3.12.278 Exempt Organization Unpostable Resolution

Manual Transmittal

December 06, 2016

Purpose

(1) This transmits revised IRM 3.12.278, SC Error Resolution, Exempt Organization Unpostable Resolution.

Material Changes

(1) Various editorial changes throughout

(2) IRM 3.12.278.3.6 - Added Foundation code 25.

Effect on Other Documents

This supersedes IRM 3.12.278 dated January 1, 2016.
This IRM also incorporates the following IRM Procedural Updates (IPU)-16U0455, 16U0821, 16U0746, 16U1611

Audience

Ogden Campus Exempt Organization Entity and Unpostables.

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. This IRM section provides instructions for correcting Exempt Organization (EO) unpostables. These cases may be resolved in either the Entity function or the Unpostable function.

  2. These procedures were formerly contained in both IRM 3.12.179, IMF/BMF/IRAF/CAWR Unpostable Resolution and IRM 3.13.222, Entity Control unpostables for IMF and BMF.

  3. This IRM contains instructions for the Unpostable functions as they pertain to Exempt Organizations. Some unpostable codes contain both EO and non-EO conditions. This IRM only covers EO and EO-related unpostable conditions and resolutions.

  4. Local management may decide to allow either function to correct these unpostable cases.

  5. Whenever an unpostable case transfers between functions, note and attach all research. This allows the receiving function to determine what actions to take.

  6. This IRM doesn’t cover all situations, so exercise judgment to work the case. Contact your Manager or Lead tax examiner to validate your decision. Request an IRM change to add instructions if you encounter repeated problems or issues not currently in the IRM.

  7. When a specific letter number is listed throughout the IRM instructions, you may use a different letter if it’s found to be more appropriate for the issue.

  8. Use the following IRMs in conjunction with this section:

    • IRM 2.3, IDRS Terminal Responses;

    • IRM 2.4, IDRS Terminal Input;

    • IRM 3.0.273, Administrative Guide;

    • IRM 3.11.12, Exempt Organization Returns;

    • IRM 3.12.12, Exempt Organization Returns;

    • IRM 3.12.32., General Unpostable Framework (GUF);

    • IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution;

    • IRM 3.13.2, BMF Account Numbers;

    • IRM 3.13.12, Exempt Organization Account Numbers;

    • IRM 3.13.222, BMF Entity Unpostable Correction Procedures;

    • IRM 3.17.79, Accounting Refund Transactions;

    • IRM 21.4, Refund Inquiries;

    • IRM 21.4.4, Manual Refunds

CADE 2

  1. The Customer Account Data Engine (CADE) 2 Program Office’s (Headquarters) goal is to implement a single, modernized programming solution providing daily taxpayer account processing.

    Note:

    The CADE Master File retired at the end of 2011.

  2. The CADE 2 solution has several components.

  3. With CADE 2 the new 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. Unpostables: New available Tuesday; Closing Tuesday

  4. BMF, EO and EPMF transaction posting timeframes are:

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

    • Transactions are viewable as posted transactions using IDRS command codes on Monday following the weekly Master File processing run on Thursday.

    Note:

    With the acceleration of the 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 DD values 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.

Glossary of Terms

  1. Account: A taxpayer identified by a Social Security Number (SSN) or Employer Identification Number (EIN). Each account contains a record of the type of returns filed and the related tax periods.

  2. Accounts Maintenance Transcripts: A transcript generated when an unresolved credit or condition is present on the Master File.

  3. Amended Return: A second return filed which changes the information submitted on the original return.

  4. Asset Code: The code used to identify end of year total assets.

  5. Automated Collection System (ACS): A computerized system used in call site operated collections for tax periods within an account which is in taxpayer delinquent investigation (TDI) or taxpayer delinquent account (TDA) status.

  6. Automatic Data Processing (ADP): The handling and processing of data from electronic machines with a minimum of human intervention.

  7. Batch: A group of work of like documents within a program code.

  8. Block: Returns or documents grouped together for filing purposes; the ninth, and digits of the DLN indicate the blocking series where the return is filed. The eleventh digit of the DLN is the blocking series for examination purposes. It identifies whether the return was an original return, copy of the return, BRTVU/RTVUE print or no return and whether it was a survey or examined case file.

  9. Blocking Series: The blocking series is a three digit numeric field associated to the document or returns for posting to Master File.

  10. Business Master File (BMF): A file containing information about organizations filing business returns and related documents.

  11. Business Operating Divisions (BOD): Effective 01/01/2000, all IMF and BMF taxpayers will be systemically assigned to a BOD code based on the characteristics of the tax return. IMF taxpayers will either be assigned to the SE (Small Business/Self-employed) BOD or to the WI (Wage and Investment) BOD. BMF taxpayers will be assigned to the LB & I (Large Business & International) BOD, to the TE (Tax Exempt) BOD or to the SE BOD.

  12. Calendar Year: The twelve month period from January 1 through December 31.

  13. Centralized Authorization File (CAF): A file which contains information regarding the type of authorization taxpayers have given representatives for the various modules within their accounts.

  14. Check Digit: Consisting of two alphabetic characters, the check digit is determined by the application of a mathematical formula to the SSN or EIN.

  15. Command Code (CC):A five character code used to input data and requests on IDRS.

  16. Computer Paragraph (CP): Computer generated notices used to request information from or give information to an organization regarding certain aspects of their tax return. Also, certain notices are generated to inform the campus of posting to the Master File which require additional action.

  17. Consolidate: The moving of data when one organization has erroneously been given more than one TIN.

  18. Credit Balance: A term noting a credit outstanding on a tax module. It is identified by a minus sign (−) after the amount.

  19. Cross Reference (XREF): An action which identifies related TINs and names (DBA).

  20. Cycle: One week's processing at the campuses, the Martinsburg Computing Center (MCC), and Tennessee Computing Center (TCC). The cycle is expressed as a six (6) digit code: the first four digits represent the processing year and the last two digits represent the processing week within the year.

  21. Document Code (DOC CODE):A two digit code which identifies the specific type of return or document which was filed or processed; it is the fourth and fifth digits of the DLN.

  22. Document Locator Number (DLN): A control number assigned to every return, document or transaction input through the ADP system. The fourteenth (last) digit is the year of processing and is assigned by the campus computer program at the time of original input. The DLN is used to control, identify and locate documents and transactions processed in the ADP system.

  23. Dummy Return: An input return not prepared by the organization or an input document treated as a return.

  24. Employee Number: A ten digit number assigned to each employee authorized to access IDRS.

  25. Employer Identification Number (EIN): An assigned nine digit number used to identify a business tax account.

  26. Employment Code (EC):A one letter code used to identify certain employers regarding Social Security taxes and Federal Unemployment tax.

  27. Entity: The portion of the Master File record which identifies the organization. It contains the name, address, social security or employer identification number, employment code if applicable, name control, location codes, filing requirement codes, fiscal period and date of establishment.

  28. Excess Collections: An account of unapplied credits transferred from an unidentified or Master File account.

  29. Federal Tax Deposit System (FTD): Payments received by the Internal Revenue Service from a Federal Reserve Bank, indicating deposits made by an organization.

    Note:

    As of January 2011, FTDs are no longer accepted at Federal Reserve Banks or the Internal Revenue Service.

  30. Fiduciary: A person or institution entrusted to act on behalf of a taxpayer.

  31. File Source: A one digit code which follows the taxpayer identification number (TIN). The values are:

    Blank Valid SSN or EIN
    0 Invalid SSN on IMF
    V Valid SSN on BMF
    W Invalid SSN on BMF
    D Temporary TIN
    P Valid IRA SSN
    valid EPMF EIN
    X Invalid IRA SSN
    invalid EPMF EIN
  32. Filing Requirement Code (FRC):This code identifies the type of return an organization must file.

  33. Fiscal Year Month (FYM):Any month an organization elects to be the ending month of its accounting year.

  34. Group Exemption Number (GEN):A four digit number issued to a parent organization and its subordinate chapters under a blanket "GROUP RULING."

  35. Group Exemption Roster (GER)/CC EOGEN:An alphabetic and numeric listing of organizations which were issued Group Exemption Numbers. Published semiannually as Document 6023, it was replaced by CC EOGEN, which allows on-line research using the GEN number of the group.

  36. Group Return: Form 990 filed by a parent organization for all of its subordinates which have elected to be covered by the group return. This return with its own EIN is filed in addition to the parent organization’s own return.

  37. Income Code: A code used to identify yearly receipts for EO/BMF returns.

  38. Integrated Data Retrieval System (IDRS): A computer system with the capability to instantaneously retrieve or update stored information which will work in harmony with our Master File or organization accounts. This system is aimed at quick resolution of problems and inquiries concerning current and prior taxpayer accounts.

  39. Julian Date: The numeric day of the year the return or document was numbered for processing; for example, January 15 would be shown as 015. The sixth, seventh and eighth digits of the DLN represent the Julian Date.

    Note:

    If the DLN is computer generated, the Julian Date is inflated by 400, so January 15 is shown as 415.

  40. Martinsburg Computing Center (MCC): The Martinsburg Computing Center, located in Martinsburg, WV, is where both business and individual transactions are posted to the various Master Files.

  41. Master File (MF):A record containing all information with respect to the organizations filing of returns and related documents. The Business Master File (BMF) contains records on each organization, divided into two sections, the entity section and the returns section.

  42. Master File Tax Account Code (MFT):A two digit number which identifies the type of tax form.

  43. Merger: When two or more corporations combine and one is the successor corporation, the other corporation files final returns on their number. DO NOT confuse this with Consolidation (TC 011).

  44. Microfilm: A media to provide photographic records of tax data on a reduced scale.

  45. Name Control (NC): The first four letters of an entity's last name (in the case of an individual) or the first four letters of an entity's business name (in the case of corporations, etc.). The name control is used to check the Master File and ensure the TIN corresponds with the proper organization.

  46. Name Search Facility (NSF): This facility provides the capability to search a national data base for an unknown TIN (EIN or SSN) using name and address information. The NSF provides search capability for primary, secondary and Doing-Business-As (DBA) filers. The command codes used to search the NSF are CC NAMES (SSN) and CCs NAMEE (EIN)/NAMEB.

  47. National Account Profile (NAP): A national TIN file of entities on the IMF, BMF, EPMF and IRAF. It is used to validate the TIN or TIN/name control for IDRS input command codes and for researching with CC INOLE.

  48. Parent: The governing body of a controlled group of corporations or an exempt organization with a group ruling.

  49. Pending Transaction: A transaction input to IDRS but not yet effective on the Master File account.

  50. Pilot Voucher: An Exempt Organization/BMF Entity voucher prepared for processing group exemptions. This is a file copy only.

  51. Pilot Voucher File (PVF):This file of all pilot vouchers is kept in GEN order. The pilot vouchers are used in establishing new subordinates of a group ruling.

  52. Power Of Attorney (POA): The authorization of a third party by a taxpayer to represent the taxpayer in certain tax matters. See CENTRALIZED AUTHORIZATION FILE (CAF).

  53. Primary Location Code (PLC): The PLC is the Area Office code based on the address where the taxpayer receives mail. The BMF should generate the PLC, or we can create or change it by CC BNCHG, Document Code 50 or 63. The PLC is issued to identify the service center controlling the account.

  54. Prior Year: A tax period which precedes the current processing year.

  55. Re-Input: The reentry into the processing system of a return or document which has not posted to the Master File.

  56. Refile: A refile is sending the return or document back to Files to be filed in its original position in the block.

  57. Reject: A return or document which was not accepted by the campus computer because of incorrect or incomplete information.

  58. Reprocessable: The reentry into the processing system of a return or document which previously posted to the Master File.

  59. Resequence: A resequence occurs when a transaction cannot be posted or processed until the following week (cycle) at MCC.

  60. Return: A legal form or written evidence used by an organization to record tax information.

  61. Subordinate: A subordinate is a local affiliate of a Parent organization.

  62. Subsection Code: This code designates the type of exemption an organization has received.

  63. Supplemental Group Ruling Information (SGRI): An SGRI is a letter submitted to the IRS each year by the Parent organization of a group ruling detailing any changes to its subordinates.

  64. Tax Module: A tax module is part of an organizations account which reflects tax data for each type of tax and tax period.

  65. Tax Period: This is the period of time for which a return is filed. The Service uses a six digit code to indicate the end of the tax period for a given return. The first four digits represent the year and the last two digits represent the month.

  66. Taxpayer Delinquent Account (TDA): A TDA is a tax module in collection status in which a return was filed but not fully paid.

  67. Taxpayer Delinquency Investigation (TDI): A TDI is a tax account in collection status which has a filing requirement for which a return has not been received.

  68. Taxpayer Identification Number (TIN):The TIN is a generic term representing either an EIN or SSN.

  69. Transaction Code (TC): This three digit code is used to identify transactions being processed, to maintain a history of actions posted to taxpayer accounts on the Master File, and to identify actions being taken on an organization’s account.

  70. Transcript: A transcript is a copy of entity and tax data from the Master File concerning an organizations account.

  71. Unpostable (UP): An unpostable is an input return or transaction which attempted to post to the Master File but could not because of inconsistencies with prior posted transactions, filing requirements or the input data.

  72. Unprocessable:An unprocessable is a document which is incomplete, illegible or otherwise unsatisfactory for input.

IRS Employee Contacts

  1. Background

    1. The Restructuring and Reform Act of 1998 (RRA 98) section 3705 provides identification requirements for all IRS employees working tax–related matters.

    2. IRS employees must give their name and unique identification number during taxpayer phone calls, face-to-face meetings and in manually generated correspondence. In addition, all correspondence must have a phone number that the taxpayer may call.

    3. This provides taxpayers with enough information to identify an IRS employee who previously assisted with tax-related matters.

  2. All IRS employees, whether in the field, national or regional offices, who communicate by phone, correspondence, or face-to-face with taxpayers or their personal representatives on tax-related matters must provide (at a minimum):

    • Phone Call - title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID card) number

    • Face-to-Face - title (e.g., Mr., Mrs., Ms., Miss), last name and ID card number provided at the appropriate time during the conversation

    • correspondence - title (e.g., Mr., Mrs., Ms., Miss); last name; IDRS, letter system or ID card number; and phone number where the taxpayer's question can be answered

      Note:

      The IDRS number and numbers for some other letter systems are automatically generated. If not generated, or you prepare a handwritten note, use your ID card (badge) number.

  3. Employees on toll-free customer service lines may also provide their location for identification purposes. Emails and faxes to taxpayers or to their representatives on tax-related matters are consideredmanually-generated correspondence and must include the required information.

  4. All manually generated correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

  5. When a taxpayer insists on speaking with a specific employee who previously handled their inquiry or request, or complains about the level of service previously provided, make every attempt to resolve the taxpayer's inquiry. If you can’t resolve the issue, refer the inquiry using established procedures to your manager.

  6. Correspondence and notices not manually generated require your name and phone number only if you are in the best position to respond to any questions the taxpayer may have about the correspondence, or you’re asking the taxpayer to provide additional case-related information. Otherwise, if the taxpayer doesn’t need to contact you, the correspondence needs only an IRS phone number and standard signature.

  7. You don’t need to repeat the ID card (badge) number on a subsequent contact, when the nature of your work involves multiple contacts with the same taxpayer and you’ve given the taxpayer (either by phone or in person) your ID card (badge) number on the first contact.

  8. Before disclosing any tax information in all types of taxpayer contact, verify you are speaking with an authorized representative of the taxpayer.

    Note:

    Please see the discussion of tax exempt organizations at IRM 11.3.2.4.6, Tax Exempt Organizations. Also, before leaving any messages on an answering machine or voice mail, please review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail. Review the fax procedures in IRM 11.3.1.11, Facsimile Transmission of Tax Information before faxing confidential information.

National Service Level Agreements (SLAs)

  1. National Service Level Agreements (SLAs) were established between Operating Divisions. This section contains specifics regarding SLAs which pertain to activities performed using this IRM.

Taxpayer Advocate Service Level Agreement
  1. The Taxpayer Advocate Service (TAS) established National Service Level Agreements (SLAs) with each Operation Division. The SLAs contain basic requirements for handling TAS-referred cases, and include specific action to take on a TAS referral and specific time frames for completing those actions.

  2. You can find the SLAs at http://tas.web.irs.gov/policy/sla/default.aspx.

  3. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who:

    • Experience economic harm

    • Seek help in resolving tax problems unresolved through normal channels

    • Believe an IRS system or procedure isn’t working as it should.

  4. TAS criteria include:

    • economic burden

    • systemic burden

    • best interest of the taxpayer

    • public policy (as determined solely by the National Taxpayer Advocate (NTA)

      Note:

      See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria for additional information.

  5. While the IRS continually works to serve customers in a quality manner, some taxpayers still have difficulty getting solutions to their problems or getting timely and appropriate responses to their inquiries. Congress established the office of the NTA and its functions within the IRS to assist these taxpayers. (IRC 7803(c)).

    1. TAS identified criteria that qualify taxpayers for TAS assistance.

    2. The Case Advocate conducts an independent review of actions taken or that need to be taken to resolve the problems taxpayers are experiencing.

  6. Don’t view TAS Case Criteria as a means of excluding taxpayers from TAS, but rather as a guide to TAS case acceptance. The criteria under which TAS accepts a case shouldn’t govern whether a taxpayer is entitled to relief.

  7. Refer taxpayers to TAS when the contact meets TAS criteria. ( IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) and you can’t resolve the taxpayer's issue today(within 24 hours).

    1. These include cases you can completely resolve in 24 hours, as well as cases in which you take steps within 24 hours to begin resolving the taxpayer's issue.

    2. Don’t refer these cases to TAS unless they meet TAS criteria and the taxpayer asks for a transfer to TAS.

    3. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and send it to TAS per your local procedures. Check the TAS box on AMS, if applicable.

    4. Give the taxpayer the NTA toll-free case intake line, 1-877-777-4778 or TTY/TDD 1-800-829-4059.

    5. Advise the taxpayer that TAS is available if the taxpayer isn’t satisfied with the service rendered.

      Note:

      Always handle potential TAS cases with the taxpayer's best interest in mind. Refer to IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines for more information.

  8. Make a referral to a TAS office if the you contacted by a taxpayer, and can’t act to resolve the inquiry or provide the relief requested. A taxpayer doesn’t have to specifically request TAS assistance to be referred to TAS. Advise taxpayers of the option to seek TAS assistance when appropriate. TAS requests documentation from the taxpayer if needed to support the requested relief or required by the IRM.

  9. Don’t refer to TAS:

    • Taxpayer complaints or inquiries only question the constitutionality of the tax system.

    • Taxpayer inquiries that solely focus on employing frivolous tax strategies to avoid or delay filing or paying federal taxes.

  10. Use Form 911 to forward any taxpayer meeting any of the criteria below to the local Taxpayer Advocate for special handling:

    • The taxpayer is experiencing economic harm or is about to suffer economic harm.

    • The taxpayer is facing an immediate threat of adverse action.

    • The taxpayer will incur significant costs if relief isn’t granted (including fees for professional representation).

    • The taxpayer will suffer irreparable injury or long-term adverse impact if relief isn’t granted.

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

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

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

    • The manner of tax law administration raises considerations of equity, or have impaired or will impair the taxpayer's rights.

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

      Note:

      This list isn’t all inclusive. Evaluate each taxpayer situation based on the unique facts and circumstances of each case.

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

  12. In cases requiring an OAR, TAS completes Form 12412 and forwards the case to the Operating Division Liaison via Form 3210, Document Transmittal. The Operating Division Liaison reviews the case, assigns it to the appropriate area, and monitors the case through its conclusion. The liaison provides TAS with the name and employee number of the person assigned to resolve the case.

  13. When TAS requests expedite processing, Operating Division or Functions Liaisons acknowledge receipt via Form 3210, secure messaging email, fax, or by phone within one workday of receipt of the OAR.

  14. For OARS that don't require expedite processing, the Operating Division or Functions Liaisons acknowledge receipt via Form 3210, secure messaging email, fax, or by phone within three workdays of receipt of the OAR.

  15. Make every effort to expedite completion of OAR cases. Form 12412 indicates timeframes for the assigned area to complete the case.

    1. Employee: If you can't resolve a taxpayer’s case by the requested timeframe or by a negotiated extension date, immediately notify your manager.

    2. Manager/employee: Work with the Taxpayer Advocate contact listed on Form 12412 to arrive at agreed upon timeframes for follow-up based on the facts and circumstances of the particular case.

    3. Manager/employee: Discuss the findings and recommendations on the final disposition of the case with the appropriate TAS contact. The TAS contact is responsible for communicating the final decision on the case to the taxpayer. However, this doesn't stop you and your manager from also communicating that decision to the taxpayer.

    4. Manager/employee: If you and the TAS contact can't agree upon the resolution to the taxpayer’s problem, the TAS employee elevates this disagreement to his/her manager who discusses it with the appropriate Operating Division manager. You and your manager are to also elevate any disagreement to his/her manager.

  16. Refer to IRM 13.1.7 , Taxpayer Advocate Service (TAS) Case Criteria , for Taxpayer Advocate case criteria. If during contact, a taxpayer appears to be in a hardship situation, complete Form 911 and refer the taxpayer to the Taxpayer Advocate Service (TAS). See IRM 21.1.3.18 , Taxpayer Advocate Service (TAS) Guidelines, for more information.

Manual Refunds

  1. Refer to IRM 21.4.4, Manual Refunds, ,IRM 3.17.79 , Accounting Refund Transactions, and IRM 3.13.222.15, Unpostables Requiring Manual Refunds, to identify the need for a manual refund. Refer to the Servicewide Electronic Research Program (SERP) for current and accurate manual refund alerts and IRM procedural updates (IPU).

  2. Any unpostable return can potentially require a manual refund. Unpostable employees are required to identify when a manual refund is necessary and take actions to initiate the manual refund.

  3. Common criteria for issuing a manual refund include:

    • A hardship situation requires an expeditious refund (TAS)

    • The 45 day interest free period is in jeopardy and the refund is ≡ ≡ ≡ ≡ or more

      Note:

      A refund is in jeopardy if the current date is 20 days beyond the later of the Return Due Date, Return Received date or correspondence Received date (CRD) also referred to as the Return Processable Date (RPD).

    • The refund is one million dollars or more

    Note:

    Manual refunds are no longer input by EO Unpostables. Manual refunds should be sent to Rejects for input.

  4. If a manual refund is required:

    • Resolve the unpostable condition

    • Release the unpostable using URC 8

    • Route the return with a request for the manual refund to Rejects

Research and Resolution Information, Methods, and Tools

  1. IDRS Command Codes which create posting transactions have their TIN and name control combinations validated prior to the "Request Completed" response. These transactions are passed against the Taxpayer Identification File (TIF) and the National Account Profile (NAP) to ensure the transaction will post properly at the Master File.

  2. Research is required on all unpostable cases unless:

    • The unpostable is an obvious transcription error; or

    • Resolution procedures for the particular Unpostable Code (UPC) specifically state otherwise.

  3. Proper research is essential to ensure accurate resolution and closure of unpostable cases. There are six types of research you can perform:

    • Corporate Files On-Line (CFOL)

    • Integrated Data Retrieval System (IDRS)

    • EP/EO Determination System (EDS)

    • SOI EO Imaging Network (SEIN)

    • Employee User Portal (EUP)

    • Secretary of State (SOS) website. See IRM 3.13.12, Exempt organization account numbers.

  4. If the return is not provided with the F4251, online SEIN should be used to resolve unpostables and initiate correspondence if necessary to resolve unpostables timely. If SEIN is not available order Document with the D2, D3 process.

  5. Completely review and resolve ALL unpostable conditions which could result in a repeat unpostable condition, including the submodule, FYM and filing requirement (FR).

  6. When research determines a submodule , FYM or FR need to be corrected to match the unpostable issue, input TC 016.

  7. If a return from SEIN is used, leave a history on ENMOD indicating a return from SEIN was used including the MFT and Tax Period of the SEIN return.

  8. In 2006, Congress mandated all tax-exempt organizations, except churches and church related groups, file an annual return or notice starting in the 2007 tax year. Congress also mandated any organization that failed to file for three consecutive years would automatically lose their tax-exempt status. Beginning May 17, 2010, exempt organizations who fail to file for three consecutive years will lose their tax exempt status. The organization's status will automatically be changed to Status 97 and Form 1120 or 1041 filing requirements will be added to their account beginning in 2011. Those organizations who file Form 990–N were given an extension of time to file until October 15, 2010. In order to ensure organizations whose return is in an unpostable condition are not erroneously revoked, a transaction 599 cc 18 should be input on every unpostable 990 or 990-PF return if the return was received by the due date or extended return due date, and if the unpostable condition is not corrected within 12 weeks of the revocation process. Use the table below to determine when to input the TC 599 cc 18.

    Due Date Month of the return: Input TC 599/18 if you are working the unpostable 12 weeks or less of:
    May 17, 2010 November 1, 2010
    June 15, 2010 December 1, 2010
    July 15, 2010 January 1, 2011
    August 16, 2010 February 1, 2011
    September 15, 2010 March 1, 2011
    October 15, 2010 April 1, 2011
    November 15, 2010 May 1, 2011
    December 15, 2010 June 1, 2011
    January 17, 2011 July 1, 2011
    February 15, 2011 August 1, 2011
    March 15, 2011 September 1, 2011
    April 15, 2011 October 1, 2011

Corporate Files On-Line (CFOL)

  1. CFOL provides nationwide access, meaning information processed through any area office or campus and posted to any Master File is available.

  2. CFOL command codes provide on-line access to Master File information, residing at MCC, via IDRS.

  3. CFOL command codes are available even when IDRS is not; however, you still need a password to sign on and access the command codes.

  4. CFOL command codes do not show pending transactions, case controls, history items or unpostables. IDRS research must be performed in addition to CFOL research.

  5. Some of the more common CFOL command codes you will use include:

    1. BMFOL - The B usiness M aster F ile O n–L ine provides research of nationwide entity and tax data information posted to the BMF. It displays a summary or index (definer code I) of tax modules, showing the tax years available. The Business Master File is updated every Thursday morning at MCC. Therefore, any transaction which is updating the BMF can be seen on BMFOL on Thursday prior to the weekend campus update.

    2. BRTVU - BRTVU provides a display of the transcribed line items on all business tax returns and their accompanying schedules or forms as the returns are processed at the campuses. Use BRTVU in lieu of ordering returns whenever possible.

    3. EOGEN - EOGENP can find a Parent organization using the GEN of the group. EOGENS will also provide a list of subordinate organizations for the parent organization. This list is limited to 30 pages, with 20 subordinates per page. You can narrow the search for subordinates by entering the optional state abbreviation ("." for foreign addresses). This is especially helpful when researching large organizations such as Little League, Lions Club International, etc. EOGEN will not research by EIN. If you know the EIN but not the GEN, research CC BMFOL definer O to get the GEN, then research CC EOGEN. EOGEN does not provide full entity information for subordinates. It provides a starting point for further research.

    4. INOLE - INOLE provides access to the NAP, which contains selected entity information for all Master File accounts. The NAP contains vital information which can identify the taxpayer, but does not contain all of the entity data for the taxpayer. Additional research must be done using CC ENMOD or CC BMFOL. CC INOLE is updated each Wednesday at the computing centers.

IDRS

  1. Integrated Data Retrieval System (IDRS): IDRS is a computer system with the capability to retrieve and update stored taxpayer account information on the Master Files. You perform research on IDRS through the use of various command codes (CC) input to an IDRS terminal.

Common IDRS Research Command Codes
  1. NAMEE/NAMEB is used to search for an EIN.

  2. ENMOD is used to display the entity information of a specific TIN.

  3. SUMRY is used to display a list of the tax modules (TXMODs) currently available via IDRS.

  4. TXMOD is used to display specific tax module information for a specific TIN.

  5. UPTIN is used to display all open cases and cases which were closed within the last 90 days for a specific TIN.

Universal IDRS Access
  1. Universal IDRS Access is part of the Tax Systems Modernization (TSM) effort to provide IDRS users the ability to research data on another campus' Taxpayer Information File (TIF) database. It allows the user to access the most current account data available, including pending transactions, unpostables, facts of filings, etc.

  2. Universal IDRS Access is actually a combination of two separate initiatives: "Remote Access" and "National Account Index" .

  3. "Remote Access" allows the IDRS user to input certain research command codes in other campus databases by rerouting the request. This is done by the input of the command code followed by the routing symbol ("@" ), the two digit campus location code, and transmitting.

  4. The "National Account Index (NAI)" is a national index which tracks the campus location of all IDRS TIF accounts where the account is up. If there is "no data available" on the local database, the NAI will automatically search for other locations where the account is up. If another location is found, a message will be displayed at the bottom of the screen.

  5. For more information, See IRM 2.3, IDRS Terminal responses.

Common IDRS Input Command Codes
  1. BNCHG is used to input entity information changes to the BMF.

  2. ENREQ is used to generate the screen format for BNCHG.

  3. LETER is used to input information and generate a C letter.

  4. EOCHG is used to input changes to the EO sub-module of BMF accounts.

  5. EOREQ is used to generate the screen format for EOCHG;.

  6. FRM49 is used to input TC 59X transactions.

  7. REQ49 is used to generate the screen format for FRM49.

  8. UPDIS is used to display a specific unpostable case and generates command code UPRES.

  9. UPRES is used to input closing action(s) on an unpostable case.

IDRS Pending Codes
  1. Transactions which are pending are identified on IDRS with a unique code. The most common of these pending codes are:

    1. Unnn - the transaction has unposted (nnn represents the number of the unpostable code).

    2. CU - the transaction is a corrected unpostable.

    3. DU - the transaction unposted and was deleted (will not post to Master File).

    4. DN - the transaction was deleted during IDRS batch processing.

    5. RJ - the transaction is in Reject status.

    6. NU - the transaction unposted and was nullified (sent to the Reject function for resolution).

    7. DC - the transaction was deleted by Rejects.

      Note:

      See LEM 3.27.68 or Document 6209, IRS Processing Codes & Information, for more information on these and additional pending transaction codes.

TE/GE (EP/EO) Determination System (EDS)

  1. EDS is an automation of certain segments of the EP/EO determination process. EDS is a menu-driven system. The Inventory Control Subsystem and the Letter Generation Subsystem are the two segments the EO Unpostable Unit will use.

  2. EDS research is required to determine correct status for most exempt organization unpostable accounts. EDS information should be used to update an exempt organization's filing status. EDS research should be used in conjunction with all other research tools to ensure accounts reflect current and accurate exempt organization data.

  3. The Inventory Control System replaces the Exempt Organization Application Control System (EACS) as the system which tracks cases from opening to closing; however, EACS, which is renamed Master File Pipeline System continues to function in the campuses as the link between EDS and Master File.

  4. The Letter Generation Subsystem provides a means to automatically generate requests for additional information and the viewing and generation of closing letters.

  5. The following is a list of the Open Status Codes:

    Open Status Codes Definition
    31 In Review
    32 Returned on Review Memo
    33 Return from Review
    34 Area Council Approval
    35 30 Day Letter Sent
    37 Group Suspense
    38 Review Suspense
    39 Technical Screening Suspense
    40 Proposed Adverse Determination
    41 Proposed Technical Advice
    50 Area Office Receipt
    51 Unassigned Inventory (Non-merit)
    52 Assigned to Specialist (Non-merit)
    53 Manager Returned to Specialist
    54 Transferred to Appeals
    55 Waiting for Closing Approval
    56 Technical Advice Transfer (Suspense)
    57 TEDS Awaiting Closure on EDS
    58 Workload Transfer
    59 EDS Manual Process (Case is no longer being processed on TEDS)
    60 Open in Technical Screening
    61 Unassigned Inventory (Merit)
    62 Assigned in Technical Screening (now reflects the associated Specialist Number on the case history page)
    63 New Case Establishment (TEDS) (Cases established on EDS have an initial status of 50.)
    64 Manager returned to specialist (Technical Screening)
    71 Unassigned Inventory (Accelerated Processing)
    72 Case Assignment (Accelerated Processing)
    73 Manager Returned to Specialist (Accelerated Processing)
    74 Awaiting Managerial Review
    75 Group Inventory
    91 Unassigned Inventory (Washington)
  6. The following is a list of Closed Status Codes:

    Closed Status Codes Definition
    01 Approved
    02 Disapproved
    03 Returned Incomplete
    04 Withdrawn by T/P
    06 Merit Closure No Contact
    08 Refusal to Rule
    09 Merit Closure with Contact
    11 Failure to Establish
    12 Other
    30 Correction Disposal
  7. The following is a list of Type of Request Codes:

    Type of Request Codes Definition
    I Initial
    A Amendment
    T Termination of Exempt Status
    P Termination of Private Foundation Status
    F Private Foundation Follow-up
    R Returned, Post Review

    Note:

    For additional EDS codes, see Document 6379, Exempt Organization Management Systems Codes.

Subsection and Classification Code

  1. The table below includes a complete listing of EO Subsection and Classification Codes:

    SS Code Class. Code Type of EO 1986 IR Code 1939 IR Code
    01 1 Government instrumentality 501(c)(1) 101(15)
    02 1 Title holding company 501(c)(2) 101(14)
    03 1 Charitable corporation 501(c)(3) 101(6)
    03 2 Educational organization 501(c)(3) 101(6)
    03 3 Literary organization 501(c)(3) 101(6)
    03 4 Org to prevent cruelty to animals 501(c)(3) 101(6)
    03 5 Org to prevent cruelty to children 501(c)(3) 101(6)
    03 6 Org for public safety testing 501(c)(3) 101(6)
    03 7 Religious organization 501(c)(3) 101(6)
    03 8 Scientific organization 501(c)(3) 101(6)
    04 1 Civic league 501(c)(4) 101(8)
    04 2 Local association of employees 501(c)(4) 101(8)
    04 3 Social welfare organization 501(c)(4) 101(8)
    05 1 Agricultural organization 501(c)(5) 101(1)
    05 2 Horticultural organization 501(c)(5) 101(1)
    05 3 Labor organization 501(c)(5) 101(1)
    06 1 Board of trade 501(c)(6) 101(7)
    06 2 Business league 501(c)(6) 101(7)
    06 3 Chamber of commerce 501(c)(6) 101(7)
    06 4 Real estate board 501(c)(6) 101(7)
    07 1 Pleasure, recreations or social clubs 501(c)(7) 101(9)
    08 1 Fraternal beneficiary society or association 501(c)(8) 101(3)
    09 1 Voluntary employees beneficiary assoc-Non- government 501(c)(9) 101(16) & (19)
    09 2 Voluntary employees beneficiary assoc- government 501(c)(9) 101(16) & (19)
    10 1 Domestic fraternal societies and associations 501(c)(10) N/A
    11 1 Teachers retirement fund association 501(c)(11) 101(17)
    12 1 Benevolent life insurance association 501(c)(12) 101(100)
    12 2 Mutual ditch or irrigation company 501(c)(12) 101(100)
    12 3 Mutual or cooperative telephone company 501(c)(12) 101(100)
    12 4 Organization like those on three preceding lines 501(c)(12) 101(100)
    13 1 Burial association 501(c)(13) 101(5)
    13 2 Cemetery company 501)(c)(13) 101(5)
    14 1 Credit union 501(c)(14) 101(4)
    14 2 Other mutual corporation or association 501(c)(14) 101(4)
    15 1 Mutual insur co or assoc other than life 501(c)(15) 101(11)
    16 1 Corporation financing crop operation 501(c)(16) 101(13)
    17 1 Supplemental unemployment comp. trust or plan 501(c)(17) NA
    18 1 Empl funded pension trust created before 6-25-59 501(c)(18) NA
    19 1 Post or organization of members of the armed forces 501(c)(19) NA
    20 1 Legal service 501(c)(20) NA
    21 1 Black lung benefit trust 501(c)(21) NA
    22 1 Multiemployer pension plan 501(c)(22) NA
    23 1 Veterans association founded prior to 1880 501(c)(23) NA
    24 1 Trust described in IRC 4049 or ERISA 501(c)(24) NA
    25 1 Title-holding company for pensions etc 501(c)(25) NA
    26 1 State sponsored high risk health ins. org 501(c)(26) NA
    27 1 State sponsored workers compensation reinsurance 501(c)(27) NA
    28 1 National Railroad Retirement Investment Trust 501(c)(28) NA
    29 1 State Health Care Insurance 501(c)(29) NA
    40 1 Apostolic and religious organization 501(d) 101(18)
    50 1 Cooperative hospital service organization 501(e) NA
    60 1 Coop service orgs of operating education orgs 501(f) NA
    70 1 Child care center 501(k) NA
    71 1 Charitable risk pool 501(n) NA
    80 1 Farmers Cooperative 521 NA
    81 1 Qualified state sponsored tuition program 529 NA
    82 1 Political Organizations 527 NA
    90 1 Nonexempt charitable trust 4947(a)(2) (split interest) 4947(a)(2) NA
    91 1 Nonexempt charitable trust (public charity) 4947(a)(1) NA
    92 1 Nonexempt charitable trust (treated as Pvt. Fdn.) 4947(a)(1) NA
    93 1 Taxable farmers cooperative 1382(a)(2) NA

EO Status Codes

  1. The following table is a list of EO Status Codes:

    EO Status Description
    Blank EO Section established without a status.
    01 Unconditional Exemption
    02 Conditional Exemption
    06 State University filing Form 990–T
    07 Church Filing a Form 990–T
    10 Pre-Examination of Church
    11 School Certification
    12 A Formal Exemption Not Granted-Filing an EO Return
    Form 990 Under IRC 4947(a)(1)
    Form 990-PF Under IRC 4947(a)(1)
    Form 5227 Split-Interest Trust
    Form 1120-CTaxable Farmers Cooperative
    18 Temporary Revocation of Pvt. Foundation (Trust) (Required to file Forms 990-PF and 1041)
    19 Revocation of Pvt. Fdn. (Required to file Forms 990-PF and 1120
    20 Termination - Inactive (Out of Business, etc.)
    21 Unable to locate - (New Address Needed)
    22 Revocation - (Required to file Form 1120)
    23 507(a) Termination
    24 507(b)(1)(A) Termination
    25 507(b)(1)(B) Termination
    26 Termination Merger
    28 No longer a member of a Group Ruling

    Note:

    Status 28 is not used for campus processing

    29 A Group Ruling was dissolved

    Note:

    Status 29 is not used for campus processing

    30 Churches who voluntarily File Form 990
    31 Small organizations other than Private Foundations
    32 (Obsolete January 1, 2008) Non-responders to CP 140/144
    33 Foreign Pvt. Fdn.- No Exemption - Required 4% Tax on Investment Income
    34 527 Political Organization
    35 Foreign Entities Exempt by Treaty with U.S.
    36 Non 501(c)(3), (9) or (17) Organizations - No ruling or determination
    40 Return Filed - No Record of Exemption
    41 No Reply to Solicitation - No Exemption
    42 Extension filed/posting payments to 1st EO Return - No Exemption
    70 Denied - No Exemption
    71 Incomplete Form 1023/1024 - No Exemption
    72 Refusal to Rule - No Exemption
    97 Revoked - Failure to meet their filing requirements for three consecutive years. (Organizations lose exempt status and are required to file Form 1120. All EO return filing requirements will be removed.)
    98 Terrorist Organization - No Exemption
    99 Dump Code - No Exemption
EO Status Code 01
  1. When an organization is granted an exemption, Cincinnati EO Determinations or NO SE:T:EO will input the information on the BMF to create the EO account, or add the exemption data to an already existing account. When Status Codes 01 or 02 are present on the BMF/EO account, they indicate an exemption was granted to the organization. IRC 501(c)(3), 501(c)(9) and 501(c)(17), organizations are required to notify the Service they are seeking tax-exempt status; therefore, they must file a Form 1023 or 1024 as applicable with EO Determinations.

    Exception:

    Churches, conventions of churches, integrated auxiliaries of churches, and organization with gross receipts of less than $5,000 are not required to apply for tax-exempt status.

    Note:

    IRC 501(c) organizations other than IRC 501(c)(3), IRC 501(c)(9) and IRC 501(c)(17), organizations are not required to file an application for exemption, though they may do so. They are considered exempt even though they do not apply for exemption.

    Note:

    Beginning January 2004 a Form 990-T or a payment for a Form 990-T will automatically post to an account in EO Status 01-02 if the name control and EIN on the return or payment match the name control and EIN on Master File. A Form 990-T filing requirement will be added to the module.

  2. If research of EDS on first screen indicates status 01, 06 or 09 update the BMF for the EO section, using the procedures in IRM 3.13.12.5, EO/BMF.

    Caution:

    If the status code on EDS is other than 01, 06 or 09 do not update the EO Status Code to 01.

  3. If the entity is an Non-Integrated Auxiliary (NIA), the Form 990 FRC should be 13, with SS 03 and Type of Foundation Code 10. Research CC ENMOD.

    If Then
    The account is on the BMF, Add the EO section with CC EOREQ/CC EOCHG, Doc. Code 80, TC 016, Definer Codes ABC and add the EO data from the pilot voucher (Form 2363A). The following fields must be added from the Form 2363A: subsection, foundation code (if applicable), classification code, affiliation code, type of organization, status code and date, ruling date, deductibility code and year, new GEN, pension plan, employment code, FYM, NTEE, NAICS code and filing requirements.
    The account is not on the BMF, Add the account to the BMF. Use CCs EOREQ/EOCHG with Doc. Code 80, TC 000 and use the pilot voucher or EDS as the source information to update the BMF.
    The ruling date is available, Use the ruling date when returning the EO Status to 01.
EO Status Code 06
  1. Use Status Code 06 to create an EO section on the BMF for an account which is a state operated university or college or a Re-insurance company, required to file Form 990-T for unrelated business income.

    Note:

    To identify a Re-insurance company, check the top of Form 990-T for the words "Re-insurance Company" or similar wording. If unable to determine whether the 990-T is filing for a re-insurance company, put the account in the appropriate status code.

  2. When a Form 990-T is received for this type of entity and research shows it does not have an exemption, use EO Status 06 to add an EO section to the EIN on the BMF. Input a TC 971 AC 319 for the tax period indicated on the return.

  3. Input this status code with a TC 012 or 016 using CC EOREQ/CC EOCHG. If a return is received without an EIN and research does not locate an EIN, assign an EIN.

  4. The following items must be present for EO Status 06:

    • Doc. Code 80

    • TC 012 or 016

    • Definer Codes - AB

    • STS-CD/DT - 06YYYYMM

    • FYM

    • Filing Requirements 990-T - 1

    • REMARKS

EO Status Code 07
  1. When the EO section is not on the BMF, use Status Code 07 to create an EO section for an account which is a church filing Form 990-T.

  2. When a Form 990-T for a church is received and research does not reveal an exemption, use Status Code 07.

  3. Never use this status code under the following conditions:

    1. The GEN is shown in item F on the return. In these cases, use the pilot voucher.

    2. 401(a) trust is checked on the return or the name contains words such as "Pensions," "Retirement," "Welfare," or " Profit Sharing Plans." See IRM 3.13.12.9.12.4, Form 990-T (401(a) and 408 IRA Trustfor information on 401(a) and 408 IRA Trusts filing Form 990-T.

    3. The organization name does not clearly indicate a church, or you are in doubt whether the organization is a church. In these cases, use Status Code 40.

  4. Add the EO section to the BMF with CCs EOREQ/EOCHG. The items shown below must be present when processing a TC 016.

    • Doc. Code 80

    • TC 016

    • Definer Codes - AB

    • STS-CD/DT - 07YYYYMM

    • FYM

    • Filing Requirements 990-T - 1

    • REMARKS

    If Then
    The account is not on the BMF, Use CC EOREQ/CC EOCHG with Doc. Code 80 and TC 000.
    The account is on the BMF, Use CC EOREQ/CC EOCHG with Doc. Cod 80, TC 016 and Definer Codes AB.
EO Status Code 10
  1. Use Status Code 10 to create an EO section for a church which was examined by the EO Area Office in Dallas.

  2. The Form 990 which will be received will be prepared by the EO Area Office Examination. It will be a dummy return, input to create a tax module on the BMF to allow the examination closing record to post.

  3. Add the EO section to the BMF through IDRS with CC EOREQ/CC EOCHG.

    If Then
    The account is not on the BMF, Use CC EOREQ/CC EOCHG with Doc. Code 80 and TC 000.
    The account is on the BMF, Use CC EOREQ/CC EOCHG with Doc. Code 80, TC 016 and Definer Codes A and B. The items shown below must be present.
    • Doc. Code 80

    • TC 016

    • Definer Codes - AB

    • STS-CD/DT - 10YYYYMM

    • FYM

    • Filing Requirements 990-06

    • REMARKS

EO Status Code 12
  1. Use Status Code 12 to create an EO section for returns filed under IRC 4947(a)(1) or 4947(a)(2) or Taxable Farmer's Cooperatives when the EO section is not on the BMF.

  2. If Forms 990 or 990-PF under IRC 4947(a)(1), 990-C/1120-C or 5227 are received and research does not reveal an exemption, use Status Code 12.

    Note:

    Use Status Code 12 for a Form 990 filer if EDS shows a 1071 Letter was sent to the organization.

  3. Add the EO section to the BMF through IDRS with CC EOREQ/CC EOCHG.

    1. If the account is not on the BMF, use CC EOREQ/CC EOCHG with Doc. Code 80 and TC 000.

    2. The items shown below must be present for processing TC 000.
      Doc. Code 80
      TC 000
      Name Control
      Primary Name
      Street Address
      City, State, ZIP
      Subsection Code
      Classification Code
      STS-CD/DT - 12YYYYMM
      FYM
      Filing Requirements
      REMARKS

    3. For updating EO Status to 12, use the following table:

      Forms Received Type of Filer Subsection Code
      5227 4947(a)(2) 90
      990 4947(a)(1) 91
      990-PF 4947(a)(1) 92
      990-C/1120-C Taxable Farmer's Co-Op 93
  4. If the account on the BMF is without an EO section or with an incorrect EO section due to a Form 5227 or Form 1120 FRC, use CC EOREQ/CC EOCHG with Doc. Code 80, TC 016 and Definer Codes AB. To correct, do the following:

    1. Use the applicable subsection codes as shown above.

    2. For Forms 5227, check line B and G.

      If Then
      Line G indicates the trust has unrelated business income, or box 1 or 4 is checked on line B, use FRC 2. Research BMF to ensure a Form 1041 FRC is present, adding if necessary.
      Line G indicates the trust has no unrelated business income, or box 2 or 3 is checked on line B Use FRC 1. Research BMF and delete any Form 1041 FRC, if present.
    3. For Forms 990 and 990-PF:

      If Then
      The BMF has an EO section for Form 5227, Delete the Form 5227 and 1041 FRC on the same input as adding the Forms 990 or 990-PF FRC. Always enter ST 12 and use the current date.
      A Form 1041-A FRC is also present on the BMF, You must input a TC 591, Closing Code 20, to the tax period of the latest posted MFT 36 tax module.
    4. For Forms 990-C/1120-C, always delete the incompatible 1120 FRC.

    5. For Doc. Code 80, TC 016 input use Definer Codes AB, Subsection Code, Status Code/Date 12YYYYMM, FYM, filing requirements and remarks.

EO Status Codes 18 and 19
  1. Status Codes 18 and 19 are input by Cincinnati when a private foundation exemption is revoked. The organization is required to continue filing the Form 990-PF return.

  2. Status 18 is used when the organization is a trust. Cincinnati will change the Type of Organization to a 6 and the Subsection Code to a 92. The type of foundation code will be deleted by the BMF. The organization will be required to file both a Form 990-PF and a Form 1041.

  3. Status Code 19 is used when the organization is a corporation. The organization will be required to file both a Form 990-PF and a Form 1120.

EO Status Code 20
  1. Status Code 20 ("Terminated/Out of Business" ) is used when the organization with an individual ruling is terminated or out of business. The filing requirement for all EO returns will be updated to zero automatically.

    1. This status can be input by the campus when correspondence from the organization contains statements such as "out of business" , "no longer in operation" , or "terminated" .

      Note:

      Status 20 is only used for organizations with individual rulings. If the organization is a subordinate of a group and the parent indicates it is no longer part of the group, the subordinate is put in Status 36 or 40 depending on the subsection.

    2. Input this status with a Doc. Code 80, TC 016 and Definer Code B. and the current date is input for the status date (YYYYMM).

    3. If the organization has a 501(c)(3) exemption with end of year assets greater than $100,000 (see Line 22 Part l on Form 990, Line 21 Part l on Form 990-EZ, Line 6 Part lll on Form 990-PF), do not input Status 20. Forward the case to Cincinnati. Annotate on the transmittal to establish a T case.

    4. When the organization responds to a delinquency notice with statements such as "out of business" , "no longer in operation" , "terminated," etc., a TC 591 cc 20 will be input. When this transaction posts to the tax module which is a primary return, the EO Entity Status will be updated to 20 with the date the TC 591 posted.

      Exception:

      If the BMF shows the account to be a subordinate of a group ruling; i.e., a GEN is present and the AF is 7 or 9, the update will be to a Status Code 28.

    5. When a final return is filed and Computer Condition Code F is input, the EO Entity Status is automatically updated to 20.

      Exception:

      If the BMF shows the account to be a subordinate of group ruling; i.e., a GEN is present and the AF is 7 or 9, the update will be to a Status Code 28.

Status 20 changes for Central organizations (Affiliation code 6)
  1. When the EO status must be changed from Status 20 to any other EO status for a central organization (Affiliation code 6), IT programmers for the GEN file must take action before any updates will post to Masterfile.

  2. Once a need for status change has been identified, ensure all subordinate groups of the GEN have been removed or are in an inactive status.

  3. Input TC 590 CC 020 on Form 1120.

  4. Inform the TEGE analyst with oversight of this program of the Employer Identification Number (EIN) and GEN.

  5. No additional actions should be taken until further instructions are given by the TEGE analyst.

  6. Once the additional instructions are sent, the actions must be taken within 24 hours of receipt. If actions are not taken timely, the entire update process will be in jeopardy.

  7. Final closing instructions will be different for each case and must be given on a case by case basis.

  8. Once the Central organization had been re-established and all final actions have posted to masterfile, all subordinates must be added back to the GEN.

EO Status Code 21
  1. Status Code 21 ("Unable to locate " ) is used when we are unable to locate the organization. Status Code 21 is generated by the input of CC FRM49 with a TC 593 cc 082. The posting of the TC 593 cc 082 removes all EO filing requirements.

  2. When working an unpostable return which requires the updating of the EO Status Code from 21 to 01:

    1. Check EDS for a "T" case. If a "T" case is found, update the Status Code to 40. Notify the organization they have terminated and must apply for a formal exemption.

    2. If no "T " case is found, update the EO Status to 01 and post the return. Research CC BMFOLI to determine for what years the organization did not file a return and input a TC 474 to create a tax liability for those years.

  3. Update the filing requirements as follows:

    1. If the return indicates gross receipts greater than $50,000, update the 990 filing requirements to 990-01.

    2. If the return indicates gross receipts less than or equal to $50,000, update the 990 filing requirements to 990-02.

    3. If there is no indication or you are unable to determine the gross receipts, update the 990 filing requirements to 990-02.

EO Status Code 22
  1. Status Code 22 ("Revocation" ) is used when the organization's exemption is revoked. This status will generate a Form 1120 filing requirement. If the Form 1120 FR is missing, add it to the account.

    Note:

    An organization in EO Status 22 cannot become a member of a group ruling without receiving an individual ruling first.

  2. If the organization files a Form 990-PF but there is an Form 1120 FR, change the status to 01 to post the Form 990-PF, return the account to its previous status after the return has posted. If the organization files a Form 990 but there is a Form 1120 FR, check the Docketed Case listing to determine the disposition of the return. Check the Docketed Case List for the assigned attorney and contact the attorney for information on how to dispose of the case.

  3. Follow the lawyer's instructions given and do not correspond with the organization. If not, on the Docketed Case listing, continue working the unpostable using the normal procedures.

EO Status Codes 23 and 24
  1. Status Code 23 ("Termination Under 507(a)" ) is used when the organization is terminated under 507(a). The filing requirements of all EO returns will be updated to a zero, except Form 990-PF which will not change.

  2. Status Code 24 ("Termination Under 507(b)(1)(A)" ) is used when the organization is terminated under 507(b)(1)(A). The filing requirement for all EO returns will be updated to zero, except Form 990-PF which will not change.

EO Status Code 25
  1. Status 25 Background Information

    1. Status 25 represents private foundations which have received an advance ruling letter from Cincinnati indicating they are terminating under 507(b)(1)(B), also known as a 60-month termination. Cincinnati will update the EO Status to 25 and input an Advance Ruling Date using Form 2363A. There will be a TC 016 with Cincinnati's DO code on CC BMFOLE to indicate the EO status was changed and advance ruling date input.

    2. These organizations will continue to file a Form 990-PF for 5 years, but may elect not to pay tax on net investment income. If they elect not to pay tax, a Form 872B (Consent to Extend the Time to Assess Miscellaneous Excise Taxes) must be attached to the Form 990-PF when filed. The interest on the tax should continue to accumulate in this case, but the organization should not receive notices or penalties. At the end of the 5 years, the organization must show they meet public support test.

    3. If they do meet the public support test, Cincinnati will issue a new determination letter, update the EO Status to 01, change the FR to Form 990 and remove the advance ruling date. If the organization did not choose to pay their excise tax, they will not owe the interest which has accumulated. If the organization chose to pay the tax during the 60-month termination, they may apply for a refund.

    4. If the organization does not meet the public support test, Cincinnati will remove the advance ruling date, update the EO Status to 01 and the filing requirement will remain a Form 990-PF. If the organization did not pay any excise tax during the 60-month termination, the organization will owe back taxes plus interest.

    5. In the last year of the 60-month termination, the organization may file a Form 990 if they provide the necessary information to Cincinnati as stated in the Form 990-PF instructions and Cincinnati determines they meet the public support test and issues them a new determination letter. Process as follows:

      If Then
      The organization files a Form 990 for the final year of their termination period:
      1. Research EDS to determine if they were approved as a public charity.

      2. If they were approved, update the BMF with a TC 016 Doc. Code 80 Definer Codes AB. Input URC 0 to release the unpostable and cycle to post after the TC 016.

      3. If they have not been approved, correspond with the organization indicating they are required to supply Cincinnati with the necessary information to determine if they are a public charity before they can file a Form 990. Also indicate if they have supplied the necessary information to Cincinnati to please send a copy along with their response. If they did not supply Cincinnati with the necessary information, they are required to file a Form 990-PF for the last year of their termination period.

      The organization responds with a copy of the information supplied to Cincinnati,
      1. Contact personnel in Cincinnati at (513) 263-4653 asking for a determination of the organization's public charity status.

      2. If Cincinnati indicates the organization is a public charity, update the BMF with a Form 990 filing requirement and EO Status of 01 with a TC 016 Doc. Code 80 Definer Codes AB. Input URC 0 to release the unpostable and cycle to post after the TC 016.

      3. If Cincinnati indicates the organization is still a private foundation, update the BMF with a Form 990 filing requirement an EO Status of 01 with a TC 016 Doc. Code 80 Definer Codes AB. Input URC 0 to release the unpostable and cycle to post after the TC 016. Monitor for posting. After the return posts, input a TC 016 and update the filing requirements to 990-PF.

      The organization responds with a completed Form 990-PF:
      1. URC 8 to release the unpostable. Ask Rejects to cancel the DLN.

      2. Attach the Form 990 to back of the Form 990-PF and send the Form 990-PF through for processing.

      .
      The organization does not respond:
      1. Update the BMF with a Form 990 filing requirement an EO Status of 01 with a TC 016 Doc. Code 80 Definer Codes AB. Input URC 0 to release the unpostable and cycle to post after the TC 016.

      2. Monitor for posting. After the return posts, input a TC 016 and update the filing requirements to 990-PF.

  2. If a Form 990-PF with the 60 - month termination box checked is received from Code & Edit, research EDS to determine if an Advance Ruling Letter 2245 was issued. There will be no advance ruling date on EDS. Also research IDRS with CC INOLE to determine if the EO Status is 25 and if there is an advance ruling date present. If no advance ruling date is present, it can be found by reprinting the 2245 Letter through the Letter Generation system on the Inventory Control System Menu on EDS.

    1. If an Advance Ruling Letter 2245 was issued to the organization as shown on EDS and the termination period began prior to January 1, 2002, but Master File has not been updated, update the advance ruling date as indicated in the advance ruling letter using CC EOREQ/EOCHG, TC 016 Doc. Code 80. It is not necessary to update the EO Status to 25 because the Termination Code 1 will update the status systemically. Edit Termination Code 1 on the return if Code & Edit has not already done so.

      Caution:

      It is imperative these instructions are followed. Otherwise, there is adverse impact on the taxpayer as well as other processing areas.

    2. If no advance ruling letter was issued to the organization, the EO Status is 25, and there is no advance ruling date on Master File, notify the organization with Letter 4588C they must apply for an advance ruling to qualify for the 507(b)(1)(B) termination per Publication 578. Also notify the organization they will receive a balance due notice. Input a TC 016 Definer Code B to update the EO Status to 01. Circle out the Termination Code 1 on the return.

EO Status Code 26
  1. Status Code 26 ("Termination/Merger " ) is used for the account which is no longer in existence when two exempt organizations are merged (both accounts were exempt either by individual rulings or by a group ruling). All the EO filing requirements will be updated to zero.

    Note:

    When returning an account to Status 01, use the ruling date as the status date, if available.

  2. When updating an account to EO Status Code 26, always input the x-reference EIN if available.

EO Status Code 28
  1. Status Code 28 ("No longer a member of a group ruling" ) is input systemically if a parent account is placed into Status 29. All the EO filing requirements will be updated to zero.

  2. If an account is in Status Code 28 on Masterfile, update the account to Status 36 or 40. Status 40 should be used if the subsection is 501(c)(3), (9) or (17). Status 36 should be used for all subsections other than 501(c)(3), (9) or (17).

  3. An organization in Status 28 must file an application for exemption if their subsection is 03, 09, or 17. If these organizations file a return, update the Status to 40 and post the return. If the organization in Status 28 has a subsection other than 03, 09, or 17, update the Status to 36 to post the return. If the organization has already filed for and received exempt status as indicated on EDS, update the Status to 01, using the ruling date as the status date.

EO Status Code 29
  1. Status Code 29 is used when a group ruling was dissolved. All the EO filing requirements will be updated to zero.

  2. To update a parent to an individual ruling, input TC 016, Doc. Code 80, Definer Code G, From GEN (must not be 0000 or 9999), Affiliation Code of 1 or 3, New GEN 9999, EO Status Code 01 with ruling date as the status date, Form 990 FR (must be 01, 02 or 06), FYM, Classification Code, Subsection Code, Foundation Code of 10 - 18 is SS - 03, and Remarks.

  3. Do not place organization in Status 29 during campus processing. See IRM 3.13.12.12.7, Dissolving a Group Ruling for information on dissolving a group ruling.

EO Status Codes 30 - 33
  1. Status Code 30 applies to churches, their integrated auxiliaries, and conventions or associations of churches as described in IRC 501(c)(3) who voluntarily file Form 990 though not required to file returns or apply for exemption.

    1. When the church without an exemption files the Form 990, it will unpost as a UPC 366.

    2. Establish the EO section with EO Status Code 30 using the current month and year as the status date with TC 016 Doc. Code 80 Definer Code B. No filing requirement is necessary. Status Code 30 will bypass the UPC 329 check and allow the Form 990 to post in the future.

      Caution:

      If a church has filed for and received an exemption, do not update the EO Status from 01 to 30

    Note:

    Beginning January 2004 a Form 990-T or a payment for a Form 990-T will automatically post to account in EO Status 30 if the name control and EIN on the return or payment match the name control and EIN on Master File. A Form 990-T filing requirement will not be added to the module.

  2. Status Code 31 applies to small organizations, other than churches and private foundations, who normally have annual gross receipts of $50,000 or less and who voluntarily file Form 990 or 990-EZ, even though they are only required to submit a Form 990-N.

    1. When these types of small organizations file their Form 990, it will unpost as a UPC 366.

    2. Establish the EO section with EO Status Code 31 using the current month and year as the status date with TC 016 Doc. Code 80 Definer CodeAB and add the appropriate filing requirement.

    3. If an organization applied under a particular subsection and was denied (Status 70), do not update the Status to 31 under the denied subsection.

    Note:

    Status 31 applies to 501(c)(3) organizations (excluding churches) with gross receipts normally $50,000 or less which have filed a Form 990.

  3. Status 31 Transcripts will be issued weekly if a Form 990 posts to an account in EO Status 31 and the gross receipts are greater than $50,000. The transcripts will be titled "Status 31 over $50,000" and contain the following information: organization name, EIN, tax period of the Form 990 and gross receipts. Process the transcripts as follows:

    1. Research CC BRTVU to determine the gross receipts for the last three years.

    2. If the organization's gross receipts are found to be greater than $50,000, update the EO Status Code to 40 with a TC 016 Doc. Code 80 Definer Code B if the subsection is 03/09/17/20. If the subsection is other than 03/09/17/20, update the EO Status to 36.

    3. If the organization's gross receipts are found to be $50,000 or less, continue processing.

    4. Check EDS for any change in the organization's status code. Update if necessary with a TC 016 Doc. Code 80 Definer Code B.

    5. After the transcript is worked, destroy per local service center procedures.

  4. Status Code 32 applies to CP 140s and CP 144s with no response to the notice. If no TC 150, 460, 590, 591, 594-599 has posted to a tax module with a Form 990 filing requirement within 90 days of the issuance of the notice, the system will automatically update the EO Status to 32 with a TC 016 Doc. Code 80 Definer Code B.

    Note:

    Due to the difference between the receipt of a return and the posting of a return, EO Status Code 32 may not be updated to 01 Status. If a return is received and account is in Status 32, update the account to Status 01.

    Note:

    Status Code 32 should not be used after January 1, 2008 since the CP 140 and 144 notices are obsolete.

  5. Status Code 33 applies to foreign private foundations described in IRC 4948(b) which are not required to apply for exemption but are required to file a Form 990-PF to pay 4% tax on gross investment income derived from sources with the United States.

    1. When these types of foreign private foundations file their Form 990-PF, it will unpost as UPC 366.

    2. Establish the EO section with EO Status Code of 33 using the current month and year as the status date with TC 016 Doc. Code 80 Definer B. No filing requirement is necessary. Status Code 33 will bypass the UPC 329 and will allow the Form 990-PF to post in the future.

EO Status Code 34
  1. Status Code 34 applies to political organizations operating under the rules of IRC 527. Generally, there are two types of 527 organizations:

    Type Description
    Federal Organizations
    1. FEC political committee: A political organization (including federal candidate committees, political party committees and PACs) which is required to report as a political committee under the Federal Election Campaign Act.

    2. Other federal political organization: A political organization attempting to influence federal elections which is not required to report as a political committee under the Federal Election Campaign Act.

    State/Local Organizations
    1. Candidate committee: A campaign committee of a state or local candidate.

    2. Party committee: A state or local committee of a political party.

    3. Qualified state or local political organization (QSLPO): A state or local committee whose political activities relate solely to a state or local public office, is subject to state law which requires it to report to a state agency information about contributions and expenditures, makes reports publicly available, and no federal candidate or office holder controls it, participates in its direction, or solicits contributions for it.

    4. Caucus or association: a group of state or local officials attempting to influence elections.

    5. Other political organization: any other state or local political organization.

    1. Filing Requirements: The filing requirements in the chart below apply to those tax-exempt political organizations which receive or expect to receive $25,000 or more in gross receipts in any taxable year.

      If the Organization is a It May Be Required to File
      FEC political committee, state or local candidate committee or state or local committee of a political party, Form 1120POL.
      Qualified state or local political organization (QSLPO)*, Form 8871;
      Form 1120POL; and
      Form 990.
      Caucus or association of state or local officials*, Form 8871;
      Form 8872; and
      Form 1120POL.
      Any other political organization, including other federal political organizations and other state or local political organizations, Form 8871;
      Form 8872;
      Form 1120POL; and
      Form 990 or Form 990-EZ.

      *An organization may be both a QSLPO and a caucus or association of state or local officials. If so, it is not required to file Form 8872 and Form 990.

      Note:

      If the political organization does not have gross receipts of at least $25,000, it must file Form 1120 POL if it has taxable income after taking the $100 specific deduction for any taxable year.

    2. See IRM 3.13.12.14.1, Form 8871/8453X for Form 8871/8453X instructions. See IRM 3.13.12.14.3, Form 8872 for Form 8872 instructions.

EO Status Code 35
  1. Status Code 35 applies to foreign entities the IRS has agreed are exempt by treaty with the participating country but have no foundation code. For example, Canadian charities would be set up on Master File with an EO Status Code of 35.

    1. When this type of foreign entity files a Form 990-PF, Form 990 or Form 990-T, it will unpost as UPC 366.

    2. Establish the EO section with EO Status Code 35 using the current month and year as the status date with TC 016 Doc. Code 80 Definer B. No filing requirement is necessary. Status Code 35 will bypass the UPC 329 check and will allow the return to post in the future.

EO Status Code 36
  1. Status Code 36 applies to Form 990 filers with a Subsection other than (3), (9), (17), or (20).

    If Then
    The return is an Unpostable 366:
    1. Determine the classification code using Document 6379 (II-3) if the return is marked with a Subsection other than (3), (9), (17) or (20). Establish the EO Section with a Form 990FR of 01, EO Status Code 36 using the current month and year as the status date, FYM, subsection code as indicated on the return, classification code and remarks with a TC 016 Doc. Code 80 Definer Codes AB.

    2. If the return does not have a subsection, put the account in Status 40 using a TC 016, Definer code B. URC 0 code the unpostable and cycle to post after the TC 016.

    Note:

    Beginning January 2004 a Form 990-T or a payment for a Form 990-T will automatically post to account in EO Status 36 if the name control and EIN on the return or payment match the name control and EIN on Master File and the Type or Organization code is 3 and a Form 990 FRC of 01/02/04/06 or Form 990-PF FRC of 01. A Form 990-T filing requirement will be added to the module.

EO Status Code 40
  1. Use Status 40 to create an EO section for a return marked with SS 03, 09, or 17 which has not been granted an exemption at the time the return was filed.

  2. Each month (except January) "Status 40" information is downloaded from Master File to the EO Status 40 System in Ogden.

  3. If Forms 990 (SS 03/09/17/20) or Forms 990-PF (other than 4947(a)(1)) are received and research does not reveal an exemption, use Status 40. If a BMF FRC for Forms 1041, 1065 or 1120 is on the BMF account, zero out the applicable FRC.

  4. Add the EO account to BMF through IDRS with CC EOREQ/CC EOCHG.

    If Then
    The account is not on the BMF, Input a TC 000 with Doc. Code 80, Status Code 40, FYM, and remarks.
    The account is on the BMF, Input a TC 016 Doc. Code 80 Definer Codes B, Status Code 40, FYM and remarks.
EO Status Codes 41 and 42
  1. Status Code 41 ("Failed to Reply to Solicitation for Application" ) is used by Entity for purported 501(c)(3)/(9)/(17)/(20) organizations which have finished the Status 40 process. When processing "Status 40" cases, the organization is contacted with a CP 120 to solicit an application for exemption. If the organization does not apply and receive a form exemption, the system will automatically update the account to Status 41. When inputting this status, a filing requirement for Forms 1041or 1120 will be input.. If an organization in Status Code 41 files a subsequent return, process following the specific instructions for the type of unpostable.

  2. Status Code 42 will only be used in limited circumstances as of September 2011.

Eo Status Codes 70 - 72
  1. Status Code 70 ("Exemption Denied " ) is input by Cincinnati when, on the merits of the application, an exemption cannot be granted. This status will generate a Form 1120 filing requirement of 01.

  2. Status Code 71 application is incomplete and a response to a request was not received. This status will generate a Form 1120 filing

  3. Status Code 72 ("Refusal to Rule " ) is input by Cincinnati when the applicant is unable to furnish a detailed description of its planned activities. This description would clearly indicate whether the organization was exempt or not. This status will generate a Form 1120 filing requirement of 01.

EO Status Code 97
  1. Status 97 is automatically updated on Master File when an organization fails to file Forms 990/990EZ, 990-N or 990–PF for three consecutive years. All EO filing requirements will be removed. This status will automatically generate a Form 1120 filing requirement.

  2. An account in Status 97 is required to file Form 1120 or 1041 or re-apply for tax exempt status by filing Form 1023 or 1024 and paying all applicable fees.

    Note:

    Do not update any accounts to or from Status 97. If any correspondence is received stating erroneous revocation and requesting reinstatement and research indicates the account should be updated, close the case as no action (URC 0 to post return) and forward to the TEGE Analyst at M/S 1110. Do not update the status.

Status 97 changes for Central organizations (Affiliation code 6)
  1. When the EO status must be changed from Status 97 to any other EO status for a central organization (Affiliation code 6), IT programmers for the GEN file must take action before any updates will post to Masterfile.

  2. Once a need for status change has been identified, ensure all subordinate groups of the GEN have been removed or are in an inactive status.

  3. Input TC 590 CC 020 on Form 1120.

  4. Inform the TEGE analyst with oversight of this program of the Employer Identification Number (EIN) and GEN.

  5. No additional actions should be taken until further instructions are given by the TEGE analyst.

  6. Once the additional instructions are sent, the actions must be taken within 24 hours of receipt. If actions are not taken timely, the entire update process will be in jeopardy.

  7. Final closing instructions will be different for each case and must be given on a case by case basis.

  8. Once the Central organization had been re-established and all final actions have posted to masterfile, all subordinates must be added back to the GEN.

EO Status Codes 98 and 99
  1. Status 98 is input when an organization is identified as a terrorist organization by National Office. This status will automatically generate a Form 1120 filing requirement. When an organization Status 98 files an exempt organization return, it will unpost. Process the unpostable as follows:

    1. URC 8 and request Rejects cancel the DLN.

    2. Give the return to the Lead so the return can be forwarded to EO Classification in Dallas.

  2. Status 99 is input when an organization in EO Status 22, 41, 70-72 files another exempt organization return and they still do not have an exemption. The status will automatically generate a Form 1120 filing requirement. All exempt organization returns and any associated payments filed in future tax years will automatically post. This status code will replace the procedure of shelving status 22, 41, 70-72 returns which could not be posted in the past. EO or SBSE Examination will use Status 99 to determine what organizations require an audit. When a return unposts because the Status is 22, 41, 70-72, process as follows:

    1. Research EDS to determine if the organization has filed a new application for exemption is pending on EDS. If new application is pending, input a TC 016 Definer Codes AB to update the Status Code to 40 and remove the Form 1120 filing requirement. URC 0 to post the return and cycle to post after the TC 016.

      Note:

      EO applications are imaged and available through MEDS Documentum.

    2. If EDS shows an F case, input a TC 016 Doc. Code 80 Definer Codes AB to remove the 1120 filing requirement and add the information on EDS to Master File. URC 0 to post the return and cycle to post after the TC 016.

    3. If EDS does not show a good exemption, correspond with the organization using the 3909C Letter for Status 41 organizations or the 3877C Letter for Status 70-72 organizations. If a determination letter is provided contact personnel in Cincinnati at (513) 263 4653 to verify the determination letter is valid. If a determination letter is not provided, or a new application for exemption submitted, or there is no reply, update the EO Status to 99 with a TC 016 Doc. Code 80 Definer Code B; URC 0 to post the return and cycle to post after the TC 016. If the organization provides information indicating exemption, update Master File per the organization's response with a TC 016; URC 0 to post the return and cycle to post after the TC 016. Occasionally, both Form 1120 and 1041 filing requirements will post to the account. If this occurs, remove the EO subsection with TC 022. If there is an Employment Code W present on Master File, remove the Employment code W. Use CC BNCHG, EMPLMNT- CD < 9 & remarks Per ST 99 /TXPY Liable. You may then remove the incompatible filing requirement and close the unpostable with URC 0.

EO Foundation Codes

  1. The following table is a list of EO Foundation Codes:

    Foundation Codes Description
    00 4947(a)(1)
    02 Exempt Operating Foundation with an ruling under 4940(d)(2)
    03 Private Operating Foundation
    04 Private Non-Operating Foundation
    09 Suspense (a specific type not identified)
    10 Church - IRC 170(b)(1)(A)(i)
    11 School - IRC 170(b)(1)(A)(ii)
    12 Hospital - IRC 170(b)(1)(A)(iii)
    13 Organizations operated for the benefit of a College or University -170(b)(1)(A)(iv)
    14 Federal State or Local Government unit (IRC 170(b)(1)(A)(v)
    15 Organization receiving support from governmental unit or general public (IRC 170(b)(1)(A)(vi)
    16 General - Public Charity 509(a)(2)
    17 Public Charity supporting (FC 09-15) (IRC 509(a)(3)
    18 Public Safety (IRC 509(a)(4)
    21 Supporting organization - 509(a)(3) - Type I
    22 Supporting organization - 509(a)(3) - Type II
    23 Supporting organization - 509(a)(3) - Type III functionally integrated
    24 Supporting organization - 509(a)(3) - Type III not functionally integrated
    25 Agricultural Research Organization (IRC 170(b)(1)(A)(ix)
  2. See IRM 3.13.12.6.14, Foundation Code for more information.

Affiliation Code

  1. The following table lists EO Affiliation Codes:

    Affiliation Code Description
    1 Central Organization - (individual ruling)
    2 Intermediate Organization - (individual ruling)
    3 Independent Organization - (individual ruling)
    6 Parent of a group ruling (not a church)
    7 Intermediate Parent (subordinate by state)
    8 Parent of a church
    9 Subordinate of a group ruling (also group return)

    Note:

    For instructions on inputting the Affiliation Code (AF) with CC EOREQ/EOCHG, See IRM 3.13.12.6.16, Affiliation Code.

Type of Organization

  1. The following table lists type of organizations:

    Type of Organization Description
    1 Corporation
    2 Trust
    3 Cooperative
    4 Partnership
    5 Association
    6 Non-Exempt Charitable Trust - NECT

Processing Time Frames

  1. The GUF 1140 report is accessed on Control-D. The GUF 1140 report shows all new unpostables received in GUF.

  2. Unpostables should be closed within 60 days of appearing on the 1140 report or they will age.

  3. The acceptable old age for Exempt Organization unpostables is 10%.

Accessing the GUF

  1. GUF is accessed by the employee via IDRS. Sign on to IDRS using your password prior to attempting GUF access. You are authorized to access only those accounts necessary to resolve your assigned cases. You are forbidden to access your own or your spouse's account, the account of a friend, relative or coworker, or any account in which you have a financial interest.

  2. Employees who engage in unauthorized access or browsing of tax accounts are subject to disciplinary actions and possible criminal prosecution. BROWSING is defined as looking at a tax account to satisfy a personal curiosity or for fraudulent reasons.

  3. GUF is accessed using the IDRS command codes UPDIS, UPASG, UPCAS, UPBAT, UPTIN, UPRES and UPREV.

Unpostable Command Codes
  1. CC UPTIN displays all open unpostables for a specific TIN and will maintain the unpostable on its file for display purposes for 90 days after it is closed.

  2. CC UPBAT is used to batch (mass) close non-RPS unpostable cases.

  3. CC UPASG is used to assign or reassign an unpostable case or group of unpostable cases.

  4. CC UPCAS/UPCASZ, is used to suspend a case, request research, order missing documents and add history items to the screen display. EO Clerical should use the following procedures to obtain missing documents:

    1. If the Form 4251 is received without the return, check SEIN to see if return is available before proceeding with the instructions below.

    2. If the first or second request does not have a document attached, check to see if the document is charged out to another area. If the document is charged out, contact the area by phone for a copy of the return. Otherwise, take no action.

    3. If the third request does not have a document attached, initiate a special search to Files by stamping in red "SPECIAL SEARCH" on the Form 4251. Indicate SPECIAL SEARCH in the Remarks of CC UPCAS.

    4. The fourth request automatically results in an URC 8 to Rejects have the DLN cancelled.

      Note:

      Tax Examiners should not ask Rejects to do a special search on the fourth request.

  5. CC UPDIS/UPRES is valid for all Master Files, and is used to display an unpostable record.

    1. When UPDIS is input, the automatic screen display shown will be UPRES. UPDIS will display the unpostable information which was previously displayed on UPCAS.

    2. The following table lists the Unpostable Resolution Codes for CC UPRES.

    URC USE
    0 No change made to transaction; the information on UPCAS will match the Master File.
    1 Transaction to be re - input with same DLN.
    2 Void - Transaction to be deleted. Creates IDRS control base.
    6 Change name control; add name line or identification number; or a combination of TIN, name control, transaction code, transaction date, computer condition code, tax period or MFT (if transaction code and tax class are compatible.
    8 A transaction will be corrected by Rejects or when the DLN should be voided.
    A Automatic correction of name control.
    B Special closure made by the Unpostable-GUF.
    D VOID - Transaction deleted when no further action is necessary. Does not create an IDRS control base.
  6. The valid unpostable command code definers and definer- modifiers are as follows:

    CC Definer Values Definer-Modifier Values Definer Meanings
    UPASG B
    R
    blank
    blank
    Batch case reassignment.
    Single case reassignment.
    UPBAT D,0,1,2,8
    T
    W
    blank
    blank
    blank
    Valid resolution codes.
    Deletes previous batch input
    Reverses previous batch input.
    UPDIS blank NONE Display unpostable case. When CC UPDIS is input the displayed CC UPRES will be shown displaying all previous standard UPCAS information. Also, if there are other cases on CC UPTIN with the same TIN as the unpostable case, GUF will display the message "other cases with the same TIN on UPTIN."
    UPCAS blank blank No longer exists.
    M A Specific tax module MRS transcript request - display.
    M B Specific tax module MRS transcript request - hard copy.
    M C Complete - All modules MRS transcript request - display.
    M D Complete - All modules MRS transcript request - hard copy.
    M E Entity module MRS transcript request - display.
    M F Entity module MRS transcript request - hard copy.
    M G BMF quarterly for year MRS transcript request - display.
    M H BMF quarterly for year MRS transcript request - hard copy.
    M I Specific - for Spousal account tax module MRS - display.
    M J Specific - for spousal account tax module MRS - hard copy.
    M K Complete - for spousal account all modules MRS - display.
    M L Complete - for spousal account all modules MRS - hard copy.
    M M Entity module - for spousal account MRS - display.
    M N Entity module - for spousal account MRS - hard copy.
    M O Specific - for valid and invalid accounts tax module MRS - display.
    M P Specific - for valid and invalid accounts tax module MRS - hard copy.
    M Q Complete - for valid and invalid accounts all modules MRS - display.
    M R Complete - for valid and invalid accounts all modules MRS - hard copy.
    S A Places or updates a case in suspense status. Valid on all Master Files.
    M S Entity module - for valid and invalid account MRS - display.
    M T Entity module - for valid and invalid account MRS - hard copy.
    D 1 Original request for charge - out document (Form 4251).
    D 2 2nd request for charge - out document.
    D 3 3rd request for charge - out document.
    D 4 4th request (special search) Form 4251 and GUF will automatically close the case with URC 8.
    S B Places or updates a case in suspense status because of a document request not directly related to the unpostable case. Valid on all Master Files.
    Note: Tax Examiners will need to input in the remarks field the specific type of document you are requesting.
    S C Places or updates a case in suspense status because of correspondence action with the taxpayer. Valid on all Master Files.
    Z blank Request to display update/modify an unpostable history section.
    UPRES D blank Transaction to be deleted (voided). Valid on all Master Files. NO IDRS control base established.
    0 blank No change made to unpostable transaction. Attempt to repost at Master File. Valid on all Master Files. GUF will validate all TIN and name controls through the NAP for UPCs 151, 152, 153, 156, 301, 303, 701, and 703 only. All TINS and name controls must validate or GUF will not allow the closure.
    0 B Use to bypass the NAP checks.
    1 blank Transaction to be re–input. Valid on all Master Files except CAWR and PMF.
    2 blank Transaction to be deleted (voided). Valid on all Master Files. An IDRS control base is established.
    6 blank BMF: Changes any combination of name control, TIN, transaction code, MFT, tax period transaction date, TIN prefix. Error delay code. Attempt to re-post to Master File.
    6 blank Condition code O to TC 150 for MFT 02, 05, 34. Allows the input of the follow Computer Condition Codes: 3, 5, 6, A, F, G, U, R, Y, L OR W (L & W is for TC 150 and 620 Only). NOTE: CCC can be input for TC 150s only and for TC 620 if CCC L or W.
    6 B Use to bypass NAP checks.
    8 blank Transaction sent to reject register or error resolution system (ERS) suspense status. Valid on all Master Files except CAWR, IRAF (TC 150) and PMF. NOTE: It will not be necessary to close the unpostable case with URC 8 for 4th request action. GUF will automatically close the case with URC 8 with CC UPCAS with Definer D and Definer-Modifier 4 is input.
    A blank Correction of name control, using Master File name control. Valid on all Master Files but only for Unpostable Code 003 (CAWR), 152, and 156 (IMF), 303 (BMF), 703 (IRAF). If UPC 152/156, the TC must be 140, 150, or 430 and the entity code must be a 2 or 3. NOTE: The input definer URC A will convert and equal URC 6 with the unpostable record is updated.
    B blank Special closure of open, assigned cases. Valid only IMF and BMF.
    UPTIN blank NONE Displays all open and closed (up to 3 months) unpostables.
Unpostable Resolution Codes (URC)
  1. Unpostable resolution codes (URC) are used as definers with CC UPRES to correct/close an unpostable case.

  2. The valid URCs for MF unpostables are listed below along with a brief definition.

  3. URC A is used to correct unpostable name control to read exactly the same as the Master File name control.

  4. URC B - See IRM 3.12.32, General Unpostables.

  5. URC D deletes (voids) transactions and is valid for all Master Files. A URC D removes the record from the SCUPMF and should be used for transactions with no money amounts. Use a URC D to void a transaction when no further action is necessary. A URC D will not create an IDRS control base. Always enter remarks (line 8 of UPRES) when closing an unpostable with URC D. If remarks are not entered, the system will not accept the correction and display an error message. Remarks must state why the case is being voided with a URC D.

  6. URC 0 allows the unpostable record to attempt to post again with no change at the Master File.

  7. URC 1 allows transactions to be re-input with the same DLN. It is valid for all Master Files except CAWR and PMF. A URC 1 removes the record from the S.C. Unpostables Master File (SCUPMF). These records are not corrected (at this time) for an attempted second posting at Master File as would URC 0, 5 and 6.

    1. Each unpostable record which is corrected with URC 1 is placed in "re-input" status on the Service Center Control Files (SCCF). If the document is to be re-input, enter Nullify Area Code 01, prepare Form 3893 and route to Batching for input. No further action is needed on the SCCF. If the document is not to be re-input, enter the appropriate Nullify Area Code and route the Nullified Distribution List to the function which is responsible for the next action.

    2. The other times URC 1 can be used are when there are program problems or when an IRA TC 150 needs to be input to IMF.

    3. Do not route re-inputs (URC 1) documents to Data control, except at the request of the function.

    4. Always enter remarks (Line 8 of CC UPRES) when closing an unpostable with URC 1. If remarks are not entered, the system will not accept the correction and display an error message. Remarks must state why the unpostable is being closed with URC 1.

  8. URC 2 deletes (voids) a transaction and creates an IDRS control base and should be used for transactions with no money amounts.

  9. URC 6 is valid for all MF, and is used when:

    • Changing any combination of name control, name line, adding or deleting a spouse and/or spouses SSN, TIN, TIN type POD, transaction codes, transaction date, error delay code, computer condition code, tax period ending of IMF, IRAF, and the following nontaxable BMF.

    • Changing MFT. The following table shows MFT, Doc. Code and Form for BMF.

    MFT Code Doc. Code Form
    02 20 1120POL
    01 41 941
    02 09 1120A
    02 10 1120
    02 16 1120S
    06 65 1065
    09 11 CT-1
    10 40 940
    11 43 943
    12 25 1042
    14 49 944
    15 23 8752
    16 37/97/44 945
    34 93 990T
    36 81 1041A
    37 83 5227
    44 91 990PF
    46 61 8038
    46 62 8038G
    46 72 8038GC
    46 74 8038T
    47 61 Form 8871
    49 62 Form 8872
    50 71 4720
    56 88 990BL
    67 90 990
    67 09 990EZ
    67 89 990N
    67 92 990EZ (2008 revision)
    67 93 990 (2008 revision)
    72 02 CT-2
    76 35 5330
    77 29 706GST
    78 59 706GSD
    84 01 Form 8703
    85 85 Form 8038-B
    86 86 Form 8038-TC
  10. URC 8 is used to reject a transaction (see IRM 3.12.32, General Unpostables). Attach a completed Form 13271 to the document.

    1. If the document is not a final return and a CCC F is edited on the return, request Rejects remove the CCC F. Indicate on the Form 13271 the CCC F should be removed and circle out the CCC F on the return.

    Note:

    When using URC 1, 2 or 8, you must include a nullification code and remarks on the CC UPRES screen. SeeIRM 3.12.278.3.10.4, Nullified Area Codes for the Nullified Area Codes.

Unpostable Status Codes
  1. The use of the command codes and definers, and definer modifiers will establish or update the "Status Code" of an unpostable case. The status code identifies what action was taken on an unpostable case. The status date indicates when this action was taken.

  2. The following is a list of status codes and their definitions:

    • A - assigned, not corrected

    • C - corrected, not removed from the SCUPMF

    • H - Quality Assurance hold

    • S - Suspense, input when return has to be held (e.g., corresponding with taxpayer)

    • Q - Accepted by Quality Assurance

  3. The status code and date will appear on line two of the CC UPCAS screen display following the literal "ST" .

    Note:

    Refer to IRM 3.12.32, General Unpostables, for more detailed information concerning status codes and dates.

Nullified Area Codes
  1. Whenever closing an unpostable with URC 1, 2, or 8, a nullified area code must be entered to identify the receiving area for closed unpostables. A Nullified Distribution listing will be printed for each of these areas based on nullification code used.

  2. The nullify area code is entered on Line 2, in positions 6 and 7 of the new CC UPRES screen.

  3. If an nullification code is not entered, an error message will be displayed.

  4. The table below shows the nullify area codes which can be used for specific resolution codes.

  5. See Nullified Distribution Listing procedures in IRM 3.12.32, General Unpostables for further information.

    Resolution Code Nullify-Definer (Area) Code Receiving Area Literal
    1 01 Re-input - No further action

    Note:

    Only use when case is being re-input

    23 Dishonored checks
    30 FTD Function - Accounting
    31 Data Controls
    32 RACS
    41 Accounting
    50 Customer Service
    D Blank/01 Void - No further action

    Note:

    Only used on cases which do not need to be worked by any other area.

    2 02 Adjustments
    03 Collection/SCCB
    04 Statute

    Note:

    Only used for cases which need to be closed to Statutes.

    05 Examination

    Note:

    Only used for cases closed to SC Examination.

    06 IRP
    07 Disclosure Officer
    08 Taxpayer Relations
    09 Notice/Output Review
    10 Unpostables

    Note:

    Should only include cases prepared by Unpostables

    11 * Auto-Void-Emp# problem

    Note:

    Should only include cases which are auto voided.

    12 Refund Inquiry
    13* Manual Void-Emp# problem.

    Note:

    Should only include cases manually voided.

    14 CAF
    15 CAWR
    16 URP
    17 CI
    19 Collection DO
    20 Exam DO
    21 Taxpayer Service DO
    22 SCWR–SC
    23 Dishonored Checks
    24 Technical
    25 Entity
    40 Unidentified/Excess Collections
    41 Accounting
    42 Transhipped to PSC
    43 TEGE
    44 PRP
    45 Electronic Filing
    46 CI/DO
    47 TEGE AO
    48 PRP/DO
    49 ERS/Rejects
    50 Customer Service
    8 01 Reject Resolution

    Note:

    Should only include cases to be resolved by Rejects. NO OTHER AREA WILL WORK CASE.

    02 Adjustments
    03 Collection/SCCB
    04 Statutes
    05 Examination
    06 IRP
    07 Disclosure Office
    08 Taxpayer Relations
    09 Notices/Output Review
    12 Taxpayer Service refund inquiry. Can be used for refund inquiry cases which go to Accounting or Taxpayer Service. Notate area in REMARKS for easy association.
    14 CAF
    15 CAWR
    16 URP
    17 CI
    19 Collection DO
    20 Exam DO
    21 TPS DO
    22 SCWR–SC
    23 Dishonored Checks
    24 Technical
    25 Entity
    40 Unidentified/Excess Collection
    41 Accounting
    42 Transhipped to PSC
    43 TEGE
    44 PRP
    45 Special EPMF Processing
    46 CIB/DO
    47 EP/EP DO
    48 PRP/DO
    49 ERS/Rejects
    50 Customer Service
    * Nullify Area Code 11 and 13 are computer generated for the purpose of routing nullified unpostable cases for which a control base cannot be established due to a problem with the IDRS employee number. These codes are not to be input by an individual tax examiner.

Routing of Documents to Cincinnati/Dallas Office

  1. Photocopy any unpostable case which needs to be routed to an office outside the campus.

  2. To ensure proper control, do the following steps:

    1. Form 3499 is used to route documents. Three types were prepared in advance.

    2. If you are sending cases to Cincinnati which are out of business, mergers, or amendments, use the Form 3499 which has IRS TEGE, PO BOX 2508, CINCINNATI, OHIO, 45201 in the "TO" section at the top of the form. At the bottom of the form, circle any action codes if necessary, check the appropriate type of case in "Remarks" , your name in the "From" section, and indicate your location, phone and date.

    3. If the taxpayer is requesting a determination letter, use the Form 3499 which has IRS TEGE, 550 MAIN ST, RM 4024, ATTN: RECORDS UNIT, CINCINNATI, OHIO, 45201 in the "TO" section at the top of the form. At the bottom of the form, circle any action codes if necessary, check the appropriate type of case in "Remarks" , your name in the "From" section, and indicate your location, phone and date.

    4. If you are forwarding a Form 1023, Form 1024, Form 8718, or Form 8734, use the Form 3499 which has CINCINNATI SERVICE CENTER, PO BOX 12192, COVINGTON, KY, 41012, in the "TO" section at the top of the form. At the bottom of the form, circle any action codes if necessary, check the appropriate type of case in "Remarks" , your name in the "From" section, and indicate your location, phone and date.

    5. Route the copies of returns and Forms 3499 to the Dallas Office or Cincinnati using Form 3210, Document Transmittal. List each case on the Form 3210.

    6. Retain a suspense copy of each Form 3499 and the Form 3210 on which they were sent.

    7. If you are expecting a response from Cincinnati or Dallas, suspend the unpostable case using Command Code UPCAS, Definer "S" , modifier "A" , and enter remarks. Upon receipt of the case back from the Dallas Area Office/Cincinnati, follow their instructions for final disposition of the case. Since Dallas, in many cases, may attempt to contact the organization to determine its proper status, it may take some time for Dallas to close each case.

    8. To recharge the document to the Dallas Area Office/Cincinnati, if necessary, use CC ESTABDT via IDRS. The computer will generate the necessary paperwork for Files.

Editing Returns

  1. In the unpostable resolution process, it may be necessary to edit entity information on the return. Refer to IRM 3.11.12, Exempt Organization returns for the placement of edited information on the return.

  2. If you receive correspondence with a return attached while working any unpostable, take the following actions:

    1. Edit the correct name control, EIN, Tax period, Received date from the return and TE date stamp

    2. Edit CCC RV when appropriate.

    3. Edit the correspondence Received Date (CRD) and correspondence Code on the form.

    4. Edit a Computer Condition Code (CCC) of 3 in the upper right margin of the return if necessary.

    5. Refer to IRM 3.12.12, Exempt Organization Returns for the correct correspondence codes.

    6. Input TC 599018 using CC FRM49.

    7. Send perfect return for processing

Employer Identification Number (EIN) Corrections

  1. This section contains correspondence procedures to be used when a corrected Employee Identification Number (EIN) is different from the EIN provided on the return.

  2. Perform all the necessary research to determine if the EIN on the return is correct using CC NAMEE/NAMEB.

  3. If the EIN is correct, continue processing.

  4. If the EIN on the return is not correct, correspond using Letter 3910C to notify the filer of their correct EIN. Use the most current address on the filer's module.

  5. The 3910C Letter does not need to be sent if the following conditions apply:

    1. Filer is using an SSN.

    2. The EIN is missing digits, the digits are transposed, or only one digit is incorrect excluding transposed digits.

    3. The EIN has merged with another number.

    4. The EIN was recently established with a TC 000.

    5. A 3910C Letter was previously sent to the filer.

UPC 301 No Account Present

  1. RC 1 - An input (non-generated) transaction coded

    • Other than TCs 000, 019, 141, 142, 650 (Doc. Code 97) for MFTs 01/03/16/47/49, 990, 991, 992, 993, 996, OR

    • Other than a TC 150 with entity information addressing a Form 706/709 module, fails to match on TIN with an account on the BMF.

UPC 301 Resolution - Unpostables

  1. Research IDRS to determine if there is a pending TC 000 for the unpostable EIN. If a TC 000 is pending, research for a pending TC 016 Doc. Code 80 which will indicate the EO sub-module is being added.

    If Then
    You find a pending TC 016 Doc. Code 80:
    1. Release the unpostable using URC 0.

    2. Cycle the unpostable to allow it to post after the TC 000 and TC 016.

    No pending TC 016 Doc. Code 80 is found:
    1. Determine the correct subsection based on the specific type of return and information found on the return, and add the subsection to Master File using TC 016 Doc. Code 80.

    2. Release the unpostable using URC 0.

    3. Cycle the unpostable to allow it to post after the TC 000 and TC 016.

  2. If there is no pending TC 000, research for a better EIN. If you find a better EIN for the taxpayer, look to see if there is an EO section.

    If Then
    There is an EO section,
    1. Perfect the document with the correct EIN, release the unpostable using URC 6.

    2. Use a 3910C Letter for both returns and extensions.

    There is no EO section but you locate a pending TC 016, Doc. Code 80 (which will indicate the EO sub-module is being added):
    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.

    3. Cycle to post after the TC 016.

    4. Use a 3910C Letter for both returns and extensions.

    There is no EO section and you cannot locate a pending TC 016 Doc. Code 80:
    1. Based on the information on the return and specific instructions for the form, add the appropriate subsection to the account using TC 016 Doc Code 80.

    2. Release the unpostable with URC 0.

    3. Cycle to post after the TC 016.

UPC 301 Resolution

  1. Process UPC 301 cases with a pending TC 000 and no EO section as follows:

    1. Research IDRS to determine when the TC 000 is going to post.

    2. Input TC 016 with the proper status code to establish the EO section. IRM 3.13.12.6.18, EO Status Code and Year for the proper status code.

    3. Input the proper posting delay code, if necessary, to allow the TC 000 to post first.

    4. Release the unpostable using URC 0 or 6, as appropriate, and cycle to post after the TC 016.

  2. Process UPC 301 cases needing EIN research as follows:

    If Then
    You find an existing EIN with an EO section for the organization using CC NAMEE/NAMEB:
    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.

    3. Send a 3910C Letter to the organization informing of their correct EIN.

    You find an existing EIN with no EO section for the organization using CC NAMEE/NAMEB:
    1. Perfect the document with the correct EIN.

    2. Input TC 016 Doc. Code 80 to establish the EO Section. IRM 3.13.12.6.18, EO Status Code and Year to determine the proper status code.

    3. Release the unpostable using URC 6 and cycle to post after the TC 016.

    4. Send a Letter 3910C to the organization informing them of their correct EIN.

    You cannot find an EIN for the organization using CC NAMEE/NAMEB:
    1. Use CC ESIGN with MFI O to assign a new EIN.

    2. Input a TC 016 Doc. Code 80 to establish the EO section. IRM 3.13.12.6.18, EO Status Code and Year to determine the proper status code.

    3. Use the appropriate posting delay code to allow the TC 000 to post first.

    4. Release the unpostable using URC 6 and cycle to post after the TC 016.

    Note:

    If you correct an Unpostable 301 on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.

  3. Process UPC 301 RC 1 cases for MFT 47 (Form 8871) or MFT 49 (Form 8872) with TC 150 as follows:

    Note:

    The TC 150 for the electronic version of the Form 8871 or Form 8872 will have a name control of ZZZZ and the DLN will have a Doc. Code of 86. It will post to Master File as a TC 150 beginning January 2006. If all modules on IDRS show name control of ZZZZ, change to correct name control.

    1. Research CC IDRS for a pending or posted TC 000.

    2. If the TC 000 has posted, 0 code the unpostable TC 150 and post the return.

    3. If the TC 000 is pending, cycle delay to release the unpostable after the posting of TC 000.

    4. If the TC 000 has not posted, research the IRS 527 political organization web site (www.irs.gov/polorgs) by the EIN listed on the Form 4251. If the record is found, print Form 8871/8872. If the record is not found, 8 code the unpostable TC 150 to Rejects asking the DLN be cancelled.

      Note:

      Retrieve the DLN of the TC 150 from TXMOD if not available on the For 4251 or UPTIN.

    5. If the Form 8871/8872 is found on the web site, research CC NAMEB/CC NAMEE using the screen print of the organization's information.

      If Then
      You find an existing EIN:
      1. Perfect the screen print with the correct EIN.

      2. Release the unpostable using URC 6.

      3. Send a 3910C Letter to the organization informing them of their correct EIN.

      You can not find an existing EIN:
      1. Use CC ESIGN with MFI O to assign a new EIN. IRM 3.13.12.6.18.19, EO Status Code 34 for complete instructions on how to set up the account for political organizations.

      2. Release the unpostable with URC 6 and cycle delay to post the TC 150 after the TC 000.

    6. Perfect the printed Form 8871/8872 with the correct EIN using a black pen. Make a second copy of the perfected Form 8871/8872 and send to Entity M/S 6273 requesting they update ORACLE.

  4. If the unpostable is Form 8868 requesting an extension for Form 4720 and an SSN is used, research to determine the correct SSN, URC 8 with the correct SSN and annotate “cancel DLN” and process to NMF (Non-MasterFile).

UPC 302 TC 000 Already on the BMF

  1. RC 1 - A TC 000 matched a TIN on the BMF.

UPC 302 Resolution - Unpostables

  1. All UPC 302 cases are assigned by GUF to B3 Category.

UPC 302 Resolution

  1. Unpostables will receive both open cases and cases already closed by GUF using URC 2 as follows:

    • Any TC 000 Doc. Code 80 with a blocking series other than 990–999 is assigned to Unpostables as an open case

    • All other cases will be assigned to Unpostables after being closed by GUF using URC 2

  2. Compare the entity of the unpostable document with the entity on the BMF.

    Note:

    If you correct an unpostable on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.

UPC 302 Unpostable Entity Does Not Match BMF Entity
  1. If the entity on the unpostable does not match the entity on the BMF, research for a better EIN. If you can not find another EIN, proceed as follows:

    1. If the unpostable is a TC action, release the unpostable using URC D;

    2. If the unpostable is a return, use CC ESIGN with MFI O to assign a new EIN to the unpostable entity; and

    3. Input TC 016 Doc. Code 80 to add the EO section, using the information from the unpostable document.

  2. If you can find another EIN for the unpostable entity, compare the information on this number with the information on the unpostable document.

    If Then
    The information on the unpostable document is the same as on the new EIN, Release the unpostable with URC D.
    The information on the unpostable document will update the new EIN, Release the unpostable using URC 6.
UPC 302 Unpostable Entity Matches BMF Entity
  1. If the entity on the unpostable case matched the BMF, check the filing requirements for compatibility per UPC 329.

    If Then
    The BMF contains an 1120, 1065 or 1041 FRC and the unpostable document contains EO Status 01–02:
    1. Input TC 016 Doc. Code 63 to delete the BMF FRC.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The BMF contains both a Form 941/944 and Form 940 FRC and the unpostable document contains Subsection Code 03, 50, 60 or 70:
    1. Input TC 016 Doc. Code 63 to delete the Form 940 filing requirement and add Employment Code W.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The BMF contains a Form 941/944 FRC and Employment Code W and the unpostable Subsection Code is other than 03, 50, 60 or 70:
    1. Input TC 016 Doc. Code 63 to delete the Employment Code W and add the Form 940 FRC.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

  2. If the entity on the unpostable matches the BMF, the filing requirements are compatible but the Affiliation Code of the unpostable is 7 or 9 (subordinate organization) and the Affiliation Code on the BMF is 6 (parent organization), research the BMF for a better EIN for the unpostable organization.

    If Then
    A better EIN is found and the names are the same, Release the unpostable using URC 6 and change the TC 000 to TC 016.
    A better EIN is found but the names differ: Determine which name line is correct from attachments and return. If unable to determine, contact the organization to verify the correct name
    The BMF name line is correct:
    1. Release the unpostable using URC D.

    2. Re-input a TC 016 using information from the unpostable document to update the BMF.

    The unpostable name line is correct, Release the unpostable using URC 6 and change the TC 000 to TC 016.
    A better EIN cannot be found:
    1. Use CC ESIGN with MFI O to assign a new EIN to the subordinate.

    2. Input a TC 016, using the information from the unpostable document to establish the EO section.

    3. Release the unpostable using URC 6. Cycle delay.

UPC 303 Name Control Mismatch

  1. RC 1 - A transaction with:

    • A Document Code other than 80/81 (except for a TC 150 for MFT 36) /50/53/63 and

    • A Transaction Code other than 001, 019, 14X, 650 (Doc. Code 97) for MFT 01/03/16, 796, 90X or 99X but greater than 000

      failed to match either:

    • Three out of four positions of the entity name control; or

    • The old name control; or

    • Three out of the four left-most non-blank positions of the entity sort name line; or

    • The four left-most significant characters of the first three words of the entity primary name line and then the sort name.

  2. RC 2 - A TC 650 (Doc. Code 97) for MFT 01/03/16 which has:

    • Re-sequenced four cycles, or

    • The 23C Date is equal to or later than the end of the tax period,

      failed to match either:

    • Three out of four positions (using the proximal method) of the entity name control; or

    • The old name control; or

    • Three out of four of the left-most non-blank positions (proximal) of the entity sort name line; or

    • The four left-most significant characters of the first three words of the entity primary name line and then the sort name line.

  3. RC 3 - A transaction (except TC 150 for MFT 36) with:

    • A Doc. Code 80/81/50/53/63, and

    • A transaction other than TC 001/019/14X/796/90X/99X but coded greater than 000

      failed to match either:

    • All four positions of the entity name control; or

    • The old name control; or

    • The four left-most non-blank positions of the entity sort name line; or

    • The four left-most significant characters of the first three words of the entity primary name line and then the sort name line.

UPC 303 Resolution RC 1 & 3 - Unpostables

  1. Compare the transcribed name control with the name as shown on the BMF. If there was a spelling or transcription error, release the unpostable using URC A.

  2. If the return or document contains evidence of a name change or the established name line was misspelled, check for a pending TC 013. Process as follows:

    If Then
    A TC 013 is pending, Release using appropriate URC and cycle to post after the TC 013, if necessary.
    No TC 013 is pending, Release the unpostable using URC A.
    The unpostable document is Form 8038-CP (MFT 46 with Doc code 88) Release the unpostable using URC A even if the document is not available. If a manual refund is needed, please refer to manager to contact TEGE analyst.
    No TC 013 and the name was misspelled Input a TC 013. Release the unpostable using appropriate URC and cycle to post after the TC 013.

    Note:

    See IRM 3.13.12.11.5, Name Changes for more information on name changes.

  3. If research indicates the unpostable EIN belongs to another organization, research for a better EIN.

    If Then
    A better EIN is found:
    1. Ensure the name control is correct.

    2. Perfect the document with the correct EIN.

    3. Ensure subsection is correct

    4. Release the unpostable using appropriate URC.

    5. Send a 3910C Letter to the organization informing them of their correct EIN.

UPC 303 Resolution RC 2 - Unpostables

  1. Compare the transcribed name control with the name as shown on the BMF. If there was a spelling or transcription error, release the unpostable using URC A.

  2. If there is no transcription error, research BMF for a pending TC 013.

    If Then
    A TC 013 is pending, Release using appropriate URC and cycle to post after the TC 013, if necessary.
    No TC 013 is pending, Release the case with appropriate URC and change the name control to match the BMF.
    The unpostable document is Form 8038-CP (MFT 46 with Doc code 88) Release the unpostable using URC A even if the document is not available. If a manual refund is needed, please refer to manager to contact TEGE analyst.
  3. If the EIN on the unpostable belongs to another organization, research IDRS for a better EIN. If a better EIN is found:

    1. Ensure the name control is correct.

    2. Perfect the document with the correct EIN.

    3. Release the unpostable using URC 6.

    4. Send a 3910C Letter to the organization informing them of their correct EIN.

  4. If a better EIN can not be found, proceed as follows:

    If Then
    A better EIN cannot be found and there is a phone number for the organization:
    1. Contact the organization to resolve the discrepancy.

    2. Release the unpostable using the appropriate URC after making any needed changes.

    A better EIN cannot be found and you are unable to find a phone number for the organization,
    1. Assign a new EIN and put account in Status 40.

    2. Release the unpostable using URC 0.

    3. Cycle to post following the TC 016.

UPC 303 Resolution

  1. UPC 303 cases will occur when a name change or the need for a new EIN is indicated.

  2. When an organization requests a name change, appropriate documentation may be required in order for the name change to be made.

    1. If the type of organization is a 1 on EDS or on CC BMFOLO, the organization is incorporated with the state. An amendment to the articles of incorporation along with proof of filing with the state are required. If the name change is on the Secretary of State's web site, no documentation is required.

    2. If the type of organization is a 2 on EDS or on CC BMFOLO, the organization is a trust. An amendment to the trust agreement is required along with the trustee(s) signature.

    3. If the type of organization is a 5 on EDS or on CC BMFOLO, the organization is an unincorporated association. An amendment to the articles of association, constitution, bylaws, or other organizing documents are required along with signature of at least two officers/members.

    If Then
    Accompanying information is present, Input a TC 013 with Doc. Code 63. Send a 252 C Letter to the organization acknowledging the change to its name.
    Accompanying information is NOT present, Inform the taxpayer with Letter 1224C the name change can not be made, unless one of the items listed above is present.
  3. Any request to change a name on an Exempt Organization account must be accompanied by appropriate documentation in order to be considered.

    Caution:

    IRM 3.13.12.12.12.4.1, Name Change before changing a subordinate's name.

  4. Release the unpostable using appropriate URC and cycle to post after the TC 013.

    Note:

    If you correct an unpostable on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.

  5. If the appropriate documentation is not attached, inform the organization the name change cannot be made until the required information is provided using Letter 1224C. Release the unpostable with URC 6.

  6. If documentation of the name change is not required, proceed as follows:

    1. Input the TC 013 to change the name.

    2. Release the unpostable using appropriate URC and cycle to post after the TC 013.

    3. Send Letter 252C to the organization acknowledging the name change.

  7. When the name lines differ and the return or document is for the subordinate of a group ruling, check for similarities (such as the lodge number, etc.).

    If Then
    You determine the organization is the same (lodge numbers agree, etc.):
    1. If the BMF NC is correct, release with appropriate URC.

    2. If the BMF NC is not correct, correct the subordinate's primary name line using instructions from IRM 3.13.12.12.12.4.1, Name Change. Change the NC on the same TC 013. Release with URC 6.

    The organization is not the same, Research for correct EIN.
  8. When the need for a new EIN is indicated, research IDRS to determine if another EIN is already established for the organization.

    If Then
    You find another EIN for the organization, Check to ensure the name lines are the same.
    The name lines are the same:
    1. Release the unpostable using appropriate URC and the correct EIN.

    2. Research EDS to determine if Cincinnati has the correct EIN. Notify Cincinnati of the correct EIN if necessary.

    The name lines are different:
    1. Follow procedures above for determining which name is correct.

    2. Release the unpostable using appropriate URC with the correct EIN (and name, if necessary).

    3. Research EDS to determine if Cincinnati has the correct EIN. Notify Cincinnati of the correct EIN if necessary,

    You find another EIN but it’s not on CC INOLE/CC ENMOD and does not have a GEN:
    1. Input TC 000 using CC BNCHG or CC EOREQ to establish the action on the BMF.

    2. Input a TC 016 Doc. Code 80 to establish the EO section, using the appropriate PDC to post after the TC 000.

    3. Release the unpostable using appropriate URC and cycle to post after the TC 016.

    You find another EIN but it’s not on CC INOLE/CC ENMOD and does have a GEN:
    1. Input TC 000 using CC BNCHG or CC EOREQ to establish the action on the BMF.

    2. Input a TC 016 Doc. Code 80 to establish the EO section using the pilot voucher. Input the appropriate PDC to post after the TC 000.

    3. Release the unpostable using appropriate URC and cycle to post after the TC 016.

  9. If you do not find another EIN, proceed as follows:

    If Then
    The return has GEN:
    1. Use CC ESIGN to assign a new EIN to the organization.

    2. Use the pilot voucher and input a TC 016 to establish the EO section, using the appropriate posting delay code to allow the new EIN to establish first.

    3. Release the unpostable using URC 6 with the new EIN and cycle to post after the TC 016.

    The return does not have a GEN:
    1. Use CC ESIGN to assign a new EIN to the organization.

    2. Input a TC 016 to establish the EO section, using the appropriate posting delay code to allow the new EIN to establish first.

    3. Release the unpostable using URC 6 with the new EIN and cycle to post after the TC 016.

UPC 304 Pre - ADP Tax Periods

  1. RC 4 - An input transaction for MFT 02/05/06/10/11/34 attempts to establish a tax module with a tax period prior to 6112.

  2. RC 5 - An input transaction for MFT 37/44/50 attempts to establish a tax module with a tax period prior to 7001.

  3. RC 6 - An input transaction for MFT 36/67 attempts to establish a tax module with a tax period prior to 7012.

UPC 304 Resolution

  1. Unpostables 304 are all auto-closed by GUF. IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution

UPC 305 FTD Discrepancy

  1. Due to the sensitive nature of these unpostable cases, it is imperative all tax examiners resolve them using the same instructions.

  2. Please refer to IRM 3.12.279 for resolution procedures for UPC 305 unless the 305 is for Form 8868 TC 620. To resolve UPC 305 RC 1 for a Form 8868 TC 620 refer to 3.12.278.12.

UPC 305 Form 8868

  1. A TC 620/460 will unpost as a UPC 305 RC 1 for the following conditions:

    • TC 620 with Notice Code 3 attempts to post and there is a posted TC 620/460 with Notice Code 2.

    • TC 620/460 with Notice Code 1 (approved extension) attempts to post to MFT 34 and there is no EO subsection or organization code is 00.

UPC 305 Form 8868 Resolution

  1. Form 990-T has two due dates.

    • 401(a) & 408 are due 31/2 months following the tax period.

    • Corporations filing 990-T are due 41/2 months following the tax period.

  2. The above due dates should be used in determining the extended due date which should be granted on the Form 8868 for Form 990-Ts

  3. If the extension due date is incorrect; it may be necessary to delete the unpostable and input the TC 460 on REQ 77 to ensure the correct extended due date is input.

  4. Research all UPC 305 RC 1 Form 8868 to ensure the correct extended due date will post to Master File.

    Note:

    Effective February 3, 2017, Form 8868 will allow a six month extension period only. There will no longer be a three month extension available.

  5. The notice code is edited in the top middle portion on Form 8868 and is input to generate a notice to the filer indicating whether an extension of time to file their return was approved or denied. The following Notice Codes are used on Form 8868:

    • 1 = Approved 3 month extension or 6 months for 990-T corporations

    • 3 = Approved 2nd 3 month extension

    • 2 = Denied extension not timely

    • 4 = Denied 2nd extension missing signature

    • 5 = Denied no reason on 2nd extension

    • 6 = Denied 2nd extension not timely filed

    • 7 = Denied Miscellaneous

  6. The unposted extension is for MFT 34 (990-T corp. only), 37, 44, or 67 do the following:

    If Then
    Notice code 3 is edited on the top of the 8868, research IDRS to determine if a TC620/460 with a notice code 2 is posted to the same tax period.

    Note:

    A denied extension will appear on the module as a TC 620/460 but will have the original RDD and not an extended due date.

    There is a previously denied extension for the same MFT and tax period, and there is not an approved extension subsequent to the denied extension,
    1. Request rejects to input a notice code 7 on the record. Note: This will generate a denied notice for the 2nd extension since the organization did not have an approved 1st extension.

    2. "8" code the UPC to Rejects and request they change the notice code to 7.

    There is a denied TC 620 followed by an approved TC 460,
    1. Determine if the second extension is timely filed.

    2. If timely filed and notice code 3 is on the Form 8868, input the extension with TC 460.

    3. URC "D" to release the unpostable condition.

    4. If not timely filed, URC 8 the unpostable and request Rejects to change the notice code to 7.

    There is all ready an approved TC620/460 for the same MFT and tax period and the extended due date on the module is for 6 months, URC "D" to release the unpostable.
    The notice code is a 1 or 3, MFT 34, box checked is for a 990-T corporation, and no EO subsection is present,
    1. add EO subsection, using CC EOREQ, TC 016, Doc. Code 80, Definer Code B, Status Code 40 and FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post. Refer to IRM 3.13.12.9.12 for classification instructions.

    The notice code is 3 but Part I of Form 8868 is complete and there is not an approved first extension (notice code 1) on Master File, URC "8" the unpostable to Rejects and request they change the notice code to 1 (approved extension).
  7. The unposted extension is for MFT 34 401(a) or 408 trust and/or the words IRA are present in the name, take the following actions:

    If Then
    The notice code on the Form 8868 is a 1 or a 3, Research IDRS to determine if a TC 620/460 posted to the account for the same tax period.
    There is a previously denied extension (Notice Code 2) for the same MFT and tax period,
    1. URC 8 to release the unpostable to Rejects and request they input notice code 7.

    There is a previously approved extension (notice code 1 or 3) and the Form 8868 is requesting an additional 3 months. Master File indicates the organization has all ready been granted the maximum 6 month extension, URC D to release the unpostable.
    There are no filing requirements on Master File and the 401(a) or 408 box is checked or the words IRA is present, Add 990-T 2 FR to the account. URC 0 to release the unpostable. Cycle delay to allow the TC 016 to post.
    There is a notice code 3 on the Form 8868 and review of Master File indicates a previously approved extension (Notice Code 1) and RDD or extended due date is correct on Master File, URC 0 to release the unpostable
    The notice code is 3 but Part I of Form 8868 is complete and there is not an approved first extension (notice code 1) on Master File,
    1. URC "8" the unpostable to Rejects. Request they change the notice code to 1. Note: This will generate a denied notice for the 2nd extension since the organization did not have an approved 1st extension.

UPC 307 Fiscal Month Discrepancy

  1. RC 1 - The fiscal month of Forms 990T (MFT 34), 1041A (MFT 36), 5227 (MFT 37), 990PF (MFT 44), or 990/990EZ (MFT 67) input transaction attempting to establish a tax module did not match the Fiscal Month of the account entity and:

    • It was not a transaction coded 150, 290 (B.S. 4XX), 460 (MFT not equal to 37/44/67), RPS 610, 620, 650, 660 (MFT not equal to 33/34/44) trying to establish the first 990T, 1041A, 5227, 990PF or 990 tax module; or

    • It was not a TC 150 containing Condition Code F or Y; or

    • It was not a TC 620 with Condition Code W.

  2. RC 2 - Any transaction except TC 421 and 424 with SPC 039, Source Code 60 and Employee Group Code 1000/2000 attempting to open a module whose period ending is greater than machine 23C date plus 12 months.

  3. RC 7 - TC 150 with Condition Code Y or TC 620 with Condition Code W not matching on the entity Fiscal Month with the input FYM not equal to 12 attempting to post to an account with a TC 054/055 posted. A corrected UPC 307 RC 7 will bypass this check.

UPC 307 Resolution - Unpostables

  1. All UPC 307 cases with EO MFTs (except MFT 36, Form 1041A) are assigned by GUF to Entity Unpostables.

  2. Form 1041A (MFT 36) is not a primary return and will not unpost due to FYM mismatch; the organization must also file a Form 1041 or Form 5227. If a Form 1041 or Form 5227 was filed by the organization, release the unpostable using URC 6 or 8 to change the FYM to agree with the BMF FYM.

UPC 307 Resolution All RCs

  1. EO Unpostables will correct UPC 307 unpostables for all MFTs except MFT 36 for Form 1041A. MFT 36 will bypass the UPC 307 check.

UPC 307 UP is a TC 157
  1. Process as follows:

    If And Then
    Research shows there is no posting, TC 157, for any month in the year prior to the tax period of the unpostable, there are prior exempt returns posted
    1. Edit the correct tax period from Master File to the Form 5578.

    2. Resolve unpostable using URC 6 to the correct tax period.

    Research shows there is no posting, TC 157, for any month in the year prior to the tax period of the unpostable, there are no prior exempt returns posted
    1. Input TC 016 to change FYM to match the Form 5578.

    2. Resolve unpostable using URC 0 to post and cycle as necessary.

    Research shows there is a posting, TC 157, for any month in the year prior to the tax period of the unpostable, the Tax Period on the F5578 is between 12 and 18 months in the future,
    1. URC 8 to Rejects.

    2. Edit the correct tax period from Master File.

    3. Prepare Form 13271. Annotate in remarks for Rejects suspend as an early filed until 12 months prior to the tax period ending.

    Research shows there is a posted TC 157 for any month in the prior year the Tax Period on the F5578 is 18 months or more in the future,
    1. Correspond for a correct year ending.

    2. If the filer responds with a tax period 12 months or less in the future, release the unpostable by URC 6 to the correct tax period.

    3. If reply indicates the tax period on the Form 5578 is correct. URC 8 to Rejects. Prepare Form 13271. Annotate in remarks for Rejects to void the DLN and return the Form 5578 to the taxpayer telling them to file when the return is due.

    4. If no reply, URC 8 to Rejects. Prepare Form 13271. Annotate in remarks for Rejects to void the DLN.

UPC 307 UP is a TC 590 cc 14
  1. If the unpostable is a TC 590 cc 14, check the Doc. Code of the transaction. If the Doc. Code is 90, indicating the transaction was generated from the posting of the group return:

    1. Input TC 016 to correct the BMF FYM to agree with the TC 590 FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

  2. Process as follows:

    If Then
    The Doc. Code is 49, indicating the transaction was manually input:
    1. Research for the GEN of the organization.

    2. Use CC EOGEN to determine the FYM of the group return.

    The TC 590 FYM agrees with the group return FYM:
    1. Input TC 016 to correct the BMF FYM to agree with the TC 590 FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    The TC 590 FYM does not agree with the group return FYM:
    1. Input TC 016 to correct the BMF FYM to agree with the parent FYM.

    2. Release the unpostable using URC 8, request Rejects change the FYM to agree with the parent FYM and cycle to post after the TC 016.

UPC 307 UP is a TC 150
  1. If the unpostable is a TC 150, research CC BMFOL, EUP and OLSEIN to determine the organization's previous filing pattern and intent.

    If Then
    The organization was filing using the same FYM as on the unpostable, yet the FYM on the BMF is different:
    1. Input TC 016 to correct the BMF FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    If the organization is filing an FYM on the unpostable which is different from the BMF, check CC BMFOLI, EUP and OL SEIN to determine the filing pattern there is no lapse in filing history and no indication the return is for a short period
    1. Release the unpostable with URC 8 to change the FYM on the unpostable to agree with the BMF FYM.

    If the organization is filing an FYM on the unpostable which is different from the BMF, check CC BMFOLI, EUP and OL SEIN to determine the filing patternthere is a lapse of one year or more in filing history
    1. Input TC 016 to correct the BMF FYM to match the unpostable FYM.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    The organization was filing using the same FYM as on the unpostable and the unpostable is for a short period,
    1. Input TC016 to correct the BMF FYM to match the unpostable FYM

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post

    The organization's filing pattern does not indicate a preference:
    1. Release the unpostable with URC 8 to change the FYM on the unpostable to agree with the BMF FYM.

  2. If the unpostable is a final return and the FY does not match Master File, use CCENREQ with TC 016 Doc. Code 63 to change the FY to agree with the FY on the return.

  3. If "Rev. Proc. 85-58" is annotated on the return, process as follows:

    If Then
    The organization is exempt under 501(a), 501(c), or 501(d) and has not changed its tax year any time during the last 10 calendar years:
    1. Rev. Proc. 85-58 does apply and the organization does not have to file a Form 1128.

    2. Input TC 016 Doc. Code 80 to correct the BMF FYM.

    3. Release the unpostable using appropriate URC and cycle to post after the TC 016.

    The organization is exempt under Sections 526, 527 or 528:
    1. Rev. Proc. 85-58 does not apply.

    2. Contact the organization and correct the unpostable according to their response.

    3. If the organization does not reply, release the unpostable with URC 8 and request Rejects change the FYM on the unpostable to agree with the BMF FYM.

    The organization is exempt under IRC 401(a):
    1. Rev. Proc. 85-58 does not apply.

    2. Contact the organization and correct the unpostable according to their response.

    3. If the organization does not reply, release the unpostable with URC 6 with an FYM of 12.

    The organization is a parent or subordinate of a group, See Rev. Proc. 76-10 below.
  4. Revenue Procedure 76-10 applies to parent organizations who apply for a change in tax year on a group basis. Rev. Proc. 76-10 does not apply if the organization:

    • Has unrelated business taxable income

    • Is a private foundation defined in IRC 509(a)

    • Is a farmers’ cooperative exempt under IRC 521


  5. If "Rev. Proc. 76-10" is annotated on the return, process as follows:

    1. Input TC 016 Doc. Code 81 to change the FYM on all the subordinates.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

UPC 307 UP is a TC 460 or TC 620
  1. If the unpostable is a TC 460 or 620, research CC INOLE, CC BMFOL, EUP or OLSEIN to determine the FYM.

  2. Look on the extension to determine if the extension is denied or approved by Code & Edit.

    1. If Code & Edit edited a Notice Code "2," "4," "5," "6" or "7" in the top middle portion of Form 8868, the extension was denied.

    2. If Notice Code "1" or "3" is edited, the extension was approved.

  3. Determine if FYM is correct. :

    1. Input TC016 to correct FYM if needed.

    2. URC 8 to correct Notice code if appropriate.

    3. If Notice code is correct, Use URC 0 or 6 to close Unpostable to match the FYM with the BMF.

    4. Cycle to post after the TC 016 if the FYM on the BMF is changed

  4. If a TC 150 is posted, and the extension was filed timely according to the due date of the return, Notice code should be 1 for the first extension or 3 for the second extension. If a TC 150 is posted, and the extension was filed late according to the due date of the return, Notice code should be 2 for the first extension or 7 for the second extension

UPC 307 Short Period Returns
  1. If the unpostable is for a short period (less than 12 months):

    If Then
    The return is marked "Final" but Condition Code F is not on the return, Release the unpostable using URC 6 and add the Condition Code F to the record.

    Note:

    If the CCC field is full, URC 8 the unpostable to have the F Code added to the record.

    The return indicates a change in accounting period and the unpostable is a Form 990 and the BMF FRC is 990–02:
    1. Input TC 016 to correct the BMF FYM to agree with the return.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    The return indicates a change in accounting period and all other cases require proof of change in accounting period, Follow procedures in IRM 3.12.278.13.2.6below.
UPC 307 Change in Accounting Period
  1. Research for an approved Form 1128 (TC 053) indicating a change in accounting period. Process as follows:

    Note:

    Assume Forms 990, 990PF and 990T filers are changing their accounting period under Revenue Procedure (Rev. Proc.) 85–58. See below. Whenever changing the BMF FYM, be sure to transfer any prepaid credits to the new module.

    If Then
    A TC 053 is on the account:
    1. Request the Form 1128 from Files, using the TC 053 DLN.

    2. Contact the organization and request an explanation for the discrepancy in their accounting period using 3916C ltr.

    You receive a Form 1128 and the period on the Form 1128 agrees with the unpostable return:
    1. Input TC 016 using CC EOCHG/CC BNCHG to correct the tax period on the Master File.

    2. Release using the appropriate URC to close. Cycle delay to allow the TC 016 to post.

    You receive a Form 1128 and the period on the Form 1128 does not agree with the unpostable return, Contact the organization, request an explanation for the discrepancy in their accounting period, and correct the unpostable according to their reply.
    You don’t receive a Form 1128 and there is no reply from the taxpayer:
    1. For taxable returns, release the unpostable with URC 8 and change the unpostable FYM to agree with the BMF FYM.

    2. For nontaxable returns, release the unpostable with URC 6 and cycle to post after the TC 016.

  2. If the TC 053 is not on the account and the return is not a 990, 990PF or 990T, contact the organization and request an explanation for the discrepancy in their accounting period.

    If Then
    The organization responds with the appropriate evidence (previously approved Form 1128, etc.):
    1. Input TC 053 using CC BRCHG to correct the tax period on the BMF.

    2. Release the unpostable using appropriate URC and cycle to post after the TC 053.

    The organization responds the change is being made under IR Regulation 1.44 and the unpostable is a return:
    1. Input TC 053 using CC BRCHG to change the BMF FYM.

    2. Release the unpostable using URC 8, request Rejects add the audit code 3 and condition code Y to the record and cycle to post after the TC 053.

    The organization responds it has complied with Rev. Proc. 76–10 or 85–58 in the past:
    1. Input TC 016 using CC EOCHG to correct the tax period on the BMF.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The organization responds it now qualifies for a change in accounting period under Rev. Proc. 85–58, See 3.12.278.13.2.7 below.
    No response or the organization does not give adequate evidence:
    1. For taxable returns, release the unpostable with URC 8 and change the unpostable FYM to agree with the BMF FYM.

    2. For nontaxable returns, release the unpostable with appropriate URC.

UPC 307 Short Period Returns and Extensions
  1. See IRM 3.12.278.13.2.3(4) and (5) for Rev. Proc. 85-58 and 76-10 criteria.

  2. Process short period returns as follows:

    If Then
    The criteria above are met:
    1. Input TC 016 using CC EOCHG or CC BNCHG to change the FYM.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The criteria above are not met:
    1. URC 8 the unpostable.

    2. Inform the organization the change is not allowed using the appropriate letter.

  3. Process short period extensions as follows:

    1. Input TC016 to correct FYM if needed.

    2. URC 8 to correct Notice code if appropriate

    3. If Notice code is correct, Use URC 0 or 6 to close Unpostable to match the FYM with the BMF.

    4. Cycle to post after the TC 016 if the FYM on the BMF is changed

  4. If Code & Edit edited a Notice Code 2,4,5,6 or 7 in the top middle portion of Form 8868, the extension was denied. If Notice Code 1 or 3 is edited, the extension was approved.

  5. To input a TC 460:

    • Access CC ENMOD with EIN

    • Access CC REQ77 with EIN, MFT 00, Tax Period 000000 , Name Control

  6. From the CC FRM77 screen, input:

    • TC<460

    • EXTENSION-DT<04-01-2010

    • DLN-CD<(See Note)

      Note:

      For MFT 34, input DLN Code 20 if approved or 25 if disapproved. For all other MFTs, leave the DLN Code blank if approved or 000 if disapproved.

    • REMARKS

UPC 308 Employment Code/FR Mismatch

  1. RC 3 - Form 8872 (MFT 49) input on an odd numbered year and tax period on the Form 8872 is other than YYYY06 or YYYY12 or Form 8872 is filed in an even numbered year and tax period month = 01, 02, 04, 05, 07, 08, 10 or 11.

    Note:

    Exception: tax period month is 01 and filer type indicator = 01 or 05.

  2. RC 4 - Any return (TC 150) input to Form 940 tax module (MFT 10) and the entity Employment Code equals (G) "7" .

  3. RC 5 - Any transaction except:

    • TC 370 (Doc. Code 51); and

    • TC 650 (Doc. Code 97, 19(EFTP)),


    input to establish a MFT 10 tax module with alpha employment code and number 1 equivalent (W) "3" , (C) "8" , (F) "6" , or (T) "1" . The following transaction codes can establish a tax module and will unpost if the MFT is 10:

    • TC 150 return

    • TC 610 through 670 payments

    • TC 700, 710 generated from prior tax period credit transfer

    • TC 840 manual refund

    • TC 611 reversal of TC 610

    • TC 520 cc 85-88, 89 (bankruptcy) and cc 81 (bankruptcy)

    • TC 370 account transfer in

    • TC 474 return pending

    • TC 59X taxpayer reply transaction

    • TC 930 push code transaction

    • TC 940 Strike Force

    • TC 941 Intelligence Active

    • TC 960 Central Authorization

    Note:

    This check will be bypassed on a corrected UPC 308 RC 5 with EC W.

  4. RC 7 - Any MFT 34, TC 150, with a dollar amount greater than zero on Line 44f and the EO Status is other than 01, 02, 06, 07, 10, 11, 21, 24, 25, 30, 31, 40 or 42.

  5. RC 8 - Any MFT 01 TC 150, Doc. Code 35/36/41, with Condition Code "T" if the entity Employment Code is F and the 941 Filing Requirement Code is 00/01/02/03/04/41/06/07/11/12/13/14.

  6. RC 9 - Any transaction input to establish an MFT 10 tax module, except TC 650 (Doc. Code 97), if:

    • the entity EC is zero,

    • the entity EO Status is 01–19, and

    • the Subsection Code is 03/50/60/70.

  7. Beginning January of 2011, programming was added to restrict the input of employment codes A, F, G & T to employees in Compliance, Federal, State and Local Government (FSLG). Send cases that need input of those restricted government employment codes to FSLG for input. Perform all needed actions except the input of the employment code and mail the case with a completed transmittal, Form 3210 to FSLG at the following address:
    IRS
    FSLG
    300 East 8th ST
    Stop 4098AUS
    Austin, TX 78701

UPC 308 Resolution All RC - Unpostables

  1. UPC 308 cases with MFTs 33, 34, 36, 37, 44, 46, 60 or 67 are assigned to B3 category by the GUF system. UPC 308 RC 9 with MFT 10 are assigned to B3 category as well.

UPC 308 RC 3 Resolution

  1. Form 8872 is required to be filed monthly, quarterly, or semi annually dependant on the year. Even numbered years (i.e. 2006, 2008) must file quarterly or monthly. Odd numbered year (i.e. 2007, 2009) must file semi annually or monthly.

  2. For returns with a tax period for an even numbered year (i.e. 2008) check BMFOLI if filing a quarterly or monthly return and then take the following actions:

    If Then
    Research indicates the Form 8872 was filed each month or on a quarterly basis, release the unpostable using URC "0" .

    Note:

    The unpostable condition will by-pass the check.

    Research indicates the organization is filing semi-annually, release the unpostable using URC "0" . The organization will automatically be issued a CP 249B notifying them of a late filed Form 8872.
  3. Check BMFOLI to determine if the organization is filing a semi-annual or monthy return. For returns with a tax period for an odd numbered year (i.e. 2009) take the following actions:

    If Then
    Research indicates the Form 8872 was filed semi-annually or monthly, release the unpostable using URC "0" .

    Note:

    The unpostable will by-pass the check.

    Research indicates the organization is filing quarterly release the unpostable using URC "0" . The organization will automatically be issued a CP 249B notifying them of a late filed Form 8872.

UPC 308 RC 4 Resolution

  1. "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them their Form 940 was received but they are not required to file.

  2. Verify the employment code is correct; see IRM 3.13.12.6.28 for assigning employment codes.

  3. If the employment code is correct and if the BMF has a Form 940 FRC, use CC BNCHG with TC 016 and delete the Form 940 FRC.

    1. Research for the tax period on the unpostable return.

    2. Determine if a manual refund is necessary. If a refund is necessary, close the unpostable and send to the information to Rejects for refund to be issued.

      Note:

      If the refund is for an employment code F, refer to the instructions in IRM 3.13.12.20.2 If/Then chart prior to sending to Rejects.


    3. Prepare a Form 13271 for routing to Rejects. Annotate the DLN should be canceled because taxpayer is not required to file Form 940.

    4. Correct the unpostable with CC UPRES and URC 8.

    5. Send 858C letter unless one has been sent for the same MFT and tax period.

  4. If the employment code is not correct:

    1. Contact FSLG to remove the employment code by e-mailing the request to tege.fsl.cpm@irs.gov or EEFAX to 855-243-4014.

    2. Add 940 filing requirement if not present on Master File.

    3. Correct the unpostable with CC UPRES and URC 0.

UPC 308 RC 5 Resolution

  1. "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them their Form 940 was received but they are not required to file.

  2. Process RC 5 as follows:

    1. Verify the employment code as in IRM 3.13.12.6.28.

    2. To avoid having erroneous tax modules established for the type of employer, any transactions which will create a tax module will unpost.

    3. Verify the document’s MFT was transcribed correctly. If transcribed incorrectly, correct the MFT on the unpostable.

    4. When the account is in status 97 with a Form 1120 filing requirement the employment code is not valid and the taxpayer is required to file Form 940. Remove the employment code and allow the return to post. Cycle delay as needed. Contact FSLG to remove the employment code by e-mailing the request to tege.fsl.cpm@irs.gov or EEFAX to 855-243-4014.

    5. Any payment TC 610, 650, 660, 670 etc. should be applied to outstanding balances beginning with the oldest tax period first before refunding. See procedures in IRM 3.13.222.56.

    6. If the unpostable is a TC 610 with a return DLN, and can be resolved without the return, then process as in IRM 3.13.222.56. If the return is needed to resolve the unpostable, hold the unpostable document until the unpostable TC 150 is received, then process both the payment and the return using instructions in IRM 3.12.278 and IRM 3.13.222.56.

    7. If the unpostable is a payment and (e) above does not apply, follow procedures in IRM 3.13.222.56.

    8. If the payment is not to be applied to another tax period or is to be refunded, transfer the credit per local campus procedures, and include a copy of the taxpayer correspondence and any research material.

    9. If payments are made to previous or future tax periods, apply to another tax period or initiate a manual refund as applicable.

    10. If TC 700 or TC 710, credit transfer, contact the preparer for the corrective action needed.

    11. If TC 840, manual refund, contact Accounting for the corrective action needed. Ensure the module is not a dummy account on IDRS. Research CC ENMOD/CC INOLE to verify the FRC if the second account is not on the BMF.

    12. If TC 611, reversal of TC 610, contact the preparer for the corrective action needed.

    13. If TC 520, cc 85-88, 89 (bankruptcy), or cc 81 (bankruptcy), contact Collection for corrective procedure.

    14. A TC 370 account transfer must not post just because it is a Doc. Code 51 or 52. If the employment code is correct, contact the initiator and inform them the employment code is correct, and the taxpayer does not owe this tax and an abatement will be required. Hold this case until the initiator responds. When the response is received, change the employment code to allow the return to post and cycle as appropriate. Close the case with URC 0. Route the case to EO Accounts to review the case for possible adjustment and abatement of taxes. Use Form 3210 to route the case to EO Accounts. If the Doc. Code 51 was prepared because of an account maintenance transcript, the money on the tax module can be refunded. After the money is refunded, input TC 591 for the tax period on the BMF.

    15. If TC 59X, check for a Form 940 FRC in the entity. If the Form 940 FRC is on the BMF, use CC BNCHG and delete the FRC. Use CC UPRES with URC D and void the document. If the Form 940 FRC is not on the BMF, use CC UPRES with URC D and void the document.

    16. If TC 930, 940, 941 or 960, contact the preparer for the corrective action needed. If unable to resolve with contact, void the unpostable with URC D.

    17. If the unpostable is the credit portion of a Doc. Code 34 credit transfer, apply to the account where the debit posted and route to the preparer. Close the unpostable with URC 6.

UPC 308 RC 7 Resolution

  1. The F990T TC 150 will unpost as 308 RC 07 if the 'Small Business Health Care Tax Credit' field (line 44f) is greater than zero and the EO Status in the entity EO Status is other than 01, 02, 06, 07, 10, 11, 21, 24, 25, 30, 31, 40 or 42.

  2. Use the following table to correct UPC 308 RC 7:

    If Then
    the EO status is other than those listed in 1 above
    1. Research EDS and prior filings to determine the correct status.

    2. If research provides a valid status, update the account by input of a TC 016, Doc Code 80.

    3. Zero code the unpostable and cycle delay to allow time for the TC 016 to post.

    the EO Status is other than those listed in 1 above and research does not provide a valid status
    1. 8 code the unpostable to Rejects.

    2. Instruct Rejects to remove the credit from line 44f and continue processing the Form 990-T.

    there is no EO Subsection for Forms 2009 and prior Follow instructions in number 12 of IRM 3.12.278.21.15" UPC 366 Resolution RC 1" to resolve the unpostable for Form 990–T claiming the Small Business Health Care Tax Credit.
    there is no EO subsection for Forms 2010 and subsequent Follow instructions in number 12 of IRM 3.12.278.21.15"UPC 366 Resolution RC 1" to resolve the unpostable for Form 990–T claiming the Small Business Health Care Tax Credit.

UPC 308 RC 8 Resolution

  1. Effective with the first quarter of 1989, Form 941 filers who have employees on a seasonal or intermittent basis or Form 941E filers who do not have distributions every quarter can file their Form 941 on a seasonal/intermittent basis. However, at least one return must be filed every year, even if no wages or distributions were made during the year. To identify these filers, Computer Condition Code T is used.

    1. Seasonal/intermittent taxpayers who fail to check the seasonal/intermittent box on Forms 941 will be changed back to normal Form 941 filers.

    2. Federal agencies cannot file Forms 941 on a season/intermittent basis. Verify the employment code.

  2. Use the following chart to resolve UPC 308 RC 8:

    If And Then
    The unpostable is Form 941: The employment code is correct,
    1. Input TC 016 to change the FRC to 02.

    2. Close with URC 8.

    3. Request Rejects remove the Computer Condition Code "T " and re-input the document.

    The employment code is correct and the FRC is 02,
    1. Input URC 8 to resolve the unpostable.

    2. Request Rejects remove the Computer Condition Code "T " and re-input the document

    If the employment code is incorrect,
    1. Input TC 016 to delete the employment code or input the correct employment code.

    2. Correct with URC 0 and cycle appropriately.

UPC 308 Resolution RC 9

  1. "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them Form 940 was received but they are not required to file.

  2. Verify the unpostable entity is the same as the BMF.

    If Then
    The entities are not the same, Process as a UPC 301 or UPC 303 case.
    The entities are the same, Continue processing below.
  3. If the unpostable is Form 940 (TC 150), research to verify the subsection 03, 50, 60, or 70 is correct and update the Employment Code to W with CC BNCHG.

    1. Research for outstanding balances. If outstanding balances are found, print BMFOLI and send to Rejects.

    2. If no outstanding balances are located, send to Rejects for a manual refund.

    3. Notify the taxpayer the Form 940 should be not be filed using Letter 858C.

    4. Release the unpostable with URC 8 requesting Rejects cancel the DLN because the taxpayer is not required to file Form 940.

  4. If the unpostable is a payment other than an RPS TC 610, research the BMF for any open modules with a balance due.

    If Then
    There is a balance due module(s):
    1. Apply the payment to the module(s).

    2. Notify the organization they are not liable for the Form 940 and inform them of the application of the money using 3997C letter.

    There are no debit balance modules:
    1. Initiate a manual refund of the unpostable payments per local procedures.

    2. Contact the taxpayer and inform them they do not have to file Form 940 using 3997C letter.

  5. If the unpostable is an RPS TC 610:

    1. Research for the TC 150, which should also be unpostable

      Note:

      If TC 150 is not unpostable, resolve the TC 610 if possible without waiting for the TC 150 to post.

      .

    2. Notify the organization they are not liable for Form 940 using 858C letter.

    3. Release both unpostables using URC 8 and request Rejects cancel the DLNs.

    4. Eight code the money to Unidentified if there are no other open modules for the organization by completing Form 3244, attach a copy of the appropriate CC TXMOD, URC 8 the unpostable TC 610 to Rejects indicating the organization is not liable for the money. Attach the Form 3244 to the Form 13271 which is sent to Rejects.

  6. If TC 59X, check for a Form 940 FRC in the entity. If the Form 940 FRC is on the BMF, use CC BNCHG and delete the FRC. Use CC UPRES with URC D and void the document. If the Form 940 FRC is not on the BMF, use CC UPRES with URC D and void the document.

  7. If the unpostable is the credit portion of a Doc. Code 34 credit transfer, apply to the account where the debit posted and route to the preparer. Close the unpostable with URC 6.

  8. Input TC 016 and add Employment Code W to the account.

UPC 311 - Form 8038GC

  1. RC1 Reason Code 1 occurs when an input transaction coded other than TC 370 (Doc Code 51) with secondary TC 402 attempts to post to a tax module whose status is 29 (Account Transferred Out of MF).

UPC 311 Resolution

  1. - The following table provides instructions for resolving UPC 311 RC 1:

    If Then
    a. the unpostable is not addressing the correct module, release using URC 6, 8 or 1, as appropriate.
    b. the unpostable is addressing the correct module, research for a posted or pending TC 402.
    1. located, release using URC 0 and cycle to post after TC 402.
    2. not located, release using URC 2 (route to the originator), or 8 (renumber to NMF), as appropriate.

UPC 313 - No Related Transaction

  1. RC 1 - An input transaction failed to find its related transaction posted to the tax module of the same MFT code and tax period. The Exempt Organization related transactions are shown below:

    • TC 023 attempting to post and there is no open TC 024 in the entity module.

    • TC 071/072 attempting to post and there is no open TC 070 in the entity module.

    • TC 073 attempting to post and there is no open TC 071 in the entity module.

    • TC 073 unpostables are automatically closed by GUF using URC D.

    • TC 081 attempting to post and there is no TC 080 in the entity module.

  2. RC 8 - Any MFT 67 TC 290 with Civil Penalty Reference Number 689, unless there is a previously posted TC 6XX for an equal amount.

UPC 313 Resolution - Unpostables

  1. UPC 313 RC 1 cases referenced in 3.12.278.16 above are assigned to B3 category by GUF.

  2. All RC 8 cases will be released using URC 2 and routed back to the preparer.

UPC 313 Resolution

  1. If the unpostable is a TC 023, check the Form 5768 to see if the proper transaction code was input.

    If Then
    Line 1 of Form 5768 is filled out:
    1. The transaction code should be a TC 024.

    2. Release the unpostable using URC 6. If unable, Release the unpostable using URC 8 and request Rejects correct the TC.

    The transaction code TC 023 is correct and no prior TC 024:
    1. Notify the organization using a 3905C Letter the lobby election reversal cannot be processed since there is no record of the original election to lobby. Black out the DLN on return and circle out date stamp. Send the Form 5768 back to the organization with the 3905C Letter.

    2. Release unpostable using URC D.

  2. If the unpostable is a TC 071, research UPTIN for an unpostable TC 070 for the organization.

    If Then
    The TC 070 for the organization is unpostable, Check to see if it is assigned.
    The unpostable TC 070 is unassigned:
    1. Have it assigned to you.

    2. Resolve both unpostables to post the TC 070 followed by the TC 071.

    The unpostable TC 070 is already assigned, Coordinate the resolution of both cases with the assigned tax examiner.
    There is no TC 070:
    1. Notify the organization the reversal of exemption from Social Security taxes can not be made since there is no record of the original exemption.

    2. Release the unpostable using URC D and destroy the form per local campus procedures.

  3. If the unpostable is a TC 072, research CC UPTIN for an unpostable TC 070 for the organization.

    If Then
    The TC 070 for the organization is unpostable, Check to see if it is assigned.
    The TC 070 unpostable is unassigned:
    1. Have it assigned to you.

    2. Resolve both unpostables to post the TC 070 followed by the TC 072.

    The TC 070 unpostable is already assigned, Coordinate the resolution of both cases with the assigned tax examiner.
    There is no TC 070, Release the unpostable using URC D.
  4. If the unpostable is a TC 081 and there is no TC 080 (denial):

    1. Notify the organization the reversal of a denial of exemption from Social Security taxes can not be made since there is no record of the denial.

    2. Release the unpostable using URC D and destroy the form per local campus procedures.

UPC 316 Date/Money Amount Mismatch

  1. If any Unpostable 316 is received by EO Unpostable Control, reassign it to the originator.

UPC 317 Inconsistent Extension Transactions

  1. This unpostable condition occurs when there is an inconsistent Extension Transaction.

  2. This unpostable occurs when a TC 620 attempts to post to a tax module and the extension date of the TC 620 is not equal to or greater than the due date of the return as extended or:

  3. The group return box was checked in Part I of Form 8868 in error.

UPC 317 Resolution - Unpostables

  1. Determine if the extension date was input correctly. If not input incorrectly, release using URC D. Input TC 460 with correct date. If module contains a TC 160, prepare Form 3465 to Accounts Management requesting abatement of penalty. If input correctly and posted TC 620/460 has a later extension date, release using URC D.

  2. When the group return box was checked in error, Input URC D to delete the unpostable TC 460 and input a new TC 460 with the correct extended due date.

UPC 323 Duplicate Transactions

  1. RC 2 - A TC 024 attempts to post to an entity which contains an unreversed TC 024.

  2. RC 3 - A TC 070 attempts to post to an entity, and

    • An unreversed TC 070 is already posted, or

    • A TC 071 is posted cycle 8440 or subsequent.

UPC 323 Resolution - Unpostables

  1. All UPC 323 RC 2 and RC 3 cases referenced above are assigned by GUF to B3 category.

UPC 323 Resolution RC 2

  1. Check the Form 5768 to see if the proper transaction code was input.

    If Then
    Line 1 is filled out, The transaction code should be a TC 024.
    Line 2 is filled out, The transaction code should be a TC 023.
  2. If the transaction code should be a TC 023, release the unpostable using URC 8 and request Rejects correct the transaction code.

  3. If the TC 024 is correct:

    1. Notify the organization this is the second election received and their Form 5768 can not be processed using a 3905C Letter. Include the Form 5768 with the letter. Blackout the DLN and circle out the date stamp on Form 5768.

    2. Release the unpostable using URC D.

UPC 323 Resolution RC 3

  1. Request the Form 8274 source document folder from Files.

  2. Verify the entity on the Form 8274 matches the BMF.

UPC 323 Entities Do Not Match
  1. If the entities do not match, research for another EIN. If you find another EIN:

    If Then
    You find another EIN for the Form 8274 organization, Check to see if there is an unreversed TC 070 or a TC 070/TC 071 combination already posted to the entity.
    There is a TC 070 posted:
    1. Perfect the Form 8274 with the correct EIN.

    2. Check CC BMFOLI for MFT 01 filings.

    3. If there are MFT 01 filings, check CC BRTVU to determine if the organization was paying FICA and Medicare for 3 consecutive quarters. If so, they have reversed their exemption from Social Security and Medicare taxes. Input TC 071 with an effective date determined from CC BRTVU research. If 10 years has past since the reversal of exemption, another election (TC 070) can be posted.

    4. Release the unpostable using URC D and place the Form(s) 8274 back in the source document folder and return the folder to Files.

    There is a TC 070/071 posted,
    1. Perfect the Form 8274 with the correct EIN.

    2. Notify the organization of their correct EIN and their Form 8274 can not be processed because their exemption has already been reversed.

    3. Release the unpostable using URC D and place the Form(s) 8274 back in the source document folder and return the folder to Files.

  2. If you cannot find another EIN for the organization:

    1. Use CC ESIGN to assign a new EIN to the organization.

    2. Perfect the Form 8274 with the new EIN.

    3. Release the unpostable using URC 6 with the new EIN.

UPC 323 Entities Match
  1. If the entities match and there is a TC 070 already posted:

    1. Correspond with the organization, letting them know an election is already in place and furnish the election date.

    2. Release the unpostable using URC D.

    3. Place the Form 8274 back in the source document folder and return the folder to Files.

  2. If the entities match and there is both a TC 070 and a TC 071 posted:

    1. Correspond with the organization letting them know the election has already been reversed.

    2. Release the unpostable using URC D.

    3. Place the Form(s) 8274 back in the source document folder and return the folder to Files.

UPC 324 Magnetic Tape Code

  1. RC 2 - An input transaction attempts to set the Form 940 indicator of the Magnetic Tape Code and any of the following conditions exist:

    • The entity Employment Code is T, W, F, G, or C; or

    • The entity EO Status is 01–19 and the current Subsection Code is 03/50/60/70; or

    • The Form 940 FRC is 07.

UPC 324 Resolution - Unpostables

  1. ALL UPC 324 cases are assigned to B3 category by the GUF system.

UPC 324 Resolution

  1. TheMAG-TAPE)/FTD-CD on CC ENMOD and the "MTC" on CC ACTRA and hard copy transcripts indicate which return is being filed on magnetic tape.

  2. The Magnetic Tape Codes are as follows:

    Code Definition
    0/blank No returns filed on magnetic tape
    1 Form 941 filed on magnetic tape
    2 Form 940 filed on magnetic tape
    3 Forms 941 and 940 filed on magnetic tape
  3. Research to determine if the employment code, EO status and subsection code, or Form 940 filing requirement is correct.

    If Then
    The employment code, EO status and subsection code, or Form 940 filing requirement is correct and the unpostable is a Doc. Code 63:
    1. Release the unpostable using URC D.

    2. Determine if the correct Mag. Tape Code was input. If an incorrect code was input, use CC BNCHG to input the correct Mag. Tape Code. If the correct code was input, do nothing else.

    The employment code, EO status and subsection code, or Form 940 filing requirement is correct and the unpostable is a TC 960 or 962: URC 2 back to the originator.
    The Employment Code, EO Status and Subsection Code, or Form 940 filing requirement is incorrect:
    1. Input TC 016 using CC BNCHG or CC EOCHG, as appropriate, to correct the BMF.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

UPC 329 Filing Requirement Mismatch

  1. RC 1 - An input transaction attempting to update the filing requirements or create a tax module which is inconsistent with the current filing requirements.

  2. RC 2 - An input transaction meeting the RC 1 criteria and the entity contains an EO section with a current EO Status of 22, 41, 70-72.

UPC 329 Resolution RC 1 & 2 - Unpostables

  1. All UPC 329 RC 1 cases for TC 150, TC 157 and TC 620/460 (EO MFTs) are assigned by GUF to B3 category.

  2. All UPC 329 RC 2 cases for TC 150, TC 157, and TC 620/460 (EO MFTs) are assigned by GUF to B3 category.

UPC 329 Resolution RC 1 & 2 General Instructions

  1. These instructions are general in nature. Specific instructions can be found in 3.12.278.21.3 through 3.12.278.21.13.

  2. Always perform complete research. See IRM 3.12.278.3 for research procedures. If a return has posted on Master File which matches exactly with the unpostable return, 8 code the unpostable return to cancel the DLN and associate with the posted return.

    Note:

    Some organizations are mandated to file electronically. If the unpostable return is Form 990 or 990–PF and was filed electronically and a paper return has been filed, post the e-filed return and do not request to cancel the DLN. You can identify an organization mandated to file electronically by the E-filemandate indicator of 1 posted to IDRS on page 1 of CCTXMOD.

  3. A TC 022 cannot be input if certain freeze codes are on the accounts. Many of the following instructions require a TC 022 input. If a freeze code condition prevents a TC 022, the freeze code must be resolved prior to input of the TC 022. If possible, update to a good status without input of the TC 022. If an account cannot be updated without input of a TC 022 and freeze codes on the module prevent input of the TC 022, contact EO Accounts to resolve the freeze codes. The IDRS Unit and USR Database (IUUD) can be used to locate contact numbers for EO Accounts teams 04374, 04375 or 04376 at the following web address: http://iors.web.irs.gov/homeIUUD.aspx.

    Note:

    If the freeze code is an -L freeze input by a TC 424, it may be necessary to contact EO Exam for resolution. If a freeze code condition prevents updating or if a -L freeze is present and you are unable to resolve, the Lead will contact the TEGE Analyst with oversight of the EO Unpostable process for resolution.

  4. If the unpostable entity and BMF entity are the same, research CC INOLE/CC ENMOD/EDS to determine if the BMF or the unpostable filing requirements are correct.

    If Then
    It appears the unpostable is correct:
    1. Input TC 016 to correct the BMF.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    It appears the Master File is correct, Contact the taxpayer to find out why the unpostable return was filed.
    The taxpayer responds the correct return was filed and provides a copy of the exemption letter and the BMF is incorrect, See IRM 3.12.278.21.12 to change the filing requirements.
    The taxpayer responds with the correct return and a remittance was paid with the unpostable:
    1. Prepare Form 3244 and post the credit as a payment to the proper account if the taxpayer wants it applied to another type of tax.

    2. Post it to a settled account to allow the refund if the taxpayer wants the payment refunded.

    3. Do not refund any amount without researching for open balances first.

    The taxpayer responds with the correct return and there was no remittance:
    1. Write "DO NOT PROCESS" on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN.

    2. Release the unpostable using URC 8 and request Rejects cancel the DLN.

    3. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed.

    4. Edit the received date from the unpostable return to the return being sent for processing.

    5. Request Rejects forward the correct return to Imaging (SOI) and then for processing.

    The return filed is an 1120 and the account on IDRS shows they are ruled as a 501(c)(12) or 501(c)(15) Add 1120 filing requirements using BNCHG, Doc Code 63, FYM and 1120-01 FR for 501(c)(12) and 1120-04 FR for 501(c)(15).

    Note:

    1120 and 990 FR are compatible if the organization is ruled as a 501(c)(12) or 501(c)(15) organization.

    The unpostable is Form 1120 or 1041 and another EIN is not found:
    1. Research Masterfile to determine whether prior EO returns were filed.

    2. If so, contact the taxpayer to find out why the unpostable return was filed either by phone or 4588C ltr. Suspend case for response up to 45 days.

    3. If not and the EO status is 36, remove EO submodule with TC 022 and add the filing requirements necessary to post the unpostable return.

    4. If not and the EO status is other than 36, update the EO status to 20 and add the correct filing requirements as necessary for the unpostable return.
      For Form 1120 series,1120-H or Form 1120-POL, use URC 0 to release the unpostable, cycle delay as appropriate.
      For Form 1041, add the filing requirement with cycle delay of 1, use URC 0 to release the unpostable, cycle appropriately to post after the TC 016.

    5. Update the account with the previous status and filing requirements, as necessary using TC 016. Delay 3 or more cycles to post after the return and remove the 1120 or 1041 filing requirements.

    No reply from the organization, Follow the specific instructions for each form found in IRM 3.12.278.
  5. If the BMF entity and unpostable entity are not the same, another EIN is found, and the filing requirements are compatible:

    If Then
    Refer to the compatibility chart below)
    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.

    3. Send a 3910C Letter indicating the correct EIN to the organization.

    Upostable MFT Filing Requirement is not compatible with
    01 (941) 941 (FRC = 09 or 10) (with Doc. code not equal to 51 or 52)
    02 (1120) 942, 1041, 1065 706GS(T), 1041-A, 5227, 1066
    990C/1120-C (FRC = 1 unless F1120 FRC = 07)
    990-T (FRC = 1 unless F1120 FRC = 03, 04 or 09)
    990-T (FRC = 2)
    990-PF (FRC = 1 unless EO Entity Status = 19 0r 22)
    990 (FRC = 03 or 07)
    990 (FRC = 04, 06 or 13 unless F1120 = 09)
    990 (FRC = 01 or 02 unless F 1120 = 01 and EO Subsection = 12 or F1120 FRC = 03, 04 or 09)
    8752 (unless F1120 FRC = 02)
    05 ( 1041) 1120, 1065, 990-C/1120-C, 990-T, 1066, 8752
    990 (FRC = 03-07)
    990 (FRC 01-02 unless EO Subsection = 91)
    990-PF (unless EO Subsection = 92)
    06 (1065) 942, 1120, 1041, 1066, 990-C/1120-C, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 706GS(T)
    07 (1066) 1120, 1065, 1041, 8752, 990-C/1120-C, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 942, 706GS(T)
    15 (8752) 942, 1041, 1066, 990-C/1120-C, 990-T, 1041-A, 5227, 706GS(T), 1120 (FRC not equal to 02)
    33 (990-C/1120-C) 942, 1041, 1065, 1066, 8752, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 942, 706GS(T), 1120 (FRC not equal to 07) if 990-C/1120-C (FRC = 1)
    34 (990-T) 942, 1041, 1065, 1066, 8752, 990-C/1120-C, 1041-A, 5227, 706GS(T), 990 (FRC = 03), 990 (SS = 91), 1120 (FRC = 01, 02, 06, 07, 10, 11, or 14 - 19
    36 (1041-A) 1066, 8752, 1120, 1065, 990-C/1120-C, 990-T, 990-PF, 990
    37 (5227) 1120, 1065, 1066, 8752, 990-C/1120-C, 990-T, 990-PF, 990, 1041/706GS(T), (unless EO Subsection = 90)
    44 (990-PF) 942, 1065, 1066, 8752, 990-C/1120-C, 1041-A, 5227, 990
    1120 (FRC = 01 unless EO Entity Status = 19 or 22)
    1120 (FRC = 02, 06, 10, 11, 14-19
    1041/706GS(T) (unless EO Subsection = 92)
    990-T (FRC = 02)
    50 (4720) 942, 1065, 1066, 8752, 990-C/1120-C
    1120 (FRC = 02, 06, 07, 10 or 11)
    990 (FRC = 03)
    67 942, 1065, 1066, 8752, 990-C/1120-C, 1041-A, 5227, 990-PF
    1120 (FRC = 02, 06, 07, 10,11,14 - 19)
    1120 (FRC = 09 and SS-15)
    1041/706GS(T) (unless EO Subsection = 91)
    1120 (FRC = 01 unless 990 FRC = 01 or 02 and EO Subsection = 12)
    990-T (FRC = 02)
    990-T (Subsection = 91)
    77 (706GS(T) 8752, 990-C/1120-C, 990-T, 1066, 1120, 1065
    990 (FRC = 03, 04, 06, 07 or 13)
    990 (FRC = 01 or 02 unless EO Subsection = 91)
    990-PF (unless EO Subsection = 92)
  6. If the BMF entity and unpostable entity are not the same, do the following:

    If Then
    Another EIN is found and the filing requirements are incompatible, Research to determine if the BMF or the unpostable filing requirements are correct.
    It appears the unpostable is correct:
    1. Input TC 016 to correct the BMF.

    2. Release the unpostable using URC 6 with the correct EIN and cycle to post after the TC 016.

    3. Send 3910C to organization informing them of correct EIN.

    It appears the Master File is correct, Contact the taxpayer by phone or correspondence using 4588C letter to determine why the return was filed. If correspondence is required, suspense the case for up to 45 days or until a response is received.
    The unpostable is for a Form 1120S Refer to IRM 3.13.222.64 BMF Entity Unpostable Correction Procedures
    The taxpayer responds the correct return was filed and provides a copy of the exemption letter and the BMF is incorrect,
    1. Use TC 000, 012 or 016, Document 80, to add a positive FRC to the BMF. The validity and consistency checks will be performed when the input FRC is positive; i.e., greater than zero.

    2. To delete an EO FRC, use Document Code 80 or 63. If the input is only to delete a BMF FRC, use CC BNCHG. No definer code is necessary as long as the only change being made is to delete the FRC. However, if you are using CC EOCHG and the only action is to delete a FRC, the input must be as follows:
      Document Code must be 80.
      TC must be 016.
      Remarks must be input.
      Input zero in FRC being deleted

      Note:

      Never use CC EOCHG to delete or update a Form 990T, or a non-EO FRC, unless there is an EO Section already on the BMF, or you are adding an EO Section for the first time.

    3. Always input the fiscal year month if the FRC is for Forms 990, 990PF, 990T, 5227, 1041, 1065 or 1120.

    The taxpayer responds with the correct return and a remittance was paid with the unpostable:
    1. Prepare Form 3244 and post the credit as a payment to the proper account if the taxpayer wants it applied to another type of tax.

    2. Post it to a settled account to allow the refund if the taxpayer wants the payment refunded.

      Note:

      If amount is greater than $25,000, follow manual refund procedures.

    3. Do not refund any amount without researching for open balances first.

    The taxpayer responds with the correct return and there was no remittance:
    1. Write "DO NOT PROCESS" on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN.

    2. Release the unpostable using URC 8 and request Rejects cancel the DLN.

    3. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed.

    4. Edit the received date from the unpostable return to the return being sent for processing.

    5. Request Rejects forward the correct return to Imaging (SOI) and then for processing.

    No reply from the organization, Follow the specific instructions for each form found in IRM 3.12.278.21.3 through 3.12.278.21.13.
  7. If the BMF entity and unpostable entity are not the same and another EIN can not be found use CC ESIGN to assign a new EIN.

  8. If the prior EO Status Code is 01 or 02 and the current EO Status Code is an inactive code, process as follows:

    If Then
    The current EO Status Code is 20, 22, 28, 29, 41, 70-72 and the tax period on the return is prior to the current status code date:
    1. Update the EO Status to 01 with a TC 016 Doc Code 80, Definer Codes AB.

    2. URC 0 to post the return and cycle to post after the TC 016.

    3. Return the status code to its prior status with another TC 016 and delay for 3 cycles to allow posting after the TC 150.

      Note:

      If the account was in Status 28, you must allow the TC 150 to post prior to input of the TC 016 to return it to the prior status. The GEN file does not recognize cycle delays and will cause an error to generate to the GEN file.

    The current EO Status Code is 21:
    1. Update the EO Status Code to 01 with a TC 016 Doc. Code 80 Definer Codes AB.

    2. URC 0 to post the return and cycle to post after the TC 016.

  9. If you correct an unpostable on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.

UPC 329 Resolution RC 1 & 2 - Form 990/990EZ/990-N

  1. The tables below show the posting and compatible filing requirements for Form 990 and a quick reference chart for correction of unpostable Form 990 cases.

    Transaction Code Tax Class Document Code MFT FRC
    150 4 09/89/90/92/93 67 01, 02, 03, 06, 07, 13,
    Compatible Returns FRC-01 Over $50,000 FRC-02 Under $50,000 FRC-03 Group Return FRC-06 Church FRC-07 501(c)(1) GOVT FRC-13 Religious CL Code 7
    IRC 501(c), 501(e) and 501(f) 990T-01
    1120-POL-9
    1120L-03
    1120-04
    4720
    990T-01
    1120-POL-9
    1120L-03
    1120-04
    4720
    None 990T-01 None 990T-01
    4947(a)(1) 1041 1041
  2. There is a type of organization (TO) for 990/990EZ determined from information on the return. If the TO is:

    • 1- it is a 501(c) filer

    • 3 - it is a 4947(a) filer

    • 9 - it is a "0" filer. This only applies to 2007 and prior revisions of Form 990/990-EZ.

  3. If the organization has a Form 990 FR, SS 91 (4947(a)(1) trust) or Form 990–PF FR, SS92, EO Status 12 and files a Form 1041A, the TC 150 for the Form 1041A will unpost as a UPC 329. A legislative change was made under Sec. 6034 of the IRC to exempt a charitable trust described in IRC 4947(a) from filing a Form 1041A. Correspond with the organization explaining they are not required to file a Form 1041A. Release the unpostable with URC 8, requesting Rejects cancel the DLN. Annotate "DLN Voided."

  4. If the subsection on the unpostable return is or can be determined to be 29, establish the EO section with Status 36. Part V lines 13a, 13b and 13c can be used to determine SS 29 since they should only be completed by 501(c)(29) organizations. These organizations must file Form 990. If the unpostable return is Form 990–EZ, correspond for Form 990 using 4588C letter.

UPC 329 UP Form 990/990-EZ & BMF Has a Form 5227 Filing Requirement
  1. If a Form 990/990EZ is filed but Master File shows a Form 5227 filing requirement, take the following actions:

    If Then
    another EIN is found with 990 filing requirements, release the unpostable using URC 6 and post to the correct EIN.
    another EIN is not found, check Form 990/990EZ to determine if the filer is filing as a 4947(a) trust.
    the 4947(a) trust box on Form 990/990EZ is checked, research EDS to confirm determination. change the subsection from 90 to 91. Release the unpostable with URC 0. Cycle to post after the TC 016.

    Note:

    If the 4947(a) box is checked, the type of organization code must be 3.

    the 4947(a) trust box on Form 990/990EZ is not checked,
    1. remove the status 12 subsection on the Master File with a TC 022.

    2. Put the account in the appropriate status (see IRM 3.12.278.3.5) using TC 016 Doc Code 80.

    3. Release the unpostable using URC 0 and cycle to post after the TC 022 and TC 016.

    there is a Form 1041A FRC of 1, research for last MFT 36 (1041A) module with a TC 150. Input TC 591 cc 020 using FRM49 for a period ending after the last posted TC 150. See IRM 3.13.12.9.16(8) to recall a module from retention.
UPC 329 UP Form 990/990EZ BMF FR 990-04(Form 990BL) on BMF
  1. If a Form 990 or 990-EZ is filed and the BMF has a 990 FRC of 4 (Form 990BL) and the Subsection Code is other than 21, check the subsection code on Master File to determine the proper filing requirements.

    If Then
    The Form 990 has a Subsection Code of 01, 02, 03 (with a Type of Foundation 10–18), 05–20, 22, 23, 24, 25, 50, 60, 70 or 91:
    1. Input TC 016 Doc. Code 80 Definer Code A to correct the filing requirements.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The Form 990 has a Subsection Code of 03 with a Type of Foundation Code 02–04 (Form 990PF), 21 (Form 990BL), 40 (Form 1065), 90 (Form 5227), and 92 (Form 990PF):
    1. Call the organization using the number on the return or correspond with the organization to determine why the Form 990 was filed.

    2. Suspend the unpostable until reply is received or for 45 days.

    3. When a reply is received or there is no reply, follow procedures in 3.12.278.21.12 below.

UPC 329 UP Form 990/990EZ - No 990/990EZ FR on BMF
  1. If the BMF 990 FRC is 00, the EO Entity Status is 01–19 and the Subsection Code is 01, 02, 03 (with TF 10–18), 04–20, 22–25, 50, 60, 70 or 91:

    1. Input TC 016 Doc. Code 80 Definer Code A to update the 990 FRC to 01.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

      Note:

      Remove DT-BUS-CLD or DBC if on ENMOD

  2. If the BMF 990 FRC is 00, the EO Entity Status is 01–19 and the subsection code is blank:

    If Then
    CC ENMOD/CC BMFOLO shows a blank SS:
    1. If Item 1 has a GEN, pull the pilot voucher to determine the proper SS. Also check the SGRI to ensure the organization should be included in the group.

    2. Line G may also be used to determine the correct SS.Caution: When using Item G to determine the SS, verify it by researching EDS.

    You cannot determine the proper SS from the return, Research EDS and determine the SS code.
    After research, you determine the right SS code from EDS research:
    1. Input TC 016 Doc. Code 80 to update the SS.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    After research, you cannot determine the proper SS:
    1. Determine if a list of activities is present on the return. If the list of activities is present, determine the subsection and classification code of the return by comparing the activities to the list of 501(c) definitions. Input a TC 016 Doc. Code 80 to update Master File. Release the unpostable with URC 0 and cycle to post after the TC 016.

    2. If the list of activities is not present, call or correspond with the organization for a list of activities. Suspend the unpostable for up to 45 days or until a reply is received. When a reply is received, determine the subsection and classification of the return. Input a TC 016 Doc. Code 80 to update Master File. Release the unpostable using URC 0 and cycle to post after the TC 016.

    3. If no reply is received, input a TC 016, Doc. Code 80, SS 04 to update Master File. Release the unpostable with URC 0 and cycle to post after the TC 016.

  3. If the BMF 990 FR is 00, the EO Status is 20–71 and there is a G Freeze on the account with a tax period prior to the final return, process as follows:

    1. Suspense the unpostable.

    2. Send a copy of the CC BMFOLI screen to EO Accounts indicating there is a freeze code on some tax period which needs resolution before the unpostable can be resolved.

    3. Monitor the account until the freeze code(s) is removed.

    4. When the freeze code is removed, update the EO Status to 01 and update the FR to 990 with TC 016 Doc. Code 80 Definer Codes AB. Release the unpostable with URC 0 to allow the return to post. Monitor the posting of the return. When the return has posted, input a second TC 016 Doc. Code 80 Definer B to update the EO Status to 20–71.

  4. If the BMF Form 990 FR is 00 and the EO Status is 28:

    1. Research the SGRI to determine if the subordinate was removed from the group ruling by the parent and CC EOGEN to determine if the group was dissolved.

      Note:

      If the prior status code is 01 or 02 and the tax period on the return is prior to the current status code date, refer to IRM 3.12.278.21.2(8) for further instructions. If the tax period is after the current status code date refer to the IF/Then table below.

      If Then
      The group was dissolved, Determine the subsection from the Form 990.
      The subsection is 03/09/17/20:
      1. Use a TC 022 to remove the EO section.

      2. Reestablish the EO section with an EO Status 40 using a TC 016 Doc. Code 80 Definer Code B.

      3. URC 0 to post the return and cycle to post after the TC 016.

      the subsection is other than 03/09/17/20:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with a Form 990 FR of 01, an EO Status of 36, a subsection code and a classification code.

      3. URC 0 to post the return and cycle to post after the TC 016.

      the status is 97
      1. Do not update the account to status 01.

      2. If Employment code W is present, remove the employment code.

      3. URC 0 to post the return. Status 97 will bypass the UPC 329 check and allow the return to post.

        Note:

        Any organization which is in status 97, cannot be included as part of a group until they re-apply individually.

    2. If the group has not been dissolved, review the SGRI to determine if the subordinate was removed from the group by the parent.

    3. If the subordinate was removed from the group ruling, research EDS to determine if they have applied for exempt status.

      If Then
      EDS indicates they have applied for exempt status but have yet to be approved:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with an EO Status 40 using a TC 016 Doc. Code 80 Definer Code B.

      3. URC 0 to post the return and cycle to post after the TC 016.

      EDS indicates they have applied for exempt status and are approved:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with the information on EDS using a TC 016 Doc. Code 80 Definer Codes ABC.

      3. URC 0 to post the return and cycle to post after the TC 016.

      EDS indicates they are disapproved,
      1. Remove the EO section with a TC 022

      2. Update information from EDS (ie. Status 22, 70-72)

      3. Update the EO Status to 99 using a TC 016 Doc. Code 80 Definer Code B.

      4. Release the unpostable using the appropriate URC and cycle to post after the 016.

      There is no information on EDS, determine the subsection from the Form 990. If the subsection is 03/09/17/20:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with an EO Status of 40 with a TC 016 Doc. Code 80 Definer Code B.

      3. URC 0 to post the return and cycle to post after the TC 016.

      There is no information on EDS and subsection on the Form 990 is other than 03/09/17/20:
      1. Remove the EO section with a TC 022.

      2. Reestablish the EO section with a Form 990 FR of 01, an EO Status of 36, a classification code and a subsection with a TC 016 Doc. Code 80 Definer Codes AB.

      3. URC 0 to post the return and cycle to post after the TC 016.

  5. If the SGRI indicates they are still a member of the group ruling, update the EO Status to 01 and the 990 filing requirement to 01 with a TC 016, Doc. Code 80, Definer Codes ABC. URC 0 to post the return and cycle to post after the TC 016.

  6. If the BMF 990 FR is 00, the EO Status 29 and the AF 6/8:

    1. Determine if the GEN was dissolved as part of the SGRI process or requested by the parent of the group. EO Unpostables must check the SGRI file located in EO Entity. The parent of a group exemption is required to submit information concerning their group to the IRS yearly. Prior to March 2012, if the parent fails to submit the Supplemental Group Ruling Information (SGRI) the group ruling was dissolved and the account updated to EO Status 29. The parent may continue to file under an individual ruling.

    2. If the group was dissolved due to the SGRI process, and has supplied the SGRI, update the account to an individual status. Input TC 016 Doc. Code 80 Definer Code G, Status 01, Subsection, Status date, classification code, FYM, From Gen, New Gen 9999, Affiliation code 3, 990 FR and Remarks. Release the unpostable with URC 0 after the EO Status on the parent's account is 01. Once the unpostable has been closed, a TC 016 must be input to update the account to a Group exemption. To reactivate subordinates, if necessary, input TC 016, Doc. Code 80, Definer Code B, AF 9, Status 01, status date and the From GEN.

      Note:

      Releasing the unpostable prior to an EO Status of 01 on the parent account will result in a GEN file error.

      Note:

      The parent must be in Status 01 with a GEN before any subordinates can be added or updated.

    3. If the organization is now filing under an individual ruling, delete all subordinates under the dissolved GEN with TC 022. Input TC 016 to update the parent account to an individual status (Status code, Status date, FYM, Subsection, From GEN, New GEN 9999, Affiliation code 3, classification code and remarks. Update subordinate groups from dissolved GEN using status 40 if 501(c) 3, 9 or 17 or status 36 for all others.

  7. If the BMF 990 FR is 00 and the EO Status is 41/70-72 :

    Note:

    Do not correspond if the unpostable is an extension.

    If Then
    There is an open case on EDS:
    1. Remove the EO section with a TC 022.

    2. Reestablish the EO section to status 40 using TC 016 Doc. Code 80 Definer Code B.

    3. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is an approved closed case on EDS (EDS Status 01, 06 or 09):
    1. Update the EO section on BMF using TC 016 Doc. Code 80 Definer Codes ABC. Add the appropriate information from EDS and remove the 1065/1041/1120 FR on Master File.

    2. Release the unpostable URC 0 and cycle to post after the TC 016.

    The account is in Status 41 and the unpostable is a return and there are prior year 990 returns posted and the subsection is a 501(c), (3), (9) (17) or (20) (or cannot be determined)
    1. update the EO section with a TC 016, Doc. Code 80, Definer Code B, to input EO Status Code 99.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The account is in Status 41 and there are no prior year 990 return posted, and the subsection is a 501(c), (3), (9) (17) or (20) (or cannot be determined) and the unpostable is a return
    1. correspond with the organization using Letter 3909C informing them they do not have an exemption and in order to gain an exemption, they must file Form 1023 or 1024 with Cincinnati suspend the case for 45 days.

    2. If the organization responds with a copy of their determination letter, and there is no information on EDS, contact personnel in Cincinnati at (513) 263-4653 to verify the determination letter is valid. If they validate the determination letter's content, update the EO section on BMF using TC 016, Doc. Code 80, Definer Codes ABC with the appropriate information from the determination letter.

    3. Release the unpostable, URC 0 and cycle to post after the TC 016.

    4. If the organization fails to reply or their reply is incomplete, update the account to status 40 using TC 016, Doc. Code 80, Definer Code B.

    5. Release the unpostable, URC 0 and cycle to post after the TC 016.

    The account is in Status 41 and there are no prior year 990 return posted, and the subsection is a 501(c), (3), (9) (17) or (20) (or cannot be determined) and the unpostable is an extension
    1. Update the account to status 40 using TC 016, Doc. code 80, Definer code B.

    2. Release the unpostable, URC 0 and cycle to post after the TC 016.

    Note:

    Due to incompatibility, you must update the account to status 42 for a cycle then update to status 40. Do not leave account in status 42.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11 - Failed to Establish - EO Status 70 -71) and the subsection on the return is 03, 09, 17 or 20 and the unpostable is a return

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. Correspond with the filer using letter 3877C.

    2. If the organization responds with a copy of their determination letter, update the EO section on BMF using TC 016, Doc. Code 80, Definer Codes ABC with the appropriate information from EDS or the determination letter the filer provided.

    3. Release the unpostable, URC 0 and cycle to post after the TC 016.

    4. If the organization fails to reply or their reply is incomplete, and they have previously filed an exempt organization return, update the status to 99 with a TC 016 Doc. Code 80 Definer Code B.

    5. Release the unpostable, URC 0 and cycle to post after the TC 016.

    6. If the organization fails to reply or their reply is incomplete, and this is their first exempt organization return, remove the EO section with a TC 022.

    7. Reestablish the EO section to status 40 using TC 016, Doc. Code 80, Definer Code B.

    8. Release the unpostable, URC 0 and cycle to post after the TC 016.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11 - Failed to Establish - EO Status 70 -71) and the subsection on the return is 03, 09, 17 or 20 and the unpostable is an extension

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. If they have previously filed an exempt organization return, update the status to 99 with a TC 016 Doc. Code 80 Definer Code B.

    2. Release the unpostable, URC 0 and cycle to post after the TC 016.

    3. If there is no exempt organization return, remove the EO section with a TC 022.

    4. Re-establish the EO section to status 40 using TC 016, Doc. Code 80, Definer Code B.

    5. Release the unpostable, URC 0 and cycle to post after the TC 016.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11 - Failed to Establish EO Status 70 - 71) and the subsection on the return is other than 03, 09, 17 or 20 or is blank and the unpostable is a return or an extension

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. If the subsection is present on the return or can be determined and is other than 501(c)(3), (9), (17), or (20) and the organization was not denied exemption (EDS Status 02 specifically) under the purported subsection, input a TC 016 Doc. Code 80 Definer Codes AB to update the EO section with a Form 990 FR, EO Status Code 36, FYM, subsection, and classification code (use Doc. 6379 ). URC 0 to cycle to post after the TC 016.

    2. If the subsection is not present or cannot be determined, remove the EO section on BMF using TC 022.

    3. Re-establish the EO section to status 40 using TC 016 Doc. code 80, Definer code B.

    4. Release the unpostable, URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS (EDS status 02) or there is no case on EDS and the unpostable is a return
    1. If the subsection is determined to be other than 501(c)(3), (9), (17), or (20) and the organization has not been denied exemption under the purported subsection, input a TC 016 Doc. Code 80 Definer Codes AB to update the EO section with a Form 990 FR, EO Status Code 36, FYM, subsection, and classification code (use Doc. 6379 ). URC 0 to cycle to post after the TC 016.

    2. If the subsection is determined to be other than 501(c)(3), (9), (17), or (20) and the organization was denied exemption under the purported subsection, correspond with the organization using the 3877C Letter informing them they were denied exemption and must file a Form 1041/1120 return. If the organization responds with a determination letter, update Master File with the appropriate information using a TC 016 Doc. Code 80 Definer Codes ABC. URC 0 to release the unpostable and cycle to post after the TC 016. If there is no reply, update the EO Status Code to 99 with a TC 016 Doc. Code 80 Definer Code B, release the unpostable with URC 0 to allow the return to post, and cycle the unpostable to post after the TC 016.

    3. If the subsection is determined to be 501(c)(3), (9), (17), or (20), correspond with the organization using the 3909C Letter (Status 41) or the 3877C Letter (Status 70-72) informing them they don't have an exemption and must file a Form 1041/1120 return. If the organization responds with a determination letter, update Master File with the appropriate information using a TC 016 Doc. Code 80 Definer Codes ABC. URC 0 to release the unpostable and cycle to post after the TC 016. If there is no reply, update the EO Status Code to 99 with a TC 016 Doc. Code 80 Definer Code B, release the unpostable with URC 0 to allow the return to post, and cycle the unpostable to post after the TC 016.

    There is a disapproved closed case on EDS (EDS status 02) or there is no case on EDS and the unpostable is an extension:

    Note:

    Do not correspond if the unpostable is an extension.

    1. Remove the EO section using TC 022.

    2. Re-establish the EO section to status 40 using TC 016 Doc. Code 80, Definer code B.

    3. Cycle to post the TC 460 after the TC 016.

    4. Input another TC 016 to change the EO status code back to 70 or 72.

    5. Cycle to post the second TC 016 after the TC 460.

    6. If a TC 022 can not be done to update the EO status code to 40 because a freeze code is present, URC D the unpostable.

    The organization is under IRC 501(c)(3) and the gross receipts are $50,000 or less:
    1. Reestablish the EO status to 31 with a TC 016 Doc Code 80 Definer code AB and add appropriate filing requirement if the organization meets the gross receipt criteria. See IRM 3.13.12.18.18(2). Cycle to post after the TC 022.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

  8. If the account is in status 97 take the following action:

    If Then
    The account is in status 97
    1. Research to determine if the filer failed to file for three consecutive years.

      Note:

      If FYM is 12, Form 990/990–EZ returns must have a received date of May 17, 2010 or prior. Form 990–N filers were given an extension to file until October 15, 2010.

    2. If received date was prior to May 17, 2010, for 990/990–EZ filers or October 15, 2010 for 990–N filers, Photocopy the front page of return and envelope showing the postmark and send to the TEGE Analyst at M/S 1110.

    3. URC 0 the unpostable and cycle to post after the TC 016.

    4. If the filer failed to file for three consecutive years research for another EIN.

      Note:

      If Employment Code W is present, remove it.

    another EIN is found in a good status
    1. URC 6 the unpostable to the correct EIN with the good status.

    2. Send a 3910C Letter to the organization informing them of their correct EIN.

    3. Consolidate the accounts if the organization has duplicate EINs.

    another EIN is not found
    1. URC 0 to post the return. Status 97 will bypass the UPC 329 check and allow the return to post.

  9. If the BMF Form 990 FR is 00 and Line I 527 box is checked:

    1. Check BMFOLI and CC BMFOLE for the TC 150 MFT 47 or TC 971 ac 350/351. If present, establish the EO section using CC EOREQ/CC EOCHG, TC 016, Doc. Code 80, Definer Codes AB, Subsection 82, Classification Code 1, EO Status Code 34/date, Form 1120-09 and 990 FR 01. URC 0 to post the return and cycle the unpostable to post after the TC 016.

    2. If no TC 971 ac 350/351 or TC 150 MFT 47 is present, correspond using a 3710C Letter telling the organization they must file a Form 8871 electronically and a Form 8453X by paper.

    3. If they file a Form 8871 electronically, set up the EO section using CC EOREQ/CC EOCHG, TC 016, Doc. Code 80, Definer Codes AB, Subsection 82, Classification Code 1, EO Status Code 34/date, Form 1120 of 09, and Form 990 FR of 01. URC 0 to allow the return to post and cycle the unpostable to post after the TC 016.

    4. If no reply, set up of the EO section using CC EOREQ/CC EOCHG, TC 016, Doc. Code 80, Definer Codes AB, Status Code 40/date, and FYM.

  10. If an organization files a Form 7004 Extension, research CC INOLE to determine if the organization is a Form 990 or Form 990-PF filer. If they are an exempt organization which has filed the wrong extension, release the unpostable using URC 8. Request Rejects cancel the DLN and renumber to correct MFT.

UPC 329 UP Form 990/990 – 4947(a) Box Checked
  1. If the 4947(a)(1) box in Item I is checked on the return:

    1. If the organization filed a Form 990 with 4947(a)(1) trust box checked, correspond with the organization explaining only non-exempt charitable trusts which were classified as a public charity under IRC 509(a) of the Internal Revenue Code are entitled to file a Form 990. Request a determination letter classifying the non-exempt charitable trust as a public charity.

    2. If the organization responds with a letter of determination, input TC 016 to update to Form 990, Status 12, and release the unpostable after the 016 with URC 0.

    3. If the organization does not respond, input TC 016 to update to Status 40, and release the unpostable after the 016 with URC 0.

UPC 329 UP Form 990/990EZ - GEN
  1. If the Form 990 has a GEN on line Hc and no EO subsection on IDRS:

    1. Pull the pilot voucher.

    2. Check to see if the filer was included on the SGRI.

    3. If the filer was included on the SGRI, input TC 016 Doc. Code 80 Definer Codes ABC to add the EO section and remove the Form 1120 FRC.

    4. Release the unpostable using URC 0 and cycle 3 cycles to post after the TC 016.

  2. If the account is not included on the SGRI and the subsection is 501(c)(3), (9), (17) or (20), put the account in status 40. Input a TC 016, Doc Code 80, Definer Code B. URC 0 the unpostable. Cycle delay to ensure the unpostable posts after the TC 016.

  3. If the account is not included on the SGRI and is other than subsection 501(c)(3), (9), (17) or (20), put the account in status 36. Input a TC 016, Doc. Code 80, Definer Code B, FYM and 990 filing requirements. URC 0 the unpostable. Cycle delay to ensure the unpostable posts after the TC 016.

  4. If the Form 990 has a GEN and the EO Status is 28, research the SGRI to determine if the organization was removed from the group by the parent. If the group was deleted on the SGRI, remove the EO Section with a TC 022. If the organization is a 501(c)(3), (9), (17) or (20) input a TC 016, Doc. Code 80, Definer Code B, Status 40. URC 0 the unpostable to allow the return to post and cycle the unpostable to post after the TC 016. If the organization is other than a 501(c)(3), (9), (17) or (20), input a TC 016, Doc. Code 80, Definer Code B, FYM, Status 36 and 990 filing requirements. URC 0 the unpostable. Cycle the unpostable to post after the TC 016.

  5. If the Form 990 has a GEN and the EO Status is 28, the SGRI indicates the organization should be included in the group, follow the procedures in paragraph (1) above.

UPC 329 UP Form 990/990EZ with 990-PF FR on BMF
  1. On September 8, 2008, the IRS issued new regulations eliminating the advance ruling process and the need to file Form 8734. Organizations will use their advance ruling letter to provide donors proof of their public charity status until the IRS changes the status and publishes notice of the change. Under the new regulations, section 501(c)(3) organizations that received advance rulings that expired on or after June 9, 2008, were classified as publicly supported charities and file the Form 990/990–EZ as long as they continue to meet one of the public support tests; otherwise they are required to self-identify as a private foundation by filing Form 990-PF. Organizations whose advance ruling expired before June 9, 2008, and that did not submit Form 8734 to the IRS will be reclassified as private foundations, unless they submit documentation to the IRS including Form 8940 and the appropriate user fee, establishing they met the public support test.

  2. Since the regulations pertain to organizations with an advance ruling expiration date less than 90 days of the issuance of the regulations and forward, the campus may continue to see organizations with a foundation follow-up. Follow the procedures listed below when an advance ruling follow-up was completed in Cincinnati.

  3. During the advance ruling period, the organization will file a Form 990. When the advance ruling period is up, the EDS system in Cincinnati will automatically send a 1046 letter to the organization requesting the organization's financial support information. Presently, the 1046 letter does not show up on the "I" case on EDS.

  4. If foundation follow-up was done, there will be an "F" case on EDS. Based on the financial information which was received from the organization. The "F" case will indicate the ruling letter which was sent to the organization by Cincinnati; e.g., 1050, 1075, 1076, 1078 and 5548. If the financial information was not supplied by the organization, Cincinnati will issue a 1048 letter (Presumptive PF) which states the organization is presumed to be a private foundation and change the filing requirement to Form 990PF.

  5. Check CC SUMRY. If there is an open control assigned to EOCA (IDRS number begins with "40" ), contact the employee with the open control for instruction to resolve the unpostable. Do not cancel the DLN.

  6. Research EDS to determine if the foundation follow-up was done by Cincinnati.

    If Then
    There is no "F" case on EDS and the request type is "I" : Check CC BMFOLE to determine if Cincinnati updated the filing requirement to Form 990PF or Form 990.
    Cincinnati updated the filing requirement to Form 990PF:
    1. Assume the organization was issued a 1048 Letter (presumptive PF).

    2. Suspend the unpostable.

    3. Correspond with the organization telling them we can not process their Form 990 and they must file a Form 990PF for the tax period in question.

    4. If no response is received from the filer by the end of the suspense period, update Master File with a Form 990 FR and Foundation Code 15 using a TC 016. URC 0 and cycle the TC 150 to post after the TC 016. Input a second TC 016 to re-establish the Form 990PF FR and Foundation Code 04. Cycle the second TC 016 to post after the TC 150.

    Cincinnati updates the filing requirement to Form 990:
    1. Update Master File with CC EOREQ/EOCHG TC 016 Doc. Code 80 (if necessary).

    2. Release the unpostable with a URC 0 and cycle (2) to post after the TC 016.

    The organization responds with a determination letter indicating the organization should file a Form 990:
    1. Contact personnel in Cincinnati at (513) 263-4653 to validate the determination letter's content.

    2. If they validate the information in the Determination letter, update Master File with CC EOREQ/EOCHG TC 016 Doc. Code 80 (if necessary).

    3. Release the unpostable with a URC 0 and cycle (2) to post after the TC 016.

  7. If the foundation follow-up was done and there is an "F" case on EDS, determine the ruling letter which was sent to the organization and process as follows:

    If Then
    The organization was sent a 1050 Letter (Form 990 FR):
    1. Input a TC 016 Doc. Code 80 to update Master File with the EDS EO section information for a Form 990 filer.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The organization was sent a 1075 letter (Form 990PF FR):
    1. Call the organization using the number on the return or correspond with the organization using a 4588C Letter, informing them they have filed the wrong return according to the determination letter which was sent to them. Suspend the case for 45 days.

      Note:

      If the organization questions their determination, refer them to Cincinnati.

      Exception:

      If the assets are $0 or the organization gives some indication they are inactive on the Form 990, post the Form 990 return by updating the FR to Form 990. When the return posts, input a TC 016 to change the filing requirements back to 990-PF.

    2. If the organization responds with a determination letter indicating they should file a Form 990 or Master File research indicates Cincinnati has changed the filing requirement to Form 990, update Master File with the correct EO section information with a TC 016 Doc. Code 80. Release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the organization responds with a Form 990-PF, write DO NOT PROCESS on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN. Release the unpostable using URC 8 and request Rejects cancel the DLN. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed. Edit the received date from the unpostable return to the return being sent for processing. Request Rejects forward the correct return for processing.

    4. If the organization does not supply documentation of exempt status as a 990 filer or does not reply, input a TC 016 to change the filing requirements to 990, URC 0 to post the return. Monitor the account until the return posts. When the 990 return posts input a TC 016 to change the filing requirements back to 990-PF.

    The organization was sent a 5548 letter (generic letter, FR unknown):
    1. Input a TC 016 Doc. Code 80 Definer Code A to change the filing requirement to Form 990 using the prior foundation code.

    2. Release the unpostable with URC 0 and cycle to post the TC 150 after the TC 016.

    3. Input a second TC 016 Doc. Code 80 Definer Code A to change the filing requirement back to Form 990PF. Cycle the second TC 016 to post after the TC 150.

      Note:

      Change the filing requirement back to Form 990PF because the content of the Letter 5548 is unknown. Once a determination is made by Rulings & Agreements, EDS will be updated and the organization's filing requirement and EO section information will roll over to Master File.

  8. If a private foundation is in IRC 507(b)(1)(B) termination, it must file a Form 990PF for each year in the 60-month termination period, if the period has not expired before the due date of the return. In the last year of the termination period, the organization may file a Form 990 if it determines it has met the public support test. Cincinnati may or may not have issued their final determination yet. If no final determination is made, the Form 990 will unpost as a UPC 329. Process as follows:

    1. Research CC INOLE to determine if the account is in EO Status 25 and the advanced ruling date is present. If there is no advanced ruling date, research EDS to determine if an Advanced Ruling Letter 2245 was sent or if a final determination letter was sent to the organization.

    2. If an Advanced Ruling Letter 2245 was sent, the final determination letter was not sent, and the organization is in the last year of its termination period, update the FR to Form 990 and post the return. If the final determination letter was sent and it has a Form 990 FR, update Master File accordingly with a TC 016 Doc. Code 80. Release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the final determination letter was sent and it has a Form 990PF FR, call the organization using the number on the return or correspond with the taxpayer informing them Cincinnati determined they did not meet the public support and they must file a Form 990PF. Suspense the case for 45 days. If the organization responds with a Form 990PF, write DO NOT PROCESS on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN. Release the unpostable using URC 8 and request Rejects cancel the DLN. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed. Edit the received date from the unpostable return to the return being sent for processing. Request Rejects forward the correct return for processing. If the organization does not respond after 45 days, input a TC 016 to change the FR to Form 990, URC 0 the unpostable and post the return. Monitor the account and when the 990 posts, input a TC 016 to update the FR to 990-PF.

    4. If there is no advanced ruling date on Master File, no Advanced Ruling Letter 2245 sent to the organization, and the EO Status is 25, contact the organization by phone or correspond with the organization. Inform the organization it can not terminate under IRC 507(b)(1)(B) without an advanced ruling from Cincinnati. Therefore it is required to file a Form 990PF whether it is terminating its private foundation status or not. Suspense the case for 45 days. If the organization responds with a Form 990PF, write DO NOT PROCESS on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN. Release the unpostable using URC 8 and request Rejects cancel the DLN. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed. Edit the received date from the unpostable return to the return being sent for processing. Request Rejects forward the correct return for processing. If the organization does not respond after 45 days, input a TC 016 to change the FR to Form 990, UPC 0 the unpostable and post the return. Monitor the account and when the 990 posts, input a TC 016 to update the FR to 990-PF.

  9. If the unpostable is an approved Form 8868 and the organization has indicated Form 990 on the form, release the unpostable with URC 6 to change the MFT from 67 to 44. Correspond with the organization explaining they have filed an extension for the wrong return. Notify them of their correct filing requirements.

    Note:

    If Pending or Posted 150 is on masterfile or a previous letter was sent on the same tax period, same MFT by an EO Employee, do not issue a letter.

UPC 329 Resolution RC 1 & 2 Form 1120C/990C

  1. See IRM 3.13.222.73.8 for instructions.

UPC 329 RC 1 & 2 Converted Forms 1120 & 1041 EO Exams

  1. EO Exam will secure a Form 1120 or 1041 when proposing a revocation of an organization before EO Exams mandatory review is complete and a Form 2363-A is submitted to update the EO Status to 22 by submitting the Form 2363-A. If a Form 1120 or 1041 attempts to post to an account in a good EO status the return will unpost as a UPC 329 1 or 2.

UPC 329 RC 1 & 2 Converted Forms 1120 & 1041 EO Exams Resolution
  1. When a Form 1120 or 1041 is secured by Exam while proposing a revocation the agent will write across the top of the form either "Form 990 converted to Form 1120 by TEGE Operating Division " or" Form 990 converted to Form 1041 by TEGE Operating Division" . If these statements or similar wording is on the Form 1120 or 1041 do not correspond.

  2. To post the Form 1120 or 1041 do the following, place the account in EO Status 20 and add 1120 or 1041 filing requirements depending on the unpostable return.

  3. Resolve the unpostable using URC 0 and cycle to post the return after the TC 016.

  4. Monitor the return (F1120 or 1041) until it posts and then return the account to the previous EO Status.

    Note:

    If the account is all ready in Status 22 (revoked), you do not need to monitor the Form(s) 1120 or 1041 for posting. Do not update the EO status.

UPC 329 Resolution RC 1 - Form 990-N

  1. Form 990N is an electronic filed form for organizations whose gross receipts are $50,000, or less. If a Form 990N unposts as a UPC 329 RC 1, correct the unpostable condition using the same procedures, correspondence and compatibility checks as for Form 990.

UPC 329 Resolution RC 1 & 2 Form 990PF

  1. The table below shows the FRCs which are compatible with a Form 990PF and a quick reference chart to correct unpostable Forms 990PF.

  2. The Form 990PF has a type of organization (TO) determined by information on the return. If the TO is:

    • 3 - it is a 4947(a) filer

    • 6 - it is a 501(c)(3) filer

  3. The following defines the filing requirements for Form 990PF:

    • FRC 1 - Form 990-PF required to be filed.

    • FRC 2 - Revocation of private foundation status (Status 22; Form 1120 and 990-PF required to be filed.

    • FRC 3 - Presumptive PF; Form 990-PF required to be filed.

  4. The table below shows the Form 990-PF compatible tax returns:

    FRC Compatible Tax Returns
    1 Form 990-T, SS 03
    Form 1041, ST 12, IRC 4947(a)(1)
    Form 1041, ST 18, Revocation of private foundation trust
    Form 1120, ST 19, Revocation of private foundation corporation
    2 Form 1120, ST 22 revocation
UPC 329 Resolution RC 1 & 2 - Form 990PF and Payments for Charitable Trusts (509(a)(3) and Non-exempt Charitable Trusts (4947(a)(1)
  1. The information in this section is for historical purposes due to filing requirement changes because of the Pension Protection Act of 2006. The organizations will not receive a new determination letter indicating the change in filing requirements unless they request a new determination letter by filing Form 8940 and paying a user fee. Once the organization has identified itself as required to file Form 990–PF, they must continue to file that form unless they request and receive a new determination letter.

  2. The Pension Protection Act of 2006 eliminated the charitable trust test, effective August 17, 2007. Consequently many trusts previously classified as a Type III supporting organization filing Form 990 are now classified as a private foundation and required to file Form 990-PF.

  3. If a payment or Form 990-PF is received on organizations which have a previous Subsection of 91 or Subsection 03 Foundation code 15, 16 or 17, take the following actions:

    If Then
    the unpostable is a payment (TC 670, 610) for MFT 44 and Subsection is 91 on Master File, research Master File for a rejected or unposted TC 150 for Form 990 for 2007. If a TC 150 for Form 990 for 2007 has posted, update the Subsection to 92 990-PF - 01 and "0" code the unpostable. Cycle delay to allow TC 016 to post. If a TC 150 for Form 990 2007 is rejected, follow the procedures above and then change the account back to Subsection 91, 990-01, 990PF-00 to allow the rejected 990 to post.
    the unpostable is a payment (TC 610, 670) for MFT 44 and Subsection is 03, Foundation code 15, 16 or 17 on Master File, research Master File for a rejected or unposted TC 150 for Form 990 for 200712. If a TC 150 for Form 990 for 2007 has posted, update the Subsection to 03 Foundation Code 04, 990-PF - 01 and "0" code the unpostable. Cycle delay to allow TC 016 to post. If a TC 150 for Form 990 2007 is rejected, follow the procedures above and then change the account back to subsection 03 Foundation Code 15, 16 or 17, 990-01, 990PF-00, to allow the rejected 990 to post.
    the unpostable is a TC 150 MFT 44, Subsection 91 on Master File and the filer has written "Notice 2008-6-Status Change" or similar wording at the top of the return or box G, initial return of a former public charity is checked, research Master File for a rejected or unposted TC 150 for Form 990 for 2007. If a TC 150 for Form 990 for 2007 has posted, update the Subsection to 92, 990-PF - 01 and "0" code the unpostable. Cycle delay to allow TC 016 to post. If a TC 150 for Form 990 2007 is rejected, follow the procedures above and then change the account back to Subsection 91, 990-01 990PF-00 to allow the rejected 990 to post. Once the rejected 990 for 2007 posts the account should be updated to Subsection 92 and 990PF-01.
    the unpostable is a TC 150 MFT 44, Subsection 03 Foundation Code 15, 16 or 17 on Master File and the filer has written "Notice 2007-Status Change" or similar wording at the top of the return, or box G, initial return of a former public charity is checked, research Master File for a rejected or unposted TC 150 for Form 990 for 2007. If a TC 150 for Form 990 for 2007 has posted, update the Subsection to 03 Foundation Code 04, 990-PF - 01 and "0" code the unpostable. Cycle delay to allow TC 016 to post. If a TC 150 for Form 990 2007 is rejected, follow the procedures above and then change the account back to Subsection 03, Foundation Code 15, 16 or 17, 990-01, 990PF-00 to allow the rejected 990 to post. Once the rejected 990 for 2007 posts the account should be updated to Subsection 03, Foundation Code 04 and 990PF-01.
    the unpostable is a TC 150 MFT 44, Subsection 03 Foundation Code 15, 16 or 17 and a GEN is present on Master File and the filer has written "Notice 2007-Status Change" or similar wording at the top of the return, or box G, initial return of a former public charity is checked,
    1. research EDS for an individual ruling.

    2. If an individual ruling is found, update the account by removing the GEN and input of the information from EDS. Input a TC 016, Doc Code 80 using EOREQ/EOCHG.

    3. Release the unpostable using URC 0. Cycle delay to post after the TC 016.

    4. If an individual ruling is not found, remove the GEN subsection by inputting a TC 022.

    5. Input a TC 016 using CC EOREQ/EOCHG to update the account to status 40.

      Note:

      Organizations who are part of a group and fail the public support test can not be included in a group exemption and must file for an individual ruling.

    6. Release the unpostable URC 0. Cycle delay to post after the TC 016.

UPC 329 UP Form 990PF with Form 5227 on BMF
  1. Check to see if the entities match:

    If Then
    The entities match:
    1. If 4947(a) block is checked on the return, input TC 016 Doc. Code 80 Definer Codes ABC to update the BMF.

    2. If there is a BMF Form 1041A FRC of 01, input TC 591 cc 20 after the last posted 1041A.

    3. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The entities do not match,
    1. Research for another EIN or ESIGN as applicable.

    2. Process as a UPC 366.

UPC 329 UP Form 990PF No 990-PF Filing Requirement on BMF
  1. When the BMF Form 990PF FRC is 0 and the EO Status is 01–19:

    If Then
    CC ENMOD/CC BMFOL shows SS 03 with a TF of 02, 03 or 04 or a SS of 92:
    1. Input TC 016 Doc. Code 80 Definer Code A and update the filing requirement.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    The EO section has missing information:
    1. Research EDS for the missing information.

    2. Update Master File with the necessary information with a TC 016.

    3. Release the unpostable using URC 0 and cycle to post after the TC 016.

  2. When the BMF form 990–PF FRC is 0, the EO Status is 20, and there is a Form 990–PF and/or corresponding unpostable TC 610, 650, 660 or 670:

    1. Update the Status to 01 and the Form 990PF FR to 1 with TC 016 Doc. Code 80 Definer Codes AB. Release the unpostable using the appropriate URC and cycle to post after the TC 016.

    2. Process the unpostable payment before resolving the associated unpostable TC 150. Cycle to post the Form 990–PF after the payment.

UPC 329 UP Form 990PF with Form 990 FR on BMF
  1. The unpostable is a Form 990-PF and the BMF has Form 990 FRC, research EDS for a better filing requirement.

    If Then
    An open case is found on EDS and enough information is available to determine the correct FR:
    1. make the FR change using TC 016, Doc Code 80, Definer Codes AB, Subsection Code 03, correct foundation code (03 or 04) and 990-PF- 1 FR.

    2. Release the unpostable URC 0 and cycle to post following the TC 016.

    An open case is found on EDS but there is not enough information to determine the correct FR
    1. Use the employee number on EDS to contact the Determination Area to discuss the disposition of the Form 990-PF. Follow the instructions provided by the Determination Area.

    2. Request Cincinnati expedite the case.

    There is no open case on EDS:
    1. Call using the number on the return or correspond with the organization using Letter 4588C informing them our records indicate they should file a Form 990. The organization can self-identify if they no longer meet the public support test and should file a 990-PF. If the filer indicates they no longer meet the public support test, update the filing requirements to 990-PF. URC 0 the unpostable to post following the TC 016.

    2. If the filer indicates they still meet the public support test, suspend the case for 45 days pending a change in the filing requirement or the filing of a Form 990.

    There is a corresponding TC 610, 650, 660 or 670 payment with the 990-PF
    1. update the FR to Form 990PF and the Foundation Code to 04 with TC 016 Doc. Code 80 Definer A. Use appropriate URC to release the unpostable payment and cycle to post after the TC 016. Use appropriate URC to release the TC 150 and cycle to post after the payment. After the TC 150 has posted, change the FR back to Form 990 and remove the TF with a TC 016 Doc. Code 80 Definer Code A.

    The organization responds with a Form 990:
    1. Write DO NOT PROCESS on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN.

    2. Release the unpostable using URC 8 and request Rejects cancel the DLN.

    3. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed.

    4. Edit the received date from the unpostable return to the return being sent for processing.

    5. Request Rejects forward the correct return to Imaging (SOI) and then for processing.

      Note:

      Do not detach Perfect Return

    The organization responds with a new ruling letter which indicates they are now a private foundation, Update the EO section with a TC 016 Doc. Code 80. URC 0 to release the unpostable and cycle to post after the TC 016.
    The organization does not respond:
    1. Change the filing requirement to Form 990PF and the Foundation Code to 04 with a TC 016 Doc. Code 80 Definer Code A.

    2. Use the appropriate URC to release the unpostable and post the return; cycle to post after the TC 016.

    3. Monitor the posting of the return. When the return posts, change the filing requirement back to 990 and change or remove the Foundation Code with a TC 016 Doc. Code 80 Definer Code A and cycle delay 3 or more cycles.

    Line G "Initial return of a former public charity" box is checked
    1. Change the filing requirement from 990 to 990-PF and update the Foundation Code 04 with a TC 016 Doc. Code 80, Definer Code A.

    2. URC 0 the unpostable and cycle to post after the TC 016.

  2. If the unpostable is an approved Form 8868 and the organization has marked Form 990PF on the form, release the unpostable with URC 8 to change the MFT from 44 to 67. Correspond with the organization explaining they have filed an extension for the wrong return. Notify them of their correct filing requirements.

    Note:

    If a previous letter was sent on the same tax period, same MFT by an EO employee, do not issue another letter. If the MFT was edited incorrectly or the organization filed the correct return, do not issue a letter.

  3. If an organization is in EO Status 97, 98 or 99 and filed an extension Form 8868 for an exempt organization return, input the extension with TC 460 on MFT 02 Form 1120 using CC REQ77 and URC "D" to release the unpostable condition.

  4. If after research of CC INOLE, you determine the organization filed the incorrect extension form (Form 7004), correct the form number on the extension, write "cancel DLN" to the left of the DLN, release the unpostable with URC 8, attach Form 13271, and request Rejects cancel the DLN and renumber for the correct MFT.

UPC 329 UP Form 990PF Account in EO Status 41, 70-72
  1. If the BMF EO Status is 41, 70-72:

    Note:

    Do not correspond if the unpostable is an extension.

    If Then
    There is an open case on EDS:
    1. Remove the EO section with a TC 022.

    2. Reestablish the EO section to status 40 using TC 016 Doc Code 80 Definer Code B.

    3. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is an approved closed case on EDS (EDS Status 01, 06, or 09):
    1. Update the EO section BMF using TC 016 Doc. Code Definer Codes ABC; input the EO Status as indicated on EDS, add the appropriate FR, and delete the 1065/1041/1120 FR.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS or there is no case on EDS:
    1. If the EO Status Code is 41, and there are prior year 990-PF returns posted, update the EO section with a TC 016, Doc. Code 80, Definer Code B, to input EO Status Code 99. Release the unpostable with URC 0 and cycle to post after the TC 016.

    2. If the EO Status Code is 41 and there are no prior year 990-PF returns posted, correspond with the organization using Letter 3909C informing them they do not have an exemption and in order to gain an exemption, they must file Form 1023 or 1024 with Cincinnati suspend the case for 45 days.

    3. If the EO Status Code is 70, correspond with the organization using Letter 3877C informing them their exemption was denied and they are required to file Form 1120. Suspend the case for 45 days.

    4. If the EO Status Code is 71, correspond with the organization using Letter 3877C informing them their Form 1023 or Form 1024 was incomplete and they do not have an exemption. Suspend the case for 45 days.

    5. If the EO Status Code is 72, correspond with the organization using 3877C informing them they do not have an exemption.

    6. If the organization responds with a letter of determination, update the EO section with a TC 016. Release the unpostable with URC 0 and cycle to post after the TC 016.

    7. If the organization fails to reply, update the EO section with a TC 016 Doc. Code 80, Definer Code B, to input EO Status Code 99. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The EO status is 41 with prior year returns posted and the unpostable is an extension:
    1. Update the EO section using TC 016 Doc. Code 80 Definer Code B to input EO Status Code 99.

    2. Input the extension with TC 460 on MFT 02 Form 1120 using CC REQ77 and URC D to release the unpostable

    The EO status is 41 without prior year returns posted and the unpostable is an extension:
    1. Remove the EO section with a TC 022.

    2. Update the EO section to status 40 using TC 016 Doc. Code 80 Definer Code B.

    3. Remove 1120/1041 filing requirements.

    4. Use appropriate URC to close the unpostable and cycle to post after the TC 022 and 016.

    Note:

    Due to incompatibility, update the account to status 42 then cycle to update to status 40. Do not leave account in status 42.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11- EO Status 70-71) and there are prior exempt returns posted and the unpostable is an extension:
    1. Update the EO section with a TC 016 Doc Code 80 Definer Code B, to update EO Status code to 99.

    2. Input the extension with TC 460 on MFT 02 Form 1120 using REQ77 and release the unpostable with URC D.

    There is indication on EDS, the organization did not complete the approval process (EDS Status 11- EO Status 70-71) and there are no prior exempt returns posted and the unpostable is an extension:
    1. Remove the EO section with a TC 022.

    2. Re-establish the EO section to status 40 using TC 016 Doc. Code 80 Definer code B cycle delay to post after the TC 022.

    3. Use appropriate URC to close the unpostable and cycle to post after the TC 016.

    There is a disapproved closed case on EDS (EDS status 02) and the unpostable is an extension:
    1. Remove the EO section using TC 022.

    2. Re-establish the EO section to status 40 using TC 016 Doc. Code 80 Definer code B.

    3. Cycle delay to post the extension after the TC 016.

    4. Input another TC 016 to change the EO status code back to status 70 or 72. Cycle to post after the TC 460.

    The 4947(a) box is checked on Form 990-PF,
    1. Update the Status to 12, Subsection Code 92, FYM and 990-PF filing requirements.

    2. URC "0" and cycle to post following the TC 016.

  2. For further instructions, see IRM 3.12.278.21.12, All returns/extensions-BMF EO Status is 20-26, 28, 29, 40, 41, 70-72.

UPC 329 UP Form 990PF TC 660/670
  1. Perform the following research:

    1. Research CC INOLE to determine the current filing requirement.

    2. Research CC BMFOLI to determine filing pattern.

    3. Based on the findings on CC BMFOLI, research CC BMFOLT to determine if FTD payments were made on a different MFT; e.g., MFT 34. If found, use URC 6 or 8 to post to a different MFT.

  2. If nothing can be found on IDRS, research EDS for an "F" case or an "A" case. If either type of case is present, update the EO section, using CC EOREQ/CC EOCHG TC 016 Doc Code 80 Definer Code A to remove the 990 filing requirement (if necessary), and add the Form 990PF filing requirement, the appropriate foundation code, subsection code, classification code and remarks. URC 0 the unpostable and cycle to post after the TC 016.

  3. If there is no "F" case or an "A" case on EDS, order the document to determine where the payment needs to be applied. Make any necessary changes to Master File to post the payment.

  4. If still unable to resolve the unpostable and there is a 990 filing requirement on the module, change the EO section with a TC 016 Doc Code 80 Definer Code A to remove the 990 FR and add the Form 990PF FR of 1, Foundation Code of 04, Subsection Code of 03, Classification Code of 1, and Remarks. URC 0 the unpostable and cycle to post after the TC 016.

UPC 329 Resolution RC 1 & 2 Form 990T

  1. The list below defines the FRCs for Forms 990T:

    • FRC 1 - Form 990-T required to be filed.

    • FRC 2 - Form 990-T for IRC 401(a) filers or 408 IRA.

  2. Use the table below to determine compatible filing requirements and a quick reference for correcting unpostable 990-T.

    FRC Compatible Tax Returns
    1 Form 990, 990-PF, 1120-POL, 1120-PC and 4720
    2 Form 941, 940, 944
  3. The Form 990T has a Type of Organization (TO) on the return. If the TO is:

    • 1, it is an exempt trust with a domestic address.

    • 2, it is an exempt trust with a foreign address.

    • 3, it is a 401(a) or 408 IRA trust, employee plan organization.

    • 4, it is an exempt corporation with a domestic address.

    • 5, it is an exempt corporation with a foreign address.

  4. TO 1, 2, 4 or 5 are filed by exempt organizations and must have a BMF Form 990 FRC of 01, 02, 04, 06 or 13 or a BMF Form 990PF FRC of 1.

  5. TO 3 is filed by employee plan organizations and cannot have an EO section. The name may contain words such as "pension" , "welfare" , "benefit" , "profit-sharing " , "IRA" , SEP or " retirement" .

  6. The Form 990T will unpost if the TO on the return does not agree with the BMF FRC. If the TO is 1, 2, 4, or 5:

    • The Form 990T FRC must be a 1, and

    • Either the Form 990 FRC must be 01, 02, 04, 06 or 13, or

    • The Form 990PF FRC must be 1 or

    • The EO Status must be 06, 07, 10 or 11.

  7. If the TO is a 3, the Form 990T FRC must be a 2 without any EO section on the BMF.

  8. Use the following table to resolve the unpostable:

    Subsection Code 990 FRC 990PF FRC TF EO Status
    02–27, 50, 60, 70, 71, 81 01, 02, 04, 06, 13
    03 01, 02 10–18
    03 01 02–04
  9. If the 990T FRC is 0 and the TO is 1, 2, 4 or 5, process as follows:

    If Then
    CC INOLE/CC ENMOD/CC BMFOL shows a SS of 02–27, 50, 60, 70, 71, or 81 and 990 FRC is 01, 02, 04, 06 or 13:
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990T FRC to 1.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    CC INOLE/CC ENMOD/CC BMFOL shows a SS 03, 990 FRC of 01 or 02, and TF of 10–18:
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990T FRC to 1.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    CC INOLE/CC ENMOD/CC BMFOL shows a SS of 03, Form 990PF FRC of 1, and TF of 02–04,
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990T FRC to 1.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    CC INOLE/CC ENMOD/CC BMFOL shows no SS, 990 FRC of 06, and EO Status of 06, 07, 10 or 11,
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990T FRC to 1.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    INOLE/ENMOD shows a SS of 02–27, 50, 60, 70, 71, or 81 and 990-03 (Group Return)
    1. Research IDRS for another EIN for the organization shown on the 990-T

    2. If another EIN is found, release the unpostable with URC 6 to the correct EIN.

    3. If another EIN is not found, correspond with the organization using letter 4588C suspense for 45 days and inform them an exempt organization cannot file a Form 990-T as a group return. Title Holding Companies can file a consolidated 990-T with their exempt parent, however, this should not be referred to as a group return. Request a separate Form 990-T for each subordinate. Suspense the unpostable.

    4. If the organization replies and provides the correct EIN, release the unpostable with URC 6 and process to the correct EIN.

    5. If the organization does not reply or the response is incomplete, release the unpostable with URC 6 and post the 990-T to the parent organization's EIN.

      Note:

      Do not send a 3910 C letter.

  10. If the unpostable can not be resolved using the above table:

    1. Research EDS to determine the appropriate filing requirements.

    2. Research TRDBV to ensure TO code is correct.

    3. If the TO code is "3" , update the FR to 990-T-2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    4. If the appropriate filing requirements are found, update the BMF using TC 016 Doc. Code 80. Release the unpostable using URC 0 and cycle to post after the TC 016.

    5. If you are unable to determine the appropriate filing requirements, input a TC 016, Doc. Code 80, Definer B and status 40. URC 0 the unpostable. Cycle delay to close following the posting of the TC 016.

  11. If the TO is 1, 2, 4 or 5, the BMF Form 990T FRC is 0, the BMF Form 990 FRC is 0, and the EO Status is 41/70–72:

    If Then
    There is an open case on EDS:
    1. Update the EO Status Code to 40 using TC 016 Doc. Code 80 Definer Code B.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is an approved closed case on EDS (EDS Status Code 01, 06 or 09):
    1. Update the EO section on BMF using TC 016 Doc. Code 80 Definer Codes ABC; input the EO status as indicated on EDS, add the appropriate FRs, and delete the 1065/1041/1120 FR.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The EO Status Code is 41, and there are prior year EO returns posted, and the subsection is 501(c) (3), (9), (17) or (20) (or cannot be determined,

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. update the EO section with a TC 016, Doc. Code 80, Definer Code B, to input EO Status Code 99.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The EO Status Code is 41 and there are no prior year EO returns posted and the subsection is 501(c) (3), (9), (17) or (20) (or cannot be determined,

    Note:

    Status 36 should be used for all subsections other than 3, 9, 17 or 20.

    1. correspond with the organization using Letter 3909C informing them they do not have an exemption and in order to gain an exemption, they must file Form 1023 or 1024 with Cincinnati suspend the case for 45 days.

    2. If the organization responds with a copy of their determination letter, contact personnel in Cincinnati at (513) 263-4653 to verify the letter's validity. If the letter is validated, update the EO section on BMF using TC 016, Doc. Code 80, Definer Codes ABC with the appropriate information from the determination letter.

    3. Release the unpostable with URC 0 and cycle to post after the TC 016.

    4. If the organization fails to reply or their reply is incomplete, update the account to status 40 using TC 016, Doc. Code 80, Definer Code B.

    5. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS or there is no case on EDS:
    1. Update the EO Status Code to 99 with a TC 016 Doc. Code 80 Definer Code B. Do not remove the 1065/1041/1120 FR.

    2. URC 0 to release the unpostable. Cycle to post after the TC 016.

    There is a disapproved closed case on EDS or there is no case on EDS and the unpostable document is an extension in EO status 41:

    Note:

    Do not correspond if the unpostable is an extension.

    1. Allow the extension to post by changing the EO status code to 42 with a TC 016 Doc. Code 80 Definer code B.

    2. Cycle to post the TC 620/460 after the TC 016.

    3. Input another TC 016 to change the EO status code back to 41.

    4. Cycle to post the second TC 016 after the TC 620/460.

      Note:

      Due to incompatibility, you must update the account to status 42 for one cycle. Do not leave in status 42.

    There is a disapproved closed case on EDS or there is no case on EDS and the unpostable document is an extension in EO status 70, 71 or 72:
    1. Allow the extension to post by changing the EO status code to 31 with a TC 016 Doc. Code 80 Definer code B.

    2. Input another TC 016 to change the EO status code to 42.

    3. Cycle delay the TC 620/460 to post after the TC 016.

    4. Input another TC 016 to change the EO status code back to 70, 71 or 72.

    5. Cycle delay the third TC 016 to post after the TC 620/460.

  12. If the UPC 329 is for Form 990–T claiming the Small Business Health Care Credit, follow the instructions in 3.12.278.34.2 to resolve the unpostable.

  13. For further instructions, see IRM 3.12.278.21.12, All returns/extensions—BMF EO Status is 20-26, 28, 29, 40, 41, 70-72.

  14. If an organization files a Form 7004 extension, research CC INOLE to determine if the organization is a Form 990 or Form 990PF filer. If they are an exempt organization which has filed the wrong extension, release the unpostable with URC 8. Request Rejects cancel the DLN and change the MFT from 34 to 44 or 67.

UPC 329 Resolution RC 1 & 2 Form 5227

  1. Form 5227, Split-Interest Information Return, is filed by Non-exempt Charitable Trusts under IRC 4947(a)(2). The entity SS must be 90 with an EO Status of 12.

  2. When the BMF 5227 FRC is 0 and the EO Status is 01–19:

    If Then
    CC ENMOD/CC BMFOL shows a SS of 90:
    1. Input TC 016 Doc. Code 80 Definer Code AB to update the Form 5227 FR and EO Status to 12.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    CC ENMOD/CC BMFOL shows the SS is blank and the EO Status is 12:
    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 5227 FR and SS to 90.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

    CC ENMOD/CC BMFOL shows the SS is 01–23, 40, 50, 60, 70, 80 or 91–93 or the SS is blank with an EO Status of 01–11 or 13–19:
    1. Research for another EIN with Form 5227 filing requirements. If found, URC 6 the unpostable to the correct EIN. If not found, follow instructions below.

    2. Assign a new EIN. Edit the new EIN on the return.

    3. Input TC 016 Doc. Code 80 Definer Code AB to update the Form 5227 FR and EO Status 12.

    4. URC 6 the unpostable to the corrected EIN. Cycle to post following the posting of the EIN and TC 016.

  3. For further instructions, see IRM 3.12.278.21.12, All returns/extensions —- BMF EO Status is 20-26, 28, 29, 40, 41, 70-72.

UPC 329 Resolution RC 1 & 2 Form 5578

  1. Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax, is filed by private schools which are exempt under IRC 501(c)(3).

  2. The compatible filing requirement with Form 5578 is a Form 990 FRC of 01, 02 or 06 with:

    • a SS of 03, TF of 10 or 11, and EO Status of 01 or 02.

    • a SS of 03, and EO Status of 07, 10 or 11.

  3. When the BMF Form 990 FRC is 00 with a TF of 10 or 11 and the EO Status is 01–19:

    1. Input TC 016 Doc. Code 80 Definer Code A to update the Form 990 FR.

    2. If the TF is 10, use Form 990 FRC of 06.

    3. If the TF is 11, use Form 990 FRC of 01 and 02.

    4. Release the unpostable using URC 0 and cycle to post after the TC 016.

All Returns/Extensions - EO Status is Blank on BMF

  1. If CC INOLE/CC ENMOD shows the EO status is blank, research EDS.

    If Then
    There is an open case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Codes B to update the EO Status to 40 if the unpostable is a return or an extension if necessary.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is an approved closed case on EDS (EDS Status Code 01. 06 or 09 ):
    1. Input TC 016 Doc. Code 80 Definer Codes ABC to update the EO status as indicated on EDS and add the appropriate FR.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS:
    1. Call the organization using the number on the return or correspond with the taxpayer using the 4588C Letter informing them their recent application was disapproved and request additional information.

    2. If they respond with a letter of determination, update the EO status with TC 016 Doc. Code 80 Definer Codes ABC as indicated in the letter of determination and add the appropriate FR.

    3. If they respond with documentation indicating reapplication, update the EO Status to 40 if the unpostable is a return or an extension, with TC 016 Doc. Code 80 Definer Codes B.

    4. If no reply, update the EO Status to 99 with a TC 016 Doc. Code 80 Definer Code B. Release the unpostable with URC 0 and cycle to post after the TC 016.

    5. If the unpostable is an extension, input the extension with TC 460 on MFT 02 Form 1120 using CC REQ77. Release the unpostable with URC D.

    There is no case on EDS: See IRM 3.12.278.34.2.
  2. Refer to the extension form. If the organization checked the incorrect box on the extension, edit the correct MFT on the extension. Call the organization using the number on the return or correspond with the taxpayer using Letter 4588C informing them of the correct return to file. Release the unpostable with URC 6 or 8.

    Note:

    If research indicates that the correct return was timely filed or a duplicate extension has already posted to the correct MFT and Tax period, Close with URC D.

  3. If an organization is in EO Status 97, 98 or 99 and filed an extension Form 8868 for an exempt organization return, input the extension with TC 460 on either MFT 02, Form 1120 or MFT 05, Form 1041 as identified on Masterfile using CC REQ77 and URC D to release the unpostable condition. If employment code W is present on Masterfile, remove from record.

All Returns/Extensions - EO Status is 20–22, 26, 28, 29, 36, 40, 41, 42, 70–72 on BMF

  1. If the unpostable return is a Form 990PF and the EO Status is 41 and 70–72, see IRM 3.12.278.21.7.5.

  2. If the unpostable return is a Form 990 and EO Status is 41/71, see IRM 3.12.278.21.3.3(7).

  3. If the unpostable return is a Form 990–T and EO status is 41 and 70–72, see IRM 3.12.278.21.8(11).

  4. If the EO status is 20–22, 26, 28, 29, 40, and 42 on CC INOLES/CC ENMOD:

    If Then
    There is an open case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Codes AB to update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/ 1120 FR if necessary.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is an approved closed case on EDS (EDS Status Code 01 or 06):
    1. Input TC 016 Doc. Code 80 Definer Codes ABC to update the EO status as indicated on EDS and add the appropriate FR.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS:
    1. Call the organization using the number on the return or correspond with the taxpayer using Letter 4588C informing them their recent application was disapproved and request additional information.

    2. If they respond with a letter of determination, update the EO status with TC 016 Doc. Code 80 Definer Codes ABC as indicated in the letter of determination and add the appropriate FR.

    3. If they respond with documentation indicating reapplication, update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/1120 FR with TC 016 Doc. Code 80 Definer Codes AB.

    4. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is no case on EDS and the EO Status is 20:
    1. Research to determine when and how the organization was terminated; e.g., final return, TC 591 or TC 016 Doc. Code 80.

    2. If the account was terminated in error, update the EO Status to 01 and add the appropriate FR with TC 016 Doc. Code 80 Definer Codes AB, release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the account was not terminated in error, call the organization using the number on the return or correspond with the organization with Letter 4588C informing them they were terminated or are out of business.

    4. If they respond with a letter of determination or documentation showing our records are in error, update the EO Status to 01 and add the appropriate FR with TC 016 Doc. Code 80 Definer Codes AB, release the unpostable with URC and cycle to post after the TC 016.

    5. If no reply or an insufficient response, update the EO Status to 01 and add the appropriate FR with TC 016 Doc. Code 80 Definer Codes AB, release the unpostable with URC and cycle to post after the TC 016. Monitor the account until the return posts. When the return posts, return the account to status 20

    There is no case on EDS and the EO Status is 21,
    1. Update the address if different from Master File.

    2. Research IDRS for a better address. If a better address is found, send the organization a 2475C Letter with a Form 8822 included. Do not update the address.

    3. Update the EO Status to 01 and add the appropriate FR with a TC 016 Doc. Code 80 Definer Codes AB, URC 0 to release the unpostable and cycle to post after the TC 016.

    EO status is 22 and TC 150 is unpostable,
    1. Check the docketed case listing. If the case is on the docketed case listing contact the attorney assigned to the case for resolution. Follow the attorney’s instructions. If the account is not on the docketed case listing, follow the instructions below.

    2. Call the organization using the number on the return or correspond with the organization using Letter 4588C informing their exemption was revoked and they are required to file a Form 1120/1041/1065.

    3. If the reply is a new letter of determination or documentation indicating our records are in error, update the EO Status 01 and add the appropriate FR with TC 016 Doc. Code 80 Definer Codes AB, release the unpostable with URC 0 and cycle to post after the TC 016.

    4. If no reply or an insufficient response update the EO Status to 99. Release the unpostable with URC 0 and cycle to post after the TC 016.

    EO status is 22 and extension is unpostable, URC 8 to release the unpostable. Ask Rejects to renumber to a Form 7004 for MFT 02 or 05.
    There is no case on EDS and the EO Status is 26:
    1. Call the organization using the number on the return or correspond with the organization using Letter 4588C informing them they were terminated and merged with another organization.

    2. If the reply is a new letter of determination or documentation indicating our records are in error, update the EO Status 01 with TC 016 Doc. Code 80 Definer Code AB, release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If no reply or an insufficient response, remove the EO section with a TC 022 and re-establish the EO section with a EO Status Code 40 if the SS=03/09/17/20 or EO Status Code 36 if the SS on the return is other than 03/09/17.

    There is no case on EDS and the EO Status is 28: See 3.12.278.21.3.3(4)
    There is no case on EDS and EO Status is 29: See 3.12.278.21.3.3(6) & 3.13.12.6.18.17
    There is no case on EDS and EO Status is 42:
    1. If the entity is a 501(c)(3), and the gross receipts are $50,000 or less, update the EO Status Code to 31 with a TC 016 Doc Code 80 Definer Code B.

    2. If the entity is a church, update the EO Status Code to 30 with a TC 016, Doc Code 80 Definer Code B.

    3. If the return is marked with a Subsection Code of other than 03/09/17/20, establish the EO Section with a Form 990FR of 01, EO Status Code 36 using the current month and year as the status date, FYM, subsection code as indicated on the return, classification code and remarks with a TC 016 DOC. Code 80 Definer Codes AB.

    4. If the Subsection Code on the return is 03/ 09/17/20, update the EO Status Code to 40 with a TC016 Doc Code 80 Definer Code B.

    5. Release the unpostable with URC 0 and cycle to post after the TC 016.

  5. If the EO status is 23–25 on CCINOLES/ENMOD:

    If Then
    There is a 990-PF FR on the BMF:
    1. Call the organization using the number on the return or correspond with the taxpayer using Letter 4588C informing them our records indicate they should be filing a Form 990PF.

    2. If the organization replies with a Form 990PF, URC 8 to release the unpostable return and send to Rejects using a Form 13271 to cancel the DLN. Attach the unpostable return to the back of the return to be processed.

    3. If they do not reply, change the 990-PF FR to 990-01 using TC 016, Doc. Code 80, Definer Codes AB, correct Foundation Code, Status Code 01, 990-01

    4. URC 0 the unpostable and cycle to post after the TC 016.

    5. After the return posts, change the FR back to 990-PF.

    There are no FRs and an open case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Codes AB to update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/ 1120 FR if necessary.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There are no FRs and an approved closed case on EDS (EDS Status Code 01 or 06):
    1. Input TC 016 Doc. Code 80 Definer Codes AB to update the EO status to an active status and add the appropriate FRs.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There are no FRs and a disapproved closed case on EDS:
    1. Call the organization using the number on the return or correspond with the taxpayer using Letter 4588C informing them their recent application was disapproved and request additional information.

    2. If they respond with a letter of determination, add the appropriate FR and status code with TC 016 Doc. Code 80 Definer Codes AB.

    3. If they respond with documentation indicating reapplication, update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/1120 FR if necessary with TC 016 Doc. Code 80 Definer Codes AB.

    4. If no reply, update the EO status to 99.

    5. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There are no FRs and no case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Codes AB to update the EO Status to 40 if the unpostable is a return or an extension and remove the 1065/1041/ 1120 FR if necessary.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

  6. When the unpostable is a Form 8868 Extension and the EO Status is 36:

    If Then
    The unpostable extension is for Form 990/990EZ AND the filing requirement shows 990PF: Release the unpostable with URC 8 posting the extension to the MFT 44. Correspond with the organization explaining our records show a different filing requirement. Notify them of their correct filing requirements using the 4588C letter.
    The unpostable extension is for Form 990PF AND the filing requirement shows 990/990EZ: Release the unpostable with URC 6 posting the extension to the MFT 67. Correspond with the organization explaining our records show a different filing requirement. Notify them of their correct filing requirements using the 4588C letter.
    The unpostable extension is for Form 990/990EZ AND there are no filing requirements: Add the filing requirement 990-02, using TC016. Release unpostable with URC 0 allowing the extension to post to the correct requested form.
  7. For further instruction on Status 25 refer to 3.12.278.21.3.6(8).

UPC 329 RC 1 & 2 EO Status 36

  1. Always perform complete research. See IRM 3.12.278.3 for research procedures. If a return has posted on Master File which matches exactly with the unpostable return, release the unpostable using URC 8 to cancel the DLN and associate with the posted return.

  2. Research EDS to determine if they have applied for exempt status. If there is an approved application on file, establish the EO section with the information on EDS using a TC 016 Doc. Code 80 Definer Codes ABC. Use URC 0 to post the unpostable item. Post delay 1 cycle.

  3. When the unpostable is an extension and the current status is 36:

    If Then
    The unpostable extension is for a Form 990PF and the filing requirement shows 990/990EZ and it is a Form 8868.
    1. Release the unpostable with URC 6 or 8 posting the extension to the MFT 67

    2. Correspond with the organization explaining our records show a different filing requirement and notify them of the correct FR using the 4588C or other appropriate letter.

    The unpostable is an initial extension for a Form 990-PF and the filing requirement shows 990/990EZ and it is a Form 8868
    1. Remove the EO submodule with TC 022.

    2. Update the EO status to 40. Cycle delay to post after the TC 022.

    3. Release the unpostable using URC 0. Delay 2 cycles.

    The unpostable extension is for a Form 990/990EZ and there are no filing requirements and it is a Form 8868.
    1. Add the filing requirement 990-02, using TC016.

    2. Release unpostable with URC 0 allowing the extension to post to the correct requested form.

    The unpostable extension is for a Form 990 or 990PF and it is a Form 7004
    1. Convert the Form 7004 to Form 8868 using the correct MFT listed on Masterfile

    2. Release the unpostable using URC 6 or 8. Use the appropriate routing form, request Rejects to cancel the DLN and renumber to a Form 8868 using the correct MFT listed on Master file for the current EO filing requirement.

    Note:

    Cases must be edited before routing to Rejects.

    The unpostable extension is for a Form 1120/1041/1065 and it is a Form 7004
    1. Remove the EO submodule with TC 022 and add the filing requirements necessary to post the extension.

      1. For Form 1120 series, 1120-H and 1120-POL, release the unpostable using URC 0. Cycle delay as appropriate.

      2. For Form 1041, add the filing requirement with cycle delay of 1. Release the unpostable using URC 0 and cycle delay appropriately to post after the TC 016.

    2. Update the account with the previous status and filing requirements as necessary using TC 016. Delay 3 or more cycles to post and remove the 1120 or 1041 filing requirements.

  4. When the unpostable is an extension AND a payment with a current EO status 36:

    If Then
    The unpostable extension is Form 7004 for a Form 1120 and there is a corresponding TC 610/650/660 or 670 payment
    1. Remove the EO submodule with TC 022 and add the filing requirements necessary to post the extension and the payment.

      1. For Form 1120, release the unpostable using URC 0. Cycle delay as appropriate.

      2. For Form 1041, add the filing requirement with cycle delay of 1. Release the unpostable using URC 0 and cycle delay appropriately to post after the TC 016

    The unpostable extension is Form 7004 or 8868 for a Form 990PF and there is a corresponding TC 610/650/660 or 670 payment
    1. Remove the submodule using TC022 and put in status 40 with a cycle delay of 2.

    2. Release the unpostable using URC 0. Delay 1 cycle for the payment and 2 cycles for the extension.

  5. When the unpostable is a return and the current EO status is 36:

    If Then
    The unpostable is a Form 1120/1041/1065
    1. Remove the EO submodule with TC 022 and add the filing requirements necessary to post the return.

      1. For Form 1120, release the unpostable using URC 0. Cycle delay as appropriate

      2. For Form 1041, add the filing requirement with cycle delay of 1. Release the unpostable using URC 0 and cycle delay appropriately to post after the TC 016.

    The unpostable is a Form 990PF
    1. Correspond with the organization explaining our records show a different filing requirement. Notify them of their correct filing requirements using the 4588C or other appropriate letter. Suspend case for 45 days.

      1. If tax payer responds with a corrected Form 990,

        • write DO NOT PROCESS on the upper left side of the incorrect return.

        • write cancel DLN to the left of the DLN.

        • Release the unpostable using URC 8 and request Rejects cancel the DLN.

        • Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed.

        • Edit the received date from the unpostable return to the return being sent for processing.

        • Request Rejects forward the correct return for processing.

      2. If no response is received from the filer by the end of the suspense period,

        • remove the EO submodule with TC 022.

        • Update account to Status 40. Post delay 1 cycle.

        • Release the unpostable using URC 0 and cycle the TC 150 to post after the TC 016. Post delay 2 cycles.

    The unpostable is an initial Form 990-PF
    1. Remove the EO submodule with TC 022.

    2. Update the EO status to 40. Cycle delay to post after the TC 022.

    3. Release the unpostable using URC 0. Delay 2 cycles.

  6. The unpostable is a return and a payment with a current EO status of 36:

    If Then
    The unpostable return is a Form 1120 and there is a corresponding TC 610/650/660 or 670 payment with the return.
    1. Remove the EO submodule with TC 022 and add the filing requirements necessary to post the return and the payment.

      1. For Form 1120, release the unpostable using URC 0. Cycle delay as appropriate

      2. For Form 1041, add the filing requirement with cycle delay of 1. Release the unpostable using URC 0 and cycle delay appropriately to post after the TC 016.

    The unpostable return is a Form 990PF and there is a corresponding TC 610/650/660 or 670 payment with the return.
    1. Update the EO Status to 40 and delete the 990 filing requirement.

    2. Release the unpostable using URC 0. Delay 1 cycle.

  7. The unpostable is a payment

    If Then
    The unpostable payment is for Form 1120 and is a TC610/620/650/670
    1. Remove the EO submodule with TC 022 and add the filing requirements necessary to post the return and the payment.

      1. For Form 1120, release the unpostable using URC 0. Cycle delay as appropriate

      2. For Form 1041, add the filing requirement with cycle delay of 1. Release the unpostable using URC 0 and cycle delay appropriately to post after the TC 016.

    The unpostable payment is for Form 990PF and is a TC610/620/650/670
    1. Remove the EO submodule with TC 022. Update account into Status 40 post delay 1 cycle.

    2. Post payment with URC 0. Delay 2 cycles.

  8. The unpostable is a Form 1120-H:

    And Then
    The organization has an official exemption and another EIN is not found
    1. Correspond using 4588C letter informing the organization they are required to file a Form 990.

    2. suspend the case for 45 days

    3. If the organization replies with a Form 990, write DO NOT PROCESS on the upper left side of the incorrect return. Write CANCEL DLN to the left of the DLN. URC 8 the unpostable and request Rejects cancel the DLN. Attach the unpostable to the back of the correct return.

    4. If the organization does not reply, update the EO subsection with a TC 016 Doc code 80, Definer code B to status 20.

    5. Input TC 016 using BNCHG, Doc code 63, cycle delay as appropriate, FYM and 1120-10 to add Form 1120-H filing requirement.

    6. Use appropriate URC to close the unpostable and cycle to post after both TC 016.

    7. Update the EO section to status 01 with a TC 016 Doc code 80, cycle delay as appropriate and remove 1120 filing requirement.

    Another EIN is not found and account is in EO status 36 with prior year Form 990 returns filed
    1. Update the EO section with a TC 016, Doc code 80, Definer code B to update the EO status to 20.

    2. Input TC 016 using BNCHG, Doc code 63, cycle delay as appropriate, FYM and 1120-10 to add Form 1120-H filing requirement.

    3. Use appropriate URC to close the unpostable and cycle to post after both TC 016.

    4. Update the EO section to status 36 with a TC 016 Doc code 80, Definer code AB, cycle delay as appropriate. Remove 1120 filing requirement.

    5. Send 4588C letter informing the filer they are either a non profit organization filing Form 990 or a for profit organization filing Form 1120-H and should not change the type form they file from year to year.

    The Form 1120-H is an initial return with no prior EO returns filed
    1. Remove the EO section with a TC 022.

    2. Input TC 016 using BNCHG, Doc code 63, cycle delay as appropriate, FYM and 1120-10 to add Form 1120-H filing requirement.

    3. Use appropriate URC to close the unpostable and cycle to post after TC 016.

UPC 329 All Returns and the Organization's Response to correspondence

  1. When the unpostable is an EO return:

    If Then
    The organization responds with a completed return which agrees with the BMF FRC:
    1. Write DO NOT PROCESS on the upper left side of the incorrect return. Write cancel DLN to the left of the DLN.

    2. Release the unpostable using URC 8 and request Rejects cancel the DLN.

    3. Attach the unpostable to the back of the correct return with the cancelled DLN showing above the return to be processed.

    4. Edit the received date from the unpostable return to the return being sent for processing.

    5. Request Rejects forward the correct return for processing.

    6. If there are posted prepaid credits on the unpostable MFT, transfer them to the correct tax module.

    The organization responded with information they are no longer exempt or out of business as an exempt organization, etc.:
    1. Release the unpostable using URC 0.

    2. Input TC 016 Doc. Code 80 Definer Codes AB to update the Status to 20 if there is no GEN on the BMF. If there is a GEN on the BMF, change status to 40 if the subsection is 501(c)(3), (9) or (17). Change to status 36 if subsection is other than 501(c)(3), (9) or (17). Cycle to post after URC 0.

      Exception:

      If the organization is a 501(c)(3) with assets greater than $100,000, input the Status 20 and send the correspondence to Cincinnati indicating Status 20 was input and a T case needs to be established.

    3. Use the current date as the status date.

    The organization responds their exemption was revoked and attaches the revocation letter:
    1. Release the unpostable using URC 0.

    2. Input TC 016 Doc. Code 80 Definer Code B and update the Status to 22. Cycle to post after the URC 0.

    3. Use the date of the letter for the status date.

    The organization did not reply or responded with information they filed the correct return or you are unable to make a determination from the response, Follow the specific instructions for each type of return found in this IRM.
  2. A determination letter received in response to a letter issued by Unpostables should be processed using the procedures in 3.12.278.21.14 below.

UPC 329 Determination Letters From Organizations

  1. When the organization responds with a copy of a Letter 948(DO), 1194(DO), 1051(DO), 1075(DO), 1076(DO), a memo from Cincinnati, or a Form M4280 (the old Determination Form Letter), the organization was granted an exemption.

    1. Research EDS to verify the same information is contained on EDS and no later determination was issued. If EDS is in agreement with the letter, input a TC 016 Doc. Code 80 with the appropriate definer code to update BMF. Release the unpostable with URC 0 and cycle to post after the TC 016. If EDS is not in agreement with the determination letter, contact personnel in Cincinnati at (513) 263-4653 to determine the proper determination letter.

    2. If there is no record in EDS, update the account with a TC 016 Doc. Code 80 with the appropriate definer code according to the filing requirements contained in the determination letter. Release the unpostable with URC 0 and cycle to post after the TC 016.

UPC 329 Lead Instructions for Completing Status 22/41/70-72 Cases

  1. After the tax examiner has worked an UPC 329 in Status 22 (No open court case) or /41/70-72 and was unable to post the return, the EO Status Code should be updated to 99 and the return is allowed to post.

  2. In determining the disposition of a case, every effort should be made not to cancel the DLN and remove the return from processing unless the correct return for the same tax period and filer was secured through contact with the filer or instructed to do so by counsel.

  3. If the tax examiner is working an UPC 329 in Status 22 with an open court case, process as follows:

    1. If the purge date has expired and there is still no resolution, have the tax examiner close the case with URC 8 to have rejects cancel the DLN. Put the case in the ST 22, 28 or 29 basket.

    2. Create an open control on TXMOD and file the cases in a suspense file. The file should be monitored on a biweekly or monthly basis for resolution.

UPC 331 Return Liability and Assessment Inconsistency

  1. RC2 - Non-math error zero liability return containing a remittance (not applicable to Forms 990, 990EZ, 990PF, 1041A, or 1065 for tax period 7912 and later).

UPC 331 Resolution

  1. If a non-math error has a liability, re-input the return with a notation "To Pick Up Tax Liability." Release with URC 8.

  2. See IRM 3.12.279.

UPC 332 Duplicate Report Numbers

  1. RC 9 - A TC 150 attempts to post to a Tax exempt bond (TEB) module with a previously posted TC 150 for the same EIN, Tax period and Report number.

UPC 332 RC9 Resolution

  1. Research IDRS using CC BMFOL to verify the EIN, tax period and Report Number.

  2. The EIN, tax period or Report Number must be corrected if research shows they are incorrect.

  3. There can be only one TC 150 for each report number. When the report number is incorrect, assign the next open report number in the ranges listed below.

  4. Valid report number ranges:
    F8038 - MFT 46, Doc Code 61, Report Number Range 100-199
    F8038-G = MFT 46, Doc Code 62, Report Number Range 300-399.
    F8038-GC = MFT 46, Doc Code 72, Report Number Range 500-599.
    F8038-T = MFT 46, Doc Code 74, Report Number Range 700-799.
    F8038-CP = MFT 46, Doc Code 88, Report Number Range 800-899, 200-299, & 400-499.
    F8328 = MFT 46, Doc Code 75, Report Number Range 900-999
    F8703 = MFT 84, Doc Code 01, Report Number Range 100-199
    F8038-B = MFT 85, Doc Code 85, Report Number Range 100-499.
    F8038-TC = MFT 86, Doc Code 86, Report Number Range 100-499.

  5. Occasionally, a situation may arise where all valid report numbers for a specific TEB return, have been used (e.g., entire report numbers range 1-99 was used). This may occur primarily with Form 8038–GC.

  6. When all available report numbers for the related tax period have been used, refer to the following guidelines for assigning a valid report number.

    1. “Back up” the tax period one month.
      EXAMPLE: Tax period is 201509, “back up” to tax period 201508.

    2. Research MF to determine what report numbers are available on the back up module.

    3. If the report number shown on the return is valid for the back up module, edit that number on the return.

    4. If the report number isn’t valid, assign the next available report number as identified from MF research.

  7. Release the unpostable using URC 6 or 8 with the correct information.

  8. If the unpostable is Form 8038-CP, you must contact the Government Entities Compliance Unit (GECU) to research their database for the correct report number. Contact TEGE analyst for direct contact information.

  9. If the unpostable is Form 8038-T, research IDRS for a corresponding credit. If the payment has posted to a different report number and matches the amount on Line 23 for Form 8038-T, release the unpostable using URC 6 or 8 and process the unpostable form to the report number of the credit. Both TC150 and payment may be moved to a new report number if needed. Be sure to perform complete research as Form 8038-T without a matching payment will unpost as UPC 363.

UPC 341 TIN Resequenced

  1. RC 1 - An input transaction attempted to establish a tax module in an account in which all FR codes are 8.

  2. RC 2 - A TC 474 or TC 960 attempts to post with no related filing requirement code. Exception:

    • TC 474 for MFT 01/10 (Form 941/940) when the TC 474 Doc. Code is 77 and the Blocking Series is 5XX

    • TC 474 with MFT 14.

UPC 341 Resolution - Unpostables

  1. When the UPC 341 RC 1 TC is not 120, 132, 141, 142, 147, 30X, 42X, 470–475, 480–483, 488, 489, 582, 583, 590–599, 920, 922, 930 or 96X, the case is assigned by GUF to B3 category.

  2. All RC 2 cases are closed by GUF using URC 2 and routed back to the initiator.

  3. TC 59X transactions are closed by GUF using URC 2 and routed back to the initiator.

  4. TC 914 cases are assigned to Criminal Investigation.

  5. All other cases, verify the EIN.

    If Then
    The EIN is valid, Release the unpostable using URC 6 and the cross reference EIN.
    The cross reference EIN is all zeroes:
    1. Research for an active EIN.

    2. Release the active EIN and unpostable using URC 6, if an active EIN is found.

UPC 341 Resolution

  1. Research for another EIN as a result of an EIN consolidation. Verify the original consolidation was correct.

  2. If the entities on both EINs are the same, do not reopen the unpostable EIN. Release the unpostable using URC 6 and the correct EIN.

  3. Use caution when reopening an account which has all 8's due to a no-merge condition.

  4. An account which has all 8's due to the posting of a TC 020 may be reopened.

    Note:

    If you correct an unpostable on Form 8868 (extension) for a group return, and a list of subordinates is attached, use CC REQ77 to input TC 460 on each of the subordinates to prevent TDI notices.

  5. Use TC 012, Doc. Code 80, Definer Code A to reopen an EO account.

  6. If the unpostable EIN should not be reopened, research for a better EIN:

    If Then
    A better EIN is found:
    1. Release the unpostable using URC 6 and the correct EIN.

    2. Send Letter 3910C informing the organization of the correct EIN.

    No better EIN is found:
    1. Use CC ESIGN and assign a new EIN.

    2. Release the unpostable using URC 6 and cycle to post after the establishment of the new EIN.

    3. Notify Cincinnati of the new EIN, if necessary.

UPC 342 RC 9 Form 8038-CP

  1. An unpostable 342 RC 9 occurs when a TC 290/300 credit reference number 297/298 failed to match exactly to a prior posted CRN 297/298.

UPC 342 RC 9 Form 8038-CP Resolution

  1. Resolve the unpostable with URC 2 to originator for correction.

UPC 347 RC 1

  1. A unpostable 347 RC 1 occurs when a transaction attempts to post to a module which has been removed to the Retention Register.

  2. Use CC BMFOLB to request the tax module be reestablished to the Master File. Release using URC 0 to post after the module is reestablished.

  3. If after research, you determine the unpostable document should be moved to a different report number or tax period, release using URC 6 or 8.

  4. If BMFOLB does not indicate the module is being reestablished, research for the unpostable tax period on CC BMFOLV. If the module is on BMFOLV, input CC UPCASMB to generate a request for the microfilm transcript.

  5. If the transcript and document are not an exact match and no TC 150 is on the transcripts, complete Form 5248, Transfer Request and send to Accounting to transfer-in the module. See IRM 3.12.279.155 for more instructions.

UPC 351 Form 5768

  1. RC 1 - A TC 024 (Form 5768) attempts to post an entity without an EO Submodule or with a Subsection Code other than 03.

  2. RC 2 - A TC 024 (Form 5768) attempts to post to an entity with a Subsection Code of 03 and a Foundation Code of 02, 03, 04,10, or 11.

UPC 351 Resolution - Unpostables

  1. All UPC 351 cases are assigned by the GUF system to B3 category.

  2. A charge out is generated to Files for routing of the documents to Unpostables.

UPC 351 Resolution of Voided Documents

  1. Form 5768, Election/Revocation of Election by an Eligible IRC 501(c)(3) Organization to Make Expenditures to Influence Legislation, is filed by an organization which is exempt under IRC 501(c)(3) and files a Form 990. A TC 024 indicates an election; a TC 023 indicates a revocation.

  2. Form 5768 is posted with a TC 024 (election) or TC 023 (revocation).

  3. If the unpostable transaction is TC 024.

    If Then
    There is no EO section on the BMF and no "I" case on EDS.
    1. Correspond with the organization requesting they attach the Form 5768 to their Form 1023 when they file for tax-exempt status. Include the Form 5768 with the letter.

    2. Resolve the unpostable with URC D.

    There is no EO section on the BMF but there is an "I" case on EDS:
    1. Correspond with the organization requesting they send the Form 5768 to:
      IRS - TEGE
      P.O. Box 2508
      Cincinnati, OH 45201

      IRS - TEGE
      Room 4024
      550 Main St.
      Cincinnati, OH 45202
      Include the Form 5768 with the letter.

    2. Resolve the unpostable with URC D.

    There is an EO section on the BMF but the EO subsection is other than 03:
    1. Notify the organization they are ineligible to file Form 5768 and the form can not processed. Attach the Form 5768 to the letter.

    2. Release the unpostable with URC D.

    There is an EO section on the BMF, the EO subsection is 03, but the Foundation Code is 02, 03, 04, or 10:
    1. Notify the organization they are ineligible or disqualified to file Form 5768 and the form can not be processed. Attach the Form 5768 to the letter.

    2. Release the unpostable with URC D.

    Note:

    When sending the return back to the taxpayer, black out the DLN and circle out the date stamp.

  4. If the unpostable transaction is TC 023, research for a better EIN.

    If Then
    No EIN is found:
    1. Notify the organization we have no record of an election to influence legislation. Attach the Form 5768 to the letter.

    2. Release the unpostable with URC D.

    A better EIN is found, Release the unpostable with URC 6 to correct the EIN.

UPC 355 Form 990PF

  1. RC 1 - A TC 150 for MFT 44 (Form 990PF) attempts to post with:

    • An Operating Foundation Test Score of zero, and

    • The current Foundation Code in the entity EO section is 03.

  2. RC 3 - A TC 150 for MFT 44 attempts to post with:

    • A 4940 Code of 2,

    • A tax period of 198612 or subsequent, and

    • The current Foundation Code in the EO entity section is not 02.

    Note:

    A corrected UPC 355 will not bypass this reason code.

  3. RC 4 - A TC 150 for MFT 44 attempts to post with:

    • An Operating Foundation Test Score of zero, and

    • The current Foundation Code in the EO entity section is 02.

    Note:

    A corrected UPC 355 will not bypass this reason code.

UPC 355 Resolution - Unpostables

  1. All UPC 355 cases are assigned to category B3 by the GUF system.

UPC 355 Resolution Background Information

  1. For RC 1 and 4, the Operating Foundation Test Score is generated by the system. An Operating Foundation Test Score of zero (which will unpost the return) is generated when:

    • The tax period is prior to 197412, OR

    • There are no positive amounts in Part XIV, OR

    • Part I, Line 27c is equal to zero AND Part XIV, Line 2a, column e is equal to zero.

  2. For RC 3,

    1. The 4940 code of 2 indicates domestic exempt operating foundations (SS 03, TF 02) described in IRC 4940(d)(2) do not owe any excise tax on net investment income if they have a ruling letter from IRS establishing tax exempt operating foundation status.

    2. The 4940 code of 3 indicates private operating foundations (SS 03, TF 03), private non-operating foundations (SS 03, TF 04), and non-exempt charitable trusts (SS 92, TF 00) qualify for the tax reduction of 1% on net investment income; i.e., Line 8 is equal to or greater than Line 7 in Part V.

  3. There are three private foundation classifications:

    • TF 02, Exempt Operating Foundation covered under IRC 4940(d)(2), excise tax rate on net investment income - 0%

    • TF 03, Private Operating Foundation, excise tax rate on net investment income - 2% or 1%

    • TF 04, Private Non-Operating Foundation, excise tax rate on net investment income - 2% or 1%

  4. Reduction in excise tax on net investment income - For tax years beginning after 1984, the tax rate on net investment income reduced from 2% to 1% for any private foundation which meets the following distribution requirements:

    1. The foundation makes qualifying distributions during the tax year at least equal to the sum of the assets of the foundation for the tax year multiplied by its average percentage pay out for the base period, plus 1% of the foundation's net investment income for the tax year, and

    2. The foundation was not liable for Chapter 42 excise taxes for any year of the base period.

  5. Effective for tax years beginning after 1984, certain private operating foundations, known as exempt operating foundations, are not subject to the tax on net investment income. To qualify as an exempt operating foundation for a tax year, a private foundation must meet all the following requirements:

    1. It must be a private foundation,

    2. It was publicly supported for at least 10 tax years or was a private operating foundation on January 1, 1983, or for its last tax year ending before January 1, 1983,

    3. Its governing body, at all times during the tax year, consists of individuals less than 25% of whom are disqualified individuals, and is broadly representative of the general public, and

    4. It has no officer who is a disqualified individual at any time during the tax year.

      Note:

      A disqualified person is a substantial contributor, a foundation manager, a person who owns more than 20% of a business which is a contributor, a family member of a disqualified person, and certain government officials.

  6. If the organization is claiming to be an Exempt Operating Foundation (TF 02), the following parts of the Form 990PF should be completed:

    • Part VI, box on Line 1a checked

      Note:

      If this box is checked, the organization must provide a determination letter of foundation classification or the ruling date of the letter. This is a second letter of determination, not the first determination letter of tax exempt status.

      Caution:

      Foundation Code 02 requires an organization have public support for a period of at least 10 years before it can qualify for the tax exemption granted in this category. To screen the return, research CC INOLE/CC ENMOD for the establishment year of this entity; it should be at least 10 years prior to the tax year for which the return is being filed.

    • Part VII-A, Line 9 is Yes

    • Part XIV

    Note:

    For TF 02, Part XIV, Line 2a is equal to the lesser amount of either Part X, Line 6, or Part I, Line 27c. This amount must be greater than zero.

  7. A private operating foundation is an organization which is described under IRC 4942(j)(3) or (5). It means any private foundation which spends at least 85% of the smaller of its adjusted net income (figure in Part I) or its minimum investment return (figured in Part X) directly for the active conduct of the exempt purpose or functions for which the foundation is organized and operated and also meets the assets test, the endowment test, or the support test (discussed in Part XIV).

  8. If the organization is claiming to be a Private Operating Foundation (TF 03), the following parts of Form 990PF should be completed:

    • Part I, column c

    • Part VII-A, Line 9 is Yes

    • Part VI, Box on Line 1b is checked (only if the organization is applying for 1% reduced tax on net investment income)

    • Part XIII ( if applying for 1% reduced tax on net investment income

    • Part XIV (the ruling date on Line 1a must be completed if received during the current tax period)

  9. A non–operating private foundation is a private foundation which is not a private operating foundation.

  10. If the organization is claiming to be a Private Non-Operating Foundation (TF 04), the following part of Form 990PF should be completed:

    • Part I, column c

    • Part VII-A, Line 9 is No

    • Part VI, Box on Line 1b is checked (only if the organization is applying for reduced tax on net investment income of 1% instead of 2%)

    • Part XIII

    Note:

    Parts X, XI and XII must also be completed by TF 04. The parts indicated above for each foundation code are to distinguish one foundation code classification from another. It is not meant to indicate all parts of the form which need to be completed. For example, Part X and XII are to be completed by TF 02, TF 03 and TF 04.

UPC 355 Resolution Specific Instructions RC 1

  1. This 990PF return unposted because the Operating Foundation Test Score is zero and the TF is 03. Verify the organization is an operating foundation with IDRS/EDS research.

  2. Determine if the organization completed the Form 990PF as a TF 03.

    1. Check Part I, column c for entries.

    2. Check Part VII-A, Line 9 for a yes answer.

    3. If marked No, change to YES and correct the 2 edited in the margin to 1.

    4. Check Part XIV for a positive value in column (e) and a ruling date on Line 1a.

      Note:

      Often the organization will incorrectly complete the return by answering yes to Part VII-A, Line 9 but there are no entries in Part I, column c and Part XIV. Don't edit 4940 code 3 in Part V, If Line(s) 7 and/or 8 are "0" or blank or if they are the only entries on Part V.

  3. If the organization answered yes to Part VII-A, Line 9 but there is a negative amount in Part XIV, column (e), check Line 6, Part X and Line 27c, Part I. If either or both of these lines have a value greater than zero:

    1. If there are negative amounts in Part XIV, Line 2a, columns (b) through (d), changes those amounts to zero.

    2. Enter the lesser (positive) amount from Part I or Part X on Line 2a, column (a) and the corrected total (positive) amount on Line 2a, column (e).

    3. Release the unpostable using URC 8.

    4. Request Rejects add all the information from Part XIV to the proper section.

  4. If the organization answered yes to Part VII-A, Line 9 but there are no entries in Part XIV, check Line 6, Part X and Line 27c, Part I. If either or both of these lines have a value greater than zero:

    1. Enter the lesser (positive) amount on Line 2a, column (a) and column (e).

    2. Release the unpostable using URC 8.

    3. Request Rejects add all the information from Part XIV to the proper section.

  5. If an amount for Line 2a, column (a) and column (e) can not be determined because there is no positive amount on either Part X, Line 6 or Part I, Line 9 and you have verified the organization is an operating foundation through research, Part XIV is required),

    1. Edit $1 in Part XIV on Line 2a, Columns (a) and (e).

    2. Release the unpostable with URC 8.

    3. Request Rejects add all the information from Part XIV to the proper section and continue processing.

    Note:

    Limited Forms 990PF will always unpost as UPC 355 because they are not required to complete Part XIV. The Form 990PF is marked "Limited" or "Rev. Proc. 79–8 " . Only the entity sections and Part I, Column (b) are completed usually; though there may also be entries in Parts II through XVII. Add a $1 to Part XIV line 2a, columns (a) and (e) to post the return. If part XIV is omitted, make a copy of part XIV, edit a $1 as instructed above and post return.

  6. If the organization did not complete the return as TF 3, follow the instructions in paragraph (5) above.

UPC 355 Resolution Specific Instructions RC 2

  1. UPC 355 RC 2 only applies to 990PF returns for tax periods 198501 through 198611 and should no longer be generated.

UPC 355 Resolution Specific Instructions RC 3

  1. This 990PF return unposted because there is a 4940 Code of 02 but the TF on MF is not 02.

  2. Determine if the organization completed the Form 990PF as a TF 02 filer:

    • Check to see if the box is checked on Line 1a, Part VI.

      Note:

      If the box is checked, the organization must provide a determination letter of foundation classification or the ruling date of the letter. Also the organization must have public support for a period of at least 10 years before it can qualify for the tax exception granted in this category. Be sure to research CC INOLE/CC ENMOD for the establishment year of this entity; it should be at least 10 years prior to the tax year for which the return is being filed.

    • Check to see if Line 9, Part VII-A is marked Yes.

    • If marked No, change to YES and correct the 2 edited in the margin to 1.

    • Check to see if Part XIV is completed.

  3. If the organization is claiming to be an Exempt Operating Foundation covered under IRC 4940(d)(2), correspond with the organization using Letter 4588C indicating our records show the organization is a different type of Form 990PF filer. Request a determination letter of foundation classification or the necessary information.

    1. If the organization provides the determination letter of foundation classification, use CC EOCHG to input a TC 016 Doc. Code 80 Definer Code A to update the TF to 02, release the unpostable using URC 8, and request Rejects add the information from the organization to the return.

    2. If the organization does not provide the necessary information, URC 8 and request Rejects delete the 4940 code.

UPC 355 Resolution Specific Instructions RC 4

  1. This 990PF return unposted because the Operating Foundation Test Score is zero and the TF on MF is 02. Verify the organization is an exempt operating foundation with IDRS/EDS research.

  2. Determine if the organization completed the Form 990PF as a TF 02 filer:

    • Check to see if the box is checked on Line 1a, Part VI.

      Note:

      If the box is checked, the organization must provide a determination letter of foundation classification or the ruling date of the letter. Also the organization must have public support for a period of at least 10 years before it can qualify for the tax exception granted in this category. Be sure to research CC INOLE/CC ENMOD for the establishment year of this entity; it should be at least 10 years prior to the tax year for which the return is being filed.

    • Check to see if Line 9, Part VII-A is marked Yes.

    • If marked No, change to YES and correct the 2 edited in the margin to 1.

    • Check to see if Part XIV has positive amounts entered on Line 2a, columns (a) and (e).

      Note:

      Often the organization will incorrectly complete the return by answering yes to Part VII-A, Line 9 but there are no entries in Part XIV.

  3. If the organization answered yes to Part VII-A, Line 9 but there are no entries in Part XIV, check Line 6, Part X and Line 27c, Part I. If either or both of these lines have a value greater than zero:

    1. Enter the lesser (positive) amount on Line 2a, column (a) and column (e).

    2. Release the unpostable using URC 8.

    3. Request Rejects add all the data to the proper section.

  4. If the organization answered yes to Part VII-A, Line 9 but there is a negative amount in Part XIV, Line 2a, columns (e), check Line 6, Part X and Line 27c, Part I. If either or both of these lines have a value greater than zero:

    1. If there are negative amounts in Part XIV, Line 2a, columns (b) through (d), change those negative amounts to zero.

    2. Enter the lesser (positive) amount from Part I or Part X on Line 2a, column (a) and the corrected total (positive) amount on Line 2a, column (e).

    3. Release the unpostable using URC 8.

    4. Request Rejects add all the data to the proper section.

  5. If an amount for Line 2a, column (a) and column (e) can not be determined because there is no positive amount on either Part X, Line 6 or Part I, Line 27c and you have verified the organization is an exempt operating foundation through research (therefore Part XIV is required),

    1. Edit $1 in Part XIV on Line 2a, Columns (a) and (e).

    2. Release the unpostable with URC 8.

    3. Request Rejects add all the information from Part XIV to the proper section and continue processing.

      Note:

      Limited Forms 990PF will always unpost as UPC 355 because they are not required to complete Part XIV. The Form 990PF is marked "Limited" or "Rev. Proc 79–8" . Only the entity section and Part I, Column (b) are completed usually; though there may also be entries in Part II through XVII. Add a $1 to Part XIV line 2a columns (a) and (e) to post the return. If part XIV is omitted, make a copy of part XIV, edit $1 as instructed above, and post return.

  6. If the organization did not complete the return as a TF 2, suspend the unpostable and correspond with the organization to determine why they did not complete the Form 990PF as an Exempt Operating Foundation.

    1. If the organization responds with a correctly completed Form 990PF, URC 8 to cancel the DLN on the unpostable return, attach the unpostable return behind the correct Form 990PF, and send the corrected return through for processing.

    2. If the organization responds with a determination letter indicating they have a Foundation Code of 3 or 4, contact personnel in Cincinnati at (513) 263-4653 to validate the letter’s validity. If the letter is valid, update the foundation code with a TC 016 Doc. Code 80 Definer Code A. URC 0 to the post the return and cycle to post after the TC 016.

    3. If the organization fails to respond, follows the instructions in paragraph (5) above.

UPC 356 Form 5578

  1. RC 1 - A Form 5578 (TC 157 Document Code 84) attempts to post and a TC 157 for the same tax period has already posted to the tax module.

    Note:

    TC 157 should post to the controlling entity listed on Line 1b of the Form 5578. Multiple forms may be filed by a church under their EIN for the schools they control.

UPC 356 Resolution - Unpostables

  1. Any UPC 356 cases received in Unpostables should be assigned to B3 category.

UPC 356 Resolution

  1. Check the entity on the Form 5578 with the BMF. If the entity on the Form 5578 matches the BMF, check the tax period of the document.

    If Then
    The wrong tax period was coded on the return:
    1. Perfect the document with the correct tax period.

    2. Resolve the unpostable with URC 6.

    The tax period was coded properly and the Form 5578 was filed by a church for the schools they control:
    1. Cross out the DLN and URC D the unpostable.

    2. Route the return to Files for association with the posted TC 157.

  2. If the entity on the Form 5578 does not agree with the BMF, research for another EIN.

    If Then
    Another EIN is found:
    1. Perfect the document with the proper EIN.

    2. Resolve the unpostable with URC 6.

    3. Send 3910C letter.

    No EIN is found:
    1. Assign a new EIN using CC ESIGN and MFI O.

    2. If a GEN is on the return, or the organization appears to be part of a group ruling, use the information from the pilot voucher and input a CC EOCHG TC 016, Doc. Code 80 with Status Code 01, and the appropriate posting delay code.

      Note:

      You must research the SGRI to determine if the organization was removed from the group ruling. If the organization was removed, follow the instructions in paragraph (c) below.

    3. If no GEN number is on the return and the organization does not appear to be part of group ruling, input CC EOCHG TC 016, Doc. Code 80 with Status Code 40 and the appropriate posting delay code.

    4. Resolve the unpostable with URC 6.

UPC 357 EO Entity/Examination Criteria

  1. RC 1 - Reserved.

  2. RC 2 - A TC 424 without Source Code 80 is input to an EO account and the entity Taxpayer Compliance Measurement Program (TCMP) Sample Code indicates this tax period is covered by TCMP.

UPC 357 Resolution - Unpostables

  1. All UPC 357 cases are closed by GUF using URC 2.

  2. A charge out is generated for Files to route the document back to the originator.

  3. If any UPC 357 cases are received, they should be routed back to the originator.

UPC 358 Incompatible EO Status

  1. RC 1 - Any transaction which attempts to update the Entity EO Status as follows:

    FROM
    (EO Entity Status)
    TO
    (Input Status/Subsection)
    01–03 06, 07, 10, 11, 30, 31, 33–36, 40, 41, 70–72, 99
    06 01–03 (If input TC has a non-zero subsection code), 07, 10–12, 18, 19, 22–26, 28, 29, 30–36,40, 41, 97-99
    07, 10, 11 01–03 (If input TC has a non-zero subsection code), 06, 12, 18, 19, 22–26, 28, 29, 40, 41, 97-99
    12 02, 03 (If input TC has a non-zero subsection code) 06, 07, 10, 11, 18, 19, 22–26, 28, 29, 40, 41, 99
    18, 19 06, 07, 10–12, 28, 29, 40, 41, 70–72, 99
    20 18,19, 40, 41, 70–72, 99
    21 99
    22 06, 07, 10, 11, 18, 19, 30–36, 40, 41, 70–72, 97
    23–25 06, 07, 10-12, 18, 19, 28, 29, 30–36, 40, 41, 70–72, 98, 99
    26 06, 07, 10–12, 18, 19, 22–25, 40, 41, 70–72, 98, 99
    28,29 Anything except 01–03, 22, 28, 29, 97-99
    30 06, 12, 18, 19, 22–26, 28, 29, 31–36, 40, 41, 99
    31 06, 07, 10-12, 18, 19, 22-26, 28, 29, 30, 32-35, 41, 99
    32 06, 07, 10–12, 18, 19, 23–25, 28, 29, 30, –31, 33–36, 40–42, 70–72, 99
    33 01–03 (If input is TC 016 with zero subsection code), 06, 07, 10–12, 18, 19, 22–26, 28–32, 34–36, 40, 41, 99
    34 01–03, 06, 07, 10–12, 18, 19, 22–25, 28–33, 35, 36, 40, 41, 70–72, 99
    35 01–03, 06–07, 10–12, 18, 19, 22–25, 28–34, 36, 40, 41, 70–72, 97, 99
    36 06, 07, 10–12, 18, 19, 21–25, 28, 29, 30–35, 40, 99
    40 01–03 (If input is TC 016 with zero subsection code), 18–20, 22–26, 28, 29, 32, 97, 99
    41 01–03 (If input is a TC 016 with a zero subsection code), 18- 20, 22–26, 28, 29, 30, 32–35, 40
    42 01–03 (If input is a TC 016 with a non-zero subsection code), 18, 19, 20–26, 28, 29, 32, 97-99
    70 Anything except 01–03, 31, 36, 42, 70–72, 97-99
    71 Anything except 01–03, 31, 36, 70-72, 97-99
    72 Anything except 01–03, 31, 36, 42, 70–72, 97-99
    97 06-12, 18-22, 26, 28-30, 33, 35, 40-42, 70-72, 98, 99
    98 Anything except 01, 02, 20-22, 26, 31, 32, 36, 40-42, 70-72, 97
    99 Anything except 01–03, 20, 70-72, 97

UPC 358 Resolution - Unpostables

  1. All UPC 358 cases are closed by GUF using URC 2.

UPC 358 Resolution

  1. Review the unpostable document and the current EO status.

    1. If the EO status still needs updating, re-input the transaction using the correct status and subsection codes along with any other required elements. See IRM 3.13.12.6.2.4 for more information on required elements.

    2. If no updating is required, destroy the unpostable document using local procedures.

  2. If you did not input the unpostable transaction and cannot determine the originator's intent, contact the originator.

    1. If the originator still needs the status updated, re-input the transaction using the correct status and subsection codes along with any other required elements. See IRM 3.13.12.6.2.4 for more information on required elements.

    2. If no updating is required or you cannot contact the originator, destroy the unpostable document using local campus procedures.

UPC 359 TC 020/022

  1. RC 1 - A TC 020 attempts to post to the BMF and the entity EO Status is 01–03, 06, 07, 10–12, 18, 19, 25.

  2. RC 2 - A TC 022 attempts to post and the Affiliation Code is either 6 or 8 (parent of a group).

  3. RC 3 - A TC 022 attempts to post and a tax module for MFT 34/37/44/50/67 has:

    • An unreversed TC 424 or 420, or

    • A TC 427 not followed by a subsequent TC 421.

  4. RC 4 - A TC 022 attempts to post and:

    • There is a –T freeze on the account; or

    • Any MFT 34/37/44/50/67 tax module contains one or more of the following freezes: –A, E–, –F, J–, –J, N–, O–, P–, –R, –S, T–, –U, –V, W–, –W, X–, –X, –Y, –Z.

  5. RC 5 - A TC 420/424 addressing MFT 34/37/44/50/67 attempts to post and a TC 022 is previously posted (no EO section).

    Note:

    This condition is bypassed if the input MFT is 34 and the Form 990T FRC is 2.

  6. RC 6 - A TC 022 is input to delete the EO Subsection and the account does not contain an EO Subsection.

  7. RC 7 - A TC 971 AC 777 (means Form 990-BL has posted to NMF) will unpost if FRC=01 (FRC=04 is the correct value for Form 990-BL)

UPC 359 Resolution All RC - Unpostables

  1. All UPC 359 cases are closed by GUF using URC 2.

UPC 359 Resolution RC 1 – 5

  1. Review the unpostable document and the current EO status.

    1. If there is no reason to re-input the unpostable transaction, no further action is required.

    2. If the unpostable transaction needs to be re-input, you must resolve the unpostable condition prior to re-inputting the transaction.

  2. Caution must be used when resolving the unpostable condition. Keep the following items in mind:

    • EO accounts are normally terminated by Cincinnati with EO Status 20, 22, 23, 24, or 26 when they become inactive.

    • Processing of final returns, EO Delinquency Notices (CP 420-429), and CP 140/144 Notices sometimes result in the input or generation of EO Status 20.

    • Parents of Group Rulings, through the submission of their annual SGRI data, identify subordinates which are terminated. EO Status 28 is systemically input to these accounts when the parent organization is in Status 29.

      Note:

      Status 28 and 29 should be used for campus processing under limited circumstances.

  3. Destroy the unpostable document following local procedures.

UPC 359 Resolution RC 6

  1. If you were the originator of the unpostable transaction, destroy the document following local procedures.

  2. If the originator of the transaction is other than yourself, route the unpostable document to the originator. Explain there is no EO section to be deleted.

UPC 359 Resolution RC 7

  1. If the FRC does not equal 04, research for another EIN.

  2. If found with FRC=04, 6 code to the new EIN.

  3. If another EIN cannot be found, delete the TC 971 transaction.

UPC 363 Missing Schedule A

  1. RC 1 - A TC 150 for MFT 67 attempts to post with an Asset Code of 1–9, a Type of Organization Code other than 9, the Form 990 FRC is not 03, the Audit Indicator Code is 0, the Non-PF Reason Code is blank, and the correspondence Code is 0 on the input return, and either:

    • The Entity Subsection Code is 50, 60, 70, 71, or 91; or

    • The Entity Subsection Code is 03 and the Type of Foundation Code is 10–18.

  2. When corresponding for missing Schedule A, an IRI code must be added to the account. If necessary request the IRI code be added as part of the unpostable resolution.

  3. RC 2 - A TC 150 for MFT 67/34/10/01 attempts to post with a change of address on an account with a significant GEN and the Affiliation Code is 6 or 8.

  4. RC 5 - A TC 150 for MFT 67 attempts to post when the asset code is 1 - 9, type of organization is other than 9, Non-PF reason code is 10 and the type of supporting organization boxes on Schedule A, line 11 are blank or more than one box is checked.

UPC 363 Resolution RC 1 - Unpostables

  1. All cases are assigned to Unpostables by GUF.

  2. Research TRDBV and INOLES to determine all information and codes are correct. If necessary edit return and 8 code to include any missing information.

  3. When the account is in status 97 do not correspond with the organization. Release the unpostable using URC 0.

  4. A Non-PF code must be present or added to any account when correspondence is issued to the taxpayer requesting a Schedule A and the filer replies with a Schedule A. If necessary edit or request the Non-PF code to be added as part of the unpostable resolution. If after corresponding, and the filer does not respond with a Schedule A, request an audit code 2 be entered on the account as part of the unpostable resolution.

    Note:

    If any part of Schedule A is attached, DO NOT use audit code.

  5. When corresponding for missing Schedule A, an IRI code must be added to the account if the taxpayer does not respond with a completed schedule. Request the IRI code be added as part of the unpostable resolution.

  6. Check item "I" on Form 990 or item "J" on Form 990EZ in the entity portion of the return. If the organization did not indicate a subsection of 501(c)(3), annotate "3" above the incorrect subsection and circle out any incorrect subsection.

  7. If the return has an IRS mail label which indicates a TF of 11:

    1. Release the unpostable using URC 8;

    2. Ask Rejects to add Non-PF Code 02 to the record.

  8. Since Schedule A contains Incomplete Return Items (IRI), you must correspond for the information. Always check for any IRS correspondence attached to the unpostable.

    1. If Rejects has corresponded with the organization, there is no need to correspond again. URC 8 to release the unpostable. Request Rejects add correspondence Code 24, Computer Condition Code 3, Audit Code 2 and appropriate IRI code.

    2. If there is no correspondence attached, follow the instructions in the succeeding paragraphs.

      Note:

      Form 990 for 2007 and prior years Doc Code is 90. Form 2008 and subsequent the Doc Code is 92. Form 990-EZ for 2007 and prior Doc Code is 09. For 2008 and subsequent it is 93. If the Doc. Code is not correct for the tax year, you must cancel the DLN and request Rejects renumber the return with the correct Doc. Code.

      Note:

      When corresponding for Schedule A, ensure the correct revision of Schedule A is requested or attached (i.e. for 2008 and 2008 revision of Schedule A must be requested). Letters 2694C and 2695C should be used if correspondence must be issued to request the correct revision of the Schedule A.

    3. When 8 coding the return to Rejects, ask them to enter the following IRI Code Values must be included.

    4. For 2008 tax years and subsequent use the following IRI Codes:

    Schedule A missing IRI Code Value
    Entire Schedule A is missing or blank or a 2007 & prior Schedule A revision 20
    Part I 21
    Part I, Line 5, 6 or 7 is checked and Schedule A, part II is blank 22
    Part I, Line 9 is checked and Part III is blank 23
  9. For 2007 and prior tax years, use the following IRI Codes:

    Schedule A missing IRI Code Value
    Entire Schedule A is missing or blank 30
    Part IV 34
    Part IV A 38
    Part V 35
  10. Use the following table to determine Non-PF code for tax year 2008 and subsequent. This table should be used in conjunction with any text.

    If Box Checked on Schedule A is: Enter Non-PF Code
    1 01
    2 02
    3 03
    4 05
    5 06
    6 04
    7 07
    8 08
    9 09
    10 11
    11*** 11
    Box 11, Type I 12
    Box 11, Type II 13
    Box 11, Type III 14
    Box 11, Type III Other 15
  11. Use the following table to determine the Non-PF Code for tax year 2007 and prior:

    If Box checked on Schedule A is Enter Non-PF Code
    5 01
    6 02
    7 03
    8 04
    9 05
    10 06
    11a 07
    11b 08
    12 09
    13 11
    14 00
  12. If the unpostable return has the Schedule A attached, check to see if Part I, Reason for Public Charity Status was completed. If only one box in Part I was checked, determine the box checked.

    If And Then
    Box 2 was checked:
    1. Determine if Schedule A is attached and complete. If Schedule A is complete, release the unpostable using URC 8. Request that Rejects add the Schedule A, including the Non-PF Code to the record.

    2. If Schedule A was not attached or complete, check CC ENMOD to determine if a correspondence was sent previously by Rejects requesting the schedule. If not, correspond with the taxpayer requesting a complete Schedule A. Use the 2694C or 2698C Letter for Form 990 or 2695C or 2699C Letter for Form 990EZ.

      Note:

      Letter is determined by the tax period of the return.

      If a Schedule A is returned, release the unpostable using URC 8. Request Rejects add all line items of the Schedule A, the Non-PF Code, the correspondence Received Date, and correspondence Code to the record.

    3. If the organization does not respond after corresponding, release the unpostable using URC 8. Request Rejects add all line items of the Schedule A, the Non-PF Code, the IRI Code Value, the Computer Condition Code 3 and the correspondence Code 24 to the record.

    Box 5, 7, or 8 was checked:
    1. Determine if Part II was completed. If Part II is complete, release the unpostable using URC 8. Based on the box checked, enter the Non-PF Code in the right margin of Schedule A, Part I, by lines 1-2. Request Rejects add the Schedule A, including the Non-PF Code to the record.

    2. If Part II was not completed, correspond with the taxpayer requesting a complete Part II of the Schedule A. Use the 2694C or 2698C Letter for Form 990 or 2695C or 2699C Letter for Form 990EZ. If the Schedule A is returned with a complete Part II, release the unpostable using URC 8. Based on the box checked, determine the Non-PF Code, the correspondence Received Date and the correspondence Code. Request Rejects add all line items of the Schedule A, the Non-PF Code, the correspondence Received Date and the correspondence Code to the record.

    3. If the organization does not respond after corresponding, release the unpostable using URC 8. Request Rejects to add a correspondence Code of 24 and a Computer Condition Code of 3, IRI code, and add all line items of the Schedule A to the record.

    Box 1, 3, 4,6 or 11 is checked:
    1. Release the unpostable using URC 8

      Note:

      If the Box 11 is checked but the type of supporting organization box is not checked, correspond for the information.

    2. Enter the Non-PF Code on the right hand margin of the Schedule A based on the box checked.

    3. Request Rejects add Schedule A, including the Non-PF Code to the record.

  13. If the unpostable return has the Schedule A attached but Part I is not complete or more than one box is checked:

    1. Correspond with the organization using Letter 2694C or 2698C if they file a Form 990 or Letter 2695C or 2699C if they filed a Form 990EZ. Explain Part I must be completed correctly and the correct revision of Schedule A must be used. For example, if the Form 990 is filed for tax year 2008, the Schedule a must be a 2008 revision. If necessary Part II or Part III. See paragraph (5) above. Suspend the unpostable per local procedures.

    2. If the organization responds with the necessary information, release the unpostable using URC 8. Based on the box checked, determine the Non-PF Code, the correspondence Received Date and correspondence Code 21. Request Rejects add all line items of the Schedule A, the Non-PF Code, the correspondence Received Date and the correspondence Code to the record.

    3. If the organization has Subsection 03 and does not reply after corresponding, research CC INOLE to determine the foundation code. Using the list below, determine the Non PF Code. Release the unpostable using URC 8. Request Rejects add all line items on the Schedule A, the Non PF code, the IRI Code Value, correspondence Code 24 and Computer Condition Code 3 to the record.

      If Foundation Code = Then Non-PF Code =
      10 01
      11 02
      12 03 if organization name includes "hospital," "clinic," etc.
      12 05 if organization name includes "research," "laboratory," etc. or the name of a hospital is entered on Line 9
      13 06
      14 04
      15 07 (SS=03)
      15 08 (SS=03) if organization name includes "trust"
      16 09
      17 11
      18 00
      21 12
      22 13
      23 14
      24 15

      Note:

      If the Foundation Code is 09, follow the instructions in paragraph (14) below.

    4. If the organization has Subsection 50/60/70/71/91 and does not reply after corresponding, use the list below to determine the Non PF Code. Release the unpostable using URC 8. Request Rejects add all line items on the Schedule A, the Non-PF Code, the IRI Code Value, correspondence Code 24 and Computer Condition Code 3 to the record.

      Subsection Code Non-PF Code
      50 03
      60 11
      70 09
      71 11
      91 11
  14. If there is no Schedule A attached to the unpostable return and the Subsection is 03, or the Foundation Code is 09, correspond for the Schedule A using the 2694C or 2698C Letter for Form 990, or the 2695C or 2699C Letter for Form 990EZ. Explain to the organization Part I must be completed as well as Part II or Part III depending on their Foundation Code. See Paragraph (10) above.

    If Then
    The organization responds with the Schedule A Part I and Part II or Part III (if necessary) properly completed:
    1. Release the unpostable using URC 8.

    2. Edit the correct Non-PF Code in the right margin of Schedule A, Part I, by lines 1 - 2.

    3. Determine the proper Non-PF Code, the correspondence Received Date and correspondence Code 21. Request Rejects add the Non-PF Code, the correspondence Received Date, the correspondence Code as well as all line items on the Schedule A to the record.

    The Schedule A is returned incomplete:
    1. Release the unpostable using URC 8.

    2. If Part I was not completed, determine the proper Non-PF Code and edit the Non-PF code in the right margin of Schedule A, Part I, by lines 1 - 2.

    3. Use a correspondence Code of 22 (part of the information requested was included in the response to the letter) or 23 (none of the information was included in the response to the letter).

    4. Request Rejects add all the line items of the Schedule A, the Non-PF Code, the IRI Code Value, the correspondence Code and the Computer Condition Code 3 to the record.

    The organization does not respond after corresponding:
    1. Release the unpostable using URC 8.

    2. Using Form 13271, request Rejects add the correspondence Code of 24 (no reply ), Computer Condition Code of 3, IRI code and an Audit Code of 2 to the record.

      Note:

      If the Foundation Code = 09, release the unpostable with URC 0. There will be no Non-PF Code.

    The organization replies with the requested Schedule A after the return has posted, Forward the Schedule A to EO Accounts using Form 12634.

    Note:

    The Non-PF Code 00 is changed to an "11" prior to posting at Master File.

  15. If there is no Schedule A attached to the unpostable return and the Subsection is 50/60/70/71/91, correspond for the Schedule A using the 2694C or 2698C Letter for Form 990, or the 2695C or 2699C Letter for Form 990EZ. Use the following table to determine the Non-PF Code.

    Subsection Code Line in Part I Non-PF Code
    50 7 03
    60 13 11
    70 12 09
    71 13 11
    91 13 11
  16. If a Schedule A is secured, whether complete or incomplete, attach a Doc. 7214 to the Schedule A and instruct Rejects send it to Imaging after their actions are complete.

UPC 363 Resolution RC 2

  1. UPC 363 RC 2 will generate if there is an address change on the parent of a group. This unpostable is attempting to stop subordinates from using the parent's EIN.

  2. Determine if a subordinate of a group is using the parent's EIN by researching the following:

    1. Check the organization name to see if it appears to be a subordinate's name.

    2. Check to see if another return has posted for the same tax period.

    3. If the unpostable return is a Form 990, determine if the prior year ending assets match the assets on the unpostable Form 990.

    4. If the unpostable return is a Form 941/944, 940, or 990, determine if the prior period liability is similar to the unpostable return's liability.

    5. If the unpostable is a Form 990N, check the "DBA" on Form 990N to determine if it appears to be for the subordinate. If no "DBA" is present on Form 990N, research for another EIN by using the name and address provided on the 990N. If address matches a subordinate's address on Master File, follow procedures listed in (4) below.

      Note:

      Thorough research utilizing all available information found on the 990N should be done before"0" coding a 990N return to the parent organization.

  3. If the unpostable return belongs to the parent organization, URC 0 and post the return. Change the address if applicable.

  4. If the unpostable return belongs to a subordinate of the group:

    1. Determine the correct EIN.

    2. Circle out the incorrect EIN on the return and write the correct EIN above or below it

    3. Send 3910c ltr

    4. URC 6 to update the EIN and post the return.

    5. Change the address if applicable.

    6. If you cannot locate the correct EIN, assign a new EIN using ESIGN. Put account in Status 40, using TC 016, Doc Code 80, FYM. No filing requirements. URC 6 to the new EIN, cycle delay to post.

UPC 363 RC 3 - Form 4720

  1. UPC 363 RC 3 will generate if a TC 150 for Form 4720 (MFT 50) with abstract number 237 attempts to post and neither of the following two conditions are true:

    • EO subsection code is 02-27, 40, 50, 60, 70-71, or 90-92.

    • No EO subsection is present and employment code = A, G, I or T.

UPC 363 RC 3 - Resolution

  1. UPC 363 RC 3 will generate for Form 4720 (MFT 50) abstract 237 will generate if an account does not have an EO Subsection Code listed above or an employment code of A, G, I or T.

  2. Use the following table to resolve UPC 363 RC 3:

    If And Then
    The organization is a state or local government entity or Indian Tribal government, there is no employment code on Master File
    1. enter the appropriate employment code using BNCHG. Refer to IRM 3.13.12.6.29. Beginning January of 2011, programming was added to restrict the input of employment codes A, F, G & T. If input of those restricted government employment codes is needed, Fax the request to FSLG at 512-499-5780 and include a request on your cover sheet for a faxed reply once the actions have been taken.

    2. Close the unpostable using URC "0" . Cycle delay pending the posting of the TC 016 adding the employment code.

    The subsection code is other than 02-27, 40, 50, 60, 70-71, or 90-92, the entity is other than a state, local or Indian Tribe government
    1. Contact the filer and notify them they are required to file Form 8886-T to report their prohibited tax shelter information.

    2. If the filer responds with a Form 8886-T:

      • input a TC 971 action code 370 per IRM 3.13.12.19.

      • URC 8 to release the unpostable and request Rejects cancel the DLN and forward the Form 4720 and Form 8886–T to the TEGE:BSP:SPP Staff at Mail Stop 1110.

    The filer does not respond,
    1. Research for another EIN which may have a compatible employment code or subsection.

    2. If unable to locate an EIN, input a TC 971 action code 370 per IRM 3.13.12.19.

    3. URC 8 to release the unpostable and request Rejects cancel the DLN and forward the Form 4720 to the TEGE:BSP:SPP Staff at Mail Stop 1110.

UPC 363 RC 4 - Unpostables

  1. UPC 363 RC 4 will generate if TC 150 MFT 47 or 49, EO Subsection is other than 82 and EO Status is not 34.

  2. Use the following table to correct UPC 363 RC 4:

    If Then
    The EIN has an EO Subsection other than 82 and EO Status 34 Research for another EIN. If found, 6 code the unpostable to the correct EIN.
    The EIN has an EO Subsection other than 82 and EO Status 34 and another EIN cannot be located, correspond with the organization using 3710C asking why a 8871 was filed. Explain 501(c) organizations cannot be a 527 organization also. Include a Form SS-4 with the 3710C letter.
    The organization responds with a completed SS-4, assign an EIN per IRM 21.7.13. Establish the EO Subsection using EOREQ/EOCHG Doc Code 80, TC016, Definer AB, Subsection 82, Classification Code 1, EO Status Code 34/date add 1120-09 and 990 filing requirements. Close unpostable with URC 6 to the new EIN cycling 2 cycles to allow establishment of the new account.
    If the organization does not respond, assign an EIN and follow procedures in the row above.
    If the EIN being used is in status 97 and the EIN has an EO subsection other than 82, Research for another EIN. If found, close the unpostable with URC 6 to the correct EIN
    If the EIN being used is in status 97 and the EIN has an EO subsection other than 82 and another EIN cannot be located, ESIGN and establish the EO subsection using EOREQ/EOCHG Doc Code 80, TC 016, Definer AB, Subsection 82, Classification Code 1, EO Status code 34/date, add 1120-09 and 990 filing requirements. Close the unpostable with URC 6 to the new EIN and cycle delay

UPC 363 RC 5 - Unpostables

  1. UPC 363 RC 5 will generate if Asset code is 1 - 9, type of organization is other than 9, Non-PF reason code equals 10 and the type of supporting organization boxes on Schedule A, line 11 are blank or more than one box is checked.

UPC 363 RC 5 Resolution
  1. If an organization checks box 11 on Schedule A, they must also check one of the "type of support" boxes. Rejects is instructed to correspond if no box is checked or if more than one box is checked.

  2. Research TRDBV and INOLES to determine all information and codes are correct. If necessary edit return and 8 code to include any missing information.

  3. To correct UPC 363 RC 5:

    If Then
    Line 11 on Schedule A is blank, but a Non-PF reason code 10 is edited in the right margin of Schedule A, Note: ERS/Rejects instructions, previously indicated to us a Non-PF reason code 10 as a default if unable to determine the correct Non-PF reason code and not to correspond. This instruction was changed effective 3/2009. ERS/Rejects will use Non-PF reason code 11 as a default. Determine the correct Non-PF reason code from Schedule A or attachments. If unable to determine correct Non-PF reason code, 8 code the unpostable. Request rejects to correct the Non-PF reason code to 11 and change on the record.
    Line 11 is checked and type of boxes are blank or more than one box is checked, Research ENMOD to determine if previous correspondence was sent. If previous correspondence was sent, check for an IRI code in the right margin of page 2 of form. If IRI code is present, 0 code the unpostable.
    The Non-PF reason code has been edited correctly, URC 0 to resolve the unpostable.
    Line 11 is checked and type of boxes is blank or more than one box is checked and ENMOD shows no previous correspondence was issued, Send a 2694C or 2698C or 2695C or 2699C to filer requesting the missing information.
    the filer responds with the information,
    1. enter the correct Non-PF Code in the right margin of Schedule A Part I, by lines 1 - 2.

    2. URC 8 to release the unpostable.

    3. Request Rejects add all line items of Schedule A, the Non-PF Code, the correspondence Received Date and the correspondence Code 21 to the record.

    The filer does not respond with the missing information, a) release the unpostable using URC 8.
    b) Request rejects add the Non-PF Code and the correspondence code 24 to the record.
    The Non-PF code is 10 and another box is checked, a) determine the correct Non-PF code.
    b)If unable to determine the correct Non-PF code, change the Non-PF code to 11, 8 code the UPC and request rejects add the Non-PF code to the record.

UPC 363 RC 6 — Unpostables

  1. UPC RC 6 will generate when a TC 150 with MFT 46 with balance due attempts to post and the corresponding payment is not posted to the account.

  2. Resolution:

    1. Research IDRS to verify the EIN, tax period and Report Number before releasing the unpostable.

    2. If the EIN, tax period or Report Number are incorrect, research IDRS for the correct information and release the unpostable using URC 6 with the correct information.

    3. If the above information is correct, input URC 0 to release the unpostable. The return will bypass this unpostable check.

UPC 363 RC 7 Unpostables

  1. UPC RC 7 will generate when a TC 150 with MFT 50 Doc Code 73 (F4720-A) attempts to post with an EIN. The TC 150 will post with an SSN.

  2. Resolution:

    1. Close the unpostable to Rejects with URC 8 and request the DLN be cancelled and the case transferred to Non-masterfile (NMF) in Cincinnati.

UPC 363 RC 8 - Unpostables

  1. UPC RC 8 will generate when a TC 150 with MFT 34 claiming the Small Business Healthcare credit attempts to post.

  2. Resolution:

    1. Release the unpostable using URC 8 to Rejects asking to cancel the DLN and reprocess the return.

    Note:

    Do not issue a manual refund on UPC RC 8

UPC 363 RC 9 - Unpostables

  1. UPC RC 9 will generate when a TC 150 with MFT 46 claiming the Small Business Healthcare credit attempts to post.

  2. Resolution:

    1. Release the unpostable using URC 8 to Rejects asking to cancel the DLN and reprocess the return.

UPC 365 TC 591/593 on Parent Organizations

  1. RC 1 - A TC 591/593 for MFT 67 attempts to post and the Affiliation Code in the EO Section is a 6 or 8.

UPC 365 Resolution RC 1 - Unpostables

  1. All UPC 365 cases are closed by GUF using URC 2.

UPC 365 Resolution RC 1

  1. Group rulings cannot be dissolved by a TC 591/593. See IRM 3.13.12.12 for more information on Group Rulings.

  2. UPC 365 cases are closed by GUF without charge outs being generated. Unpostables will receive a listing of closed UPC 365 cases each cycle.

  3. Research the tax modules addressed by the TC 591/593.

    1. If the TC 591/593 was input satisfy an open module, input a TC 590 cc 75.

    2. If the TC 591/593 addressed a module not in an open status, no action is necessary.

UPC 366 No EO Section Present

  1. RC 1 - An input transaction attempts to establish a tax module for MFT 34, 37, 44, 47, 49, 50, or 67 and there is no EO Subsection present in the entity.

    Note:

    A TC 150 for MFT 34 containing a Type of Organization Code 3 will bypass this check. Any module establishing TC input for MFT 34 when the Form 990T FRC is 2 will bypass this check.

UPC 366 Resolution RC 1 - Unpostables

  1. All TC 150 and TC 157 cases are assigned by GUF to Unpostable Control in B3 category.

UPC 366 Resolution RC 1

  1. Research the BMF to verify the EIN on the unpostable document belongs to the organization.

  2. If the EIN belongs to the organization and there are no other EINs which belong to the organization, research EDS to see if the organization has applied for an exemption.

    If Then
    There is an open case on EDS:
    1. Input TC 016 Doc. Code 80 Definer Code B to establish the EO section and put the EO Status in 40.

      Note:

      this instruction applies to returns with any subsection or no subsection.

    2. URC 0 and cycle to post after the TC 016.

    There is an approved closed case on EDS (EDS Status Code 01, 06 or 09):
    1. Input TC 016 Doc. Code 80 Definer Codes ABC to establish the EO section with all the appropriate information from EDS.

      Note:

      Check for Schedule A on the return. If no Schedule A, correspond using the appropriate letter 2694C or 2695C. Suspense the unpostable. If no response, see IRM 3.12.278.32.1.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS:
    1. Correspond with the taxpayer with Letter 3909C or 3877C informing them their recent application was disapproved and request additional information and suspense the unpostable.

    2. If they respond with a letter of determination, contact personnel in Cincinnati at (513) 263-4653 to validate the letter’s validity. If valid, establish the EO section with TC 016 Doc. 80 Definer Codes ABC with all the appropriate information from the determination letter.

    3. If they respond with documentation indicating reapplication, establish the EO section with EO Status 40 using TC 016 Doc. Code 80 Definer Codes B. Release the unpostable with URC 0 and cycle to post after the TC 016.

      Note:

      This instruction applies to returns with any subsection or no subsection.

    4. If the organization does not respond, place the account in Status 99. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS and the subsection on the return is different from the subsection on EDS, Treat the return as if there is no case on EDS and follow the instructions below.
    There is no case on EDS:
    1. If there is no subsection or the subsection is 03/09/17 or 20. Establish the EO section with Status 40, with a TC 016, Doc Code 80 and Definer Code B with or without a GEN present.

    2. If the subsection on the unpostable return is or can be determined to be 29, establish the EO section with Status 36. Part V lines 13a, 13b and 13c can be used to determine SS 29 since they should only be completed by 501(c)(29) organizations. If the unpostable return is Form 990–EZ, correspond for Form 990 using the 4588C letter.

    3. If the subsection on the return is other than 03/09/17/20, establish the EO section with a Form 990 FR of 01, EO Status Code 36 using the current month and year as the status date, FYM, subsection code as indicated on the return, and classification code (see Document 6379 ) with a TC 016 Doc. Code 80 Definer Codes AB with or without a GEN present.

    4. Release the unpostable with URC 0 and cycle to post after the TC 016.

    The return is a Form 5227 add an EO subsection Doc Code 80, TC 016, Definer Codes AB, Subsection Code 90, classification code, status code date (FYM must be 12) 12YYYYDD. Check line B on the Form 5227 to determine filing requirements:
    • Charitable Remainder Annuity Trust under Section 664(d)(1) or Charitable Remainder Unitrust under Section 664(d)(2) - Add Form 5227-1 filing requirements if"No" is checked on Line G. Delete Form 1041 filing requirements if no Form 1041 was filed for the prior year or no extension was filed for the current year.

    • Charitable Remainder Annuity Trust under Section 664(d)(1) or Charitable Remainder Unitrust under IRC 664(d)(2) - Add Form 5227-2 and Form 1041 filing requirements if "Yes " is checked on Line G.

    • Charitable Lead Trust - Add Form 5227-2 and Form 1041 filing requirements.

    • Pooled Income Funds under IRC 642(c) - Add Form 5227-2 and Form 1041 filing requirements.

    • All other IRC 4947(a)(2) Trusts - Add Form 5227-2 and Form 1041 filing requirements.

    The return is a Form 990–T Refer to IRM 3.13.12.9.13 for complete instructions for posting Form 990-T. If the name on the return indicates the organization is a federal credit union, refer to IRM 3.13.12.6.18.23.

    Note:

    As of January 1, 2013 the status does not need to change on a federal credit union to post a Form 990-T. Add 990-T filing requirements with 990-07. Do not assign a separate EIN.

    If the BMF Form 990 FR is 00 and Line I 527 box is checked Refer to IRM 3.12.278.21.3.3(9) UPC 329 UP Form 990/990EZ - No 990/990EZ FR on BMF
  3. If the EIN belongs to the organization but you find another EIN with an EO section for the organization:

    1. Perfect the document with the correct EIN and release the unpostable using URC 6 and cycle to post after the TC 016.

    2. Send the case to Entity for consolidation of the EINs.

    Note:

    If a Sole Proprietor number is present, remove it with CC ENREQ/BNCHG ( SOLE-PRP-SSN< ) using 000-00-0001.

  4. If the EIN does not belong to the organization, process as follows:

    1. If the proper EIN is found and has an EO section, perfect the document and release using URC 6 with the correct EIN. Send a 3910C letter with correct EIN.

    2. If the proper EIN is found but does not have an EO section, research for a pending TC 016 Doc. Code 80 which will establish the EO section. If the pending TC 016 is found, perfect the return with the correct EIN, release the unpostable using URC 6, and cycle to post after the TC 016. If there is no pending TC 016, research EDS and follow the instructions in paragraph (2) above to establish the EO section with a TC 016; perfect the return with the correct EIN, release the unpostable using URC 6 and cycle to post after the TC 016. Send a 3910C letter with correct EIN.

  5. If the EIN does not belong to the organization and you do not find the correct EIN already established:

    1. Assign a new EIN using CC ESIGN and MFI O.

    2. Input a TC 016 Doc. Code 80 to add the EO section per instructions in paragraph (2) above. Cycle the TC 016 to post after the establishment of the EIN.

    3. Perfect the return with the new EIN and release the unpostable using URC 6. Cycle to post after the TC 016.

  6. If the unpostable is a church filing a Form 990 without an official exemption:

    1. Establish the EO section with an EO Status 30 using a TC 016 Doc. Code 80 Definer Code B.

    2. If the return is received timely, release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the return is received late, release the unpostable with URC 8 and request Rejects input CCC R and V to reverse any penalties.

  7. If the unpostable is an organization filing a Form 990 according to IRC 501(c)(3) without an official exemption and with gross receipts less than $5,000:

    1. Establish the EO section with an EO Status 31 using TC 016 Doc. Code 80 Definer Code AB using the IAT tool.

    2. If the return is received timely, release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the return is received late, and is a church, release the unpostable with URC 8 and request Rejects input CCC R and V to reverse any penalties.

  8. If the unpostable is a Form 8871 (MFT 47):

    1. Establish an EO section on Master File with a CC EOREQ/EOCHG, TC 016 Doc Code 80 Definer Code AB, Status Code 34/date, Form 990 FR of 01, a Form 1120 FR of 09, and remarks.

    2. Release the upostable with a URC 0 and cycle to post after the TC 016.

  9. If the unpostable is a Form 8871 (MFT 47) and they are an active Form 1065 or 1120 (FR Other than 09) Filer:

    1. ESIGN a new Employer Identification Number (EIN)

    2. Establish an EO section on Master File with CC EOREQ/EOCHG, TC 016 Doc Code 80 Definer Code AB, Status Code 34/date, Form 990 FR of 01, a Form 1120 FR 09 and remarks

    3. Release the unpostable with a URC 0 and cycle to post after the TC 016.

    4. Send the Form 8871 to Entity MS 6273, so they can remove the old EIN off the Oracle and add the New EIN to the Oracle.

  10. If the unpostable is a foreign private foundation described in IRC 4948(b) which is not required to apply for exemption but is required to file a Form 990PF to pay 4% tax on gross investment income derived from sources within the United States:

    1. Establish the EO section with EO Status 33 using a TC 016 Doc. Code 80 Definer Code B.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

  11. If the organization is a subordinate of the National Credit Union Administration (GEN 0697), do not add the subordinate to the GEN because they are not required to file. Process the return as follows:

    1. Establish the EO section with an EO Status 36 and a Form 990 FR using TC 016 Doc. Code 80 Definer Codes AB.

    2. URC 0 to release the unpostable and cycle to post after the TC 016. Remove the EO section with a TC 022 and cycle to post after the TC 150.

    3. Send a 4588C Letter to the organization explaining they are not required to file because they are exempt under 501(c)(1).

  12. If the unpostable is a Form 990–T claiming the Small Business Health Care Credit, use the following tables to correct the unpostable conditions.

    Note:

    Due to the high dollar refunds, these cases should be worked as priority cases.

    2009 and prior
    If Then
    There is no subsection
    1. Determine the correct TO code and subsection.

    2. Input TC 016 and add a 990–T filing requirement. See IRM 3.13.12.9.13, EO Account Numbers, Form 990-T

    Line 44f was edited to Line 44g
    1. Input a URC 8 to close the unpostable to Rejects.

    2. Instruct Rejects using Form 4227 to move the credit line 44g to line 44f.

    The Form 990-T claiming 45R credit is filed using an EIN with 1120 filing requirements
    1. Do not assign a new EIN

    2. Do not correspond with the filer

    3. Update the subsection to Status 99 with 1120 filing requirements. This will allow the 990-T to post on the EIN with 1120 filing requirements.

    4. Input URC "0" to close the unpostable condition and cycle delay to allow the return to post after the status 99 change posts.

    2010 and subsequent
    If Then
    There is no subsection
    1. Input TC 016 and add a 990–T filing requirement.

    2. Input a URC 0 to close the unpostable and cycle delay 2 to allow time for the TC 016 to post.

    The Form 990-T claiming 45R credit is filed using an EIN with 1120 filing requirements
    1. Do not assign a new EIN.

    2. Do not correspond with the filer.

    3. Update the subsection to Status 99 with 1120 filing requirements. This will allow the 990-T to post on the EIN with 1120 filing requirements.

    4. Input URC "0" to close the unpostable condition and cycle delay to allow the return to post after the status 99 change posts.

  13. If the unpostable is a revenue receipt (TC 610, TC 670, etc.):

    If Then
    An RPS TC 610 case is unpostable (return should also be unpostable):
    1. Research IDRS to locate the TC 150.

    2. If the TC 150 was resolved, take the necessary actions to ensure the RPS TC 610 is posted to the same location as the TC 150.

    3. If the TC 150 was not resolved, reassign the TC 150 case so the TC 150 and the RPS TC 610 can be resolved together.

    An unpostable TC 670 is a payment with an extension, Resolve it together with the extension per the instructions above.
    Other payments:
    1. Research to determine proper location for posting by using the background information on EO payments found in the table below. If you determine the proper location for the payment, resolve the unpostable with the appropriate resolution code to post the payment.

    2. If still unable the post the payment, research CC BMFOLI and the corresponding CC BMFOLT to determine if there is another MFT to post the money; for example, MFT 01 (Form 941), MFT 02 (Form 1120), MFT 10 (Form 940), MFT 11 (Form 943), or MFT 14 (Form 944). If you can determine a location for the payment, resolve the unpostable with the appropriate resolution code to post the payment.

    3. If you are still unable to determine proper location, contact the organization. Post the payment and resolve the unpostable per the organization's instructions.

    The unpostable payment is for a Social Security Number (SSN) for MFT 50, Form 4720 Part II-A:
    1. Close the unpostable to Rejects with URC 8 and request the DLN be cancelled and the case transferred to Non-masterfile (NMF) in Cincinnati via Form 2158. See Alert 13A0422

    MFT Background Information
    02 Effective for tax periods ending on or after Dec 31, 2006 and subsequent, Form 1120–C replaced Form 990-C (MFT 33).Form 1120-C is filed by Farmer's cooperatives, both taxable and exempt. It can be a taxable return.
    34 Form 990-T is filed by organizations with unrelated business income or trusts filing under IRC 401(2) and 408. It can be a taxable form, and payments can be made with the return, an extension or as estimated taxes.
    37 Form 5227 is filed by charitable trusts and pooled income funds to report financial activities of a split-interest trust. The return is not taxable; however, filers of this form may need to file Form 4720 (see below) to report their tax liability.
    44 Form 990-PF is filed by private foundation. It can be a taxable form, and payments can be made with the return, an extension or as estimated payments.
    50 Form 4720 is filed by organizations and individuals liable for certain excise taxes, The payments are made with the form itself.
    67 Form 990/990-EZ/990-N is filed by organizations exempt from income tax. It is a non-taxable form; however, organizations may pay a daily delinquency penalty (DDP) with the return when it is filed late.
  14. If the unpostable is an extension (TC 460, 620):

    1. Research EDS to determine if the organization has applied for exemption. If there is an "I" case on EDS, or if there is a disapproved closed case on EDS, establish an EO section on Master File with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 40 date and remarks. If the organization has an exemption, update Master File with the information on EDS using a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Codes ABC. Release the unpostable with URC 0 and cycle to post after the TC 016.

    2. If there is no case on EDS, research Master File.

    3. If the entity on the extension matches the entity on Master File and the name indicates the organization is a political organization, establish an EO section on Master File with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code AB, Status Code 34/date, Form 990 FR of 01, a Form 1120 FR of 09, and remarks. Change the name of the political organization using the instructions in IRM 3.13.12.6.5(6). Release the unpostable with a URC 0 and cycle to post after the TC 016.

    4. If the entity on the extension matches the entity on Master File and the name indicates the organization is a church, establish an EO section on Master File with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 30/date (if box marked 990/990-EZ/990-N) or Status Code 07/date (if box marked 990-T) and remarks. Release the unpostable with the appropriate URC and cycle to post after the TC 016.

      Note:

      The organization is likely a church if the name contains the following word(s): Church, Assembly or Assembly of God, Chapel, Cathedral, Fellowship, Jehovah's Witness, Monastery, Seventh Day Adventist, Synagogue, Temple, Worship Center, or Iglesia

    5. If the entity on the extension matches the entity on Master File and the organization indicates a GEN on the extension, establish an EO section on Master File with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 40/date and remarks. Release the unpostable with URC 0 and cycle to post after the TC 016.

    6. If the entity on the extension matches the entity on Master File and does not fit the criteria in c. through d. above, establish an EO section on Master File with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 40/date and remarks. Release the unpostable with URC 0 and cycle to post after the TC 016.

    7. If the entity on the extension does not match the entity on Master File, research for a correct EIN. If the correct EIN is found, make the necessary corrections and post the extension using URC 6. If the correct EIN can not be found, assign an EIN and post the extension using the instructions above. Cycle the unpostable to post after the TC 000 and send 3910c letter with the correct EIN.

    8. If the organization checked the incorrect box, correct the MFT and filing requirement on the extension. Release the unpostable using URC 6 or URC 8.

    9. If the organization filed the incorrect extension form (Form 7004), correct the form number on the extension, write "cancel DLN" to the left of the DLN, release the unpostable with URC 8, attach Form 13271, and request Rejects cancel the DLN and renumber for the correct MFT.

UPC 369 TC 01X with Employment Code W

  1. RC 1 - TC 01X with Employment Code W addressing an account with an EO section where the Subsection Code is not 00/03/50/60/70.

  2. RC 2 - TC 01X with Employment Code W addressing an account with an EO section where the Subsection Code is 00/03/50/60/70 and the current EO Status is other than 01/02/03/07/10/11.

UPC 369 Resolution RC 1 & 2 - Unpostables

  1. All UPC 369 cases are closed by GUF using URC 2 and routed to the initiator.

  2. These cases are closed by GUF without charge outs being generated. The initiating area will receive a listing of closed UPC 369 cases each cycle.

  3. Verify the TC 01X is addressing the correct account.

    1. If the wrong account was addressed, re-input the TC 01X to the proper account.

    2. If the proper account was addressed, correct the EO section to allow the TC 01X to post.

    Note:

    Do not update the subsection code or the status without performing research on EDS.

UPC 370 GEN File Transactions (GEN File Unpostables)

  1. RC 1 - A TC 000 or TC 016 Doc. Code 80 with an Affiliation Code of 6 or 8 attempts to create a parent record on the GEN file and the input NEW GEN is already on the GEN file.

  2. RC 2 - A TC 000 Doc. Code 81 with an Affiliation Code of 7 or 9 attempts to create a subordinate record on the GEN file and:

    • The input NEW GEN is not on the GEN file; or

    • The input NEW GEN matches a GEN already on the GEN file and the input (subordinate) TIN is already present on the GEN file; or

    • The NEW GEN is 0000.

  3. RC 3 - A TC 000 Doc. Code 80 with an Affiliation Code of 7 or 9 is input to establish a subordinate account on the GEN file and the input NEW GEN is not already on the GEN file.

  4. RC 4

    • TC 000 Doc. Code 80 input with a NEW GEN and no affiliation code; or

    • A TC 016 Doc. Code 80 input with an Affiliation Code other than 6, 7, 8 or 9 and NEW GEN other than 9999; or

    • A TC 016 Doc. Code 80 input with a NEW GEN equal to 9999 and the Affiliation Code is not equal to 1, 2, or 3.

  5. RC 5 - A TC 016 Doc. Code 81 (group change) input to change the GEN file and:

    • The parent TIN of the TC 016 do not match the TIN on the GEN file; or

    • The TC 016 GEN is not on the GEN file; or

    • The TC 016 GEN is on the GEN file and the TIN and name control match those of the parent, but:

    • The TC 016 was input without Definer Code D and the NEW GEN on The TC 016 matches a GEN already on the GEN file; or

    • The TC 016 was input with Definer Code D and there are no subordinates on the GEN file with the new subordinate indicator on; or

    • The TC 016 was input the Definer Code E and the NEW GEN input on the TC 016 is not on the GEN file; or

    • The TC 016 was input the Definer Code E and there are no subordinates on the GEN file; and

    • The FROM GEN is 0000.

  6. RC 6 - A TC 016 Doc. Code 80 with an Affiliation Code 7 or 9 is input with a NEW GEN present and the NEW GEN (other than 9999) is not on the GEN file.

  7. RC 7 - A TC 016 Doc. Code 80 with Definer Code F is input to change the GEN file and:

    • The TC 016 GEN is on the GEN file with the TIN matching the parent, but the change is for an Affiliation Code of other than 6 or 8; or the change is for an Affiliation Code of 7 or 9 and another TC 016 for the GEN with a different TIN with an Affiliation Code of 6 or 8 did not post the same cycle or the next 3 cycles.

    • The TC 016 GEN is on the GEN file with the TIN matching a subordinate but the change is of an Affiliation Code of 6 or 8 and another TC 016 for the GEN with a TIN matching the parent did not post the same cycle or the next 3 cycles.

    • There is an indication on the GEN file which a TC 016 with Definer Code F is awaiting update from the BMF.

  8. RC 8 - A TC 016 Doc. Code 80 with a Definer Code C and Affiliation Code 6 or 8 with TIN not matching the parent TIN for the GEN.

  9. RC 9 - A TC 016 Doc. Code 80 with a Definer Code G, Affiliation Code 1, 2, or 3, the New GEN = 9999, and the From GEN already exists on the GEN File.

UPC 370 Resolution - Unpostables

  1. All UPC 370 cases are closed by the GUF system using URC 2 and routed to Unpostable Unit. If you receive any UPC 370 cases you should reassign them to Unpostable Unit for resolution.

UPC 370 Resolution All RC

  1. GUF generates a control base for all UPC 370 cases to B3 category after they are closed with URC 2. GUF also generates a charge out for each UPC 370 case.

  2. Use these documents to determine the intent of the initiator (if it is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:
    1. See IRM 3.13.12.12.6 for information on group rulings and the proper use of definer codes when inputting GEN file changes.

    2. Re-input the transaction using CC EOCHG and the appropriate date.

    3. Destroy the document using local procedures.

UPC 371 GEN File Transactions (BMF Unpostables)

  1. RC O - A TC 000/016 Doc. Code 80 with a NEW GEN and Affiliation Code of 6 or 8 and the entity memo freeze is significant.

  2. RC 1 - A TC 016 Doc. Code 81 with a FROM GEN which does not match the BMF account GEN.

  3. RC 2

    • A TC 016 Doc. Code 80 with a significant NEW GEN and the FROM GEN does not match the entity GEN.

    • A TC 016 Doc. Code 80 when the FROM GEN does not match the BMF GEN and either the Definer Code is F or the Definer Code is C and the affiliation code is significant.

  4. RC 3 - A TC 016 Doc. Code 80 or 81 with Affiliation Code 1, 2 or 3 and:

    • The NEW GEN is other than 0000 or 9999; or

    • The NEW GEN is 0000 and the entity GEN is not 0000.

  5. RC 4 - A TC 016 Doc. Code 80 without Definer Code F attempts to update the affiliation code from parent (6 or 8) to subordinate (7 or 9) or vice versa.

  6. RC 5 - A TC 016 Doc. Code 80 with all of the following:

    • The input Affiliation Code is not 0, 6 or 8; and

    • The BMF Affiliation Code is 6 or 8; and

    • The Definer Code is not C, F, or G.

  7. RC 6 - A TC 020 attempts to post and the BMF Affiliation Code is 6 or 8.

  8. RC 7 - A TC 016 Doc. Code 80 attempts to post and the input subsection code or status code is significant and different from the BMF subsection code or subsection code respectively and the BMF Affiliation Code is 6 or 8 and the FROM GEN is zero or the FROM GEN does not equal the BMF GEN.

  9. RC 8 - A TC 016 Doc. Code 80/81 attempts to post with all of the following:

    • The NEW GEN is significant; and

    • The Definer Code is not E; and

    • The BMF Affiliation Code is 6 or 8; and

    • The BMF EO Status is other than 22, 26 or 29.

  10. RC 9 - A TC 016 Doc. Code 80 attempts to update the EO Status to 20, 24, 25 or 26 and the BMF Affiliation Code is 6 or 8.

UPC 371 Resolution All RC - Unpostables

  1. All UPC 371 cases are closed by GUF using URC 2.

UPC 371 Resolution All RC

  1. GUF generates a control base for all UPC 371 cases after they are closed with URC 2. GUF also generates a charge out for each UPC 371 case.

  2. Use these documents to determine the intent of the initiator (if it is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:
    1. See IRM 3.13.12.22 for information on group rulings and the proper use of definer codes when inputting GEN file changes.

    2. Re-input the transaction using CC EOCHG and the appropriate data.

    3. Destroy the document using local procedures.

UPC 372 Generated TC 590 (GEN File)

  1. RC 1 - A TC 590 Closing Code (cc) 14 generated from the posting of a Form 990 group return with Group Indicator of 7 either fails to match a GEN on the GEN file, or the TC 590 EIN fails to match the GEN of a parent record (with subordinate records) or a subordinate record on the GEN file.

UPC 372 Resolution - Unpostables

  1. All UPC 372 cases are assigned to B3 category by the GUF system.

UPC 372 General Resolution Procedures

  1. Whenever a Form 990 with a Group Code of 7 posts to the BMF, a TC 590 cc 14 is generated for every subordinate of the group. The TC 590 cc 14 is a transaction containing the GEN from the entity section of the parent account, not the GEN on the return.

  2. When resolving these unpostables, keep in mind any change to the EIN of the posted return necessitates reprocessing of the return. The TC 590 is unposted, not the TC 150.

UPC 372 Specific Resolution Procedures

  1. GUF sends a charge out to Files for the group return from which the unpostable TC 590 generated.

  2. Verify the return is a group return by the following:

    1. The entity section or label should contain the words "Group Return" .

    2. Box H(a) on the Form 990 should be checked "yes" and box H(b) should contain the number of affiliates for which the group return was filed. Box I should contain the GEN for the group.

    3. Attached to the group return should be either a list of the subordinates included in this group return or a statement indicating all of the subordinates of the group ruling are included in this group return.

  3. Verify the entity on the group return matches the BMF.

  4. Verify the BMF is set up for a group return by the following:

    1. The continuation-of-primary-name line will contain the words "Group Return" .

    2. The Form 990 FRC will be 03.

    3. The Affiliation Code should be a 9.

    Exception:

    State chartered credit union group returns may have an Affiliation Code of 6. See IRM 3.13.12.12.13 for more information.

UPC 372 Return Entity Does Not Match BMF Entity
  1. If the entity on the return does not match the BMF and the return is not a group return, research for a better EIN.

    If Then
    A better EIN is found:
    1. Perfect the document with the correct EIN.

    2. Place an X to the left of the group code.

    3. Prepare Form 3893, attach it to the Form 990 and reprocess the return.

    4. Release the unpostable TC 590 using URC D.

    No EIN can be found:
    1. Use CC ESIGN to assign a new EIN to the entity.

    2. Perfect the document with the correct EIN.

    3. Place an X to the left of the group code.

    4. Prepare Form 3893, attach it to the Form 990 and reprocess the return.

    5. Release the unpostable TC 590 using URC D.

  2. If the entity on the return does not match the BMF but the return is a group return, research for a better EIN.

    Note:

    CC EOGEN should be used to research the GEN shown in box 1 of the return.

    If Then
    A better EIN is found:
    1. Perfect the document with the correct EIN.

    2. Prepare Form 3893, attach it to the Form 990 and reprocess the return.

    3. Release the unpostable TC 590 using URC D.

    No EIN can be found:
    1. Use CC ESIGN to assign a new EIN to the entity.

    2. Perfect the document with the correct EIN.

    3. Prepare Form 3893, attach it to the Form 990 and reprocess the return.

    4. Release the unpostable TC 590 using URC D.

UPC 372 Return Entity Matches BMF Entity
  1. If the entity on the return matches the BMF but the return is not a group return:

    1. Input TC 016 Doc. Code 80 to update the EO section of the BMF, if needed.

    2. Release the unpostable using URC D.

  2. If the entity on the return matches the BMF and the return is a group return:

    If Then
    The GEN on the return does not match the GEN on the BMF:
    1. Use CC EOGEN to determine the correct GEN.

    2. Perfect the document with the correct GEN.

    The GEN on the return is correct and the GEN on the BMF is correct:
    1. Use CC EOGEN to determine the proper EIN of the group return for the correct GEN.

    2. Perfect the document with the correct EIN.

    3. Prepare From 3893, attach it to the Form 990 and reprocess the return.

    4. Release the unpostable using URC D.

  3. If the entity on the return matches the BMF, the return is a group return and the GEN on the return matches the BMF, verify the status of the account to which the unpostable TC 590 is directed:

    If Then
    The current status is 20 or 28, Release the unpostable using URC D.
    The current status is other than 20 or 28, verify the GEN agrees with the return GEN:
    1. If the GEN agrees, release the unpostable using URC D.

    2. If the GEN does not agree, input TC 016 Doc. Code 80 and correct the GEN, release the unpostable using URC 0 and cycle to post after the TC 016.

UPC 373 TC 016 with Status 28/29

  1. RC 1 - Unpost a TC 016 Doc. Code 80 with Status 28 unless the input GEN matches the BMF GEN and the BMF Affiliation Code is 7 or 9 and the EO Status is 01–03, 20 or 21.

  2. RC 2 - Unpost a TC 016 Doc. Code 81 with Status 29 unless the input GEN matches the BMF GEN and the BMF Affiliation Code is 6/7/8/9 and the EO Status is 01–03, 20 or 21.

UPC 373 Resolution - Unpostables

  1. All UPC 373 cases are closed by GUF using URC 2.

UPC 373 Resolution

  1. GUF generates a control base for all UPC 373 cases to B3 category after they are closed with URC 2. GUF also generates a charge out for each UPC 373 case.

  2. Use these documents to determine the intent of the initiator (if it is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:
    1. See IRM 3.13.12.6.18 for information on status codes.

    2. Re-input the transaction after making any changes to the BMF to allow the transaction to post.

    3. Destroy the document using local procedures.

UPC 379 Various EO Conditions

  1. RC 1 - Any transaction with Doc. Code 80/81 attempts to post to an account without an EO section unless any of the following conditions are true:

    • The transaction is a TC 000 with Doc. Code 80/81; or

    • The transaction is a TC 016 with Doc. Code 80; or

    • The transaction is a corrected unpostable TC 013 which was previously or originally UPC 302.

  2. RC 2 - TC 016 Doc. Code 80 attempts to post to an account:

    • Without an EO section and the TC 016 does not have a status code; or

    • With an EO section which does not have a status code and the TC 016 does not have a status code.

  3. RC 3 - TC 016 Doc. Code 81 attempts to post to an account:

    • Without an EO section; or

    • With an EO section which does not have a status code and the TC 016 does not have a status code.

  4. RC 4 - Any Doc. Code 80/81 transaction input with a Foundation Code of 99 and either of the following conditions are true:

    • The Subsection Code on input is 03; or

    • The Subsection Code on input is 00 and the BMF Subsection Code is 03.

  5. RC 5 - Any Doc. Code 80/81 transaction input with Subsection Code 99 and either of the following conditions are true:

    • The current Status on input is other than 00, 06, 07, 10, 11, 40 or 41; or

    • The current Status on input is 00 and the BMF Status is other than 06, 07, 10, 11, 40 or 41.

  6. RC 6 - TC 016 Doc. Code 80 attempts to post with a significant EO FRC and an input EO Status of zero, 20 or greater and the BMF EO Status is 20 or greater.

  7. RC 7 - TC 016 Doc. Code 80 attempts to post with a significant EO FRC, a significant subsection code and an EO Status of other than 01–02 and the BMF EO Status is 06, 07, 10 or 11.

  8. RC 8 - TC 016 Doc. Code 80 attempts to post with a Form 990PF or Form 5227 FRC and the BMF EO section has a non-zero GEN, unless the input NEW GEN is 9999.

  9. RC 9 - TC 016 Doc. Code 80 attempts to post with a Status Code of 01–19 and the BMF has no active EO FRC or Form 1065 FRC, unless the input TC 016 has a significant EO FRC.

UPC 379 Resolution - Unpostables

  1. All UPC 379 cases are closed by GUF using URC 2.

UPC 379 Resolution All RC

  1. GUF generates a control base for all UPC 379 cases after they are closed with URC 2.

  2. Use these documents to determine the intent of the initiator (if the initiator is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:
    1. See IRM 3.13.12 for information on status codes, FRCs, subsection codes, etc.

    2. Re-input the transaction after making any changes to the BMF to allow the transaction to post.

    3. Destroy the document using local procedures.

UPC 382 Foundation Code Update

  1. RC 1 - Any Doc. Code 80 transaction input with Subsection Code 03 and Foundation Code 02 unless the BMF Subsection Code is 03, the Foundation Code is 03/04 and the current EO Status is 01–03.

UPC 382 Resolution - Unpostables

  1. All UPC 382 cases are closed by GUF using URC 2.

UPC 382 Resolution

  1. GUF generates a control base for all UPC 382 cases after they are closed with URC 2.

  2. Use these documents to determine the intent of the initiator (if the initiator is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:
    1. See IRM 3.13.12 for information on status codes FRCs, subsection codes, etc.

    2. Re-input the transaction after making any changes to the BMF to allow the transaction to post.

    3. Destroy the document using local procedures.

UPC 383 Group Returns

  1. RC 1 - Any transaction with an MFT other than 67 attempting to post to an account with a BMF Form 990 FRC of 3.

  2. RC 2 - An MFT 67 TC 150 with a Group Code other than 7/8 attempting to post to an account with a BMF Form 990 FRC of 3.

  3. RC 3 - An MFT 67 TC 150 with a Group Code of 7/8 attempting to post to an account with a BMF Form 990 FRC other than 3.

  4. RC 4 - A TC 620 and 460 with a Group code other than 7 attempting to post to an account with a BMF Form 990 FRC of 3.

UPC 383 Resolution - Unpostables

  1. All UPC 383 cases are assigned to B3 category by the GUF system.

UPC 383 Form 990EZ

  1. If the group return filed is a Form 990EZ:

    1. Call the organization using the number on the return or send Letter 2699C for 2007 returns or prior, or 2695C for 2008 returns and subsequent to the organization informing them they can not file a Form 990EZ.

    2. If the organization responds with the correct return, edit/write cancel DLN on the Form 990-EZ, release the unpostable with URC 8 requesting Rejects cancel the DLN. Attach the unpostable behind the Form 990 and send the Form 990 through for processing. Edit the received date of the Form 990-EZ to the Form 990 being sent for processing.

    3. If the organization does not respond, Release the unpostable with URC 8 requesting Rejects cancel the DLN and convert the 990-EZ to a Form 990 for processing. See 3.12.278.42.4 UPC 383 Resolution RC 2, for editing a group code.

UPC 383 Resolution RC 1

  1. Research IDRS to determine if the unpostable transaction should post to the account of the parent or one of the subordinates of the group return to which it is directed.

    1. Be careful when making this determination. Many times subordinates erroneously use the EIN of the parent when filing their own returns.

    2. Do not correct the filing requirements of the parent unless you are sure the return is for the parent.

  2. If the transaction belongs to either the parent or one of the subordinates of the group, check the filing requirements for compatibility per UPC 329 in IRM 3.12.278.21.2(5).

    If Then
    The filing requirements are compatible:
    1. Perfect the document with the proper EIN.

    2. Release the unpostable using URC 6.

    3. Send the organization a 3910C letter informing them of their correct EIN.

    The filing requirements are not compatible:
    1. Input TC 016 Doc. Code 80 Definer Code A to correct the filing requirements.

    2. Perfect the document with the proper EIN.

    3. Release the unpostable using URC 6 and cycle to post after the TC 016.

    4. Send the organization a 3910C letter informing them of their correct EIN.

    INOLE/ENMOD shows a SS of 02–27, 50, 60, 70, 71, or 81 and 990-03 (Group Return)
    1. Research IDRS for another EIN for the organization shown on the 990-T

    2. If another EIN is found, release the unpostable with URC 6 to the correct EIN.

    3. Send the organization a 3910C letter informing them of their correct EIN.

    4. If another EIN is not found, correspond with the organization using letter 4588C and inform them an exempt organization cannot file a Form 990-T as a group return unless they are a title holding company. Request a separate Form 990-T for each subordinate. Suspense the unpostable.

    5. If the organization replies and provides the correct EIN, release the unpostable with URC 6 and process to the correct EIN.

    6. If the organization replies and provides a form 990-T for each subordinate, URC 8 to cancel the DLN on the group return. Input a TC 599-18, edit CCC R and V and the Received date from the group return on each subordinate return, and send them through for processing.

    7. If the organization does not reply or the response is incomplete, release the unpostable with URC 6 and post the 990-T to the parent organization's EIN.

  3. If the transaction does not belong to the parent or one of the subordinates of the group, research for a better EIN.

    If Then
    A better EIN is found:
    1. Check the filing requirements for compatibility per in IRM 3.12.278.21.2(5).

    2. If the filing requirements are compatible, perfect the document with the proper EIN and release the unpostable using URC 6.

    3. If the filing requirements are not compatible, input TC 016 Doc. Code 80 Definer Code A to correct the filing requirements, perfect the document with the proper EIN, and release the unpostable using URC 6 and cycle to post after the TC 016.

    4. Send the organization a 3910C letter informing them of their correct EIN.

    A better EIN cannot be found:
    1. Use CC ESIGN with MFI O to assign a new EIN.

    2. Input TC 016 Doc. Code 80 Definer Code A to add the EO section with the proper filing requirement using the appropriate posting delay code to post the TC 016 after the establishment of the EIN.

    3. Release the unpostable using URC 6 and cycle to post after the TC 016.

  4. If the unpostable is for an extension TC 620 for Form 990-T, research to determine if extensions have been posted for the Group Return Form 990.

    If Then
    If no extension posted Release the unpostable using URC 6 to correct the MFT to 67
    If there are extensions posted Release the unpostable using URC 6 to the parent EIN

UPC 383 Resolution RC 2

  1. Check the return to see if it is truly a group return.

    1. The entity section or label should contain the words "Group Return" .

    2. Box H(a) on the Form 990 should be checked "yes" .

    3. Box H(c) should contain the GEN for the group.

    4. Attached to the group return should be either a list of the subordinates included in this group return or a statement indicating all of the subordinates of the group ruling are included in this group return.

  2. If the return is a group return and contains a list of the subordinates included in the group return, research CC EOGEN to see if the attached list includes all of the subordinates.

    If Then
    Your research indicates the list does include all the subordinates:
    1. Perfect the document by requesting Rejects add a group code 7.

    2. Release the unpostable using URC 8 and have Rejects reprocess the return.

    Your research indicates the list does not contain all the subordinates:
    1. Use CC FRM49 to input a TC 590 cc 014 on each account on the attached list.

    2. If there are missing EINs, use CC EOGEN with Definer Code S to find them.

    3. If you cannot find an EIN for one of the subordinates, do not assign a new EIN.

    4. Release the unpostable using URC 8 and request Rejects add the group code 8.

  3. If the return is a group return and contains a statement indicating all of the subordinates of the group ruling are included in this group return or if box H(a) is checked "yes" :

    1. Release the unpostable using URC 8 and request Rejects add the group code 7

  4. If the return is a group return and box H(b) is checked "No" , but does not include a list of the subordinates of the group ruling included in this group return, process as follows:

    1. If the phone number of the parent is included on the group return, call the parent to ask if all or part of the subordinates are to be included in the group return. If a phone number is not on the return or the parent does not answer the phone, correspond using Letter 4588C for all prior year and subsequent 990 returns to request a partial list of subordinates or a letter indicating all subordinates are to be included on the return.

    2. If the parent replies all subordinates are to be included, request Rejects add Group Code 7. Release the unpostable with URC 8, requesting Rejects reprocess the return.

    3. If the parent replies with a partial list of subordinates, use CC FRM49 to input a TC 590 cc 014 on each account on the list. If there are missing EINs, do not assign a new EIN. Release the unpostable with URC 8, requesting Rejects add the group code 8.

    4. If the parent does not reply, request Rejects add Group Code 7. Release the unpostable with URC 8, requesting Rejects reprocess the return.

  5. If the return is not a group return, research for a better EIN.

    Note:

    Quite often a subordinate will file a return using the EIN of the parent of the group return. Research of the parent and subordinate accounts with CC EOGEN will help determine if this is the case.

    If Then
    A better EIN is found:
    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.

    3. Send 3910C Letter to inform organization of their correct EIN.

    You cannot locate an EIN for the unpostable:
    1. Use CC ESIGN MFI O to assign a new EIN.

    2. Input a TC 016 Doc. Code 80 to establish the EO section and the proper filing requirement, using the appropriate posting delay code to post the TC 016 after the establishment of the EIN.

    3. Perfect the document with the new EIN.

    4. Release the unpostable using URC 6 and cycle to post after the TC 016.

UPC 383 Resolution RC 3

  1. Check the return to see if it is truly a group return.

    1. The entity section or label should contain the words "Group Return" .

    2. Box H(a) on the Form 990 should be checked "yes" and box H(b) should contain the number of affiliates for which the group return was filed.

    3. Box H(c) should contain the GEN for the group.

    4. Attached to the group return should be either a list of the subordinates included in this group return or a statement indicating all of the subordinates of the group ruling are included in this group return.

  2. If the return is not a group return (including those in status 97):

    1. Circle out "Yes" box on H(a) and edit in the right margin next to the box, then mark box H(a) "No" .) on the return.

    2. Release the unpostable using URC 8 and request Rejects remove the group code from the record.

  3. If the return is truly a group return, research to determine if the BMF account is correct. If the BMF account has group return in its name but the Form 990 FRC is incorrect:

    1. Input TC 016 Doc. Code 80 to update the Form 990 FRC to 3; and

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

  4. If the return is truly a group return and the BMF account is not the group return account, research for a better group return EIN. Process as follows:

    If Then
    A better group return EIN is found,
    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.

    3. Send 3910C Letter to inform the organization of their correct EIN.

    You cannot locate a group return EIN:
    1. Use CC ESIGN MFI O to assign a new EIN for the Group Return.

    2. Input TC 016 Doc. Code 80 to establish the EO section and the Form 990 FRC of 03, using the appropriate posting delay code to post the TC 016 after the establishment of the new EIN.

    3. Perfect the document with the new EIN.

    4. Release the unpostable using URC 6 and cycle to post after the TC 016.

UPC 383 Resolution RC 4

  1. Check the return to see if it is truly a group return.

    1. Use CC REQ77 to input the TC 460 on each subordinate’s account.

    2. Release the unpostable.

UPC 399 RPS Return

  1. For resolution instructions, see IRM 3.12.279.172, 3.12.279.173, and 3.12.279.174.

    Note:

    If there is a payment on Form 4720A (MFT 50) and Code & Edit did not edit CCC X, release the unpostable with URC 8 and request Rejects add the CCC X.

UPC 431 Location Address and State Code

  1. RC 1 - A transaction attempting to update the Location Address 1 & 2 and the Location Address 2 does not contain 2 and only 2 commas, and/or a U.S. state code is present is other than 2 characters.

UPC 431 - Unpostables

  1. If you receive any UPC 431 unpostables, URC 2 them back to the originator.

UPC 431

  1. Re-input the transaction.

  2. When entering the location address, use a comma after the city and a comma after the state.

  3. Use only two characters for the state code.

UPC 490 Transaction Posting to an Invalid Field

  1. RC 1 - Generally, any input transaction attempting to post with an invalid field. Examples include:

    • Undefined value such as an invalid MFT

    • Value out of range such as month of 13

    • Wrong type such as an alpha character in a numeric field

    • Wrong sign for a money amount

  2. RC 2 - Input non F-coded Form 5227 TC 150 with a tax period later than 198712 and the input tax period does not end in YYYY12 (calendar year filer).

UPC 490 Resolution RC 1 - Unpostables

  1. Research to determine which field is invalid.

    1. If able to correct the invalid data on the document, close with URC 6 or 8, as appropriate.

    2. If unable to determine the invalid field, notify the National Office TEGE Entity Analyst.

UPC 490 Resolution RC 2 - Unpostables

  1. Research to determine if the unpostable FYM agrees with the BMF FYM.

  2. If the unpostable FYM is 12 and differs from the BMF FYM:

    1. Input TC 016 to correct the BMF FYM to 12.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

  3. If the unpostable FYM and the BMF FYM agree but are not 12:

    1. Input TC 016 to change the BMF FYM to 12.

    2. Release the unpostable using URC 8 with FYM 12 and cycle to post after the TC 016.

    3. If the unpostable FYM is not 12 and differs from the BMF FYM, release the unpostable using URC 8 and FYM 12.