIGIT
    <<<< NAME CONTROL UNDERPRINT
    01TIN TAXPAYER IDENTIFICATION NUMBER


Invalid Conditions for Error Code 004
  1. The TIN was not present at NAP. An "XXXX" underprint indicates there is no account on the master file matching this TIN.

  2. The ElF and the NAP were not accessed or were not operational. A blank underprint indicates that the NAP has not been accessed or was not operational.

Correction Procedures for Error Code 004
  1. Before performing other research, go to the bottom of the screen and transmit. This ensures that any prior changes to the Name Control/TIN have posted to the NAP. If Error Code 004 reappears, continue with the following correction procedures.

  2. Compare the displayed fields with the extension. If incorrect, overlay the screen with the correct information.

  3. In most cases, Field 01TNT must be 2, indicating that the TIN is an EIN. Use CC GTSEC01 and enter "2" in Field 01TNT except in the following situation:

    1. If the TIN on the document is an SSN, Field 01TNT entry must be "0" to indicate the TIN is an SSN.

  4. If the Name Control transcribed in Field 01NC and the Name Control on the document are the same, but differ from the underprint in Field 01NC research to determine the correct name control/TIN using command codes INOLE, NAMEE, NAMEB and ENMOD.

  5. Follow these research instructions:

    Name Control Research

    If Then
    A pending transaction (TC 000 or TC 013) on CC ENMOD or NAMEB, with a name control that agrees with the transcribed name control, Enter a C in the Clear Code Field.
    The Name Control on the document matches the Name Control at Master File with no name change, Enter C in the Clear Code Field.
    A different Name Control than what is in Field 01NC but is the same as shown on the document (Part 1 Section C, Plan Name) Verify the Name Control via CC INOLE. If they agree, enter the INOLE Name Control in Field 01NC. If they disagree, research CC NAMEB or NAMEE for a different EIN.
    different EIN is found on an attachment, or on CC INOLE or BMFOL, Verify the EIN on CC INOLE for presence at Master File. Ensure that the entity information matches that which the taxpayer is using on the extension. If these conditions are met, overlay Field 01TIN with the new EIN found on Master File.
    The Name Control has not been edited or transcribed correctly from Part I section C and the correct Name Control matches the under printed Name Control Edit the correct Name Control in Part 1 section C and bring up the under printed Name Control in 01NC.
    The Name Control was edited and transcribed correctly and the filer changed the order of the name but there was no name change Bring up the under print Name Control in 01NC.
    The filer did not change the order of his name and there was no name change input and the under print Name Control matches the Name Control in Part 1 section A; (Name of filer, plan administrator, or plan sponsor) Edit the Name Control in Part 1 section A (Name of filer, plan administrator, or plan sponsor) and bring up the under printed Name Control in 01NC


  6. If, after researching, you determine that the Name Control on Master File is not correct and the entity on Master File needs correction, SSPND 320 to Entity Control for additional research; attach Form 4227, notate why the extension is being suspended.

  7. When there is no account present or pending, SSPND 320 to Entity Control; attach Form 4227 and notate "no account" .

  8. When IDRS is not available, SSPND 351 or 355.

Error Code 005 - Missing Received Date

  1. This subsection provides instruction for Error Code 005.

Screen Display for Error Code 005
  1. Screen Display follows:

    Screen Display Error Code 005

    AFD Field Name
    01TXP Tax Period
    01RCD Received Date


Invalid Condition for Error Code 005
  1. Invalid condition occurs when the processing date is later than the tax period ending by more than six months and the received date is not present in Field 01RCD.

Correction Procedures for Error Code 005
  1. Compare the information in Field 01TXP and Field 01RCD with the tax period and the received date on the extension. If the displayed information doesn't match the document, overlay the screen with the correct information.

  2. If the tax period is truly six months before the processing date, review the received date:

    If Then
    The date stamp is missing, illegible or later than the processing date, Determine the date as shown in IRM 3.11.20.6.8, Research. Enter the correct Received Date in Field 01RCD.
    Multiple received dates are on the document, Use the earliest date and circle out the others.

Error Code 006- Remittance With No Received Date

  1. This section provides instructions for the Error Code 006.

Screen Display for Error Code 006
  1. Screen Display follows:

    Screen Display Error Code 006

    AFD Field Name
    RMIT Remittance
    01RCD Received Date


Invalid Condition for Error Code 006
  1. An invalid condition occurs when remittance is present and the received date is not present.

Correction Procedures for Error Code 006
  1. If there is remittance on the form, the received date must be present. Compare the displayed fields with the information on the extension. If any of the information is incorrect, overlay the screen with the correct information.

  2. If the received date is missing, illegible or later than the processing date, determine the date as shown in IRM 3.11.20.2.6, Determination of Timely Filing - General.

  3. If multiple received dates are on the document, use the earliest date and circle the others.

Error Code 609- Prior Year Extension

  1. The following subsections provide instruction for Error Code 609.

  2. Although a prior year extension request would normally be disapproved because it's not received by the due date, extensions for previous years may need to be processed for various reasons:

    1. When the taxpayer has requested a reconsideration of a previously denied extension for a prior year and has supplied evidence that the extension should be approved.

    2. When there was a delay in shipping an extension request so it is processed long after it was originally filed.

    3. When the taxpayer's original extension request was denied in error and the request must be reprocessed correctly to generate an abatement of the failure to file penalties on the taxpayer's account.

Screen Display Error Code 609
  1. Screen Display follows:

    Screen Display Error Code 609

    AFD Field Name
    CL Clear Code
    01TXP Tax Period
    01RCD Received Date


Invalid Condition Error Code 609
  1. Tax Period is more than one year before the current processing date.

Correction Procedures Error Code 609
  1. Refer to the form for coding and transcription errors, and correct accordingly.

    1. The tax period in 01TXP should match the taxpayer's entry on Line 1.

    2. If it appears that the taxpayer has entered the wrong year and all other information (received date, envelope postmark date, tax year begin date) indicates that the extension is for the current tax year, and there is no indication that this is truly a prior year extension, change the year of the Tax Period to the current year.

      Example:

      On Line 1 the taxpayer entered a tax year beginning June 1, 2014 and ending May 31, 2015. Tax period appears to be 201505, but should be 201605.

  2. If the tax period is truly before the current date by more than one year, enter a "C" in the Clear Code Field.

Error Code 680 - MFT 76 vs Plan Number

  1. See instructions below for Error Code 680.

Screen Display Error Code 680
  1. Screen display follows:

    Error Code 680

    AFD Field Name
    01MFT MFT CODE
    01PL PLAN NUMBER
    01NOT NOTICE CODE
    01CCC COMPUTER CONDITION CODE
    01RTC RETURN CODE
    01RGC GROUP CODE


Invalid Condition Error Code 680
  1. MFT is 76 and Field 01PL is not 000-999.

  2. MFT is 76 and Field 01NOT is not 1, 2, 8, or 9.

  3. MFT is 76 and Field 01CCC has an entry.

  4. MFT is 76 and Field 01RTC has an entry.

  5. MFT is 76 and Field 01RGC is not blank.

Correction Procedures Error Code 680
  1. Review the document for coding and transcription errors and correct.

  2. If the document is a Form 5558 extension for Form 5330:

    Error Code 680 Correction

    If Then
    01MFT is not 76 Enter 76 in Field 01MFT
    01PL is blank See IRM 3.11.20.8.7.2, Correction Procedures for Plan Number - 01PL
    01NOT is not 1,2,8,9 See IRM 3.11.20.10.12.2, Correction Procedures for Notice Code - 01NOT
    01CCC is not blank Delete the entry in Field 01CCC
    01RTC contains an entry Delete the entry in Field 01RTC
    01RGC contains an entry Delete the entry in Field 01RGC


  3. If the document is not Form 5558, but is Form 8868, enter the correct Return Code in Field 01RTC and delete any entry in Field 01PL. See IRM 3.11.20.4.2, Document Perfection, for Form 8868 RTC determination and instructions.

  4. If the document is a Form 5558 extension for a Form 5500/5500-EZ, the DLN must be a Document Code 55. SSPND 610 for renumbering.

Error Code 999 - End of Year Format

  1. This section provides instruction for Error Code 999 (End of Year Format).

Screen Display Error Code 999 - End of Year Format
  1. Screen Display for Error Code 999, End of Year Format, is:

    Screen Display Error Code 999

    AFD Field Name
    01TXP Tax Period


Invalid Condition Error Code 999 - End of Year Format
  1. Error Code 999 generates for all extensions on ERS in error status at the end of the processing year.

Correction Procedures Error Code 999 - End of Year Format
  1. To correct, transmit.

Form 8868 Error Correction

  1. See instructions below for correcting ERS screens for Form 8868 extension requests.

  2. Form 8868 may be filed electronically via the MeF System.

    1. Forms filed electronically are corrected using the same procedures as a manually transcribed document.

    2. Electronically filed Forms 8868 can be identified by File Location Code (first two digits of the DLN) 93 or 92. Program code is 15550.

    3. Refer to IRM 3.42.4, IRS e-file for Business Tax Returns, for viewing forms filed via MeF.

    4. On Form 8868 one split box is provided for the filer to enter a two-digit return code indicating the return to be extended. C&E will not edit a return code unless the filer has not or it is illegible.

    5. The MFT Code generates based on the transcribed return code.

Erroneously Filed Forms

  1. Use the instruction in this section of the IRM for working extensions when the taxpayer filed Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, instead of Form 8868.

Form 7004 With Remittance
  1. If Form 7004 with remittance is filed instead of Form 8868 and Deposit Activity has "green-rockered" a remittance on the document, SSPND 611 to void the DLN and post the remittance to the appropriate account.

Suspense Correction Form 7004 With Remittance
  1. Suspense Correction prepares Form 3244 with TC 670 to post the money to the appropriate account; attach Form 3244 to Form 8161 with instructions for re-numbering as a payment only, or follow local campus instructions.

  2. Suspense Correction blacks out all editing marks, including "green-rocker" amount, received date and DLN, on the incorrect extension form, and returns the form to the taxpayer.

  3. Suspense Correction encloses a blank Form 8868, the incorrect extension form, a return envelope, and Form 6401 or letter to inform the taxpayer to complete and return the correct extension by the response date.

  4. Suspense Correction determines the response date and assign as follows:

    Response Date

    If the current date is Then
    Monday, Tuesday, or Wednesday Use 21 days from the following Monday date.
    Thursday or Friday Use 28 days from the following Monday date.


  5. Note the response date on Form 6401 and in the blank area below the OMB number on Form 8868.

    Note:

    A response date is necessary for C&E to determine if the extension was timely filed.

Form 7004 Non-Remittance
  1. If Form 7004 with no remittance is filed instead of Form 8868, SSPND 640 to void the DLN.

Suspense Correction for Form 7004 Non-Remittance
  1. Suspense Correction inputs CC RJECT "640" to void the DLN and annotate Form 8161 in remarks area "RJECT 640-Form 7004 returned to taxpayer" , or follow local campus procedures.

  2. Suspense Correction blacks out all editing marks including the DLN and received date on the incorrect extension and returns the form to the taxpayer.

  3. Suspense Correction encloses a blank Form 8868, the incorrect extension form, a return envelope, and Form 6401, Request for Missing Information, or letter to inform the taxpayer to complete and return the correct extension by the response date.

  4. Suspense Correction determines the response date and assign as follows:

    Response Date

    If the current date is Then
    Monday, Tuesday, or Wednesday Use 21 days from the following Monday date.
    Thursday or Friday Use 28 days from the following Monday date.


  5. Note the response date on Form 6401 and in the blank area below the OMB date on Form 8868.

    Note:

    A response date is necessary for C&E to determine if the extension was timely filed.

Section 01

  1. Listed below are the contents of Section 01.

    Section 01

    Field Length Title Location
    RMIT 11 Remittance Line 3C
    01NC 4 Name Control Name Line
    <<<< 4 Name Control Underprint
    01TIN 9 Taxpayer Identification Number Employer Identification Number box (EIN Social Security Number box (SSN).
    01TNT 1 TIN-Type End of TIN (Edited on SSN only).
    01TXP 6 Tax Period Upper right margin.
    <<<< 2 Tax Period
    Underprint
    01 2 MFT Code Generated based on the Return Code.
    01RCD 8 Received Date IRS date stamp in center of form
    01TTX 16 Reserved Not transcribed - always zero filled
    01CRT 16 Reserved Not transcribed - always zero filled
    01CCC 1 Computer Condition Code Top center margin
    01RGC 1 Group Code Edited in the margin to the right of "If this is for a Group Return.."
    01RTC 1 Return Code Return Code is transcribed from the Return Code box below the name and address section.
    01CAF 1 CAF Indicator No longer edited.
    01NOT 1 Notice Code Top center margin


Remittance—RMIT

  1. Form 5558 and Form 8868 may carry a remittance.

  2. This field is blank for non remittance forms.

Name Control—01NC

  1. This section gives instructions for Name Control Field 01NC.

Validity Check for Name Control
  1. This field must contain one to four characters, (alpha, numeric, hyphen, ampersand) and may contain one to three blanks.

  2. The first position must be alpha or numeric.

  3. The remaining positions may be alpha, numeric, hyphen, ampersand or blank. No character may follow a blank.

Correction Procedures for Name Control
  1. If the name control is invalid or blank, check for transcription errors and enter the correct data in Field 01NC.

  2. If the name control is indeterminable, research using IDRS command codes INOLE, NAMEE, NAMEB and ENMOD. If correct name control is found, enter it in Field 01NC.

  3. The INOLE screens with definer codes shown below displays the BMF entity information of the requested EIN.

    INOLE

    INOLE Format Description
    INOLESNN-NNNNNNN Displays name line, address, tax year, name controls, cross reference and other information specific to the type of account being requested.
    INOLETNN-NNNNNNN Displays the name line and address information for all accounts with the same TIN.

  4. After reviewing the research, if you still cannot determine the name control, SSPND 320 to Entity Control.

  5. If IDRS is not available, SSPND 351.

TIN-Type-01TNT

  1. A "2" always generates on Form 8868.

Validity Checks for TIN-Type - 01TNT
  1. Invalid if other than "2"

Correction Procedures for TIN-Type - 01TNT
  1. Enter a "2" in Field 01TNT.

Taxpayer Identification Number—01TIN

  1. This section gives instructions for Employer Identification Number-01TIN.

Validity Check For Taxpayer Identification Number—01TIN
  1. The TIN is located in the Taxpayer identification number box indicated on the form.

  2. If the TIN is an EIN, this field must contain nine numerics and cannot begin with 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, or 89. Field 01TIN cannot be all zeroes or nines.

  3. If the TIN is an SSN, this field must be all numeric, and cannot be all zeroes or all nines.

Correction Procedures For Taxpayer Identification Number—01TIN
  1. If Field 01TIN is invalid or missing, check for transcription errors and enter the correct TIN in Field 01TIN.

  2. If no transcription error, examine the form or attachments for another (presumed valid) TIN. If found, enter in Field 01TIN.

  3. If another TIN cannot be found, correct per Error Code 004 instructions. See IRM 3.11.20.13.3, Error Code 004 - EIF/NAP Mismatch.

Tax Period - 01TXP

  1. This section give validity check and perfection procedures for tax period Field 01TXP.

  2. This field contains the ending month and year of the Tax Period of the extension. The tax period is printed in year-month (YYYYMM) format; i.e. December 31, 2016 is printed 20161212.

Validity Check for Tax Period - 01TXP
  1. C&E will not edit the tax period on current calendar year extensions (i.e. 201612).

  2. The tax period cannot be later than the current processing date.

  3. Field 01TXP must be six-numeric digits.

  4. The last two digits (the month) must be 01-12.

Correction Procedures For Tax Period Ending—01TXP
  1. Check for coding and transcription errors and correct Field 01TXP as needed.

    • The tax period is determined from the taxpayer's entry on line 1 . If the taxpayer has not made an entry on this line, the tax period is assumed to be 201612 and no tax period would be edited by C&E.

  2. If the tax period is indeterminable from the document or attachments, and the name and a valid TIN are present, research and enter the correct data in Field 01TXP.

  3. Extensions for Form 1041-A (MFT 36) and Form 5227 (MFT 37) must always be calendar year (201612).

  4. If the correct tax period is indeterminable from research (i.e. no filing requirements present for the form on the extension or no account), SSPND 320 for Entity research.

  5. If the extension form appears to be early filed, and

    1. The taxpayer indicates "Final Return" , SSPND 480. Attach Form 4227 and note "Early filed final extension."

    2. If the extension is not for a final return, research to determine the correct tax period. If the month of the tax period the taxpayer is using is different than the FYM found on Master File, follow correction procedures for Error Code 026. See Exhibit 3.11.20-6, Error Code 026 - Form 8868.

    3. If the taxpayer is using the same month as the FYM found on Master File and:

      Tax Period Correction

      Tax Period is later than the current year/month by Then
      One year or more Change the Tax Period to the current fiscal or calendar year.
      Less than one year SSPND 480 and attach Form 4227 noting that the extension should be held and processed after the end of the tax period.


Master File Tax Code-01MFT

  1. The MFT Code is a two-position field that indicates what type of tax return the extension is for.

  2. 01 is not a correctable field for Form 8868 (Programs 15540 and 15550). The MFT is generated based on the return code.

Received Date - (YYYYMMDD) 01RCD

  1. This section gives instructions for Received Date Field 01RCD.

Validity Checks for Received Date - 01RCD
  1. The field must be blank or eight numerics.

  2. Valid format is YYYYMMDD.

  3. The fifth and sixth digits must be valid month designations (01-12).

  4. The seventh and eighth digits must be a valid day designation and a valid day for the month. Example: 31 is invalid for month 06 because June has only 30 days.

  5. The date cannot be later than the current processing date.

  6. The date cannot be earlier than 01/01/1983 Form 8868 (Tax Class 4).

Correction Procedures for Received Date - 01RCD
  1. Check the form for transcription or coding errors and correct.

  2. If the date is invalid, and the date stamp on the extension is missing, invalid, illegible, or later than the process date, determine the received date per the instructions in IRM 3.11.20.3.4, Received Date.

  3. If the date is before 01/01/1983, SSPND 620. Attach Form 4227 stating "Non-ADP record"

  4. For further information, refer to IRM 3.10.72, Receiving, Extracting, and Sorting, and IRM 3.11.20.2, Document Perfection Procedures.

Computer Condition Codes—01CCC

  1. The entry for Field 01CCC is transcribed from the top center margin of the form.

Validity Check for Computer Condition Codes - 01CCC
  1. Only one CCC may be present.

  2. Only CCC W is valid for Form 8868.

    CCC

    Code Condition
    W Short period and an acceptable reason is provided for the short period. (This causes the tax period to bypass the Error Code 026 check on ERS)

    Note:

    Use of CCC W will not bypass Unpostable checks on Tax Period unless TC 054 or TC 055 is posted in the entity.

    Y Reserved

Correction Procedures for Computer Condition Codes - 01CCC
  1. Check for transcription errors and correct Field 01CCC and the form as appropriate.

  2. If any code other than W is present, delete the entry in Field 01CCC.

Group Code—01RGC

  1. The group code is only edited on Form 8868 extending a Form 990 when the form is being filed for a group.

    1. If the "whole group" box is checked on Form 8868, a group code should not be present.

    2. If the "part of the group" box is checked on Form 8868, group code 8 should be present.

Validity Check for Group Code—01RGC
  1. Only valid for Form 8868 (Tax Class 4).

  2. This field must be 8 or blank.

Correction Procedure For Group Code—01RGC
  1. Check the form for coding and transcription errors.

  2. The group code for Form 8868 is edited in the middle right margin of the form.

  3. Treat the Form 8868 as filed for a group return if any of the following apply:

    1. A GEN is present

    2. The "whole group" box is checked

    3. The "part of the group" box is checked

    4. A list of subordinates is attached

    5. "Group Return" is indicated on the extension

  4. If none of the conditions are present on the extension, blank Field 01RGC.

  5. If one or more of the group return conditions is present, correct Field 01RGC as follows:

    1. If the "whole group" box is checked, delete the entry in Field 01RGC.

    2. If the "part of the group" box is checked, enter 8 in Field 01RGC.

Return Code—01RTC

  1. Field 01RTC is used for the Return Code for Form 8868. This field is not present on Form 5558.

  2. The return code must be present for the MFT Code to generate on Form 8868.

  3. The return code is used by the master file computer program to determine the correct return due date for generating the extension date and for generating the MFT Code.

Validity Check For Return Code—01RTC
  1. Form 8868 (Tax Class 4) - this field must be 01 through 12.

Correction Procedure Return Code—01RTC
  1. Check the form for coding or transcription errors.

  2. The two-digit return code for Form 8868 is transcribed from the return code box below the name and address section:

    Return Code

    Return Return Code Return Return Code
    Form 990/990-EZ 01 Form 990-T (corp) 07
    Form 990-BL 02 Form 1041-a 08
    Form 4720 Individual 03 Form 4720 Corporation 09
    Form 990-PF 04 Form 5227 10
    Form 990-T (Sec 401(a) or 408(a) trust) 05 Form 6069 11
    Form 990-T (trust other than above) 06 Form 8870 12*


    Note:

    If return code is 12, send to OSPC, EOCA M/S 1112

    Note:

    If return code is 03, delete return and send to CSPC for processing to NMF.

CAF Indicator—01CAF

  1. The CAF Indicator is no longer edited by Document Perfection. If an entry displays in Field 01CAF, delete the entry.

Notice Code—01NOT

  1. The notice code is a 1 position numeric code that is edited on the top center margin.

  2. The notice code indicates whether the extension request is approved or denied and if denied, the reason.

  3. When the extension posts to the BMF, the notice code causes the appropriate notice to generate to the taxpayer to tell whether the extension is approved or denied, and if denied, the reason for denial.

  4. If a notice code for an approved extension is used (Notice Code 1), the extended due date generates when the extension transaction posts to the BMF.

Validity Checks for Notice Code—01NOT
  1. Notice code is only valid with Form 8868 (DLN Tax Class must be 4).

  2. Notice code must be 1 or 2.

  3. Only one notice code may be present.

Correction Procedures for Notice Code—01NOT
  1. If no notice code is present, review the extension to determine if it meets all the approval criteria. See IRM 3.11.20.4.2.2, Approval/Denial Notice Code.

    1. An extension will be approved if filed timely.

      Note:

      See Exhibit 3.11.20-2, Due Dates - Form 8868 Extensions, for due dates.

  2. Enter the correct notice code in Field 01NOT:

    1. Notice Codes

      If Then enter notice code
      Approved extension - timely 1
      Denied first extension - not timely 2

    Note:

    Only one notice code may be used for each document.

Error Codes Form 8868

  1. See instructions for resolving specific error codes related to Form 8868.

Error Code 002 - Name Control Mismatch

  1. This section provides instructions for Error Code 002.

Error Code Fields Display
  1. The field display for Error Code 002 follows

    Error Code Fields Display

    AFD Field Name
    CL CLEAR CODE
    01NC NAME CONTROL/CHECK DIGIT
    <<<< NAME CONTROL UNDERPRINT
    01TIN TIN (TAXPAYER IDENTIFICATION NUMBER)
    01TXP TAX PERIOD


Error Code 002 Invalid Condition
  1. The Name Control mismatched against the NAP or the ElF.

Error Code 002 Correction Procedures
  1. Before performing additional research, go to the bottom of the screen and transmit. This ensures that any prior changes to the Name Control have posted to the NAP. If Error Code 002 reappears, continue with the following correction procedures.

  2. Compare the displayed fields with the extension. If incorrect, overlay the screen with the correct information.

  3. If the name control transcribed in Field 01NC and the name control on the document are the same, but differ from the underprint in Field 01NC, research Command Codes INOLE, NAMEE, NAMEB or ENMOD (for pending TC 000 or 013) to determine the correct Name Control/TIN.

    Note:

    When corrections are made to Field 01NC or Field 01TIN, the computer revalidates the entries with the NAP and resets the OLE indicators as appropriate upon transmitting the ERS screen. If Error Code 002 reappears, an unpostable condition may still exist. Re-verify the entries and refer to the remainder of the correction procedures.

    Name Control Research

    If Then
    The name control on the document matches the name control at Master File, with no name change, Enter C in the Clear Code Field and transmit.
    A different Name Control than what is in Field 01NC but is the same as shown on the document (Name of exempt organization). Verify the Name Control on CC INOLE. If they agree, enter the INOLE Name Control in Field 01NC. If they disagree, research CC NAMEB or NAMEE for a different EIN.
    Name Control found during research agrees with Name Control on document, Enter the INOLE Name Control Field 01NC.
    INOLE Name Control differs from Name Control on document
    1. Research CC ENMOD for a pending TC 013. If the name control agrees with the transcribed name control, enter a "C" in the Clear Code Field.

    2. Research attachments and NAMEB for a different EIN.

    3. If a different EIN is found on the attachment, or a cross-reference EIN on INOLE or BRTVU, verify the EIN on INOLE for presence at Master File.

    4. Ensure that the entity information matches the taxpayer on the extension. If these conditions are met, overlay Field 01TIN with the new EIN found on Master File.

    The Name Control on Master File is not correct and the entity on Master File needs correction, SSPND 320 to route the return to Entity Control for additional research. Attach Form 4227, notating why the return is being suspended.
    A name change has occurred, SSPND 320 to route the return to Entity Control for a TC 013. Attach Form 4227 requesting a name change (TC 013).
    IDRS research is not available, SSPND 351 or 355.
    There are multiple EINs, SSPND 320 and route to Entity for further action.


Error Code 003 - Invalid Check Digit

  1. This section provides instructions for Error Code 003.

Error Code 003 Screen Display
  1. Screen Display for Error Code 003 follow:

    Error Code 003 Screen Display

    AFD Field Name
    01NC Name Control/Check Digit
    01TIN Taxpayer Identification Number


Invalid Condition for Error Code 003
  1. The Check Digit is present but is invalid for the TIN.

  2. The letters E, G or M are invalid in the check digit.

  3. The first two positions of the field are not blank.

  4. The last two positions are not alphabetic.

Correction Procedures for Error Code 003
  1. If the check digit is invalid, enter the name control from the extension in Field 01NC.

  2. If it appears that the taxpayer has used the wrong EIN, follow these procedures for EIN correction:

    EIN Correction

    If Then
    The EIN on the extension is not legible, Research using CC NAMEB or NAMEE for a valid EIN. If IDRS is not available, SSPND 351.
    Unable to locate the EIN, SSPND 320 for referral to Entity Control.
    The EIN and check digit are both legible but do not match, Research for a valid EIN.
    Another EIN is found for the entity on the return or through research, Change Field 01TIN to the correct EIN.


Error Code 004 - EIF/NAP Mismatch

  1. This section provides instructions for Error Code 004.

Fields Displayed for Error Code 004
  1. Field Display Follows:

    Fields Display Error Code 004

    AFD Field Name
    CL CLEAR CODE FIELD
    01NC NAME CONTROL/CHECK DIGIT
    <<<< NAME CONTROL UNDERPRINT
    01TIN TAXPAYER IDENTIFICATION NUMBER


Invalid Conditions for Error Code 004
  1. The TIN was not present at the NAP. An "XXXX" underprint indicates there is no account on the master file matching this TIN.

  2. The ElF and the NAP were not accessed or were not operational. A blank underprint indicates that the NAP has not been accessed or was not operational.

Correction Procedures for Error Code 004
  1. Before performing other research, go to the bottom of the screen and transmit. This ensures that any prior changes to the Name Control/TIN have posted to the NAP. If Error Code 004 reappears, continue with the following correction procedures.

  2. Compare the displayed fields with the extension. If incorrect, overlay the screen with the correct information.

  3. Field 01TNT must be 2, indicating that the TIN is an EIN. Use CC GTSEC01 and enter "2" in Field 01TNT.

  4. If the name control transcribed in Field 01NC and the name control on the document are the same, but differ from the underprint in Field 01NC, research to determine the correct name control/TIN using command codes INOLE, NAMEE, NAMEB and ENMOD.

  5. Follow these research instructions:

    Name Control Research

    If Then
    A pending transaction (TC 000 or TC 013) on CC ENMOD or NAMEB, with a name control that agrees with the transcribed name control, Enter a C in the Clear Code Field.
    The Name Control on the document matches the Name Control at Master File with no name change, Enter C in the Clear Code Field.
    A different Name Control than what is in Field 01NC but is the same as shown on the document (Name of filer, exempt organization or individual) Verify the Name Control via CC INOLE. If they agree, enter the INOLE Name Control in Field 01NC. If they disagree, research CC NAMEB or NAMEE for a different EIN.
    A different EIN is found on an attachment, or on CC INOLE or BMFOL, Verify the EIN on CC INOLE for presence at Master File. Ensure that the entity information matches that which the taxpayer is using on the extension. If these conditions are met, overlay Field 01TIN with the new EIN found on Master File.

    Note:

    If EIN is determined but plan number has not been established, SSPND 320 and note "Plan Number" on Form 4227 and route to EP Entity for plan number establishment.


  6. If, after researching, you determine that the name control on Master File is not correct and the entity on Master File needs correction, SSPND 320 to Entity Control for additional research; attach Form 4227, notate why the extension is being suspended.

  7. When there is no account present or pending, SSPND 320 to Entity Control; and attach Form 4227 and notate "no account" .

  8. When IDRS is not available, SSPND 351 or 355.

Error Code 026 - FYM Mismatch Form 8868

  1. This section provides instructions for Error Code 026. See Exhibit 3.11.20-6, Error Code 026 - Form 8868.

Screen Display for Error Code 026
  1. Screen Display follows:

    Screen Display Error Code 026

    AFD Field Name
    CL Clear Code
    01TIN Taxpayer Identification Number
    01TXP Tax Period
    <<<< Tax Period Underprint
    01MFT MFT Code
    01CCC Computer Condition Code


Invalid Condition for Error Code 026
  1. The Tax Period underprints because the month of the transcribed tax period does not agree with the current FYM or prior FYM on the Entity Index File or NAP, and CCC "W" is not present.

Correction Procedures for Error Code 026
  1. Before taking other research, go to the bottom of the screen and transmit. If Error Code 026 reappears, continue with the following correction procedures.

  2. If you determine that Field 01TXP needs changing during correction of Error Code 026, before making any correction to Field 01TXP, you must review the received date and postmark date to determine timeliness of the extension based on the corrected tax period. See IRM 3.11.20.6.8, Research.

    1. If the extension is timely based on the corrected tax period, and the notice code edited is other than "1" , GTSEC01 and change Field 01NOT to "1" and make the same change on the document.

    2. If the extension is timely filed based on the corrected tax period, and Notice Code "2" is edited, GTSEC01 and change Field 01NOT to Notice Code "1" and make the same change on the document

  3. Compare the information in the displayed fields with the extension to ensure that the Tax Period was edited and transcribed correctly. See IRM 3.11.20.12.7.2, Correction Procedures For Tax Period Ending—01TXP.

    1. The tax period should be edited in YYMM format and should represent the end of the taxable year.

    2. C&E will not edit the tax period on a current calendar year extension (i.e. 1612).

  4. If the tax period was not transcribed or coded correctly, change the document and/or Field 01TXP.

  5. Some entities file 52-53 week returns. Their tax year ends on the same day of the week each year (e.g.. the last Friday in December). Tax periods reported under the 52-53 week rule may end not more than 6 days before, and not more than 3 days after, the end of a month. When determining the tax period for these accounts, use the numeric designation of the month in which the last day is closest to the actual ending date.

    1. If the tax year ends up to three days after the end of the month, use the previous month in the tax period.

      Example:

      If the end of the tax year is May 2, 2016, the Tax Period should be 1604.

    2. If the tax year ends up to six days before the end of the month, use that month in the tax period.

      Example:

      If the end of the tax year is April 26, 2016, the tax period should be 1604.

  6. Form 8868 for MFT 36 or 37, the month of the tax period must be 12. If it is other than 12, change the tax period month to 12.

Compare TIN
  1. Compare the entry in Field 01TIN with the TIN on the document. If the TIN does not match, change Field 01TIN to agree with the document and transmit.

  2. Whenever Field 01TIN is changed, EC 026 revalidates using the new TIN.

Short Period Form 8868
  1. If Line 1 indicates a period less than one year, check Line 2 for an indication the extension is being filed for a short period because an Initial, Final, or Change in accounting period return will be filed.

  2. If any of those boxes are checked, enter "W" in 01CCC.

  3. If none of the boxes are checked, look for an attached acceptable explanation for the change (e.g. IRC Section or Rev. Proc. quoted). If found, enter "W" in 01CCC.

Research CC INOLE-S
  1. Research using CC INOLES for the FYM of the MFT that matches the return being extended.

    1. If the FYM on INOLES matches the month of the tax period on the extension, enter a "C" in the Clear Code Field.

    2. If the FYM does not match the month of the tax period of the extension, follow instructions in IRM 3.11.20.13.4.3.3.1, FYM Does Not Match Tax Period of the Extension.

FYM Does Not Match Tax Period of the Extension
  1. Research CC ENMOD to see if a transaction to change the FYM is pending. Look for any of the following pending transaction codes:

    • TC 016 - change of Fiscal Year Ending

    • TC 052 - reverses TC 053, TC 054 and TC 055

    • TC 053 - an approved Form 1128, Application to Adopt, Change, or Retain a Tax Year, is on file

    • TC 054 - an approved Form 1128 is on file to retain or change to a fiscal year under Rev. Proc. 87-32;

    • TC 055 - an approved Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, is on file to change, retain, or adopt a fiscal year under Section 444.

  2. If one of the above transactions is pending and will change the FYM to the month of the tax period on the extension when it posts, enter a "C" in the Clear Code Field.

  3. If no pending transaction is present, follow instructions in IRM 3.11.20.13.4.3.4, Research CC BMFOLI.

Research CC BMFOLI
  1. Research using CC BMFOLI for prior filing pattern.

    Note:

    Unless you are working on an extension for a prior year that was originally processed incorrectly (such as when the extension is denied and taxpayer has shown proof of timely filing or a denied extension that should have been covered under a disaster declaration), you should assume that the extension request is for the tax period of the return that would be due based on the date the extension was received.

  2. If research shows no returns (TC 150) posted to prior tax modules for the MFT of the extension being processed, assume this is an initial filing. Enter CCC "W" in Field 01CCC.

  3. Form 8868 - Review the posting pattern of returns (TC 150) posted to tax periods before the tax period on the extension.

    Posting Return

    If Then
    The returns posted are for various FYM, Initiate correspondence to the taxpayer requesting clarification of the accounting period.

    Note:

    Don't correspond on disapproved extensions. Follow No Reply instructions.

    The returns posted are all for the same FYM, and there is a TC 150 posting for the current year, SSPND 351 to Rejects. Rejects researches for posted TC 460 for current year.
    1. If TC 460 posted to current year, SSPND 480 as early filed extension.

    2. If no TC 460 is posted, change FYM to current year and bring up the underprint month. If this makes the extension late filed, GTSEC01 and change entry in Field 01NOT to 2.

    The returns posted are all for the same FYM that is different from the FYM on the extension, and there is no TC 150 posted for the current year, Change 01TXP to current year and bring up the underprint month. If this makes the extension late filed:
    1. GTSEC01 and change entry in Field 01NOT to 2 .

    2. Change 01TXP to current processing year and bring up the underprint month.


  4. If the extension was originally disapproved for late filing, and after following the correction procedures the extension is now found to be timely filed, take the following action:

    1. Form 8868 - use CC GTSEC01 and change the entry in Field 01NOT. See IRM 3.11.20.12.14.2, Correction Procedures for Notice Code—01NOT, for the correct notice code.

Reply or No Reply to Letter
  1. If the taxpayer's reply supplies the correct tax period and the month matches the tax period underprint, enter the correct tax period in Field 01TXP and on the document.

  2. If the taxpayer replies with an approved copy of Form 1128 or 8716, or with a date the accounting period change was approved, SSPND 320 and forward documents to Entity Control so that they may update the FYM on Master File.

  3. If the taxpayer quotes an IRC Section or Rev. Proc. to explain the change, enter CCC "W" in Field 01CCC.

  4. Form 8868 - no reply or reply is inconclusive:

    1. If BMFOLT shows a TC 460 posted for the current year, SSPND 480 and hold as early filed extension for the next year.

      Example:

      TC 460 posted to tax period 201509 and extension shows tax period 201612. FYM underprint is 09. SSPND 480 and hold as early filed extension for 201609.

    2. If BMFOLT does not show a TC 460 posted for the current year, change Field 01TXP and the document to agree with the Tax Period Underprint month in the current year.

      Example:

      Tax Period Underprint is 12, extension shows tax period 201506. BMFOLI shows no extension posted for 201612. Received date is 03/12/2016. Change 01TXP to 201612.

    3. If this change in the tax period makes the extension late-filed, enter Notice Code 2 in Field 01NOT and on the document.

Error Code 100 - Return Code 03

  1. IRM 3.11.20.13.5, Error Code 100 - Return Code 03, provides instructions for Error Code 100.

Screen Display Error Code 100
  1. Screen Display follows:

    Screen Display Error Code 100

    AFD Field Name
    01TNT TIN Type
    01RTC Return Code


Invalid Condition Error Code 100
  1. Error Code 100 generates if the 01RTC is 03 and 01TNT is not 0.

Correction Procedures Error Code 100
  1. Correct coding and transcription errors.

  2. If RTC is 03 and a SSN is in the SSN box change 01TNT to 0.

Error Code 609 - Prior Year Extension

  1. IRM 3.11.20.13.6, Error Code 609 - Prior Year Extension, provides instruction for Error Code 609.

  2. Although a prior year extension request would normally be denied because it's not received by the due date, extensions for previous years may need to be processed for various reasons:

    1. When the taxpayer has requested a reconsideration of a previously denied extension for a prior year and has supplied evidence that the extension should be approved.

    2. When there was a delay in shipping an extension request so it is processed long after it was originally filed.

    3. When the taxpayer's original extension request was denied in error and the request must be reprocessed correctly to generate an abatement of the failure to file penalties on the taxpayer's account.

Screen Display Error Code 609
  1. Screen Display follows:

    Screen Display Error Code 609

    AFD Field Name
    CL Clear Code
    01TXP Tax Period
    01RCD Received Date


Invalid Condition Error Code 609
  1. Tax period is more than one year before the current processing date.

Correction Procedures Error Code 609
  1. Refer to the form for coding and transcription errors, and correct.

    1. The Tax period in 01TXP should match the taxpayer's entry on line 5a.

    2. If it appears that the taxpayer has entered the wrong year in error and all other information (received date, envelope postmark date, tax year begin date) indicates that the extension is for the current tax year, and there is no indication that this is truly a prior year extension, change the year of the Tax Period to the current year.

      Example:

      On line 5a the taxpayer entered a tax year beginning June 1, 2013 and ending May 31, 2014. Tax Period appears to be 201305, but should be 201405.

  2. If the tax period is truly before the current date by more than one year, enter a "C" in the Clear Code Field.

Error Code 612 - Early Filed Extension

  1. See instructions below for Error Code 612.

Screen Display Error Code 612
  1. Screen Display follows:

    Screen Display Error Code 612

    AFD Field Name
    01RTC Return Code
    01TXP Tax Period
    01RCD Received Date


Invalid Condition Error Code 612
  1. If 01RTC is 1, 3-7 or 9, the year and month of received date in Field 01RCD cannot be earlier than the year and month of the tax period in Field 01TXP (the extension was filed before the end of the tax period).

Correction Procedures Error Code 612
  1. Compare the displayed fields with the information on the extension. If the displayed fields do not match the extension, overlay the screen with the correct information.

  2. If the displayed fields match what is on the extension, see IRM 3.11.20.6.8, Research, for instructions for determining the correct received date.

  3. If the extension was received timely, delete the received date from 01RCD.

Error Code 613 - Early Filed Extension MFT 36 and 37

  1. This section provides instruction for Error Code 613.

Screen Display Error Code 613
  1. Screen Display follows:

    Screen Display Error Code 613

    AFD Field Name
    01RTC Return Code
    01TXP Tax Period
    01RCD Received Date


Invalid Condition Error Code 613
  1. 01RTC is 8 or 10, and Field 01TXP has an entry more than one year later than process date.

Correction Procedures Error Code 613
  1. Refer to the form for coding and transcription errors, and correct.

  2. If the tax period in Field 01TXP matches the document, SSPND 480 as early filed.

Error Code 614 - Group Code

  1. This section provides instruction for Error Code 614.

Screen Display Error Code 614
  1. Screen display follows:

    Screen Display Error Code 614

    AFD Field Name
    01RTC Return Code
    01RGC Group Code


Invalid Condition Error Code 614
  1. 01RGC is 7 or 8 and 01RTC is not 01.

Correction Procedures Error Code 614
  1. Review the document for coding and transcription errors, and correct.

  2. The return code is located in the "split" box below and to the right of the name and address section. It is entered by the filer based on the two-digit number in the Return Code table found in the column to the right of the return to be extended and only edited if missing or illegible.

    1. If the return code is not 01, delete the entry in 01RGC

  3. If the return code is 01, see IRM 3.11.20.12.11.2, Correction Procedure For Group Code - 01RGC, for instructions for determining the correct group code.

Error Code 615 - MFT 37 FYM

  1. See instructions below for Error Code 615.

Screen Display Error Code 615
  1. Screen Display follows:

    Screen Display Error Code 615

    AFD Field Name
    01RTC Return Code
    01TXP Tax Period


Invalid Condition Error Code 615
  1. 01RTC is 08 or 10, and month of Field 01TXP is not 12.

Correction Procedures Error Code 615
  1. Refer to the form for coding and transcription errors, and correct.

  2. If the return code is correct in Field 01RTC, change the entry in Field 01TXP to 12.

Error Code 619-Timely Filed First Extension With Notice Code 2

  1. Error Code 619 check is performed on Form 8868 only.

Screen Display Error Code 619
  1. Screen display:

    Screen Display Error Code 619

    AFD Field Name
    01TXP Tax Period
    01RTC Return Code
    01RCD Received Date
    01NOT Notice Code


Invalid Condition Error Code 619
  1. Return Code is 01, 03, 04, 06, 07 or 09 and Field 01NOT is "2" (denied late filed extension) and Field 01RCD contains a timely received date≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , or

  2. Return Code is 05, 08 or 10, and Field 01NOT is "2" (denied late filed extension) and Field 01RCD contains a timely received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Correction Procedures Error Code 619
  1. Review for coding and transcription errors in Field 01RTC and Field 01TXP. Correct the field entry as needed.

    1. See IRM 3.11.20.12.12.1, Validity Check for Return Code—01RTC, for instructions for determining the RTC.

    2. See IRM 3.11.20.12.7.2, Correction Procedures for Tax Period - 01TXP, for instructions for 01TXP.

      Note:

      The month of the tax period for Return Codes "08" and "10" must always be 12.

  2. Review the received date and postmark date on the document.

    1. If the received date on the document is after the due date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the postmark date is after the due date, enter the received date from the document in Field 01RCD. See Exhibit 3.11.20-2, Due Dates - Form 8868 Extensions .

    2. If the document was received and/or postmarked timely, change the entry in Field 01NOT to "1" (approved extension).

Error Code 621-Timely Filed Second Extension With Notice Code 6

  1. Error Code 621 check is performed on Form 8868 only.

Screen Display Error Code 621
  1. Screen display:

    Screen Display Error Code 621

    AFD Field Name
    01TXP Tax Period
    01RTC Return Code
    01RCD Received Date
    01NOT Notice Code


Invalid Conditions Error Code 621
  1. Return Code is 01, 03, 04, 06,07 or 09, and Field 01NOT is "6" (denied late filed 2nd extension) and Field 01RCD contains a timely received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , or

  2. Return Code is 05, 08 or 10, and Field 01NOT is "6" (denied late filed 2nd extension) and Field 01RCD contains a timely received date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Error Code 680 - Blank Return Code

  1. This section provides instruction for Error Code 680 (Blank Return Code).

Screen Display Error Code 680 - Blank Return Code
  1. Screen Display for Error Code 680, Blank Return Code.

    Screen Display Error Code 680

    AFD Field Name
    01MFT MFT CODE
    01PL PLAN NUMBER
    01NOT NOTICE CODE
    01CCC COMPUTER CONDITION CODE
    01RTC RETURN CODE
    01RGC GROUP CODE


Invalid Condition Error Code 999 - Blank Return Code
  1. Error Code 680 generates on Form 8868 when the Return Code is blank.

Correction Procedures Error Code 680 - Blank Return Code
  1. Enter the correct return code in Field 01RTC and delete any entry in Field 01PL. See IRM 3.11.20.4.2, Document Perfection, for Form 8868 RTC determination and instructions.

    Note:

    If the Form 8868 is a prior revision; use the return code, see IRM 3.11.20.4.2(7).

Error Code 999 - End of Year Format

  1. This section provides instruction for Error Code 999 (End of Year Format).

Screen Display Error Code 999 - End of Year Format
  1. Screen Display for Error Code 999, End of Year Format, is:

    Screen Display Error Code 999

    AFD Field Name
    01TXP Tax Period


Invalid Condition Error Code 999 - End of Year Format
  1. Error Code 999 generates for all extensions on ERS in error status at the end of the processing year.

Correction Procedures Error Code 999 - End of Year Format
  1. To correct, transmit.

Group Return TC 460 Procedures (Rejects Only)

  1. Input a TC 460 and extended due date using CC REQ77 for each subordinate EIN listed on the attached list.

    Group Return TC 460 Procedures

    If Then
    An error message is received after TC 460 is transmitted on the CC REQ77 screen Research IDRS for correct account information; see IRM 3.11.20.2.15, Research Command Codes.
    Correct account information is undetermined from research
    1. Print the IDRS error message screen and notate reason for error (e.g. FYM mismatch, account not establish, etc.).

    2. Continue processing rest of list.

    3. SSPND 320 and attach print(s) to the original document and Route to Entity.

    4. Entity corrects account(s), input the TC 460 on the subordinates in error, and return the documents to Rejects.

    5. Finish working the original document.


Extensions Listing

Extensions Listing

Extension Form Type Period of Extension Forms Affected
5558 BMF Various depending on Code Section 5330
5558 EPMF 2 1/1 months from Return Due Date 5500 Series and Form 8955-SSA
8868 BMF Automatic six months from Return Due Date 990/990-EZ
990-BL
4720 (Individual)
990-PF
990-T (corporation)
990-T (sec.401(a) or 408(a) trust)
990-T (trust other than above)
1041-A
4720 (Corporation)
5227
6069
8870

Due Dates - Form 8868 Extensions

Tax Period Timely Postmark Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Generated Extended Due Date
201608 01/17/17 ≡ ≡ ≡ ≡ 07/17/17
201609 02/15/17 ≡ ≡ ≡ ≡ ≡ 08/15/17
201610 03/15/17 ≡ ≡ ≡ ≡ ≡ 09/15/17
201611 04/18/17 ≡ ≡ ≡ ≡ 10/17/17
201612* 05/15/17 ≡ ≡ ≡ ≡ ≡ 11/15/17
201701 06/15/17 ≡ ≡ ≡ ≡ ≡ 12/15/17
201702 07/17/17 ≡ ≡ ≡ ≡ 01/16/18
201703 08/15/17 ≡ ≡ ≡ ≡ 02/15/18
201704 09/15/17 ≡ ≡ ≡ ≡ 03/15/18
201705 10/16/17 ≡ ≡ ≡ ≡ ≡ 04/16/18
201706 11/15/17 ≡ ≡ ≡ ≡ ≡ 05/15/18
201707 12/15/17 ≡ ≡ ≡ ≡ ≡ ≡ 06/15/18
201708 01/16/18 ≡ ≡ ≡ ≡ ≡ ≡ 07/16/18

*Extensions for Form 1041-A and Form 5227 are always calendar year (201512).

Due Dates - Form 5558 for MFT 76 (Form 5330)

Due dates for Form 5558 MFT 76 are based on the Code Section on line 4a.

Note:

If due date falls on Saturday, Sunday, or holiday, the due date is the next business day.

Due dates for Code Section 4980/4980F are computed from the last day of the second month after the reversion/amendment date on line 4c:

Month of reversion/amendment date Due Date Timely Postmark Date (Adjusted for weekends and holidays) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
201611 1/31/2017 1/31/2017 ≡ ≡ ≡ ≡ ≡
201612 2/28/2017 2/28/2017 ≡ ≡ ≡ ≡ ≡
201701 3/31/2017 3/31/2017 ≡ ≡ ≡ ≡ ≡ ≡
201702 4/30/2017 5/1/2017 ≡ ≡ ≡ ≡
201703 5/31/2017 5/31/2017 ≡ ≡ ≡ ≡
201704 6/30/2017 6/30/2017 ≡ ≡ ≡ ≡ ≡ ≡
201705 7/31/2017 7/31/2017 ≡ ≡ ≡ ≡
201706 8/31/2017 8/31/2017 ≡ ≡ ≡ ≡
201707 9/30/2017 10/2/2016 ≡ ≡ ≡ ≡ ≡ ≡
201708 10/31/2017 10/31/2017 ≡ ≡ ≡ ≡ ≡ ≡ ≡
201709 11/30/2017 11/30/2017 ≡ ≡ ≡ ≡ ≡ ≡
201710 12/31/2017 1/2/2017 ≡ ≡ ≡ ≡

Code Section 4977 is always filed for a calendar year. The due date is 7/31/YYYY.

Due date for Code Sections 4972, 4973, 4975, 4976, 4978/A/B and 4979A is the last day of the seventh month after the end of the tax period:

Tax period month Due date Timely Postmark Date (Adjusted for weekend and holidays) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
201606 1/31/2017 1/31/2017 ≡ ≡ ≡ ≡ ≡
201607 2/28/2017 2/28/2017 ≡ ≡ ≡ ≡
201608 3/31/2017 3/31/2017 ≡ ≡ ≡ ≡
201609 4/30/2017 5/1/2017 ≡ ≡ ≡ ≡ ≡ ≡
201610 5/31/2017 5/31/2017 ≡ ≡ ≡ ≡ ≡ ≡
201611 6/30/2017 6/30/2017 ≡ ≡ ≡ ≡ ≡
201612 7/31/2017 7/31/2017 ≡ ≡ ≡ ≡
201701 8/31/2017 8/31/2017 ≡ ≡ ≡ ≡ ≡
201702 9/30/2017 10/2/2017 ≡ ≡ ≡ ≡ ≡ ≡ ≡
201703 10/31/2017 10/31/2017 ≡ ≡ ≡ ≡ ≡ ≡
201704 11/30/2017 11/30/2017 ≡ ≡ ≡ ≡ ≡ ≡ ≡
201705 12/31/2017 1/2/2018 ≡ ≡ ≡ ≡

Due date for Code Sections 4971, 4971(f) and 4971(g)(2)/(3)/(4) is the later of the last day of the 7th month after the end of the employer's tax year or 8 1/1 months after the last day of the plan year:

Note:

There is no place on Form 5558 for the taxpayer to indicate the employer's tax year, so you will calculate the due date using the plan year end.

Plan year month Due Date Timely Postmark Date (Adjusted for weekends and holidays) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
201605 1/15/2017 1/17/2017 ≡ ≡ ≡ ≡
201606 2/15/2017 2/15/2017 ≡ ≡ ≡ ≡ ≡ ≡
201607 3/15/2017 3/15/2017 ≡ ≡ ≡ ≡ ≡
201608 4/15/2017 4/18/2017 ≡ ≡ ≡ ≡ ≡ ≡ ≡
201609 5/15/2017 5/15/2017 ≡ ≡ ≡ ≡
201610 6/15/2017 6/15/2017 ≡ ≡ ≡ ≡ ≡ ≡
201611 7/15/2017 7/17/2017 ≡ ≡ ≡ ≡ ≡ ≡ ≡
201612 815/2017 8/15/2017 ≡ ≡ ≡ ≡ ≡ ≡
201701 9/15/2017 9/15/2017 ≡ ≡ ≡ ≡ ≡
201702 10/15/2017 10/16/2017 ≡ ≡ ≡ ≡ ≡ ≡ ≡
201703 11/16/2017 11/15/2017 ≡ ≡ ≡ ≡ ≡ ≡
201704 12/15/2017 12/15/2017 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Due date for Code Section 4979 is the 15th month after the close of the plan year:

Plan Year Month Due Date Timely Postmark Date (Adjusted for weekends and holidays) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
201510 1/31/2017 2/31/2017 ≡ ≡ ≡ ≡ ≡
201511 2/28/2017 2/28/2017 ≡ ≡ ≡ ≡ ≡
201512 3/31/2017 3/31/2017 ≡ ≡ ≡ ≡ ≡ ≡ ≡
201601 4/30/2017 5/1/2017 ≡ ≡ ≡ ≡
201602 5/31/2017 5/31/2017 ≡ ≡ ≡ ≡ ≡ ≡
201603 6/30/2017 6/30/2017 ≡ ≡ ≡ ≡
201604 7/31/2017 7/31/2017 ≡ ≡ ≡ ≡ ≡ ≡
201605 8/31/2017 8/31/2017 ≡ ≡ ≡ ≡ ≡
201606 9/30/2017 10/2/2017 ≡ ≡ ≡ ≡ ≡ ≡
201607 10/31/2017 10/31/2017 ≡ ≡ ≡ ≡ ≡
201608 11/30/2017 11/30/2017 ≡ ≡ ≡ ≡
201609 12/31/2017 1/2/2018 ≡ ≡ ≡ ≡ ≡ ≡

Due Dates - Form 5558 for Form 5500 Series and Form 8955-SSA

Plan Year Ending Due Date Timely Postmark Date (adjusted for weekends and holidays) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Extended Due Date Form 5500 series & 8955-SSA
201606 1/31/17 1/31/17 ≡ ≡ ≡ ≡ ≡ 4/18/17
201607 2/28/17 2/28/17 ≡ ≡ ≡ ≡ 5/15/17
201608 3/31/17 3/31/17 ≡ ≡ ≡ 6/15/17
201609 4/30/17 5/1/17 ≡ ≡ ≡ ≡ 7/17/17
201610 5/31/17 5/31/17 ≡ ≡ ≡ ≡ ≡ 8/15/17
201611 6/30/17 6/30/17 ≡ ≡ ≡ 9/15/17
201612 7/31/17 7/31/17 ≡ ≡ ≡ 10/16/17
201701 8/31/17 8/31/17 ≡ ≡ ≡ ≡ 11/15/17
201702 9/30/17 10/2/17 ≡ ≡ ≡ ≡ 12/15/17
201703 10/31/17 10/31/17 ≡ ≡ ≡ 01/16/18
201704 11/30/17 11/30/17 ≡ ≡ ≡ ≡ ≡ 02/15/18
201705 12/31/17 1/2/18 ≡ ≡ ≡ 03/15/18

Guidelines for Acceptable Reason for Needing an Extension of Time to File - Used for Form 5558 (MFT 76) only

  • Unavoidable absence of the taxpayer or of the individual having sole authority to sign or execute the return.

    Note:

    Taxpayer planning a vacation at the time the return is due is not an acceptable reason.

  • Taxpayer needs additional time to file a complete and accurate return or is unable to obtain records necessary to prepare the return for reasons beyond his/her control.

    Note:

    Taxpayer cannot pay tax due at this time is not an acceptable reason.

  • Taxpayer is unable to obtain one or more Forms W-2 from an employer and has no other available records for wages and tax withheld.

  • Business changes such as merger, dissolution, bankruptcy, etc. which have raised complicated issues which cannot be resolved in time to permit filing by the due date.

  • Erroneous information was given to the taxpayer, or his/her tax practitioner, by an IRS employee resulting in a need for additional time to file.

  • The taxpayer's records are not available due to an IRS audit examination.

  • Death or serious illness of the taxpayer or an immediate family member, or the practitioner or key member of the staff, or the business individual having sole authority to sign or execute the return.

    Note:

    Inability of the practitioner to secure competent help in sufficient time to cope with the planned workload is not an acceptable reason.

  • Destruction of the taxpayer's records by fire, flood, hurricane, earthquake, or other natural disaster.

  • Civil disturbance (war or disturbance governed by martial law).

  • Taxpayer (organization) is working with software vendor(s) in order to file their return electronically.

Error Code 026 - Form 8868

Drop to the bottom and transmit.

Note:

If you determine the Field 01TXP s needs changing, before making any correction, you must determine timeliness based on the corrected tax period.

If Then
The Tax Period is not transcribed and/or edited correctly Enter the correct information in 01TXP.
The MFT is 36 or 37 (Form 5227) Tax Period must be 12, change month in 01TXP to 12.
The TIN is not transcribed correctly Make necessary corrections to Field 01TIN.
The extension is for a short period with the initial, final or change of accounting period box checked or there is an acceptable explanation (IRC Section or Rev. Proc. quoted Enter W in Field 01CCC
Researching INOLES and ENMOD shows the FYM agrees with the FYM on the extension Enter Clear Code C
There is a pending TC 016, 052, 053, 054, or 055 that will change the FYM to agree with the FYM on the extension Enter Clear Code C
Researching BMFOLI shows no returns posted to tax module(s) prior to the extension Assume this is an initial filing, enter W in Field 01CCC
Researching BMFOLI shows returns posted to various FYMs Correspond for clarification of the accounting period.

Note:

Do not correspond on disapproved extensions. Follow No Reply Instructions.

The extension has prior posting for the same FYM, and a TC 150 is posted for the current year SSPND 351 to Rejects. Rejects will check for posted TC 460 for current year. If posted, SSPND 480 as early filed. If not posted, change FYM to match underprint.
The postings are for the same FYM that is different from the FYM on the Extension, and there is no TC 150 posted for the current year, Change the 01TXP to the current year and bring up the underprint month. If this makes the extension late enter "2" in Field 01NOT and bring up the underprint for 01TXP

NOTE: For 8868 Only If the Extension was originally disapproved for late filing, and after following the correction procedures the extension is now found to be timely filed, refer to IRM 3.11.20.13.4.3.4(4)(a) for proper correction procedures.

Replies to Correspondence

If And Then
Reply agrees with the FYM underprint the extension is timely for the underprinted Tax Period Change 01TXP and the tax period on the document to agree with the reply.
Reply does not agree with the FYM underprint the reply includes an approved Form 1128 or a date the accounting period changed was approved SSPND 320 to Entity to update the FYM on Master File
Reply does not agree with the FYM underprint the reply quotes an IRC Section or Rev. Proc. to explain the change or indicate the extension is for a final return Enter W in Field 01CCC
Reply is inconclusive, work as a No Reply

No Replies to Correspondence

If Then
BMFOLT shows a TC 460 posted for the tax period of the extension Change 01TXP to next processing year. SSPND 480 and hold as Early Filed.
Changing the FYM to the current processing year will make the extension late filed,
  1. Enter "2" in Field 01NOT.

  2. Change 01TXP to the current processing year and bring up the underprint.

Changing the FYM to the current processing year will not make the extension late filed, change the FYM to the current processing year and bring up the underprint.

Disaster Extension Due Dates - Alphabetical by State

If the extension request is due on or after the disaster period begin date, and on or before the disaster end date, consider the request timely filed if postmarked on or before the end date if the address on the extension is from the state listed, or the applicable FEMA number or disaster designation is notated on the extension or an attachment. Follow normal timely extension procedures for processing.

State Begin Date End Date FEMA # Designation
Louisiana 8/15/2016 1/17/2017 4277-DR Louisiana/Severe Storms and Flooding

*Disaster periods may sometimes overlap if there are multiple disasters that occur in a state. Treat the extension request as timely if postmarked on or before the last end date for that state. Overlapping dates are indicated with an asterisk (*) by the state's name.

Prior Year MFT/Return Code Conversion Chart

MFT/ Return Code Chart

Return MFT Return Code
Form 990/Form 990-EZ 67 01
Form 990-BL 56 02
Form 4720 (Individual) 50 03
Form 990-PF 44 04
Form 990-T (Sec. 401(a) or 408(a) trust) 34 05
Form 990-T (trust other than above) 34 06
Form 990-T (Corporation) 34 07
Form 1041-A 36 08
Form 4720 50 09
Form 5227 37 10
Form 6069 57 11
Form 8870 12*

*Note: If return code is 12, send to OSPC, EOCA M/S 1112

Form 8868 T-Lines

T-LINE LOCATION
Notice Code Middle top margin
  • 1 Approved

  • 2 Denied (Not Timely)

Tax Period (YYMM) Top margin, right of form title
Name Control Name of filer, exempt organization or individual box
Employer Identification Number (EIN) Employer Identification number (EIN) box
Return Code Return Code Box (edited in the right margin next to the type of return to be filed on prior versions)

Note:

If return code is 12, Send to OSPC, EOCA M/S 1112.

Received Date (MMDDYY) Middle of Form
Group Code

Note:

Form 990 Filers only

Right Margin by Line 1
Action Code Bottom Left Margin

Form 5558 T-Lines for Form 5500 Series and 8955-SSA

T-LINE LOCATION
Notice Code Middle Top Margin
  • 1 Approved

  • 2 Denied (not timely)

Tax Period (YYMM) Top Margin, right of Form Title
EIN Part I Box B
Name Control Part I Section A Line 1
Plan Number Part I Section C Plan Number box

Note:

If the plan # is missing, or is less then 3 digits, attach Form 4227 for EP Entity.

Action Code Bottom Left Margin

Form 5558 T-Lines for Form 5330

T-LINE LOCATION
Notice Code Middle Top Margin
  • 1 Approved

  • 2 Not timely

  • 8 Timely Filed but not signed

  • 9 Timely Filed & Signed, but No Reason

Note:

Determine timeliness by the code indicated on Line 4a. If NO code is entered, edit Action Code 211 and initiate correspondence.

Tax Period (YYMM) Top margin, right of form title.
EIN/SSN Part 1 Box B
TIN Type Edit right of Social Security Number box
  • "0" if SSN is present

Plan Number Part I Section C Plan Number box

Note:

If the plan number is missing or is other than 3 digits, Edit Action Code 320, Attach Form 4227 for EP Entity

Received Date (MMDDYY) Middle of Form
Remittance Part III Line 4b
Action Code Bottom Left Margin

Form 8868 - Part II Conversion

Form 8868 Revision January 2014 Part II Change to Line:
Line 4 and 5 Line 1
Line 6 Line 2
Line 7 N/A
Line 8a Line 3a