3.13.2 BMF Account Numbers

Manual Transmittal

November 09, 2017

Purpose

(1) This transmits revised IRM 3.13.2, Campus Document Services, BMF Account Numbers.

Material Changes

(1) Added Internal Control information to IRM. Subsections renumbered accordingly. Several subsections moved from other areas of IRM into Internal Control sections.

(2) Revised tables throughout so they would be compliant with Section 508. IPU 17U0174 issued 01-25-2017

(3) Editorial changes have been made throughout this IRM, including revising dates used in examples.

(4) Added Mod IEIN prefix 82 throughout the IRM as it was added to production on February 27, 2017. IPU 17U0392 issued 02-28-2017

(5) IRM 3.13.2.1.4(14) - Revised text regarding contacting IMF sites for assistance.

(6) IRM 3.13.2.1.4.1(1) - Added text regarding Entity reports.

(7) IRM 3.13.2.1.8 - Deleted (13) as the text was misplaced in this subsection.

(8) IRM 3.13.2.1.11(2) b) - Revised instructions for date stamping incoming faxes. IPU 17U0174 issued 01-25-2017

(9) IRM 3.13.2.1.11(2) b) - Added text to clarify EEFax procedures per SERP Feedback Control 201701023. IPU 17U0392 issued 02-28-2017

(10) IRM 3.13.2.1.11(2)c) and d) - Slight text revision.

(11) IRM 3.13.2.1.11(2)d) - Added X-REF-TIN-ITIN to the fields BMF Entity will perfect.

(12) IRM 3.13.2.1.11(2)h) - Added "or document" .

(13) IRM 3.13.2.1.11(2) j) - Introduced the acronym CAF. IPU 17U0035 issued 01-03-2017

(14) IRM 3.13.2.1.11(4) - Added "G" to stop number. IPU 17U0174 issued 01-25-2017

(15) IRM 3.13.2.1.11(19) - Added text stating the same letter should not be sent to taxpayer within 45 days per SERP Feedback Control 201703236. IPU 17U0968 issued 06-07-2017

(16) IRM 3.13.2.1.11(20) - Added instructions to send the letter to the address the taxpayer specifies.

(17) IRM 3.13.2.1.11(20) - Added instructions to send letter to taxpayer’s new address if Form 8822-B is missing information.

(18) IRM 3.13.2.1.11(21) - Added text stating the check box letters cannot be used for IMF or International taxpayers.

(19) IRM 3.13.2.1.11(24) - Entity TEs are responsible for corrections to the Entity information.

(20) IRM 3.13.2.1.11(29) - Deleted the name of the Entity Clerical Lead who retired in March 2017. IPU 17U0753 issued 04-27-2017

(21) IRM 3.13.2.1.11(31) - Added text stating bulk documents with a single signature page are not acceptable. IPU 17U0638 issued 04-06-2017

(22) IRM 3.13.2.1.11(31) - Added text to include Forms 2678 as a form that is received in bulk.

(23) IRM 3.13.2.1.11(38) - Added instructions to input name and address correctly.

(24) IRM 3.13.2.1.12(6) - Added instructions when an open control base is present.

(25) IRM 3.13.2.1.19 - Added subsection reflecting turnaround times for Entity programs.

(26) IRM 3.13.2.2(5) - Clarified instructions for entering an individual’s name on a BMF account.

(27) IRM 3.13.2.2(8) - Added prima facia definition.

(28) IRM 3.13.2.2.3(6) - Added an example of entering a husband and wife as sole member.

(29) IRM 3.13.2.2.4(9) - Added "DTD" to chart and revised chart.

(30) IRM 3.13.2.2.4(16) - Added instructions to always verify and update the X-REF-TIN-ITIN with the SSN of the TTEE.

(31) IRM 3.13.2.2.7(3) - Revised text regarding not sorting a bank’s name.

(32) IRM 3.13.2.2.7(8) - Added (8) to include instructions to abbreviate the title in the Care of Name field.

(33) IRM 3.13.2.2.7(9) - Added (9) to contain instructions to update the X-REF-TIN-ITIN field.

(34) IRM 3.13.2.3(4) - Added instructions to suppress CPs 148A and B if address is being perfected.

(35) IRM 3.13.2.3(4) Added instructions to suppress CPs 148A/B if TE determines they are not necessary. IPU 17U0284 issued 02-13-2017

(36) IRM 3.13.2.3(15) - Added Note: stating a Trust/Estate are the only types of entity authorized to have a PO Box as a location address.

(37) IRM 3.13.2.3(18) - Added instructions to suppress CPs 148A and B when making an internal address correction.

(38) IRM 3.13.2.3.2 - Deleted text from (1) and (2) to clarify FINALIST functions. IPU 17U0035 issued 01-03-2017

(39) IRM 3.13.2.3.3(3) Added instructions to suppress CPs 148A/B if TE determines they are not necessary. IPU 17U0284 issued 02-13-2017

(40) IRM 3.13.2.3.4(5) Added instructions to suppress CPs 148A/B if TE determines they are not necessary. IPU 17U0284 issued 02-13-2017

(41) IRM 3.13.2.3.5(14) Added instructions to suppress CPs 148A/B if TE determines they are not necessary. IPU 17U0284 issued 02-13-2017

(42) IRM 3.13.2.3.6(2) - Added Note: stating a trust/estate is the only entity authorized to have a PO Box as their location address.

(43) IRM 3.13.2.3.6(3) Added instructions to suppress CPs 148A/B if TE determines they are not necessary. IPU 17U0284 issued 02-13-2017

(44) IRM 3.13.2.3.7(2) Added instructions to suppress CPs 148A/B if TE determines they are not necessary. IPU 17U0284 issued 02-13-2017

(45) IRM 3.13.2.3.7(3)c) - Added text regarding searching the Secretary of State’s website.

(46) IRM 3.13.2.3.8(6) - Revised hyperlink.

(47) IRM 3.13.2.3.8(7) - Added language stating an EIN can no longer be used as a X-REF-TIN-ITIN.

(48) IRM 3.13.2.3.8(10) - Added text stating Forms 8822-B for EO taxpayers will be processed in Ogden.

(49) IRM 3.13.2.3.8.1(2) - Revised and added text to chart regarding Form 8822-B.

(50) IRM 3.13.2.3.8.1(2) h) - Revised text in Form 8822-B - Change of Address subsection per SERP Feedback Control 201702444. IPU 17U0753 issued 04-27-2017

(51) IRM 3.13.2.3.8.1(2) j) - Deleted row j per SERP Feedback Control 201701022. IPU 17U0392 issued 02-28-2017

(52) IRM 3.13.2.3.8.1(4) Added instructions to suppress CPs 148A/B if TE determines they are not necessary. IPU 17U0284 issued 02-13-2017

(53) IRM 3.13.2.3.8.2(4) - Added text saying if an EO taxpayer submits a Change of Responsible Party, it will be processed in Ogden EO Entity. IPU 17U0664 issued 04-11-2017

(54) IRM 3.13.2.3.8.2(3), (5) and (6) - Revised text as EINs can no longer be used as X-REF-TIN-ITIN.

(55) IRM 3.13.2.3.8.2(6) - Deleted row f from Form 8822-B - Change of Responsible Party subsection per SERP Feedback Control 201702443. IPU 17U0753 issued 04-27-2017

(56) IRM 3.13.2.3.8.2(7) - Added instructions to acknowledge change in responsible party.

(57) IRM 3.13.2.3.9(3) - Added text to notify HQ analyst if undeliverable CPs 148 are received in Entity.

(58) IRM 3.13.2.3.9(6) Added instructions to suppress CPs 148A/B if TE determines they are not necessary. IPU 17U0284 issued 02-13-2017

(59) IRM 3.13.2.3.9(7) D - Revised language to refer these cases to IRM author per SERP Feedback Control 201704251. Also, revised IRM author’s name in E IPU 17U1135 issued 07-13-2017.

(60) IRM 3.13.2.3.9(7) - Revised IRM author’s name. IPU 17U1135 issued 07-13-2017

(61) IRM 3.13.2.3.9(8) - Deleted (8) and moved information to (3).

(62) IRM 3.13.2.4 - Revised some text throughout subsection and deleted the words "Entity generated" .

(63) IRM 3.13.2.4(2) and (3) - Added text regarding undeliverables. IPU 17U1275 issued 08-28-2017

(64) IRM 3.13.2.4(3) - Clarified instructions on undeliverable mail and notices. IPU 17U0392 issued 02-28-2017

(65) IRM 3.13.2.4(4) d) - Added text to 4) and 6) per SERP Feedback Control 201703214. IPU 17U0968 issued 06-07-2017

(66) IRM 3.13.2.4(6)d) - Added row (7) to add instructions regarding TC 593.

(67) IRM 3.13.2.4(10) - Added (10) to provide instructions on undels if address has been changed since previous letter was sent to T/P.

(68) IRM 3.13.2.6.2(4) - Added text regarding "invalid" EIN prefixes. IPU 17U0753 issued 04-27-2017

(69) IRM 3.13.2.6.2(4) - Added text regarding Mod IEIN prefixes. IPU 17U0035 issued 01-03-2017

(70) IRM 3.13.2.6.2(4) - Revised instructions regarding invalid EIN prefixes. IPU 17U0968 issued 06-07-2017

(71) IRM 3.13.2.7(2) - Revised text describing Unprocessable Returns. IPU 17U0638 issued 04-06-2017

(72) IRM 3.13.2.7(2) - Deleted bullet referencing Loose Returns as Code and Edit will no longer send loose returns to Entity. All returns will be controlled by BBTS. IPU 17U0664 issued 04-11-2017

(73) IRM 3.13.2.7(2) - Returned Loose Returns as Code and Edit will send loose returns to Entity controlled with an Entity Document/C&E Merge Transmittal.

(74) IRM 3.13.2.7(3) 2nd bullet - Added text: "and you have enough information"

(75) IRM 3.13.2.7(3) 5th bullet - Added instructions to send 147C to taxpayer per SERP Feedback Control 201704162. IPU 17U1135 issued 07-13-2017

(76) IRM 3.13.2.7(3) 5th bullet - Added CCs BRTVU and RTVUE.

(77) IRM 3.13.2.7(3) 6th bullet - Added "tax period"

(78) IRM 3.13.2.7(3) 7th bullet - Added other components to include in audit trail on RTR per SERP Feedback Control 201704250. IPU 17U1135 issued 07-13-2017

(79) IRM 3.13.2.7(4) - Deleted text saying Excise returns should be routed to CSPC.

(80) IRM 3.13.2.7(7) - Removed If/And/Then Chart as all return addresses are updated during processing. Remaining parens renumbered. IPU 17U0638 issued 04-06-2017

(81) IRM 3.13.2.7(8) - Deleted (8) as it was out of place. Remaining parens renumbered.

(82) IRM 3.13.2.7(20) - Revised timeframe to 45 days for consistency with rest of IRM.

(83) IRM 3.13.2.7.2 - Deleted (6) and revised (5) to give specific instructions for Action Code 320. Remaining parens renumbered. IPU 17U0392 issued 02-28-2017

(84) IRM 3.13.2.7.2(6) - Added text stating 147C should not be sent if EIN has been redacted by tax preparation software.

(85) IRM 3.13.2.7.2(8) - Added instructions to edit CCC "E" onto return if assigning an EIN and the return is claiming a refund. IPU 17U0035 issued 01-03-2017

(86) IRM 3.13.2.7.2(9)h) - Added text regarding correct FRC for LLC.

(87) IRM 3.13.2.7.2(19) - Added text regarding taxpayer’s address.

(88) IRM 3.13.2.7.2.1 - Revised name of subsection to Processing IMF Cases.

(89) IRM 3.13.2.7.4(4) - Added text and a Note: to provide instructions for updating 944 FRC issues. IPU 17U0035 issued 01-03-2017

(90) IRM 3.13.2.7.5(9) and (22) - Added instructions to edit CCC "E" onto return if assigning an EIN and the return is claiming a refund. IPU 17U0035 issued 01-03-2017

(91) IRM 3.13.2.7.5.1 - Made slight text revisions throughout subsection for clarity.

(92) IRM 3.13.2.7.5.1(5) - Revised text throughout chart instructing Entity TEs to annotate Let Unpost and return Rejected Form 1120S to Rejects. IPU 17U0796 issued 05-03-2017

(93) IRM 3.13.2.7.5.1(5)c) - Added text stating to not input TC 093 if taxpayer has 1065 FRC.

(94) IRM 3.13.2.7.5.1(13) - Added (13) stating any extension posted to MFT 02 will satisfy the requirements of Rev. Proc. 2013-30 per SERP Feedback Control 201703997. IPU 17U1135 issued 07-13-2017.

(95) IRM 3.13.2.7.5.1(13) - Revised text regarding the change in return due dates for clarification. IPU 17U1275 issued 08-28-2017

(96) IRM 3.13.2.7.5.1(13) - Revised text regarding the change in return due dates for clarification.

(97) IRM 3.13.2.7.7(4) - Added instructions to edit CCC "E" onto return if assigning an EIN and the return is claiming a refund. IPU 17U0035 issued 01-03-2017

(98) IRM 3.13.2.7.9(6) - Corrected misspelled word.

(99) IRM 3.13.2.7.11(1)e) - Added language stating Form 11-C will be processed in Ogden in 2018.

(100) IRM 3.13.2.7.11(2) - Added language stating Form 730 will be processed in Ogden in 2018.

(101) IRM 3.13.2.7.13.1(1) - Deleted duplicate text.

(102) IRM 3.13.2.7.13.1(4) - Clarified text.

(103) IRM 3.13.2.7.13.2(1) - Deleted "This return."

(104) IRM 3.13.2.7.13.5(1) - Deleted duplicate text.

(105) IRM 3.13.2.7.17 - Added text regarding Form 3520.

(106) IRM 3.13.2.7.18 - Added text regarding Form 3520-A.

(107) IRM 3.13.2.7.22(6) - Added text to Form 2363 section regarding Forms 941 and 944 FRCs. IPU 17U0284 issued 02-13-2017

(108) IRM 3.13.2.7.22(10) - Added language to Form 8027 procedures.

(109) IRM 3.13.2.7.22(10) - Added more descriptive text to Form 8027 instructions. IPU 17U1275 issued 08-28-2017

(110) IRM 3.13.2.7.23(7) - Deleted (7).

(111) IRM 3.13.2.8(1) - Revised language to reflect Forms 11-C and 730 will be processed in Ogden beginning 2018.

(112) IRM 3.13.2.9(2) - Added text regarding CC LPAGE and the MFT and Tax Period for POA letter. IPU 17U0035 issued 01-03-2017

(113) IRM 3.13.2.9(3) - Added 0045C as Correspondex letter to be used.

(114) IRM 3.13.2.9(9) - Added text stating the same letter should not be sent to taxpayer within 45 days per SERP Feedback Control 201703236. IPU 17U0968 issued 06-07-2017

(115) IRM 3.13.2.9(9) - Added instructions to send the specific letter the taxpayer requests.

(116) IRM 3.13.2.9(19) - Added instructions to send letter to the address specified by taxpayer.

(117) IRM 3.13.2.9(20) - Added several phone numbers to list of other BOD’s numbers.

(118) IRM 3.13.2.9.2(2) - Changed time frame to 45 days.

(119) IRM 3.13.2.9.2(3) - Added table regarding Form SS-4 correspondence.

(120) IRM 3.13.2.9.2(4) - Added instructions for assigning EINs to Revenue Agents.

(121) IRM 3.13.2.9.4(1) - Added text explaining the use of EIN prefixes.

(122) IRM 3.13.2.9.4(3) - Revised fax numbers for AM:EIN function.

(123) IRM 3.13.2.9.5 - Deleted "transfer of filing extensions" from list of work AM:EIN will route to Entity. This particular item belongs to AM.

(124) IRM 3.13.2.9.7(3) - Revised text for clarity and removed erroneous text. Added row w.

(125) IRM 3.13.2.9.8 - Deleted the second row under a).

(126) IRM 3.13.2.9.9(4) - Added text to b and f.

(127) IRM 3.13.2.9.12 - Deleted subsection as BMF IRM does not need instructions regarding Supplemental Listings Under a Group Ruling. Remaining subsections renumbered.

(128) IRM 3.13.2.9.13 - Deleted subsection as BMF IRM does not need instructions regarding Publication 78. Remaining subsections renumbered.

(129) IRM 3.13.2.9.16(2) - Added street address to be used when utilizing Private Delivery Service. IPU 17U0638 issued 04-06-2017

(130) IRM 3.13.2.9.16(5) - Added instructions to research for taxpayer’s SSN.

(131) IRM 3.13.2.9.22(4) - Added instructions for when there is an open control on the account.

(132) IRM 3.13.2.9.24 - Deleted subsection as this task is the responsibility of AM, not BMF Entity. Remaining subsections within 3.13.2.9 renumbered.

(133) IRM 3.13.2.9.24(1)h) - Added "EO" in front of "Entity."

(134) IRM 3.13.2.9.26(1) - Changed "old" to "previous."

(135) IRM 3.13.2.12 - Minor changes throughout subsection.

(136) IRM 3.13.2.12 - Revised text throughout subsection per clearance and SERP Feedback Control 201705275. IPU 17U1359 issued 09-22-2017

(137) IRM 3.13.2.12(2) - Added text regarding Forms 14039 and 14039-B that are not IDT.

(138) IRM 3.13.2.13(3) - Added hyperlinks to IRM 21.7.13 per SERP Feedback Control 201701548. IPU 17U0483 issued 03-10-2017

(139) IRM 3.13.2.13.1 - Added text to (3) c) and (4) a) to expand instructions for EIN consolidations. IPU 17U0035 issued 01-03-2017

(140) IRM 3.13.2.13.1 - Added TC 074 to subsection.

(141) IRM 3.13.2.13.1(4)a) - Added instructions to use Form 2747 as the history sheet for EIN consolidation cases.

(142) IRM 3.13.2.16 - Added (7) stating HCSRs will never be a BMF taxpayer; remaining paragraphs renumbered.

(143) IRM 3.13.2.16.2 - Deleted instructions to contact AM on Form 944 FRC.

(144) IRM 3.13.2.16.2(8) - Deleted (8) as it cannot be proven that programming issues 1997C letter. IPU 17U0846 issued 05-12-2017

(145) IRM 3.13.2.16.3(11) - Deleted Note: as it cannot be proven programming issues 1997C letter. IPU 17U0846 issued 05-12-2017

(146) IRM 3.13.2.16.4(a) - Added "on record" to end of sixth bullet.

(147) IRM 3.13.2.17.3(5) - Added hyperlink to Entity Job Aid 10744-003 for example of TC 930 input. IPU 17U0483 issued 03-10-2017

(148) IRM 3.13.2.18(7) - Slight language revision.

(149) IRM 3.13.2.18.1(1)b) - Revised text to say grantor’s SSN will be input in X-REF-TIN-ITIN field.

(150) IRM 3.13.2.20.1(1) - Added street address to be used when utilizing Private Delivery Service. IPU 17U0638 issued 04-06-2017

(151) IRM 3.13.2.20.2(1) - Added instructions in Note: to route Form 3465 to AM if mis-applied extension is discovered.

(152) IRM 3.13.2.20.3(1) g) - Added street address to be used when utilizing Private Delivery Service. IPU 17U0638 issued 04-06-2017

(153) IRM 3.13.2.20.3.3(2) - Added instructions to ask taxpayer to verify their address.

(154) IRM 3.13.2.20.4(4) - Added street address to be used when utilizing Private Delivery Service. IPU 17U0638 issued 04-06-2017

(155) IRM 3.13.2.20.5(3) a) - Added street address to be used when utilizing Private Delivery Service. IPU 17U0638 issued 04-06-2017

(156) IRM 3.13.2.20.6(1) - Added language regarding Form 6502, Employee Source Document Folder Label.

(157) IRM 3.13.2.20.6(1) - Added text to descriptions of transaction codes.

(158) IRM 3.13.2.20.9(1)d) - Added Note: regarding Form 6502, Employee Source Document Folder Label.

(159) IRM 3.13.2.21(5) - Added (5) to reflect the TCs used when processing Form 8716.

(160) IRM 3.13.2.21.2(2) - Added Note: regarding Form 6502, Employee Source Document Folder Label.

(161) IRM 3.13.2.21.3(2)a) - Added language regarding Form 6502, Employee Source Document Folder Label.

(162) IRM 3.13.2.22(8) and (10) - Removed instructions to suppress CP 264 as the notice revision is complete. IPU 17U0968 issued 06-07-2017

(163) IRM 3.13.2.22.1(9) - Added text stating Entity TEs are not required to calculate the gross receipts.

(164) IRM 3.13.2.22.2(1) (e) - Removed instructions to suppress CP 264 as the notice revision is complete. IPU 17U0968 issued 06-07-2017

(165) IRM 3.13.2.22.2(7) - Added more descriptive text describing SSNs beginning with 9 in Form 2553 section. IPU 17U1275 issued 08-28-2017

(166) IRM 3.13.2.22.2(10) - Revised text regarding EO subsection on EIN for Form 2553 per SERP Feedback Control 201606314. IPU 17U0035 issued 01-03-2017

(167) IRM 3.13.2.22.2(10) - Clarified instructions from IPU 17U0035. IPU 17U0392 issued 02-28-2017

(168) IRM 3.13.2.22.3(5) - Added text stating a timely stamped Form 2553 is acceptable proof of a timely filed election.

(169) IRM 3.13.2.22.4(3) - Added a Note stating Always ensure the IRS received date of the Form 1120S is also entered on Form 2553 per SERP Feedback Control 201701867. IPU 17U0638 issued 04-06-2017

(170) IRM 3.13.2.22.4(6) - Combined two Notes into one.

(171) IRM 3.13.2.22.4(7) - Added EUP (Employee User Portal) for research per SERP Feedback Control 201705376. IPU 17U1359 issued 09-22-2017

(172) IRM 3.13.2.22.4(11) - Deleted (11) as the text was outdated. Remaining parens renumbered.

(173) IRM 3.13.2.22.4(15) - Added text stating any extension posted to MFT 02 will satisfy the requirements of Rev. Proc. 2013-30 per SERP Feedback Control 201703997. IPU 17U1135 issued 07-13-2017

(174) IRM 3.13.2.22.4(15) - Revised text regarding the change in return due dates for clarification.

(175) IRM 3.13.2.22.4(16) - Added language regarding Forms 7004 and Rev. Proc. 2013-30.

(176) IRM 3.13.2.22.4(16) - Revised text regarding the change in return due dates for clarification. IPU 17U1275 issued 08-28-2017

(177) IRM 3.13.2.22.4.1(3) c) - Added instructions to edit out AC 347, if present, when reprocessing return per SERP Feedback Control 201704161. IPU 17U1135 issued 07-13-2017

(178) IRM 3.13.2.22.4.1(3)2 - Added text stating the Form 2553 is still incomplete.

(179) IRM 3.13.2.22.6(4) - Added language regarding Form 6502, Employee Source Document Folder Label.

(180) IRM 3.13.2.22.6(5) - Revised text under FOE.

(181) IRM 3.13.2.22.7(16) b) - Added (4) to include a scenario that was previously missing per SERP Feedback Control 201606315. IPU 17U0035 issued 01-03-2017

(182) IRM 3.13.2.22.7(16) b) - Added instructions to suppress notice and send 385C letter per SERP Feedback Control 201702569. IPU 17U0753 issued 04-27-2017

(183) IRM 3.13.2.22.7(16)b) - Removed instructions added by SERP Feedback Control 201702569. The 2553 IAT SET Tool will have to be enhanced. IPU 17U0796 issued 05-03-2017

(184) IRM 3.13.2.22.7(16) b) - Added instructions to suppress notice and send 385C letter per SERP Feedback Control 201702569. IPU 17U0976 issued 06-08-2017

(185) IRM 3.13.2.22.7(21) - Added (21) stating any extension posted to MFT 02 will satisfy the requirements of Rev. Proc. 2013-30 per SERP Feedback Control 201703997. IPU 17U1135 issued 07-13-2017

(186) IRM 3.13.2.22.7(21) - Revised text regarding the change in return due dates for clarification. IPU 17U1275 issued 08-28-2017

(187) IRM 3.13.2.22.9 - Deleted (6) to remove instructions to suppress CP 264 as the notice revision is complete. Remaining parens renumbered. IPU 17U0968 issued 06-07-2017

(188) IRM 3.13.2.22.17(2) - Added text saying an LLCs request to revert to their default classification must be received by the due date of their initial return per SERP Feedback Control 201606382. IPU 17U0035 issued 01-03-2017

(189) IRM 3.13.2.22.18(1)c) - Revised instructions to say the reason for the termination will now be entered in the Remarks field.

(190) IRM 3.13.2.22.24(2) - Deleted troublesome text.

(191) IRM 3.13.2.23(7) - Added text stating incomplete document will be returned to the parent corporation.

(192) IRM 3.13.2.23(13) - Added instructions regarding a credit balance on the subsidiary.

(193) IRM 3.13.2.23(13)d) - Added hyperlink to IRM 3.13.2.1.11(9).

(194) IRM 3.13.2.23(21) - Added instructions for processing a late filed Q-Sub election.

(195) IRM 3.13.2.24(2) - Added text stating TC 591 should be input on Form 966 if the Final return has posted. IPU 17U0753 issued 04-27-2017

(196) IRM 3.13.2.25(10) - Added text regarding husband and wife in community property states.

(197) IRM 3.13.2.25(12) - Revised table for Section 508 Compliancy. IPU 17U0664 issued 04-11-2017

(198) IRM 3.13.2.25(12) - Corrected table from error in previous revision. IPU 17U0753 issued 04-27-2017

(199) IRM 3.13.2.25(12) - Revised text within LLC table.

(200) IRM 3.13.2.26.1(4) - Added text to describe LLCs. IPU 17U0664 issued 04-11-2017

(201) IRM 3.13.2.26.2(3) - Deleted erroneous text in c).

(202) IRM 3.13.2.26.2(4)a(1) - Added text stating to destroy Form 8832 and to not use the 6801sce.

(203) IRM 3.13.2.26.3(1)d) - Revised language to state IRS received date will be edited onto Line 8.

(204) IRM 3.13.2.26.4 - Deleted subsection as same language is in 3.13.2.26.1. Remaining subsections renumbered.

(205) IRM 3.13.2.26.4(1) - Added the word "valid" to Form 8832 Completeness section per SERP Feedback Control 201607275. IPU 17U0035 issued 01-03-2017

(206) IRM 3.13.2.26.5 - Deleted (7) containing instructions for Ogden campus and SOI per SERP Feedback Control 201703029. IPU 17U0846 issued 05-12-2017

(207) IRM 3.13.2.26.8(1)a - Corrected letter number to 6801sce.

(208) IRM 3.13.2.26.9(2) - Added 3574C and 3576C to possible letters to be used per SERP Feedback Control 201701378. IPU 17U0483 issued 03-10-2017

(209) IRM 3.13.2.26.9(1) - Deleted text stating "Form 8832 was filed in error and" and revised other language.

(210) IRM 3.13.2.26.10(1) - Moved (1) text to 3.13.2.26.11. Remaining parens renumbered.

(211) IRM 3.13.2.26.10(3) - Added text regarding taxpayer’s address.

(212) IRM 3.13.2.26.11(2) - Revised text to say Foreign Forms 8832 will no longer be transshipped to Ogden per SERP Feedback Control 201606316. IPU 17U0035 issued 01-03-2017

(213) IRM 3.13.2.26.11(2) - Revised text to say Foreign Forms 8832 will be transhipped to Ogden Entity. IPU 17U0483 issued 03-10-2017

(214) IRM 3.13.2.26.11(8) - Added text regarding 6801sce.

(215) IRM 3.13.2.26.11(10) - Added instructions for conversions under Luxembourg Law. IPU 17U0846 issued 05-12-2017

(216) IRM 3.13.2.26.12(1) - Added instructions to update FRC as needed.

(217) IRM 3.13.2.26.12(1) - Added instruction for securing documentation from the Secretary of State site. SERP Feedback 201701333. IPU 17U0483 issued 03-10-2017

(218) IRM 3.13.2.26.12(2) - Deleted troublesome text regarding TC 090.

(219) IRM 3.13.2.26.12(3) - Added hyperlink for State Reorganization/Conversion Decision Tree. IPU 17U0664 issued 04-11-2017

(220) IRM 3.13.2.26.11(9) - Added language describing the Irish Company Act 2014 and instructions for processing Form 8832. IPU 17U0035 issued 01-03-2017

(221) IRM 3.13.2.30 - Added subsection to provide procedures for Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement.

(222) IRM 3.13.2.31 - Added subsection to provide procedures for Form 9100, Notice of Late Election.

(223) Exhibit 3.13.2-1 moved to IRM 3.13.2.1.5. Remaining exhibits renumbered.

Effect on Other Documents

This material supersedes IRM 3.13.2 effective January 1, 2017. The following IRM Procedural Updates (IPUs) have been implemented into this IRM: 17U0035 issued 1-3-17, 17U0174 issued 1-25-17, 17U0284 issued 2-13-17, 17U0392 issued 2-28-17, 17U0483 issued 3-10-17, 17U0638 issued 4-6-17, 17U0664 issued 4-11-17, 17U0753 issued 4-27-17, 17U0796 issued 5-3-17, 17U846 issued 5-12-17, 17U0968 issued 6-7-17, 17U0976 issued 6-8-17, 17U1135 issued 7-13-17, 17U1275 issued 8-28-17, and 17U1359 issued 9-22-17.

Audience

Wage and Investment Division/Submission Processing BMF Entity Employees

Effective Date

(01-01-2018)

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. Purpose: A portion of the daily receipts of payments, returns, and forms at a Submission Processing site requires research for Employer Identification Numbers (EINs) and perfection of the business taxpayer’s account. Entity Control is responsible for such research and perfection. Entity Control also processes specific documents related to filing requirements of the Business Master File (BMF) taxpayer. This IRM provides procedures for establishing, maintaining and updating entities on the Business Master File (BMF).

  2. Audience: The primary users of this IRM are Submission Processing clerks, Tax Examiners (TEs), and managers in the Document Perfection Operation, BMF Entity Control section.

  3. Policy Owner: The director of Submission Processing.

  4. Program Owner: The Post Processing Section of the Specialty Programs Branch in Submission Processing.

  5. Primary Stakeholders: The primary stakeholders are the Tax Examiners (TEs) who rely on the IRM for accurate processing procedures related to the BMF Entity program.

  6. Program Goals: It is the goal of Entity Control to timely process all incoming payments, returns, forms, and correspondence with the highest rate of accuracy possible.

Background

  1. A portion of the daily receipts of payments, returns, and forms at a Submission Processing site requires research for Employer Identification Numbers (EINs) and perfection of the business taxpayer’s account. Entity Control is responsible for such research and perfection. Entity Control also processes specific documents related to filing requirements of the Business Master File (BMF) taxpayer. This IRM provides procedures for establishing, maintaining and updating entities on the Business Master File (BMF).

  2. Historically, BMF Entity processed Form SS-4, Application for Employer Identification Number (EIN). In 1986, Cincinnati BMF Entity started manning a phone on Fridays to assign EINs. The practice became wildly popular and within two years grew to ten phones assigning EINs every work day. During the re-organization In 1999, Entity moved to the newly created Submission Processing. The EIN function went to Accounts Management.

  3. On January 1, 2007, another re-organization took place and BMF Entity Unpostables split from BMF Entity. BMF Entity Unpostables went to Input Corrections Operation (ICO) and BMF Entity stayed in Document Perfection Operation (DPO).

Authority

  1. Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code (IRC). The IRC has been amended by:

    • Revenue Reconciliation Act of 1998 (RRA 98)

    • § 218 - Employment Code "T" , see IRM 3.13.2.5.9.

    • § 444 - Form 8716, see IRM 3.13.2.21.

    • § 501(c)(3), 501(e), 501(f), 501(k) - Employment Code "W" , see IRM 3.13.2.5.10.

    • § 645 - Trust as part of an Estate, see IRM 3.13.2.7.7.

    • § 1362(a) - Subchapter S Election, see IRM 3.13.2.22.

    • § 3504 - Form 2678, see IRM 3.13.2.16

    • § 3705(a) - IRS Employee Contacts, see IRM 3.13.2.1.8.

    • § 7508 and 7508A - Disaster Relief, see IRM 3.13.2.1.10.

    • § 7519 - Form 8752, see IRM 3.13.2.7.20.

    • § 301.7701 - Form 8832, see IRM 3.13.2.26.

    Note:

    The above list may not be all inclusive of the various updates to the IRC

Responsibilities

  1. Submission Processing, Specialty Programs Branch, Post Processing Section is responsible for the content in this IRM. The BMF Entity analyst will make changes as needed and revise entire content once a year effective January 1st of each calendar year.

  2. The Director of Submission Processing is responsible for policy related to this IRM.

  3. the Post Processing Section manager is responsible for ensuring the IRM is timely submitted to Publishing each year.

Program Reports/Processing Time Frames and Batching Requirements

  1. BMF Entity uses Entity Batch/Block Tracking System (BBTS) to control and assign the work. .

  2. Incoming mail and cases are either delivered to the Entity Clerical Support area or picked up by an Entity designee from the appropriate area(s) on a daily basis.

  3. If Entity receives taxpayer replies for other functional areas, verify the IDRS number located in the "In reply refer to:" area of any IRS generated letter. If the IDRS number does not belong to an Entity employee, do not batch it. Route it to the appropriate functional area without delay.

  4. The time frames for processing BMF Entity inventory start from the IRS received date unless otherwise specified. See IRM 3.30.123, Work Planning and Control - Processing Timeliness: Cycles, Criteria, and Critical Dates.

  5. If it is discovered that documents were batched under an incorrect category, the batch may be re-batched to the correct category, but only during the week the batch was created.

  6. In some circumstances, cases need to be routed to a more experienced Tax Examiner for resolution. Batching clerks will adjust the volume of the original batch and immediately re-assign the remaining documents.

  7. In order to meet the program completion date, all BMF returns must be processed according to the required time frames.

  8. The time frame for all returns and documents that are received via transshipment, must be given an additional 5 processing days, however this additional time cannot be granted if the BMF return is in jeopardy of exceeding the Program Completion Date (PCD).

  9. The time frame for processing Form 4442, Inquiry Referral, is 20 days. If the Form 4442 is for a government contractor, this case must be processed immediately. Do not wait 20 days. The Form 4442 for government contractors can be identified by the following: "Expedite Government Contractor " .

  10. If it is determined that an item meets the criteria of several categories, it will be sorted according to the most technical category that applies. An example is BMF correspondence other than an address change. If the correspondence clearly gives information concerning a Form 2553 problem, categorize this item for a twenty day time frame.

  11. Batch sizes are based on a theory of volume. The largest volumes received by Submission Processing BMF Entity are Forms 2553. All entity cases are to be processed within a time frame based on IRS received date; all inventory must be batched by the end of each day (or whatever time the Campus designates as end of day). Therefore, batching documents late in the day (most likely) will not meet maximum batch size. Other circumstances may dictate that batch sizes be smaller than prescribed.

  12. It is important to be able to readily identify types of documents and the processing time frame without having to look at each individual batch. One way of achieving this is to use colored folders for the batches of documents.

  13. There are certain types of cases that are generally not delivered to Submission Processing Entity through mail. They are hand carried to the manager or a designee. It is the responsibility of the manager or designee to batch these cases with the appropriate processing time frames.

  14. BMF Entity TEs will process all IMF address changes/Forms 8822 received. However, if any other IMF program requires coordination with an IMF site, Kansas City should be contacted at ≡ ≡ ≡ ≡ ≡ ≡ . . Phone number are for internal use only.

Report Monitoring
  1. GUF reports 55-40 and 55–47 will be monitored for the erroneous creation of unpostables by Entity TEs. This report will be processed weekly as there may be unpostable transactions awaiting an Entity correction. See IRM 3.12.32, Error Resolution - General Unpostables, and IRM 3.12.279 ,Error Resolution - BMF/CAWR/PMF Unpostable Resolution. This report is available on Control D.

  2. The CCA-4243 report must be monitored for IDRS open control bases created by the auto closure of certain unpostables.

  3. This report must be processed weekly to ensure all accounts touched by Entity reflect correct information, including FRCs and FYMs. This report is available on Control D.

  4. The Tax Examiner will:

    • Research the oldest control bases first.

    • Research the reason their TC went unpostable,

    • Correct the Entity module as needed,

    • Re-input their TC. It may be necessary to create a dummy document to use as a source document. The dummy document should contain the entire audit trail including the explanation of the deleted unpostable and open control base.

    • Close the control base.

    Figure 3.13.2-1

    This is an Image: 33746436.gif
     

    Please click here for the text description of the image.

  5. The WTU 6919, ERAS Weekly Error Listing, will count and print the ERAS TIF accounts which have not been established on the Master File (MF), BMF or EPMF at Martinsburg Computing Center (MCC). Each ERAS TIF account which falls under one of the following seven categories will be printed on the Error Listing with the appropriate Error Code. This report must be monitored/printed weekly for resolution. Entity will address EINs with Error Code 7-N only.

    Error Code Definition
    1 Accounts with SC-REASON-CD of "EA " that have not gone through the ERAS Daily Analysis programs or the Daily Update Programs prior to the weekend update
    2 Accounts with SC-REASON-CD other than "EA" that have not gone through the ERAS daily analysis programs or the daily update programs prior to the weekend update.
    3 Accounts with SC-REASON-CD other than "EA" that have gone through the ERAS daily analysis programs and have not been established on the appropriate MF at MCC.
    4 ERAS accounts that failed to post to the MF within five to eight cycles or the update record from MF (which identifies the receipt of the TC 000) failed to update the ERAS account at the service center.
    5 ERAS accounts that failed to post to the MF within nine to 12 cycles or the update record from MF (which identifies the receipt of the TC 000) failed to update the ERAS account at the service center.
    6 This account is invalid - TIF04 or TIF41 is missing - notify control group.
    7-N This account established with a Notice Code "A" , "B" , "J" , "K" , "L" , "M" , "P" , or "T" has not been updated with CC ESIGNU to indicate the Form SS-4 has been received from the Taxpayer. The account will be printed every four weeks and the number after Error Code 7 indicates the number of times this account has printed.

    Figure 3.13.2-2

    This is an Image: 33746437.gif
     

    Please click here for the text description of the image.

  6. Utilize CC ENMOD to access EIN to see if ESIGN’U’ has been input.

    If... And... Then...
    EIN is on CC ENMOD, ESIGN’U’ has not been input, Complete Letter SS-4L to T/P. Enter history item on CC ENMOD: SS-4L-SENT .Annotate spreadsheet.
    EIN is not on CC ENMOD, EIN is on BMFOL’E’, Annotate spreadsheet

    Note:

    The SS-4L letter is available on the BMF Entity Research Portal sponsored by SERP.

  7. If Form SS-4 is received from the taxpayer, update EIN with any and all missing information from Form SS-4. Input ESIGN’U.’

  8. If Form SS-4 is not received within 30 days, input ESIGN’U’ then TC 020 on EIN.

Terms Used in BMF Entity

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

  2. Accounts Maintenance Transcripts - A transcript generated when an unresolved credit is on the Master File.

  3. Administrator - Person or group of persons specifically designated as the Plan Administrator by the terms of the plan document(s) under which the plan number is operated.

  4. Amended Return - A second return filed which changes the information submitted on the original return.

  5. Automated Collection System (ACS) - An automatic calling system for tax periods within an account that is in taxpayer delinquent investigation or taxpayer delinquent account status.

  6. Asset Code - Code used to identify end of year total assets.

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

  8. Batch - A group of work of like documents within a program code.

  9. Blocking Series - A special identification within a DLN that requires or identifies special action.

  10. Business Master File (BMF) - A magnetic tape file containing information about taxpayers filing BUSINESS returns and related documents.

  11. Business Operational Date (BOD) - The date assigned to beginning of liability for annual and excise returns.

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

  13. Command Code (CC) - Five-character code used to input data on IDRS.

  14. Computer Paragraph (CP) - Computer generated notices to request information or give information to the taxpayer regarding certain aspects of their tax return. Also, certain notices are generated to inform the campus of postings to the Master File that require additional action.

  15. Consolidate - The moving of data when one taxpayer has erroneously been given more than one TIN.

  16. Credit Balance - A term noting a credit outstanding on a module. Identified by a minus (−) after the amount.

  17. Cross Reference (X–REF) - Identifies related TINs and the sort name (DBA).

  18. Cycle - One week’s processing at the Campus and Enterprise Computing Center at Martinsburg (ECC-MTB). The cycle is expressed by an 8 digit code. The first four digits represent the processing year, the 5th and 6th digits represent the processing week in that year, and the 7th and 8th digits represent the day in cycle.

  19. Document Locator Number (DLN) - A controlled number assigned to every return or document 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 the original input. The DLN is used to control, identify, and locate documents processed in the ADP system.

  20. Dummy Return - An input return not prepared by the taxpayer or an input document treated as a return.

  21. EIN Prefix Code - Two numeric digits which identify the beginning of an employer identification number. It is used to control how EINs are distributed. It is used to avoid the issuing of duplicate EINs.

  22. Employee Benefit Funds/Trusts - Types of trusts where the assets of the plan have been placed.

  23. Employee Plans and Exempt Organizations Application Control System (EACS) - IDRS provides access via a special case control number available by use of CCs PLINQ'O' and PLINF/PLINF'E'.

  24. Employer Identification Number (EIN) - An assigned nine-digit number to identify a business tax account.

  25. Employment Code (EC) - A one-letter code used to identify certain employers regarding Social Security Taxes and Federal Unemployment Tax.

  26. Employee User Portal (EUP) - Tool used to access images of electronically filed returns (MeF)

  27. Enterprise Computing Center at Martinsburg - The facility in Martinsburg, WV, where various transactions post to the various Master Files (I, B, EP)

  28. Entity - That portion of the Master File record which identifies the taxpayer. It contains name, address, social security or employer identification number, Employment Code if applicable, name control (four characters from the taxpayer's name), location codes, filing requirement codes, fiscal year month, date of establishment, beginning of liability for all returns.

  29. Electing Small Business Trust (ESBT) - Electing Small Business Trust

  30. Excess Collections - An account of unapplied credits transferred from an unidentified or Master File Account.

  31. Federal Deposit Insurance Company (FDIC) - The entity that guarantees deposits made with private financial institutions.

  32. Fiduciary - A person or institution entrusted to act in behalf of a taxpayer.

  33. File Source - A one digit code which follows the Taxpayer Identification Number (TIN). The common values are

    Blank-valid SSN or EIN P - valid IRA SSN
    * - invalid SSN on IMF X - invalid IRA SSN
    V - valid SSN on BMF P - valid EPMF EIN
    W - invalid SSN on BMF X - invalid EPMF EIN
    D - Temporary TIN  
  34. Filing Requirement Code (FRC) - Identifies the type of return a taxpayer must file.

  35. Fiscal Year Month (FYM) - Any month a taxpayer elects to be the ending month of an accounting year.

  36. Group Return - Form 990 marked "Group Return" or "Consolidated" reflects a special election by the Parent Organization to file one return for all subordinates electing to be covered under a group return. This return is in addition to the Parent's own return. The group return will use a distinct EIN that is used solely for the purpose of filing the consolidated return.

  37. Income Code - Code used to identify yearly receipts for BMF Returns.

  38. Indian Tribal Government - The term given to Native American communities that are afforded exemption from FUTA.

  39. 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 taxpayer accounts. This system is aimed at quick resolution of problems and inquiries concerning current and prior taxpayer accounts.

  40. Local Account Profile (LAP) - A TIN file for validating the TIN or TIN/name control for IDRS input CCs.

  41. Master File (MF) - A magnetic tape record containing all information with respect to taxpayer's filing of returns and related documents, both business and individual. The business Master File (BMF) contains records on each taxpayer, divided into two sections, Entity Section and Returns Section.

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

  43. Merger - When two or more corporations combine and one is the successor corporation-the other corporation would final out returns on the number. DO NOT confuse this with consolidation (TC 011).

  44. Modernized e-FILE (MeF) - Term used for returns filed electronically at Ogden Submission Processing Center

  45. NAME CONTROL - (NC) - The first four letters of the taxpayer's last name (in the case of individuals) and the first four letters of the business name (in the case of partnership, corporations, etc.). The name control is used to check the Master File and assure that the TIN corresponds with the proper taxpayer.

  46. Name Control File - list of all SSN accounts from SSA.

  47. National Account Profile (NAP) - A new 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 CCs and for researching with CC INOLE.

  48. Parent - A corporation that owns a subsidiary corporations.

  49. Personal Service Corporation - Type of corporation where substantially all of the activities involve the performance of services in the field of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting, and substantially all of the stock of which is owned by employees who had performed the services, any estate of any individual who had performed the services listed above, or any person who acquired stock of the corporation as a result of the death of an employee or retiree described above, if the acquisition occurred within 2 years of death.

  50. Prior Year - A prior year is a tax period that precedes the processing year.

  51. Re-Input - Reprocessing the return.

  52. Re-file - Sending the return/document back to files to be filed in its original position in the block.

  53. Reject - A return or document that was not acceptable by the campus computer because of incorrect or incomplete information.

  54. Remittance Transaction Research (RTR) - The computer system that maintains copies of checks received from taxpayers.

  55. Return - A legal form or written evidence used by the taxpayer to record tax information (TC 150).

  56. Revocation - Taxpayer initiated correspondence to revoke a small business election.

  57. Social Security Number (SSN) - A permanently assigned nine-digit number from SSA to identify an individual income tax account.

  58. Subordinate - Subordinates of a Parent organization.

  59. Tax Module - Part of a taxpayer's account which reflects tax data for one type of tax and one tax period.

  60. Tax Period - 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 two digits represent the century, the second two represent the year and the last two digits represent the month.)

  61. Taxpayer Delinquent Account (TDA) - A tax module where a return has been filed but not fully paid and is in collection status.

  62. Taxpayer Delinquent Investigation (TDI) - A tax account that has a filing requirement for which a return has not been received and is in collection status.

  63. Taxpayer Identification Number (TIN) - An EIN or SSN or IRS Individual Taxpayer Identification Number (ITIN).

  64. Termination - The corporation no longer meets the requirements of a small business corporation (for example passive income, corporation has more than 100 shareholders) or a partnership, S corporation or personal service corporation terminates its Section 444 election or Form 2678, Employer Appointment of Agent Under Section 3504 of the Internal Revenue Code.

  65. Transaction Code (TC) - Codes used to identify transactions being processed and to maintain a history of actions posted to taxpayer accounts on the Master File. A three digit code used to identify actions being taken to a taxpayer's account.

  66. Transcript - A copy of entity and tax data from the Master File concerning a taxpayer's account.

  67. Unpostable (UP) - An input transaction that attempted to post to the Master File but could not because of inconsistencies with the posted transactions or filing requirements or the input data.

  68. Unprocessable - A document that is incomplete, illegible, or otherwise unsatisfactory for input.

  69. Wages Paid Date (WPD) - The date assigned to the beginning of liability for employment tax returns.

Acronyms

  1. An Acronym is a word formed from the initial letter or letters of each of the successive parts or major parts of a compound term such as IDRS for Integrated Data Retrieval System.

  2. Acronyms utilized in this IRM will be identified and explained in each subsection. After the acronym is identified and explained then only the acronym will be utilized throughout the remainder of the subsection. Some acronyms are used universally throughout the IRS and identifying and explaining these in multiple subsections would be unnecessarily redundant. Some examples of these universal acronyms are IRM, IRC and IDRS.

  3. The following acronyms will be seen throughout this IRM:

    • ACS Automated Collection System

    • ASED Assessment Statute Expiration Date

    • BMF Business Master File

    • BMFOL Business Master File On Line

    • CAWR Combined Annual Wage Reporting

    • CC Command Code

    • CP Computer Paragraph

    • CSPC Cincinnati Submission Processing Center

    • DCC Detroit Computing Center

    • DLN Document Locator Number

    • EIN Employer Identification Number

    • EPMF Employee Plans Master File

    • EFTPS Electronic Federal Tax Payment System

    • ERAS EIN Research and Assignment System

    • ECC-MTB Enterprise Computing Center at Martinsburg

    • ERS Error Resolution System

    • FDIC Federal Deposit Insurance Corporation

    • FICA Federal Insurance Contributions Act

    • FSLG Federal State Local Government

    • FSPC Fresno Submission Processing Center

    • FRC Filing Requirement Code

    • FUTA Federal Unemployment Tax Act

    • FYM Fiscal Year Month

    • GMF Generalized Mainline Framework

    • GUF Generalized Unpostable Framework

    • HSM Hierarchical Storage Management

    • IMF Individual Master File

    • IMFOL Individual Master File on Line

    • ITG Indian Tribal Government

    • ITIN Individual Taxpayer Identification Number

    • IDRS Integrated Data Retrieval System

    • IT Information Technology

    • IRC Internal Revenue Code

    • IRM Internal Revenue Manual

    • IRS Internal Revenue Service

    • IRSN Internal Revenue Service Number

    • JPMR Joint Program Management Review

    • KCSPC Kansas City Submission Processing Center

    • LB&I Large Business and International Division

    • MF Master File

    • MFT Master File Tax Code

    • MRS Microfilm Replacement System

    • NAP National Account Profile

    • NC Name Control

    • OMB Office of Management and Budget

    • OSPC Ogden Submission Processing Center

    • PLR Private Letter Ruling

    • PMF Payer Master File

    • POA Power Of Attorney

    • PRP Programming Requirements Package

    • PSPC Philadelphia Submission Processing Center

    • PSSN Primary Social Security Number

    • QSST Qualified Subchapter S Trust

    • RAF Reporting Agent File

    • RAIVS Return And Income Verification Services

    • RC Reason Code

    • RDD Return Due Date

    • RTR Remittance Transaction Research

    • SCRIPS Service Center Recognition Image Processing System

    • SCUPMF Service Center Unpostable Master File

    • SLA Service Level Agreement

    • SSSN Secondary Social Security Number

    • SGRI Supplemental Group Ruling Information

    • TE Tax Examiner

    • TEFRA Tax Equity and Fiscal Responsibility Act

    • TIF Taxpayer Information File

    • TIGTA Treasury Inspector General for Tax Administration

    • TIN Taxpayer Identification Number

    • TC Transaction Code

    • TP Taxpayer

    • UPC Unpostable Code

    • URC Unpostable Resolution Code

    • VBDEA Visual Basic Data Entry Application

    • VITA Volunteer Income Tax Assistance

    • WIRS Wage Information Retrieval System

    • XML Extensible Markup Language

    • XSF Excess Collection File

    • YTD Year To Date

    • ZTIF Other Taxpayer Information File

Related Resources

  1. The following IRMs and publications are used in conjunction with this IRM section:

    • IRM 1.10.1, Office of the Commissioner of Internal Revenue, IRS Correspondence Manual

    • IRM 1.11.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 3.5.10, Remittance Transaction Research (RTR) System

    • IRM 3.5.61, Files Management and Services

    • IRM 3.10.72, Receiving, Extracting and Sorting

    • IRM 3.10.73, Batching and Numbering

    • IRM 3.11.16, Corporate Income Tax Returns

    • IRM 3.12.32 , General Unpostables

    • IRM 3.12.37, IMF General Instructions

    • IRM 3.12.166, EPMF Unpostables

    • IRM 3.12.278, Exempt Organization Unpostable Resolution

    • IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution

    • IRM 3.13.5, Individual Master File (IMF) Account Numbers

    • IRM 3.13.12, EO Account Numbers

    • IRM 3.13.36, EPMF Account Numbers

    • IRM 3.13.62, Media Transport and Control

    • IRM 3.13.222, BMF Entity Unpostable Correction Procedures

    • IRM 3.30.123, Work Planning and Control - Processing Timeliness: Cycles, Criteria, and Critical Dates

    • IRM 11.3.1, Introduction to Disclosure

    • IRM 11.3.2, Disclosure to Persons with a Material Interest

    • IRM 13.1.19, TAS Operations Assistance Request (OAR) Process

    • IRM 21.7.13, Assigning Employer Identification Numbers, EINs

    • IRM 25.23.9, Identity Protection and Victim Assistance, BMF Identity Theft Processing

    • Pub 15, Circular E - Employer's Tax Guide

  2. The Servicewide Electronic Research Portal (SERP), is used by all Business Operating Divisions. The SERP staff has created specific portals for various functions, including the BMF Entity Research Portal.

  3. BMF Entity TEs will utilize the various offices of the Secretary of State for business research.

  4. Integrated Automation Technologies - IAT:

    1. IAT provides tools to IRS employees that simplify research, reduce keystrokes and increase the accuracy of regular work processes.

    2. When IAT is used with IRS systems, it eliminates repetitive typing and making precise decisions.

    3. The use of IAT is mandatory. See the IAT web site for a list of available tools and User Guides.

    4. Managers will ensure that all employees receive training on the use and application of IAT tools.

    5. Appropriate research will be completed using CCs NAMEE, NAMEB, NAMES, NAMEI, FINDE and the Secretary of State offices.

Section (§) 3705 (a), IRS Employee Contacts

  1. Background -

    1. The Restructuring and Reform Act of 1998, provides identification requirements for all IRS employees processing tax related matters.

    2. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face or written contact. In addition a telephone number is required on all taxpayer correspondence.

    3. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax related matters.

  2. Key Points - All IRS employees in the campus, national or area office who communicate by telephone, correspondence or face to face with taxpayers or their personal representatives on tax related matters are required to provide (at a minimum) the following information:

    1. With telephone contact, the caller must provide their title, last name and their unique identifying number.

    2. With face to face contact provide your title and last name during the conversation and your badge ID number.

    3. Never leave any taxpayer information on the taxpayer's answering machine or voice mail per IRM 11.3.2, Disclosure of Official Information, Disclosure to Persons with a Material Interest.

    4. See IRM 21.1.3.2, General Disclosure Guidelines, for more information.

  3. Correspondence - All correspondence must include a telephone number the taxpayer can call to have questions answered.

  4. Office of Management and Budget (OMB) Codes are not required when issuing a letter to the taxpayer per 5 CFR 1320.3 (h) (6).

  5. The IDRS numbers are automatically generated for the Correspondex letter system. If another letter system is used, the unique IDRS number must be used.

  6. Faxes to taxpayers on tax related matters, are considered manually-generated correspondence and must include the required information. See IRM 11.3.1.11, Disclosure of Official Information - Introduction to Disclosure, for Disclosure requirements on faxing.

  7. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain: the nature of the taxpayer's inquiry and our actions taken.

  8. When sending a correspondex letter and Receipt and Control Operation was not required to date stamp the return, determine the received date using the following priorities:

    1. Latest postmark on the envelope or latest date from a private delivery service mark,

      Note:

      When the envelope or label is not attached, use the postmark date stamped or handwritten on the return to determine the received date.

    2. Latest date by the taxpayer's signature (Exception: Use the signature date for prior year returns only when it is within the current year; also, do not use the signature date to determine the received date for replies to correspondence),

    3. Julian date minus 10 days (Julian date is in the Document Locator Number (DLN), see Document 6209, or)

    4. Today's (current) date minus 10 days.

  9. When a taxpayer insists on speaking with a specific employee who previously processed their inquiry or request, or complains about the level of service previously provided, every attempt will be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the Entity Tax Examiner will refer the inquiry using established procedures to his or her manager.

  10. An Entity phone number must be provided in letters regarding Entity specific forms, unless the mailing address is outside the United States then the International Number (1-267-941-1000 between the hours of 6:00 a.m. and 11:00 p.m. ET) will be provided. When returning incomplete documents to the taxpayer, an Entity phone number must be used unless an Entity Check Box Letter (6800sce or 6801sce) is used. The BMF Toll Free Number (1-800-829-0115) may be provided in general BMF correspondence letters. If the 6800sce or 6801sce are used, input a two line history item on CC ENMOD that reflects the letter sent on the first line and the document returned on the second line. The number of characters allowed on each line of a history item are limited therefore keep each line under eight characters. For example:

    6800SCE
    W2553

    or

    6801SCE
    W8832

    Reminder:

    The 6800sce/6801sce cannot be used for international or IMF taxpayers.

  11. Before writing the taxpayer, examine the case completely so that all of the issues/conditions can be included in the same correspondence. If additional information is needed, the second correspondence must include a paragraph of apology for any inconvenience.

  12. Before returning a document to the taxpayer for completion via fax or correspondence, a blue "X" will be placed over all IRS received dates. This will ensure the validity of the received date if/when the taxpayer responds.

  13. Entity may be contacted by internal customers (other IRS employees) for assistance with Entity issues. For example, assigning EINs, correcting effective dates, updating Entity information on an account, etc. Ask them to fax you any pertinent data so you can service their request. Take an In and Out count for each EIN that received Entity action. Below are some examples of requests received from internal customers:

    • A Revenue Agent (RA) from Compliance/Exam needs EINs for taxpayers before they can open an investigation due to the taxpayer not paying their excise tax. The RA prepares the Substitute For Return (SFR) excise return and e-mails it to either the Cincinnati Submission Processing Center (CSPC) Entity or Ogden Submission Processing Center (OSPC). The receiving Tax Examiner (TE) assigns the EIN(s) and e-mails them (encrypted) back to the RA, or

    • IRM 3.14.2.7.1.2.3 , Notice Review-BMF Notice Review, instructs Notice Review Tax Examiners (TEs) to send photocopies of returns and/or notices to Entity for review of any questionable names (and addresses) they discover. Entity TEs will research IDRS and make any necessary corrections to the taxpayer's account. The TE may take an In and Out count for each EIN touched. Once the correction is made, the photocopies will be prepared for destruction and placed in the TEs Quality Review folder.

    Note:

    Do not perform ESTAB requests for other IRS employees. Advise them to contact their support staff.

  14. Letters generated by Submission Processing must be approved by Headquarters when they are intended for dissemination to 10 or more persons. These letters are numbered in accordance with IRM 1.17.1, Publishing - Overview of Publishing Authorities, Roles, Responsibilities, and Organizational Structure, and IRM 1.17.2, Publishing - Publishing Systems and Programs . Form letters, pattern letters, and pattern paragraphs are prescribed by Headquarters for use in service centers. DO NOT make changes to text format, date of issue (or revision), or physical characteristics of these letters and paragraphs without prior Headquarters approval. In addition, Quick Notes that are computer generated must be forwarded to Headquarters for approval. Submit requests for new letters using Form 1767, Publishing Services Requisition, following procedures outlined in IRM 1.17.1 and 1.17.2. For minor changes or additions to current letters, follow procedures in IRM 3.0.275, Business Results Measures for Submission Processing Functions.

Taxpayer Advocate Service (TAS) Service Level Agreements

  1. The National Taxpayer Advocate and the Commissioner, W&I Division have reached an agreement outlining the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete a case transaction rests with the W&I Division. The Service Level Agreements (SLAs) can be found under "TAS Favorites" at TAS' web site: http://tas.web.irs.gov/

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

    • Preparing Form 12412 , Operations Assistance Request (OAR), and

    • Securing all necessary supporting documentation, and

    • Forwarding Form 12412 and documentation on Form 3210 , Document Transmittal, to the W&I Division liaison, and

    • Clearly identifying an OAR requiring expeditious treatment.

  3. W&I Division is responsible for:

    • Assigning a liaison in each office or campus where a Taxpayer Advocate is located, and

    • Acknowledging receipt of the case via Form 3210 within one workday for cases designated as "expedite" or within three days for cases not designated "expedite," and

    • Responding to TAS within three workdays for cases identified "expedite" in writing, via facsimile or hand delivery regarding the relief/no relief decision, and

      Note:

      If utilizing fax, use blue or black ink in audit trail and on OAR.

    • Negotiate with TAS a reasonable time frame for resolution of cases not designated "expedite" and

    • Providing TAS with the name and telephone number of the W&I employee assigned the case, and

    • Upon resolution of the case, the W&I employee will complete Section VI of Form 12412 and return it to the TAS employee within three work days from the date all actions have been completed and/or transactions posted.

  4. BMF Entity TEs will be responsible for:

    • Researching prior modules for previous unpostable returns filed by the taxpayer, specifically TC 971 ACs 375, 376, and 377. CC TRDBV will be used to determine if the DLN of previous unpostables has been cancelled, and

    • Researching IDRS for any history items identifying letters sent by Entity Unpostables and/or Entity relating to Form 2553 and/or Form 1120S. See CCs BMFOL, ENMOD, TXMOD, UPTIN, UPDIS, and TRDBV, and

    • Considering completeness of previously submitted Forms 2553. Historically, Entity and Entity Unpostables were not able to approve S elections ‘for the next qualifying year.’ Therefore, there are taxpayers with denied elections that could have been approved for two years from the requested effective date. For example, T/P submitted incomplete 2553 for 2017 under a Rev. Proc. and election was denied. T/P was complete and timely for 2016, therefore election should be approved for 2018, and

    • Considering T/P intent and responsiveness:
      Did T/P respond to IRS letters?
      Is there evidence the T/P re-submitted complete Form 2553?
      Is there evidence T/P contacted IRS regarding Form 2553/Form 1120S issues?
      Did T/P submit corrected return?

    • Having the history of processing procedures for various Entity forms (2553, 8832, 2678, etc.) and possibly consider those procedures in evaluating the TAS cases.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. For additional information see IRM 13.1.19, Taxpayer Advocate Case Procedures - TAS Operations Assistance Request (OAR) Process.

Taxpayer Bill of Rights (TBOR)
  1. The Taxpayer Bill of Rights (TBOR) adopted by IRS in June 2014 outlines the ten fundamental rights of taxpayers.

  2. Publication 1, Your Rights as a Taxpayer was updated to include the modified language from the Taxpayer Bill of Rights.

  3. Taxpayers have the right to receive prompt, courteous and professional assistance in their dealings with the IRS.

  4. They are to be spoken to in a way that is easily understood and any correspondence from the IRS must be clear and understandable.

  5. They have the right to speak to a supervisor whenever quality service is not received.

Disaster Relief

  1. When an official disaster is declared due to natural events, military, or terroristic action, the Federal Emergency Management Agency (FEMA) releases a memo detailing the type of assistance taxpayers will receive.

  2. The memo also lists the zip codes affected by the disaster. Disaster Code "-S" freeze will be automatically applied to the Master File accounts of taxpayers located in the IRS Designated Disaster Area for automatic filing and payment relief. The list of designated disaster areas identified for "-S" freeze action has been provided to MITS and will be posted to http://www.tris.irs.gov/fema/.

  3. This information is also posted to the SERP homepage on the "Who/Where" tab at the top of the window: Disaster Declarations/FEMA.

  4. Generally, 60 additional days are granted to taxpayers affected by disasters.

  5. Affected taxpayers who reside or have businesses located outside the designated disaster area must call the IRS disaster toll free number, 1-866-562-5227, to self-identify for disaster relief.

  6. IRC Sections 7508 and 7508A govern the events that may be postponed due to the declaration of a Designated Disaster Area.

General Entity Procedures

  1. This IRM addresses Entity actions on returns, forms, documents and payments.

    • Return - Filed by taxpayers to report income/loss.

    • Form/document - Elective filings for various purposes: electing corporate status, FYM changes or elections, appointment of fiduciary or agent, etc.

    • Payment - Received in the form of Rejects and payments from Accounting Services. Remittance Transaction Research (RTR) will be utilized.

  2. The following are basic procedures for all cases processed in Submission Processing BMF Entity:

    1. Batch all documents with appropriate control form/batch sheet. BMF Entity uses Entity Batch/Block Tracking System (BBTS).

    2. All incoming documents/correspondence will be stamped with an IRS/Entity received date stamp. Since the implementation of Enterprise Electronic Fax (EEFax), it is not necessary to manually stamp incoming fax documents as the EEFax received date cannot be altered and will be considered for timeliness. The dates stamped by other fax machines or a Fax Transmission Verification Report will not be used for determining timeliness. It is not necessary for Entity to date stamp returns (documents that post as a TC 150).

    3. Chief Counsel has determined any response to an IRS inquiry is acceptable via fascimile/fax. The only documents processed by BMF Entity that Chief Counsel has determined acceptable via fax are Form 2553, Election by a Small Business Corporation, Form 8869, Qualified Subchapter S Subsidiary Election, and Form SS-4, Application for Employer Identification Number.

    4. Perfect entity for processing: correct and underline the name control per exception, correct the name (as needed per research of the Secretary of State's office via the internet), EIN, address, Fiscal Year Month (FYM) or tax period, Filing Requirements Codes (FRCs), X-REF-TIN-ITIN, etc. if needed, and annotate your actions in the lower left corner of the document. All documents touched by Entity will bear the TE's IDRS number and date upon completion. It is not necessary for Entity to correct existing address abbreviation errors on the Entity module unless accessing the EIN for other Entity corrections.

    5. Documents that will be destroyed in the control team (Forms 8822/8822-B, correspondence, etc.) do not need a complete audit trail. TE IDRS number, EIN (if not on document) and date are sufficient. Place a large blue (or orange or purple) "X" on the document that will be destroyed and return it to your pack of documents. The control team will destroy the document upon their breaking down of the employee folders.

    6. When processing returns, it is not necessary to address minor name differences (for example, INC versus INCORPORATED or Co. versus Company) unless the name control is affected.

    7. Every document received in BMF Entity will be researched to ensure there is only one EIN (or SSN on some documents) assigned to the taxpayer. CCs NAMES/ NAMEE and/or NAMEI/NAMEB will be used to verify the EIN/SSN is correct and no other TIN exists for the taxpayer.

    8. If a taxpayer submits an original document (birth certificate, marriage license, passport, etc.) with their correspondence or document, prepare a Form 3699, Return of Documents to Taxpayer, and return the item to the taxpayer.

    9. If the submitter includes a copy of the document and a Self Addressed Stamped Envelope (SASE), return the acknowledgement request back to the originator or requester. If a SASE is not enclosed, do not return an acknowledgement copy to the originator.

    10. If a Form 8821 or Form 2848 is received with an Entity form and other returns are indicated, photocopy the document, write COPY in the center of the document and forward the original 8821/2848 to the Centralized Authorization File (CAF) Team. The photocopy of Form 8821/2848 should remain attached to the Entity form. Also, the POA should receive a copy of any correspondence that is part of the case resolution. You achieve this by using the MFT and tax period in CC LPAGE, and by entering Y in the CAF> field of CC LPAGE.

  3. If correspondence is received referencing permission is needed from the Commissioner, route to Submission Processing Headquarters Analyst, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  4. The instructions for processing Form SS-4 and using Command Code (CC) ESIGN are located in IRM 21.7.13 , Assigning Employer Identification Numbers. Reference to this manual is necessary when processing Form SS-4 or using CC ESIGN to assign an Employer Identification Number (EIN) for a return, document, or payment.

    Note:

    Forms SS-4 received in Entity that are not accompanied by CP 576 should be routed to:
    Internal Revenue Service
    ATTN: EIN Operation - Stop 533G
    Cincinnati, OH 45999

  5. Various colors of ink are used by Entity TEs. See chart below.

    Reminder:

    Gel pens cannot be used on documents that will be scanned, for example Service Center Recognition/Image Processing System (SCRIPS) returns and Forms 8832.

    Ink Color Purpose
    Orange Used by CSPC for all documents, except Forms 8832.
    Purple Used by OSPC and KCSPC for all documents.
    Blue Used by all sites to mark out IRS received dates on documents being returned to the taxpayer
    Blue, Orange, or Purple Used to place large "X" on documents to be destroyed in clerical team
    Blue or black Used on any document to be faxed back to the customer. For example, Social Security Administration (SSA) requests
    Green
    CSPC - Forms 8832
  6. Throughout this IRM the words expeditious treatment/treated expeditiously are used. This means the case will be processed immediately upon assignment. You will put your other cases aside and give this case expeditious treatment. Batches labeled expedite are low in volume. Once finished with the expedite work, the cases that were put aside will be processed.

  7. Providing instructions that will cover all combinations of changes that might appear on a given case is not possible. Therefore, where procedures are given for a specific situation (for example, name change) and the case also needs other actions, make all changes necessary to perfect the account. This includes perfecting effective dates and FYMs.

  8. Anytime an Entity Tax Examiner discovers a return, payment, or extension posted incorrectly, they must route a Form 3465, Adjustment Request, to AM/Adjustments to have the return/payment/extension moved and posted correctly. Secure the document via CC ESTAB to verify it has not posted correctly. Photocopy Form 4251, recharge the document to AM/Adjustments, and route the photocopy to Files.

  9. Returns, forms, correspondence and direction from the taxpayer regarding their account will be accepted according to the terms of prima facie, otherwise, upon first examination the matter appears to be self-evident.

  10. It may become necessary for Entity TEs to create Dummy documents for use as source documents for the input of certain transactions: TC 053, TC 054, TC 055, TC 076, TC 082, TC 090, TC 094, TC 098 etc. To create and process a Dummy document you will:

    1. Write the word Dummy across the top of a blank Form 1128, Form 8716, or Form 2553, etc.

      Exception:

      If using a copy of Form 2553 as a Dummy Form 8832, write the word Deemed across the top.

    2. Complete the entity portion of the document with the taxpayer's name, address, and EIN.

    3. Enter the following on the document (if applicable): sequence number, effective date, FYM, Posting Delay Code, Blocking Series.

    4. When processing Dummy documents, ALWAYS suppress the IDRS generated Computer Paragraph (CP) notice by inserting "Z" in the Paragraph Selection Code. (PSC) field of CC BNCHG. It may be necessary to correspond with the taxpayer.

    5. Annotate the document with the reason a Dummy document is needed, for example: "TC 057 erroneously reversed -taxpayer did not terminate 444" . An audit trail containing IDRS number and the date of actions taken will be written in the bottom, left corner of every return/document.

    6. Input transaction into IDRS and place document in source document folder.

  11. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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  12. Whenever feasible, Entity Tax Examiners will initiate telephone contact with the taxpayer before returning an incomplete document to them. When returning incomplete documents to the taxpayer, all internal documents must be removed from the enclosure and the IRS received dates will be X'd out in blue ink.

  13. If a request is received requesting copies of documents via correspondence, Form 4506, Form 4506T, etc., Ogden Entity Department will forward the request to the Return And Income Verification Services (RAIVS) Team, mail stop 6734. Cincinnati Entity Department will forward the request to the RAIVS Team mail stop 2800F.

  14. If you are processing a case and the taxpayer requests a photocopy of his Entity related form (Form 2553, Form 8716, Form 1128, etc.), use CC ESTAB to retrieve the document from Files. Once received, make a photocopy and write the word "COPY" on the document. Include the photocopy in a 1275C to the taxpayer. If you are not processing a case, correspond with the taxpayer informing him/her of Form 4506, Request for Copy of Tax Return. Inform the taxpayer that a fee is required.

  15. Correspondence Imaging System (CIS) is an inventory system for scanning all documents received in Accounts Management (AM) and creating digital images of the documents/correspondence. AM processes their cases from these images. The original documents are not retained. Submission Processing took over this function and it is now called Image Control Team (ICT).

    • CIS documents are identified by the words CIS Image. Do not correspond for signature stamped below the signature line, or CIS is annotated on the front of the document. These annotations are from Accounts Management and do not apply to Submission Processing.

    • AM processes the ICT image prints in the same manner as original forms, documents, or correspondence.

    • All Entity forms must have a signature before they can be processed. Take the necessary action to secure signatures for each Entity form that has been imaged by CIS.

  16. To view tax returns electronically filed on Modernized e-file (MeF), users must first request access to the Employee User Portal (EUP).

  17. When corresponding with the taxpayer, use the appropriate letter that accurately addresses the taxpayer's situation and always use the selective paragraphs that are available in the correspondex letters before using open paragraphs. For example, do not use a 385C to inform the taxpayer of their valid EIN or denied/rejected election. Do not use a 147C on any election issues. The IAT letter tool allows paragraphs to be moved between letters, therefore the specific letter will be prepared with all necessary language. Before sending the letter, ensure the same letter has not been sent to the taxpayer within the last 45 days. If so, do not send the taxpayer the same message.

  18. When using CC LETER, you must determine the taxpayer's correct address.

    • If the address on the return/document matches Master File (mailing or location), use that address.

    • If the address on the return/document does not match Master File and the address change box is marked, update Master File and send all letters to this address.

    • If the address on the return/document does not match Master File and the address change box is not marked, use the address on the return/document and send a 104C to the taxpayer advising of the address discrepancy. Direct the taxpayer to www.irs.gov for Form 8822-B.

    • If the return/document does not have an address change box, use the address on Master File including information about the address discrepancy.

    • If the return/document indicates a PO Box with a physical location, input the physical address as the location and the PO Box as the mailing address.

    • When processing Form 7004, all letters will be sent to the mailing address on Master File. Extension requests are usually filed by third parties that tend to enter their own address on the Form 7004.

    • If the taxpayer requests the letter be sent to a specific address, you will comply.

  19. If the 6800sce/6801sce contains all of the appropriate language for a scenario, they may be used in lieu of a letter specified in this IRM. However, these letters cannot be used for IMF or International taxpayers.

  20. When processing cases it may become necessary to photocopy a document. Whenever a photocopy is made, the word copy will be entered on the document by either a watermark or manual editing.

  21. Trust and Partnership EINs beginning with prefixes 20, 26, 27,45, 46, 47, 81, and 82 will reflect the first four characters of the primary name as the name control. Entity TEs will not alter the name control of these EINs because employees in the pipeline understand the different name control procedures for Mod IEIN. Other EIN prefixes will be name controlled by the historical method: the first four characters of the first last name if the entity is owned by individuals, Corporate trusts are name controlled as corporations. For example, do not change the name control of an EIN beginning with 27 because it does not match historical Submission Processing name control procedures. However, if you identify an EIN with prefixes 20, 26, or 27 that has previously been changed to match SP historical procedures, input TC 013 to make the name control match the procedures for these prefixes.

  22. Entity TEs are responsible for deleting duplicate entity information (primary name and sort name and/or mailing address and location address) unless they are going into the account to make another entity change. If both fields are duplicated on IDRS, Entity TEs will remove the duplicate information in both the name line and address fields.

  23. Many types of entities are required to register with the Secretary of State's office in their state of origin. This is not always the physical location of the business. Entity will research the internet web sites of Secretary of State's offices as needed to learn the history of the business, owners, status with the state, etc. See Secretaries of State web site.

  24. If the primary name line and the care of name line are identical, input of the care of name line is not required.

  25. If you receive returns or documents appearing to be frivolous or fraudulent, pull the documents and close from the batch.
    Route frivolous documents to Frivolous Returns Program (FRP), per IRM 25.25, Revenue Protection. If document is deemed to not be frivolous and is returned to Entity, process expeditiously with original IRS received date. Allow TE to take In & Out count for processing the document.
    Route fraudulent returns to:
    IRS - Frivolous Returns Program
    1973 N. Rulon White Blvd M/S 4450
    Ogden, UT 84404

  26. Due to programming in Exempt Organizations (EO), there are substantially more EINs reflecting an EO submodule. Many of these EINs are in a "bad" status. An entity is considered BMF, not EO, if it is in status 19, 22, 41, 70, 71, 72, 97, 98, or 99. Any document received for this type of taxpayer should be worked by BMF TEs.

  27. Cases involving EO taxpayers should only be processed at Ogden Submission Processing Center. An entity in status 01 or any status other than shown in (25), is considered EO and should be transhipped to Ogden Entity.

    Exception:

    EO CPs 148A and B and EO Forms 8822-B will be processed within the service center where received and should not be transhipped to Ogden.

    Any correspondence or inquiry related to an International or Exempt Organization issue should be processed in Ogden Entity. Coordinate transshipment with the Entity Clerical Team Lead, at ≡ ≡ ≡ ≡ ≡ ≡ . Transshipment will occur weekly.

  28. When entering a non source document transaction into IDRS, the Remarks field of CC BNCHG/INCHG will contain a description of the type of case being processed. For example, if changing a name from a notice, enter the notice number and name of originator in the Remarks field.

  29. Electronic signatures are not acceptable on any document submitted to BMF Entity. However, a faxed signature is acceptable on Forms 2553 and SS-4, see IRM 3.13.2.1.11(1)c). Also, if multiple Forms 56 or Forms 2678 are filed simultaneously, a stamped signature can be used. See IRM 3.13.2.18(10) . However, no other form may be submitted in bulk (more than one document) with a signature page.

  30. The alphas "SD" will be the first two characters of the Remarks field when the input transaction is a source document. All source documents require the input of a sequence number.

  31. The special character named "closing bracket" ,], is used to isolate a surname in the primary name line when using CC ESIGN or BNCHG. It is placed immediately before the first letter of the surname and immediately behind the last letter, for example John Q]Taxpayer]Estate.

  32. If you are contacted by a Revenue Agent (RA) or another area of IRS and asked to request documents from Files Operation (CC ESTAB) to assist them with their examination/case, inform them they should contact their Planning and Special Projects (PSP) contact or Audit Information Management System (AIMS) contact. Do not ESTAB documents for any area other than Entity.

    Exception:

    Headquarters' staff will be instructed to route their request through the IRM analyst, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , who will ask the campus to input the IDRS request.

  33. Do not take action on an EIN reflecting a Large Corporation Indicator (LCI) before contacting the specific representative for that Large Corporation. The LCI can be seen on CCs ENMOD (directly under ENMOD), BMFOL'I' (fourth line), TXMOD'A' (second line), and SUMRY (third line). See IRM 21.7.1.4.11.4.

  34. BMF Entity transaction codes 05X, 07X, and 09X allow the use of Paragraph Selection Codes (PSC) in CC BNCHG/BRCHG. The TE can select up to six different PSCs per TC.

  35. If during the research of your case you identify a new and accurate phone number for the taxpayer, use CCs TELEX to update. See IRM 2.4.29, IDRS Terminal Input - Command Codes TELEA, TELEC, TELED, and TELER for Telephone Processing.

  36. To ensure outgoing mail contains pertinent information, primary name, care of name, sort name and address must be properly input.

Large Corporation Program - Large Corporation Indicator (LCI)
  1. The Internal Revenue Service offers large corporations the opportunity to join a program in which a specific employee is assigned to assist them with issues involving the Service.

  2. The LCI can be seen on CCs ENMOD (directly under ENMOD), BMFOL'I' (fourth line), TXMOD'A' (second line), and SUMRY (third line).

  3. To contact an employee of the Large Corporation Team, see IRM 21.7.1.4.11.4, Business Tax Returns and Non Master File Accounts - BMF/NMF Miscellaneous Information.

Associating Documents to an E-Filed Return

  1. If a document needs to be associated with an e-filed return, a refile DLN needs to be created so documents can be attached to the electronically filed return's DLN. Attach IDRS document input tag (Form 12773 BMF ADJ54 Adjustment Format) to each E-file/MeF reply and complete with:

    • Employee IDRS number,

    • Input Date,

    • TC 290,

    • Amount ".00" ,

    • TIN,

    • Tax Period,

    • Block see (3) below,

    • Remarks "Attachment only" and,

    • Sequence Number. Sequence numbers for input should begin with "1" through "999" and remain in order.

  2. Input TC 290 on IDRS to generate a refile DLN to the Files area which is used to attach the reply.

    • Access CC TXMOD'A', overlay with CC REQ54, X-mit. This will bring up the CC ADJ54 screen

    • Input the sequence number from the IDRS input tag

    • BLK> See (3) below

    • CASE-STS-CD>C

    • IRS-RCVD-DT>Received Date of Case

    • ACTIVITY>ATTCH-ONLY

    • TC 290

    • AMT> .00

    • Hold-CD> 3

    • SOURCE-DOCUMENT-ATTACHED?> SD-

    • REMARKS> Attachment only

  3. Use the following blocking series:

    If MFT is Then Blocking Series is
    02 15
    05 17
    06 17
    10 15
    44 15
    67 10
  4. Complete routing form (for example, OSPC Form 261-A) and send to Files within 5 days of input.
    Reminder: Form 6502 must have the IDRS input date and entire employee IDRS number.

  5. See IRM 2.4.16, IDRS Terminal Input - Command Codes REQ54 and ADJ54.

  6. If there is an open control base on the account, route to that TE for attachment. The IDRS Unit and USR Database (IUUD) will help you locate employees.

Entity Instructions for Routing Documents/Returns to Files

  1. To ensure Files Department operates as efficiently as possible, there are certain actions every Files customer should take and Entity Control Team will:

    • Send employee source document folders in date and IDRS number order. These will be sent on a batch cart, not in a box. Also, Entity TEs will release the source documents face up and in numerical order beginning with sequence number 001, and

    • Do not place (or replace) rubber bands around the returns or the folders holding the returns in pipeline, and

    • Detach Forms 4251 from all documents to be refiled, and

    • Clearly label all documents going to Files. For example, "EMPLOYEE FOLDERS IDRS TEAMS 04232-04236 FOR 2-9-17 AND 2-10-17" or "ENTITY UNPOSTABLES REFILES" .

  2. Form 9856, Form 10023-B, or an IDRS print with pertinent data highlighted (EIN, name control, date of input/tax period, the DLN receiving the attachment) may be used to associate documents with returns/forms already stored in Files. If an IDRS print is used, type the word "Attachment" on the IDRS screen before printing. After printing, highlight the word "Attachment" in addition to other pertinent data.

  3. If any documents are received in Files and considered "unservicable" , it will be returned to originator for correction. See IRM 3.5.61, Accounts Services - Files Management and Services.

Customer Account Data Engine (CADE) 2

  1. The Customer Account Data Engine (CADE) Version 2 Program Office in Headquarters was charged with the primary goal to implement a single, modernized programming solution to IDRS which provides daily process of taxpayer accounts. The CADE Master File as it existed from 2004 - 2011 was retired in cycle 201152.

  2. The CADE 2 solution is comprised of several components to modernize the IRS to a daily processing environment with several Transition States.

  3. With CADE 2 there will be changes to campus posting cycles which began with cycle 201201. The BMF campus cycles are:

    • Campus Cycle: Thursday - Wednesday

    • Master File Processing: Friday - Thursday

    • Notice Review: Saturday - Monday (8+ days)

    • Unpostables: New UPCs available Tuesday; closing Tuesday

  4. BMF transaction posting time frames are outlined as follows:

    • Transactions will be viewable using CFOL command codes on Saturday following the weekly Master Files processing run on Thursday.

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

    • With the acceleration of the IDRS weekly analysis being performed the weekend directly after the Master File processing on Thursday, transactions will be posted instead of in pending status on Monday.

  5. Cycle posting dates will reflect a format of YYYYCCDD.

    • YYYY will indicate the year,

    • CC will indicate the posting cycle


    For IMF transactions, the values for DD are as follows:

    • 01 - Friday

    • 02 - Monday

    • 03 - Tuesday

    • 04 - Wednesday

    • 05 - Thursday


    BMF posting cycles on CC BMFOL will continue to reflect YYYYCC.

    • YYYY will indicate the year,

    • CC will indicate the posting cycle


    BMF posting cycles in CC TXMOD will reflect a format of YYYYCCDD. The value for DD will be 08.

Identification Requirements For IRS Employees

  1. This section contains information on the Restructuring and Reform Act (RRA) of 1998, Section 3705(a), and provides identification requirements for all IRS employees working tax related matters.

    1. IRS employees are required to give their name and unique identification number any time they contact taxpayers or their personal representatives by telephone, correspondence or in person.

    2. A telephone number to contact the IRS is required on all taxpayer correspondence.

    3. This will provide taxpayers or their personal representatives with enough information to identify the IRS employee who had previously assisted them with tax related matters.

  2. All IRS employees who communicate by telephone, correspondence, or in person with taxpayers or their personal representatives on tax related matters, are required to provide (at a minimum) the following information:

    1. With all telephone contacts tax examiner must provide his/her title (i.e., Mr., Mrs., Ms., Miss) last name and their unique identification number.

    2. For all in-person contacts tax examiner must provide his/her title, last name and their unique identification number.

    3. Never leave any taxpayer information on the taxpayer's answering machine or voice mail per IRM 11.3.2.

  3. All Correspondence to taxpayers or their personal representatives must contain a contact telephone number where the taxpayer's question(s) can be answered, tax examiner title, last name and provide their IDRS Number, Letter System or unique identification number.

    1. The IDRS number and numbers for some other Letter Systems are automatically generated. If it is not generated or a handwritten note is prepared, tax examiners unique identification number must be used.

    2. Employees who have toll free telephone numbers may also provide their location for identification purposes. Fax to taxpayers on tax-related matters are considered manually generated correspondence and must include the required information.

    3. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

    4. When a taxpayer insists on speaking with the employee who had previously handled the inquiry or complains about the level of customer service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, then the employee should refer the inquiry to his/her manager.

    5. CORRESPONDEX letters will provide a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to questions that the taxpayer may have about the CORRESPONDEX Letter or if the taxpayer has been directed to provide additional case related information.

    6. Otherwise, if the taxpayer does not need to contact a specific employee then the correspondence needs only an IRS telephone number and standard signature.

    7. Secretaries, receptionists or people who answer the telephone in functional offices need to identify themselves and provide their Badge Identification Number only if they are answering telephones which are routinely used to provide tax return or tax account information, or if they provide a substantive response to the taxpayer's inquiry.

    8. It is not necessary to repeat the unique identification number on a subsequent contact when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer his/her unique identification number on the first contact.

  4. Letters generated by Submission Processing must be approved by Headquarters when they are intended for dissemination to 10 or more persons. These letters are numbered in accordance with IRM 1.17.1 and IRM 1.17.2, Printing and Publication form letters, pattern letters, and pattern paragraphs are prescribed by Headquarters for use in campuses. Do NOT make changes to text format, date of issue (or revision), or physical characteristics of these letters and paragraphs without prior Headquarters approval. In addition, Quick Notes that are computer generated must be forwarded to Headquarters for approval. Submit requests for new letters using Form 1767, Publishing Services Requisition, following procedures outlined in 1.17.1 and 1.17.2. For minor changes or additions to current letters, follow procedures in 3.0.275, Business Results Measures for Submission Processing functions.

  5. Never make taxpayer contact based on a Substitute For Return (SFR).

Enterprise Electronic Fax (EEFax)

  1. IRS Received Date for faxes - Enterprise Electronic Fax (EEFax) is the fax system used by IRS employees to send and receive fax documents. When fax receipts are timely dated by the fax machine (e.g., RECEIVED BY IRS-EEFAX 03/04/201X), no further action is required to evidence receipt.

    Caution:

    Only use the EEFax received date as the IRS Received Date on original document/return submissions. If the EEFax is a response to correspondence requesting additional information on a document/return, use the received date of the original document/return as the IRS Received Date instead of the EEFax received date.

  2. The Taxpayer Advocate Service (TAS) organization is not a point of filing and TAS employees have not been delegated the authority to accept returns for filing. Treat all TAS Received Dates as invalid by circling them out. Enter the Received Date according to instructions.

  3. EEFax added per memo “Revision of Policy for Use of Fax in Taxpayer Submissions” dated November 19, 2015, located at http://irweb.irs.gov/AboutIRS/co/dcse/memo/48254.aspx

  4. The EEFax numbers for Entity Control Teams are below:

    Campus EEFax
    Austin 1-855-250-1731
    Cincinnati 1-855-270-4081
    Fresno 1-855-281-0335/1-855-281-0393
    Kansas City 1-877-640-7312
    Ogden 1-855-214-7520

Funny Box

  1. When an Entity Tax Examiner (TE) identifies a return that looks different than a normally processed return, the return should be placed in the Funny Box. Examination and Criminal Investigation (CI) review these returns for fraudulent or illegal activities.

  2. If the return is numbered, make a complete copy and indicate COPY across the front of the first page of the return. Place the copy in the Funny Box and continue processing the original return.

  3. See below for specific attributes of a return:

    "≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
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    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

IRM Deviation Procedures

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.4, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

BMF Entity Turnaround Times

  1. The chart below reflects the turnaround times of the various forms/documents processed in BMF Entity:

    Form/Document Turnaround Time
    Form 56 30 days
    Form 966 30 days
    Form 1128 30 days
    Form 2032 30 days
    Form 2363 30 days
    Form 2553, etc. 30 days
    Form 2678 30 days
    Form 4442 20 days
    Form 8274 30 days
    Form 8329 30 days
    Form 8330 30 days
    Form 8716 30 days
    Form 8822 30 days
    Form 8822-B 30 days
    Form 8842 30 days
    Form 8855 30 days
    Form 8869 30 days
    Form 8832 30 days
    Form SS-4 7 days
  2. All BMF correspondence processed in BMF Entity has a 30 day turnaround.

Entity Types-Name Controls, Filing Requirement Codes (FRCs), and Authorized Representatives

  1. This subsection contains information and procedures for establishing the many different types of entities. The standards for completion of Entity fields will be outlined.

  2. The most commonly filed returns of each entity type will be listed.

  3. IDRS requires:

    • Primary name/continuation of primary name field cannot be longer than 70 characters (35 characters each line). A word will not be split between lines, and

    • The special characters hyphen (-) and ampersand (&) can be in the primary and sort name fields. If the taxpayer includes an apostrophe in their name, omit the apostrophe. If the taxpayer uses a period after an abbreviated word, omit the period.
      For example, JANE'S STORE becomes JANES STORE

    • The special characters plus (+), and dot (.) will be spelled out.
      For example, "Tires + Mufflers Inc" will be entered as "TIRES PLUS MUFFLERS INC"
      "Taxpayer.org" will be entered as "TAXPAYER DOT ORG" as we know the period is pronounced "dot" in the name, and

      Note:

      This does not apply to periods following an abbreviation. Periods following abbreviations will be dropped. For example, L.L.C. entered by the taxpayer is entered LLC onto IDRS.

    • The forward slash "/" and backward slash "\" will be replaced with a hyphen "-" , and

    • All other special characters will be omitted and a blank space entered in it's position in the name line.

  4. When a sort name is input, the BMF will identify the sort name which allows it to be used on the Name Search Facility (NSF). The NSF is accessed with CCs NAMES and NAMEE to locate and identify the taxpayer.

  5. If the sort name is an individual name (Forms 1065 and 1041 filers), complete the sort name line field with the taxpayer's name as indicated by the taxpayer followed by their title. Prior to 11-30-08, Entity entered the Sort Name with the taxpayer's last name first, followed by their first name, middle initial and title. This was referred to as the "sort line format" .

  6. To delete a sort name, input the symbols "$$" on the Sort Name field.

  7. These common Spanish words may appear in business names.

    • Senor (Mr.), or

    • Senora (Mrs.), or

    • Hijos (Sons), or

    • Hermanos (Brothers), or

    • S. A. (INC)

  8. The document/return must be signed by the taxpayer or authorized representative for IRS to update any information (name, address, etc.). Returns, forms, correspondence and direction from the taxpayer regarding their account will be accepted according to the terms of prima facie, otherwise, upon first examination the matter appears to be self-evident.

  9. Exercise caution when changing the name on an EIN. Often taxpayers request a name change when the issue is really a change in organizational structure.
    For example, Maple Leaf LLC requesting a change to Maple Branch Inc. This is more than a name change; it is a change in structure that requires documentation. See IRM 3.13.2.9.9(1) and IRM 3.13.2.9.18.

Corporations-Name Controls, FRCs, and Authorized Representatives

  1. Corporations are registered with the Secretary of State's office in the state of incorporation. The internet web sites of these offices will be used to verify corporation information such as:

    • date of incorporation,

    • name changes,

    • type of entity/annual filing requirement,

    • any changes in structure/owners,

    • status with state,

  2. Suffixes such as P.A. (Professional Association), P.C. (Professional Corporation), and INC. (Incorporated), indicate a Corporate entity.

    Note:

    The suffix "LTD" does not warrant the filing of a corporation nor a partnership/LLC. If the correct filing requirement cannot be determined, research the Secretary of State's office.

  3. The word "The" should be bracketed so it does not affect the name control.
    Name: The Meadowlark Company
    Name Control: The]Meadowlark Company

  4. Include "The" in the name control when it is followed by only one word.
    Name: The Flamingo
    Name Control: TheFlamingo

  5. Do not abbreviate or change "and" to "&" unless the taxpayer requests the change. The Corporation receives its' charter from the state exactly as shown by the taxpayer and this is the way the account will be established.

  6. Corporations have their business/trade name/Doing Business As (DBA), if different from true name, in the sort name field. CC ESIGN will not allow a primary name line and sort name line to be identical.

  7. The name control for a corporation is the first four significant characters of the corporation's name.

  8. Corporate name control rules apply if an individual name contains the abbreviations PC (Professional Corporation), SC (Small Corporation), PA (Professional Association), PS (Professional Service), or PSC (Personal Service Corporation).
    Name: George Giraffe PSC
    Name Control: George Giraffe PSC

  9. When the organization name contains the words "Fund" or "Foundation" , corporate name control rules apply. See IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers.
    For example, Kathryn Canary Memorial Foundation.

  10. When an individual name and a corporate name appear, the name control is the first four letters of the corporation name. This is most often seen on employment returns, Form 94X family.
    Barbara J. Zinnia
    ZZ Grain, Inc. Input name control as ZZGR

  11. The information for inputting corporation names is derived from the following:

    1. The filing of a return without an EIN (Form 1120, Form 940, Form 941, Form 943, Form 944, Form 945, Form 720, Form 730, Form 11-C, Form 2553, certain Forms 990 or Form 2290).

    2. The changing of a name on a return.

    3. Requesting a name change through correspondence.

    4. Perfecting the entity.

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  13. Non Profit corporations are also registered with the Secretary of State's office in the state of incorporation. An organization is not considered non profit until they have received a formal exemption letter.

  14. Specific information for identification will be input as a sort name or continuation of the primary name. This information would be Local #, Area #, Unit #, School name, Governmental division, etc.

  15. For non profit organizations use the following rules for determining name control:

    1. The only organization which you will always abbreviate is Parent Teachers Association (PTA). The name control will be "PTA" plus the first letter of the name of the state.
      Name: Parent Teachers Assn Congress of Georgia
      Name Control: PTAG

    2. The name control for a local or post number is the first four characters of the national title.
      Local 210, International—Input as INTE
      Post 3120, Veterans of Space Wars—Input as VETE

    3. Use the name control of the national organization name if there is a Group Exemption Number (GEN).

    4. For churches and their subordinate (for example nursing homes, hospitals), the name control will be derived from the legal name of the church, etc.
      Name: Locust Church
      Name Control: Locust Church

  16. Corporations will file Form 1120 family returns. See IRM 3.13.2.7.5.

  17. Corporations may also file Employment tax returns (Form 94X family, Form CT-1) and Excise returns (Form 720, Form 730, Form 2290, etc.).

  18. See chart in IRM 3.13.2.13.1(5) for filing requirements that are compatible with corporate filing requirements.

  19. The title(s) listed below are valid authorized representatives. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • President,

    • Vice President,

    • Secretary,

    • Treasurer,

    • Assistant Treasurer,

    • Chief Accounting Officer,

    • Any Tax Officer, including Controller

  20. Do not take action on an EIN reflecting a Large Corporation Indicator (LCI) before contacting the specific representative for that Large Corporation. The LCI can be seen on CCs ENMOD (directly under ENMOD), BMFOL'I' (fourth line), TXMOD'A' (second line), and SUMRY (third line). See IRM 21.7.1.4.11.4.

Partnerships-Name Controls, FRCs, and Authorized Representative

  1. A partnership is a group of taxpayers who have entered into a written business agreement and file Form 1065, U. S. Partnership Return of Income. This is an annual return.

  2. Partnerships may also file Employment tax returns (Form 94X family) and Excise returns (720, 730, 11-C, 2290, etc.).

  3. See chart in IRM 3.13.2.13.1(5) for filing requirements that are compatible with partnership filing requirements.

  4. Partnership FYMs are governed by The Tax Reform Act of 1986. Partnerships are required to use the same tax year ending as their owner, usually December 31.

  5. There are other entities that are considered partnerships and are liable to file Form 1065.

    • An unincorporated business jointly owned by a married couple, and

    • qualified joint venture (however, Public Law 110-28 provides that a "qualified joint venture" , whose only members are a husband and a wife filing a joint return, can elect not to be treated as a partnership for Federal tax purposes).

  6. Partnership Name—The partnership primary name line will be the legal name of the partnership (for example, the list of partners or the business/trade name).

    • If a partnership name has not been provided, use the partner's name(s) followed with the abbreviation "PTR" .

    • If it is not possible to list all the partners as the primary name (up to 70 characters), list the maximum number of names and add the phrase "ET AL PTR" .

      Note:

      If the account indicates a Limited Liability Company (LLC), follow the primary name line with "LLC" .

    • If the primary name line and the care of name line are identical, input of the care of name line is not required.

  7. General Partner's name and title or partnership's trade name will be in the Sort Name field. Generally, partnerships will always have an entry in the sort name line field. See the table below for guidance in formatting a partnership's name lines.

    If... Then...
    a) The partnership has a true name and a trade name Enter the true name in the primary name line, trade name in the sort name line field and the general partner's name in the "Care of Name" field.
    b) The partnership has a trade name but does not supply their true name Enter the trade name in the sort name line field and the partner's name with "ET AL PTR" in the primary name line
    c) A business is the general partner Enter the partner's name followed by GEN PTR in the "Care of Name" field
    d) The partnership does not have a trade name Enter the true name of the partnership in the primary name line and the general partners's name in the sort name line field
  8. The name control for a partnership will be derived in the following order of selection:

    1. The first four characters of the first partner's last name.
      Burgandy, Olive & Cobalt, Ptrs.

    2. The first four characters of the business (dba) or trade name.
      Rosies Restaurant

  9. The word "The" at the beginning of trade names and business names will be bracketed so it does not affect the name control. For example:.
    The Meadowlark Company will be entered as THE]MEADOWLARK COMPANY. However, if "The" is followed by one word, enter as part of the name control, for example: The Conservatory is entered as THECONSERVATORY

  10. Partnership EINs that begin with prefixes 20, 26, 27, 45, 46, 47, 81, or 82 will have the first four characters of the Primary Name as the name control. For example, the partnership name "John Willow and James Oak Partnership" will be name controlled John.

  11. The information for inputting partnership names is derived from the following sources:

    1. The filing of a return without an EIN (Form 940, Form 941, Form 943, Form 944, Form 945, Form 720, Form 730, Form 11-C, or Form 2290)

    2. Perfecting the name on a return

    3. The filing of return (Form 1065) without an EIN

  12. Input the partnership name from these returns filed without an EIN (Form 941, Form 943, Form 944, Form 945, Form 720, Form 730, Form 11-C, or Form 2290) in the following priority:

    • DBA or trade name, then

    • Legal name

  13. Input the partnership name from a Form 1065 filed without an EIN in the following priority:

    • DBA or trade name (if the legal partners names are not on the name line), then

    • Legal partner(s) names

  14. See IRM 3.13.2.9.24.

  15. The title(s) listed below are valid authorized representatives. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • General Partner

    • Partner

Limited Liability Companies (LLCs) - Name Controls, FRCs, and Authorized Representatives

  1. Limited Liability Companies (LLCs) are defined as an unincorporated business entity created under state law and owned by one or more persons known as members. State law generally allows for a “person” to be:

    • An individual, or

    • A trust, or

    • An estate, or

    • A partnership, or

    • An association, or

    • A company, or

    • A corporation, or

    • An LLC

  2. LLC information can be found on the Secretaries of State Web Site.

  3. Suffixes such as LLC, LC, and PLLC indicate a limited liability company and are input with the LLC’s name.

    Note:

    If the account indicates a Limited Liability Company (LLC), follow the primary name line with "LLC"

  4. The suffix "LTD" does not warrant the filing of a corporation nor a partnership/LLC. If the correct filing requirement cannot be determined, research the Secretary of State's office.

  5. There are two types of LLCs: Single member and Multi-member. Single Member LLCs are also called Disregarded Entities.

  6. Husband and Wife can be considered a Disregarded Entity if they live in a community property state: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin. Their names will be on the sort line as follows:

    SMITH]JOHN & MARY SOLE MBR

  7. Treasury Regulations 301.7701-2(c)(2)(iv)(B) (as amended by T.D. 9356, 2007–39 I.R.B. 675) eliminated disregarded entity status for the purposes of federal employment taxes and certain excise taxes. The LLC will continue to be a disregarded/ single member entity for federal income tax purpose, but is no longer disregarded for certain excise and employment taxes. The amended regulations provide that the LLC will have a tax status distinct from its owner.

    • For employment taxes on wages paid on or after January 1, 2009, and

    • For excise taxes imposed and actions first required or permitted in periods beginning on or after January 1, 2008,


    Therefore, single member LLCs will have their own EIN for filing purposes, however, a single member LLC does not have an annual filing requirement. The income/loss is reported on the annual return of the owner(s).

  8. Multi member LLCs default to the classification of a partnership.

  9. Either type of LLC can file Form 8832 to elect their Entity classification. See IRM 3.13.2.25 and IRM 3.13.2.26.

  10. LLCs may also file Employment returns (Form 94X family) and Excise returns (Forms 720, 730, 11-C, 2290, etc.).

  11. The Primary Name Line will be the legal name of the LLC.

  12. If the LLC name begins with the word "The" , bracket it so it does not affect the name control: THE MEADOWLARK COMPANY LLC should be entered as THE]MEADOWLARK COMPANY LLC. However, if the word "The" is followed by only one word, it will become part of the name control: THEMANAGEMENT

  13. Do not abbreviate or change "and" to "&" unless the taxpayer requests it. The LLC receives its' charter from the state exactly as shown by the taxpayer and this is the way the account will be established.

  14. The LLC's trade name or Doing Business As (DBA) name will be entered in the Sort Name Line field. If there is not a DBA, a member's name and their designation will be entered in the sort line.

  15. If a trade name/DBA is added, move the member's name and designation to the Care of Name line.

  16. If a business is the managing member of an LLC, enter the business name and designation in the Care of Name field.

  17. The title(s) listed below are valid authorized representatives. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • Managing Member

    • Sole Member

    • Member

  18. Currently there is an LLC indicator field on CC ENMOD. The field is identified as LLC-CD on IDRS. "S" in the LLC Indicator field means the taxpayer is a single member LLC; "M" in the field means the entity is a multi member LLC.
    Ensure the LLC Indicator is correct, if not, update. If research determines the entity is not an LLC, or you are unable to determine the correct type of LLC, remove the LLC indicator via CC BNCHG by placing a "9" in the LLC indicator field.

  19. Ensure the X-REF-TIN-ITIN-IND and the X-REF-TIN-ITIN fields are accurate. Update if necessary.

Trusts-Name Controls, FRCs, and Authorized Representative

  1. Trust Names can be long and complicated. A trust name can be reduced or abbreviated to allow for the trust name to be entered on the first name line.

  2. Trusts will be name controlled by the first surname in the Primary Name. The trustee's name will be placed on the Sort Name line if an individual. If the trustee is a financial institution or business, input on the Care of Name line. Include the designation, for example, TTEE, ADM, etc.

  3. Trust EINs that begin with prefixes 20, 26, 27, 45, 46, 47, 81, and 82 will have the first four characters of the Primary Name as the name control.
    For example, the trust name "John Willow TR fbo James Oak" will be name controlled John.

  4. The name control of a trust with a prefix other than 20, 26, 27, 45, 46, 47, 81, or 82 will be derived by the following selection:

    1. The first four characters of an individual's last name.
      Name: Michael T. Azalea Revocable Trust
      Name Control: Michael T]Azalea]Rvoc Tr

    2. For corporate taxpayers, use the first four characters of the corporate name.
      Name: Sunflower Company Employee Benefit Trust
      Name Control: Sunflower Company Employee Benefit Tr

  5. For mortgage backed securities (such as GNMA and FNMA Pools) use the first four digits/alphas of the trust number, disregarding any leading zeroes. If there are fewer than four characters, use the letters GNMA or FNMA to complete the name control. .

    • Name: 0001 GNMA Pool

    • Name Control: 1GNM

    • Name: FNMA Pool 0002

    • Name Control: 2FNM

    • Name: GNMA Pool 00100

    • Name Control: 100G

  6. If none of the above information is present, use the first four characters of the last name of the trustee (TTEE) or beneficiary (FBO).

  7. If needed, contact the taxpayer via telephone for above information. If contact cannot be made, correspond via Letter 45C.

  8. The information for inputting trust names are derived from:

    1. The filing of a return (Form 940, Form 941, Form 944, Form 945, Form 1041, Form 5227, Form 1041-A, and some Form 990, Form 990-PF or Form 990-T returns).

    2. Requesting a change through correspondence,

    3. Perfecting fiduciary from a Form 1041,

    4. Perfecting the entity,

    5. Form 56.

  9. Always abbreviate the primary name to 70 characters (two name lines). In addition, always abbreviate the following words or phrases. All dates in the trust name line will be entered as MMDDYYYY:

    NAME /or PHRASE ABBREVIATION
    Administrator/Administratrix ADM
    Trust TR
    Under the will of, U/W, under will UW
    Under agreement, U/A, Under agreement with UA
    Dated Jan. 16, 2015 01162015 (do not enter "date" /"dated" or the alpha month).
    Irrevocable IRRV
    Revocable RVOC
    Trustee TTEE
    For the Benefit of, F/B/O, F B O FBO
    Gift , Giftrust GIFT
    Family FAM
    Marital MRTL
    Funeral FNRL
    Inter-Vivos INTRVS
    Non-exempt Charitable Trust NECT
    Revocable RVOC
    Testamentary TEST
    Under Trust Agreement UTA
    Voluntary Employee Benefit Association VEBA
    Insurance INS
    Living LIV
    Charitable Remainder Unitrust CRUT
    Charitable Remainder Annuity Trust CRAT
    Dated DTD
  10. Always make the individual trustee, personal representative, etc. a sort name.

    1. Do not sort a bank, mortgage company or corporation. This type of trustee will be on the "Care of Name" line.

    2. If it is not possible to list all the trustees as the sort name, list the maximum number of names and add the phrase "ET AL TTEE" .

  11. The following are examples of inputting trust names:

    Taxpayer shows Input
    Sophie Spathe Snipe irrevocable trust FBO Emil Spathe Snipe under agreement dated Oct. 13, 2016 Viceroy Bank Trustee Primary Name
    SOPHIE SPATHE]SNIPE]IRRV TR FBO Continuation of Primary Name
    EMIL SPATHE SNIPE UA 10132016
    Care of Name
    % VICEROY BANK TTEE
    Irrevocable Trust F/B/O William Michael Nancy Raccoon Mission National Bank Trustee under agreement with Howard Raccoon dated Jan. 15, 2016 Primary Name
    HOWARD]RACCOON]IRRV TR FBO WILLIAM Continuation of Primary Name
    ]MICHAEL NANCY RACCOON
    UA 01152016
    Care of Name
    % MISSION NATIONAL BANK TTEE
    Camel Trust & Savings Co TTEE for Harvey Hare Trust for the benefit of Molly Hare U/A dated Nov. 18, 2016 Primary Name
    HARVEY]HARE]TR FBO MOLLY HARE
    Continuation of Primary Name
    UA 11182016
    Care of Name
    % CAMEL TRUST SAVINGS CO TTEE
    Turtle Memorial Cemetery Perpetual Trust Fund William C Bear Trustee Primary Name
    TURTLE MEMORIAL CEMETERY TR
    Continuation of Primary Name
    PERPETUAL FUND
    Sort Name
    WILLIAM C BEAR TTEE
  12. Trust FYMs are governed by The Tax Reform Act of 1986 and are required to use the same tax year ending as their owner, usually December 31.

  13. Trusts will file Form 1041, Form 1041-QFT, Form 945, Form 5227, Form 1041-A, or some Forms 990, 990-PF or 990-T). See IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers.

  14. If a trust has employees, the FRC on IDRS will be 1041-2.

  15. The title(s) listed below are valid authorized representatives. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • Fiduciary

    • Trustee

    • Beneficiary

  16. Always verify the X-REF-TIN-ITIN on the account, and update if needed.

Estates-Name Controls, FRCs, and Authorized Representatives

  1. The estate name (the name of the deceased person) must be included in the primary name line.

    1. The word "Estate" will be added to the primary name, if it can be identified as an estate.

    2. The name will be rearranged to show "Estate" after the individual's name.

  2. The name control for estates is the first four characters of the last name of the decedent.

  3. The last name of the decedent must be followed by the word "Estate" in the primary name line.
    Name: Howard J. Smith Dec'd
    Name Control: Howard J]Smith]Estate

  4. Always abbreviate the primary name to 70 characters (two name lines). Always abbreviate the following words or phrases:

    • Personal Representative to PER REP

    • Fiduciary to FID

    • Executor/Executrix to EX

    • Administrator to ADM

    • Successor to SUCC

  5. Estates are not required to use a particular tax year ending. Once a tax year ending has been established, an estate cannot change without chief counsel approval.

  6. Estates will file Form 1041.

  7. If an estate has employees, IDRS will show the FRC of 1041-2.

  8. The title(s) listed below are valid authorized representatives. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • Fiduciary

    • Executor/Executrix

    • Administrator

    • Personal Representative

Sole Proprietors and Individual Taxpayers-Name Controls, FRCs, and Authorized Representatives

  1. A Sole Proprietor is an individual that operates a business and reports the income/loss from that business on Form 1040, Schedule C.

  2. Sole Proprietors can file employment returns (Form 94X family) and/or excise returns (Forms 2290, 720, etc.), Sole proprietors do not file annual returns (Forms 1120, 1065, 1041, 990 series, etc.).

  3. Individual EIN and Social Security Numbers (SSN) Accounts—The primary name line will not contain numeric characters or the special character ampersand (&). Although a numeric character or ampersand (&) is a valid input for IDRS, an individual's name cannot contain a numeric character or ampersand.

    Example:

    A business name can be Jones & Smith. An individual's name cannot be Jones & Smith.

    1. To use CC BNCHG on Form 709 accounts, Master File Tax Code (MFT 51) must be present in the MFT> field and the year digit must be present in YYYY format in the NM-YR/QTR> field of CC BNCHG. The year will be the tax year of the return being processed.

    2. For Form 706 accounts (MFT 52), MFT> field must be present along with the DT-OF-DEATH> field in MMDDYYYY format.

    3. For Form 706 and Form 709, the Taxpayer Identification Number (TIN) must be an SSN and the Primary name line can only be for an individual.

    4. An SSN (IMF) account only has a Primary name (35 characters) - never use the Continuation of Primary name.

    5. Form 706GS(T) TIN may be either EIN or SSN. Name lines will be treated as trust name line inputs.

    6. Form 706GS(D) TIN may only be SSN. Name lines will be treated as trust name lines.

  4. If a sole proprietor requests a name change, compare the name on taxpayer's SSN with name on EIN. If SSN has already been updated, input TC 013 to update EIN. If SSN has not been updated, ask the taxpayer for documentation of the legal name change. This documentation can be a marriage certificate, court order, etc.

  5. The sort name will be used for the following:

    1. Sole Proprietors will have their business/trade name the Sort Name field.

    2. "Account under TEFRA" if it is a Pension Trust. "TEFRA" is an acronym for Tax Equity and Fairness Recovery Act.

  6. To delete the sort name, input "$$" in the first two positions of the sort name line.

  7. The Sort Name will be changed if there is a direct demand or request from the taxpayer or clear indication the taxpayer's trade name (or Doing Business As-DBA) has changed. Do not update the Sort Name line if the taxpayer's trade name is identical to the Primary Name line. The Sort Name line is used for research purposes and must be input accurately.

  8. The name control consists of four alpha and/or numeric characters.

  9. The ampersand (&) and hyphen (-) are the only special characters allowed in the name control. However, these characters cannot be in the first position of the name control.

  10. The name control can have less, but no more than four characters. Blanks may be present only as the last three positions of the name control.

  11. The name control for a sole proprietor's name is the first four significant characters of the last name.

  12. When the taxpayer has a true name and a trade name, the name control is derived from the first four characters of the individual's last name:
    True Name: Arthur P. Aspen
    Trade Name: Sunshine Restaurant
    Name Control: Arthur P]Aspen

  13. When two last names are used, the name control is the first four letters of the second last name:
    Maiden Name: Daisy Oak
    Married Name: Daisy Oak Tree
    Name Control: Daisy Oak]Tree

  14. When two last names connected by a hyphen are shown for one individual, the name control is the first four letters of the first last name:
    Name: Jane Smith-Jones
    Name Control: Jane]Smith-Jones

  15. On joint returns with different last names, the name control is the first four letters of the last name of the individual appearing first.

  16. For Spanish names, when two last names are shown for an individual, the name control is the first four letters of the first last name:

    • Name: Juan Garza Morales

    • Name Control: Juan]Garza]Morales

    • Name: Maria Lopez Moreno

    • Name Control: Maria]Lopez]Moreno

  17. For last names that have only two letters:
    Name: Sunny Ming Lo
    Name Control: Sunny Ming]Lo(blank)(blank)

  18. Vietnamese names will often have a middle name of Van (male) or Thi (female):
    Name: Kim Van Nguyen
    Name Control: Kim Van]Nguyen

  19. If the individual is newly arrived in the U.S., the last name may appear first on the name line. On the signature line, the last name will usually appear first.

  20. PREFIX on Sole Proprietor Individual.

    1. Delete prefixes from true names or surnames. Examples of prefixes to be deleted are Mr., Rev., Dr., Capt., Hon., Gov., Miss, Mrs.

      Note:

      Do not delete "Mrs." when shown with the full name of the husband.

      (for example, Mrs. Richard Green) or a name of indeterminate gender (for example, Mrs. Chris Blue).

    2. Delete prefixes from the Sort Name. Examples of prefixes to be deleted are DBA, TA, AKA, etc.

  21. SUFFIX on Sole Proprietor Individual.

    1. Delete all suffixes from the Primary Name, such as Owner, Agent, Attorney, Proprietor, etc.

    2. Do not delete suffixes such as DDS, MD, PhD, Jr., Sr., III, etc.

  22. The information for inputting individual names is derived from the following:

    1. The filing of a return (Form 940, Form 941, Form 943, Form 944, Form 945, Form 720, Form 11-C, Form 730, or Form 2290).

    2. The changing of the name on a return.

    3. Requesting a change of name through correspondence.

    4. Perfecting an entity.

  23. When establishing the account or changing the name lines for an individual use the examples below to determine the input.

    1. The primary name line will consist of a true name.

    2. The sort name line will consist of a trade name or DBA (doing business as) name. Primary Name James P. Rain, Sort Name Sunshine Restaurant

    3. An individual name can only consist of one name. Although, a numeric character or ampersand (&) is a valid input for the primary name line, an individual's name in that field cannot contain a numeric character or ampersand.

      Example:

      A business name can be 357. An individual's name cannot be 357.

    4. Household Employers use the given name of the taxpayer, if available on the source document. First Name Line shows "Mrs. Albert Almond" and the signature shows "Gloria Almond" , place "Gloria Almond" in the Primary Name Line on the BMF.

      Note:

      An EIN used exclusively for household employees can be transferred from one spouse to the other in the event of death.

  24. Names of Spanish Extraction—Many names will include two surnames. In these cases the mother's surname (matronymic) will be the last name and must be a part of the input.

    1. The "Y" (Spanish for "and" ) if present, between two names precedes the Matronymic (mother's surname).

    2. Delete the following Spanish titles ESP, ESP DE, ESPOSA DE (wife of VDA), VDA, DE VIUD (widow of), Senor (Mr.), Senora (Mrs.), Hijos (sons), Hermanos (brothers), and in some cases DE (of).

    3. The Spanish phrase "DEL" or "DE LA" preceding a name is part of the name.

    4. These common Spanish words may appear in business names. Senor (Mr.) Senora (Mrs.), Hijos (Sons), and Hermanos (Brothers).

  25. The Spanish phrases "de" , "De" "del" and "de la" are considered part of the name control.

    • Name: Elena de la Rosa

    • Name Control: Elena]dela]Rosa

  26. The title(s) listed below are valid authorized representatives. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • Owner

    • Sole Proprietor

"Care of Name"

  1. An in "Care of Name" is used to direct mail to a specific person within an organization that is not the taxpayer's primary address. The abbreviation "c/o" is often used to represent "Care of Name" ' However, for IDRS purposes the percent sign "%" is used.

  2. If the "Care of Name" is input, a "%" must be in the first position and a blank space in the second position of the "Care of Name" field.

  3. Since banks are never sorted, if a bank is the fiduciary, it will appear in the "Care of Name" field.

  4. To delete a "Care of Name" , input "$$" in the first two positions of the "Care of Name" field.

  5. If the "Care of Name" field is present on IDRS, and not on the requested address change, it will be deleted unless the taxpayer has clearly stated the Care Of Name is the same. EXCEPTION: Do not alter the "Care of Name" if the entity is a Partnership or LLC and the "Care of Name" field contains the name of a partner or member.

  6. If an Entity has previously filed a Form 56, no changes can be made to the "Care of Name" without a new Form 56.

  7. Returns, forms, or correspondence received from the taxpayer making a clear indication of a change in "Care of Name" will be updated.

  8. Abbreviate as needed to ensure title (MBR, TTEE, PTR, etc.) is entered.

  9. Verify the X-REF-TIN-ITIN on the EIN and update if needed.

BMF Addresses

  1. BMF addresses are added to Master File upon assignment of the taxpayer's EIN. Master File maintains two address fields for BMF taxpayers: mailing address and location address.

  2. IMF taxpayers have only a mailing address field.

  3. Entity TEs are responsible for inputting correct address information with the use of CC ESIGN and CC BNCHG.

  4. When an EIN has employment tax filing requirement codes (FRC) and an address change occurs, CP 148A generates to the taxpayer’s new address and CP 148B generates to the taxpayer’s previous address. If you determine the notices should not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field. The notices should always be suppressed when perfecting the address.

  5. Entity will not change the address of a taxpayer bearing a Large Corporation Indicator (LCI). See IDRS Command Code Job Aids for CCs ENMOD , BMFOL'I' and SUMRY for assistance in identifying an LCI. The change of address request (or Form 8822, Form 8822-B ) should be routed to the Large Corporation/Technical Team in the respective sites with the message "LCI Address Change" entered on the routing slip. See IRM 21.7.1.4.11.4.

    Note:

    The IAT tool for Address Changes identifies the LCI in the "Account Conditions" field. If IAT is unavailable, the address change request should be researched on IDRS manually to identify an LCI.

  6. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction.

  7. According to postal regulations, mail will be delivered to the last address immediately preceding the city, state and ZIP code. A Post Office (PO) Box will always be the mailing address if present. For trusts and estates only, if the taxpayer indicates the street address is the mailing address and the PO Box is the location address, leave the PO Box as the location address.

  8. When inputting either the mailing or location street address information, follow these guidelines:

    • Do not leave a blank space between the house or building number and a suffix,
      Taxpayer submits 1234 B North Street. Input as 1234B NORTH ST,

    • If present, always input the street suffix such as street, drive, lane, terrace, etc. See chart in (17) below,

    • If present, always include the street directional such as North, South, East, West,

    • Always input the suite, apartment number, room number, etc. at the end of the street address line,

    • If the address contains a fraction, utilize the forward slash (/) between the numeric fields. For example, 1/2.

    • If the address contains a hyphen (-) such as 289–01 MAIN ST, enter the hyphen as part of the address. Do not remove the hyphen. Do not leave any additional spaces around the hyphen,

    • If the address contains the symbol "&" (ampersand), always input the word "and" in its place,

    • If the address contains a decimal point such as 1.5 MILES SOUTH OF HWY 19, convert the decimal point to a fraction. Input as 1 1/1 MILES SOUTH OF HWY 19,

    • If the address contains a pound sign such as 1532 MAIN ST #15. Input as 1532 MAIN ST 15. If the street address contains an abbreviation for "number" , omit from entry into address line on IDRS,

    • A city or town name (that is long) will only be abbreviated for lack of space in the IDRS field,

    • The Private Mail Box (PMB) must be entered at the end of the address regardless of where it is shown in the incoming address. It will always be included with the street address,
      Example: Private Mailbox 3, 102 S. 38 will be entered as 102 S 38 PMB 3. When entering data from a document which has a Private Mailbox (PMB) number, to ensure consistency, input the PMB on the street address line according to the example above. If it is located in an area other than the street address line make the correction to move it to the correct line. (for example, PMB on the street address line).

  9. If city or state is missing or incomplete and the ZIP code is present, research the United States Postal Service (USPS) web site at http://www.usps.com to determine the city and state.

  10. Only the primary five digits of the ZIP code should be entered. IDRS and the FINALIST program automatically expand the ZIP code to 12 digits.

  11. Mail going to a domestic taxpayer will carry two name lines. The priority of these name lines is as follows.

    1. Always the primary name (legal name).

    2. Always sort name if present on the BMF or Care of Name or Foreign street address or continuation of primary name if no foreign street is present.

  12. To ensure outgoing mail contains pertinent information, primary name, care of name, sort name and address must be properly input.

  13. If the city listed is a major city, the Major City Code may be input in place of the city and state information on the mailing address and location address. Major City Codes are now universal and can be used in any processing site. If the Major City Code is used, it must be followed by a ZIP code. (Input requires that the Major City Codes be followed by two commas and then the ZIP code.) See Document 7475.

  14. If there is any question regarding the correct mailing and/or location address (directionals, building number range, ZIP code, spelling, etc.) access the USPS web site at http://www.usps.com. Adhere to the IRS address abbreviation rules.

  15. A taxpayer's mailing address will not be updated unless clear indication of a change from the taxpayer or his representative is received. The exception would be when resolving undeliverables and accounts in bankruptcy.

    • When processing forms/documents that have an "address change box" , Master File will be updated only if the "address change box" has been marked by the taxpayer;

    • Master File will not be updated with the address from a form that does not have an "address change box" unless the taxpayer has given clear instructions to update his address.

    • A PO Box is indicated with a physical address, input the physical address as the location and the PO Box as the mailing address.

      Note:

      A trust/estate is the only entity authorized to have a PO Box as a location address.

    .

  16. The words "East, West, North, South" will only be abbreviated when used as a directional for a street name. For example:
    Taxpayer enters: 1105 North Main Street,
    Enter on IDRS: 1105 N MAIN ST

  17. Plurals for street, road, avenue, etc., will be entered as STS, RDS, AVES, etc. Street address for First, Second, Third, 1st, 2nd, or 3rd will be entered onto IDRS as the taxpayer entered.

  18. Always use the street address abbreviations shown below with CCs ESIGN and BNCHG. It is not necessary for Entity to correct existing abbreviation errors on the Entity module unless accessing the EIN for other Entity corrections.

    Note:

    Always suppress CPs 148A and B when making an internal correction on Master File.

     

    Word Abbreviation Word Abbreviation
    Air Force Base AFB Northeast NE
    Apartment APT Northwest NW
    Avenue AVE one half, one fourth - all fractions 1/1, 1/1
    Boulevard BLVD Parkway PKWY
    Building BLDG Place PL
    Care of % Post Office Box PO BOX
    In care of % Road RD
    Circle CIR Room RM
    Court CT Rural Route RR
    Courts CTS Route RTE
    Department DEPT Rural Delivery RD
    Drive DR South S
    East E Southeast SE
    Floor FL Southwest SW
    Highway HWY Square SQ
    Highway Contract HC Street ST
    Lane LN Suite STE
    North N Terrace TER
        West W

    Note:

    The words "General Delivery" will no longer be abbreviated.

  19. The following abbreviations will only be used if needed to limit street address fields to 35 characters:

    Word Abbreviation Word Abbreviation
    Alley ALY Inlet INLT
    Annex ANX Island IS
    Arcade ARC Islands ISS
    Bayou BYU Isle ISLE
    Beach BCH Junction JCT
    Bend BND Key KY
    Bluff BLF Knolls KNLS
    Bottom BTM Lake LK
    Branch BR Lakes LKS
    Bridge BRG Landing LNDG
    Brook BRK Light LGT
    Burg BG Loaf LF
    Bypass BYP Locks LCKS
    Camp CP Lodge LDG
    Canyon CYN Manor MNR
    Cape CPE Meadows MDWS
    Causeway CSWY Mill ML
    Center CTR Mills MLS
    Cliffs CLFS Mission MSN
    Club CLB Mount MT
    Corner COR Mountain MTN
    Corners CORS Neck NCK
    Course CRSE Orchard ORCH
    Cove CV Plain PLN
    Creek CRK Plains PLNS
    Crescent CRES Plaza PLZ
    Crossing XING Point PT
    Dale DL Port PRT
    Dam DM Prairie PR
    Divide DV Radial RADL
    Estates EST Ranch RNCH
    Expressway EXPY Rapids RPDS
    Extension EXT Rest RST
    Ferry FRY Ridge RDG
    Field FLD River RIV
    Fields FLDS Shoal SHL
    Flats FLT Shoals SHLS
    Ford FRD Shore SHR
    Forest FRST Stream STRM
    Forge FRG Summit SMT
    Fork FRK Trace TRCE
    Forks FRKS Track TRAK
    Fort FT Trail TRL
    Freeway FWY Trailer TRLR
    Gardens GDNS Tunnel TUNL
    Gateway GTWY Turnpike TPKE
    Glen GLN Union UN
    Green GRN Valley VLY
    Grove GRV Viaduct VIA
    Harbor HBR View VW
    Haven HVN Village VLG
    Heights HTS Ville VL
    Hill HL Vista VIS
    Hills HLS Wells WLS
    Hollow HOLW    

ESIGNing a BMF Address

  1. The first address shown on the document/return being processed will be the taxpayer's mailing address.

  2. If a second address is shown, it will become the taxpayer's location address. A trust/estate is the only entity authorized to have a PO Box as a location address. If the second address is a PO Box and the entity is not a trust/estate, make the PO Box the mailing address.

  3. The charts in IRM 3.13.2.3 will be used when inputting an address through CC ESIGN and/or CC BNCHG.

FINALIST Program

  1. The FINALIST program is standardization software used by the United States Postal Service (USPS) to ensure addresses are valid and correct.

  2. FINALIST is used to ensure the IRS’s outgoing mail, notices, etc. comply with the USPS address standards.

  3. An address that is entered into IDRS and does not meet the USPS standards WILL NOT update and/or post with the input address.

  4. The USPS allows thirteen characters (including spaces) for city names. FINALIST will abbreviate city names if needed to reduce the number of characters to thirteen.

  5. FINALIST will also abbreviate street names. However, a list of abbreviations used by FINALIST is not available. It is not necessary for TEs to "correct" FINALIST abbreviations.

Updating BMF Addresses

  1. Entity is the primary area responsible for updating taxpayer addresses. Forms 8822-B, Change of Address - Business, are processed in Entity. Taxpayer correspondence requesting address changes will be routed to Entity. If the correspondence involves an adjustment action, collection activity, or a TAS situation other than an Entity issue, the address will be updated by the function responding to the primary issue.

  2. The charts in IRM 3.13.2.3 governing address field abbreviations will also be applied to this subsection of IRM.

  3. When an EIN has employment tax filing requirement codes (FRC) and an address change occurs, CP 148A generates to the taxpayer’s new address and CP 148B generates to the taxpayer’s previous address. If you determine the notices should not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field.

  4. Never change the address on Master File if the acronym FDIC, (Federal Deposit Insurance Corporation), is present in any of the name lines.

  5. If the "Care of Name" field is present on IDRS, and not on the requested address change, it will be deleted unless the taxpayer has clearly stated the In-Care-Of name is the same. EXCEPTION: Do not alter the "Care of Name" if the entity is a Partnership or LLC and the "Care of Name" field contains the name of a partner or member.

  6. Prior to 2010 it was the practice of Submission Processing to update a taxpayer's mailing address with a campus address upon learning that taxpayer's address caused undeliverable mail: IMF, BMF, and EOMF.

    • The campus address should only be placed on accounts of victims of identity theft. These accounts will be identified by a TC 971-501 or TC 971-506 on CC ENMOD; and

    • If during the course of processing your assignments you discover an EIN with a campus address, the following actions will be taken: Research CCs ENMOD, FINDE, and FINDS for a valid Last Known Address (LKA). If found, send Letter 104C requesting completion of Form 8822/8822-B. If LKA is not found, input TC 593-082 on all open FRCs.

  7. When changing the mailing address from a street address to a Post Office (PO) Box number, retain the street address as a location address unless the taxpayer provides a new location address. The retention of the street address in the location address field is necessary as an audit trail for locating taxpayers. ZIP code - Input only the first five digits.

  8. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction. If you are unable to determine the name and/or title, enter "SIGNATURE ILLEGIBLE" and the requester's phone number (if available).

  9. When making an address change from a return, the following information will be entered in the Remarks field of CC BNCHG:

    • MFT of return, and

    • Tax Period of Return, and

    • Name and title of signature, and

    • Telephone number (if available).

Domestic International Addresses (APO, FPO, MP, PR, GU, AS, FM, VI, MH, PW, AA, AE and AP)

  1. The following state codes must be used to replace the city and state in an international address. Always enter APO and FPO in the address:

    Country State Code ZIP code
    Americas APO AA 34000-34049
    Americas FPO AA 34050-34099
    Europe APO AE 090XX-094XX
    096XX-098XX
    Europe FPO AE 095XX
    Pacific APO AP 962XX–965XX
    97800-97859
    Pacific FPO AP 966XX and
    98760-98799


    The following are examples of CC BNCHG input formats:

    PVT. Daisy Flower Jean Rose, PCC (SW), USN
    Company F, PSC Box 100 USS Oak
    167 Infantry Regt. FPO AP 96667
    APO AE 09801  
  2. The territories and possessions listed below are not entered as international addresses and require a valid state code and ZIP code:

    Country State Code ZIP Code
    Virgin Islands VI 008nn
    Puerto Rico PR 006nn, 007nn, 009nn
    Guam GU 969nn
    American Samoa AS 96799
    Northern Mariana Islands MP 969nn
    Palau PW 969nn
  3. If the name of the foreign country is not present and cannot be determined, research using a geographical dictionary.

  4. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction. If you are unable to determine the name and/or title, enter "SIGNATURE ILLEGIBLE" and the requester's phone number (if available).

  5. When an EIN has employment tax filing requirement codes (FRC) and an address change occurs, CP 148A generates to the taxpayer’s new address and CP 148B generates to the taxpayer’s previous address. If you determine the notices should not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field.

Foreign International Mailing and Location Addresses (other than APO, FPO, MP, FM, MH, PW, PR, GU, AS, and VI)

  1. The following fields will be used for international entities:

    • Primary Name;

    • Continuation Primary Name;

    • Sort Name;

    • Care of Name;

    • Foreign Street Address;

    • Mailing Street or Foreign City/Postal Code;

    • Mailing City or Foreign Country/State/ZIP (State Field = (,)(.) ZIP = blank);

    • Location Street Address; and

    • Location City/State/ZIP.

  2. DO NOT abbreviate the country. The country is input in the city field of the mailing city/state/ZIP line. See Exhibit 3.13.2-6, Foreign Country Codes.

  3. The state field must always be a comma (,) and period (.).

  4. The ZIP code field must always be a blank.

  5. The foreign street address and mailing street address must be present when the state code is a period:
    "."

  6. To delete a foreign street address, "$$" must be input in the first two positions of the foreign street address. The mailing address (city, state and zip) must be present and state and ZIP code fields must not be blank.

  7. To input a foreign address as a location address:

    1. The location ZIP must be a period (.).

    2. The location city field must be at least 3 alpha characters, with no major city codes.

    3. The foreign country must be input in the location state field and must be at least 3 alpha characters followed by a comma (,).

    4. The location street address must be present.

  8. To delete a foreign address as a location address, input "$$" in the first two positions of the location street address. The location city, state, and ZIP will not be input.

  9. If the name of the foreign country is not present and cannot be determined, research online or in a geographic dictionary.

  10. When updating the address to a foreign country and IDRS gives an error message that the foreign country code is invalid, enter a "1" in the Foreign Country Override Indicator (FCOI) field of CC BNCHG.

  11. The following is an example of a foreign address change:

    Figure 3.13.2-3

    This is an Image: 33746111.gif
     

    Please click here for the text description of the image.

  12. See IRM 3.13.5, Campus Document Services - Individual Master File (IMF) Account Numbers, for an example of an IMF foreign address change.

  13. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction. If the signature is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of the transaction.

  14. When an EIN has employment tax filing requirement codes (FRC) and an address change occurs, CP 148A generates to the taxpayer’s new address and CP 148B generates to the taxpayer’s previous address. If you determine the notices should not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field.

Change of Address

  1. Correspondence indicating address changes may be directed to Entity for necessary action. However, if the correspondence involves an adjustment action, collection activity, or a TAS situation other than an entity issue, the address update will be acted upon by the function responding to the primary issue. The correspondence must be signed by the taxpayer or their authorized representative for us to update IRS records.

  2. A taxpayer's mailing address will not be updated unless clear indication of a change from the taxpayer or his representative is received. The exception would be when resolving undeliverables.

    • When processing forms/documents that have an "address change box" , Master File will be updated if the "address change box" has been marked by the taxpayer;

    • Master File will not be updated with the address from a form/document that does not have an "address change box" unless the taxpayer has given clear instructions to update his address;

    • Generally, the taxpayer's address will be updated from every return received per Rev. Proc. 2010-16. Ensure the return is not a copy of a previously filed/posted return.

    • If a return indicates a PO Box and a physical address, input the physical address as the location and the PO Box as the mailing address.

      Note:

      A trust/estate is the only entity authorized to have a PO Box as a location address.

  3. When an EIN has employment tax filing requirement codes (FRC) and an address change occurs, CP 148A generates to the taxpayer’s new address and CP 148B generates to the taxpayer’s previous address. If you determine the notices should not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field.

  4. The National Change of Address (NCOA) program links with the United States Postal Service (USPS) change of address requests received from postal customers. The NCOA run updates Master File with the address provided by the postal customer/taxpayer. The DLNs from these changes will be:

    • BMF XX963-995-77766-Y

    • IMF XX263-995-99999-Y

  5. Never change the address if the acronym FDIC (Federal Deposit Insurance Corporation) is in any of the name lines. If no other action is needed, indicate "No Action" on document being processed.

  6. Signatures on Forms 8822/8822-B and requests for address changes will be accepted according to the terms of Prima Facie Evidence. Prima Facie means "at first appearance; at first view, before investigation " . If there is no contradicting evidence to dispute the authority of that person, the signature must be accepted. This policy applies to signatures accompanied by titles such as owner, president, etc. This authority does not apply to third party requests. A Form 2848 is required for a third party not listed on CC CFINK.

  7. Use the following table to process an address change:

    If... Then...
    a) The documentation is for an. address change only (including Form 8822/8822-B), Enter the entire taxpayer address into CC BNCHG. A TC 014 will generate from the input. The forms or documentation will be X'd out and destroyed by the Entity Control Team.
    b) A domestic street address is input, The mailing city, state and ZIP must be input.
    c) A foreign street address is input, The foreign city and foreign country must be input in the mailing street address and mailing city, state and ZIP lines.
    d) A foreign postal code is present and space allows, It must be input.
    e) A foreign city or postal code is input, The foreign street address must be input.
    f) A domestic mailing city, state and ZIP or major city code and ZIP code are input, The mailing street address must also be input.
    g) A major city code is input, A mailing ZIP code must be input.
    h) It is determined that the correspondence has been initiated by a third party, Research the CAF using CC CFINK. If the representative is on CC CFINK for any MFT, proceed with the address change.
    i) A proper authorization is not found, Send Letter 104C (or 6800sce) to the taxpayer's address on Master File requesting a completed Form 8822-B.
    j) A proper authorization is found, Update the address as requested.
    k) The address change is for an IMF (SSN) account, If the MFR is 08, do not make any changes as they will unpost. When making an IMF change, enter 8 in the Blocking Series field of CC INCHG unless using AMS. This denotes that Entity made the change. If an IMF address change is received at a BMF site, it will be processed as BMF MISCELLANEOUS. Do not transship IMF address changes.
  8. General requirements for making address changes on all Entity programs:

    If... Then...
    a) We receive a letter signed by the taxpayer or an authorized representative, and the taxpayer's full name and correct EIN are present, Make the address change.
    b) A return has a different address than what is on MF and the address change box is checked, Make the address change.
    c) Any of the required information is missing from the taxpayer's request for a change of address, Do not change the address. Correspond with the taxpayer via 104C (or 6800sce) at the address on Master File and advise the taxpayer of the information needed.
    d) Correspondence, notices, or C letters sent by the Service that solicits or requires a response from the taxpayer is returned to the Service by the taxpayer with corrections marked on the taxpayer's address information, the correspondence will constitute clear and concise written notification of a change of address. The taxpayer's signature is not required on the correspondence, notice, or C letter, Make the address change.
    e) The address has a typographical error, misspelling, or contains additional information (suite number, apartment number, etc.), Make the address change.
    f) The taxpayer requests a temporary address change, Advise the taxpayer a temporary address change will replace their permanent address on IRS records and they will use a Form 8822/8822-B for permanent address changes.
  9. If a taxpayer requests an address change during telephone contact regarding an Entity issue, you may accept oral authority for the address change. Follow the Oral Statement Documentation requirements in IRM 21.1.3 , Accounts Management and Compliance Services Operations - Operational Guidelines Overview. Rev. Proc. 2010–16 allows address changes over the phone effective June 1, 2010. It is no longer required that the taxpayer have "an open issue" to request an address change over the telephone. The caller must be authorized to request the address change. Put the name, title, and phone number of the caller in the Remarks field of the transaction.

  10. If communication is received from a third party (CPA, agent, payroll service provider, etc.) indicating the taxpayer is no longer a client and their address should be removed from the account, take the following actions:

    If... And... Then...
    a) Third party supplies a new address, Third party has been authorized by the taxpayer, Update Master File with the address provided.
    b) Third Party does not supply a new address, A new address cannot be found, Input TC 593-82 on all open FRCs or MFT that was filed by the third party.
    c) Third party does not supply a new address, The LKA cannot be found, Input TC 593-82 on all open FRCs or MFT that was filed by the third party.
    d) Third party does not supply a new address, The LKA is found and is accurate, Send 104C (or 6800sce) to the taxpayer at their LKA requesting completion of Form 8822-B.
  11. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction. If the name is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of transaction.

  12. See IRM 3.13.2.1.11 (17) for address usage with CC LETER.

Form 8822, Change of Address (For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns)

  1. Form 8822, Change of Address, is filed by IMF and Estate and Gift (E&G) taxpayers to furnish written notification of a change of address to the Service.

    1. When Form 8822 is received with an Entity case or as a stand alone document, the change of address will be entered with any other required data.

    2. Before updating an address, the TIN entered on Form 8822 will be verified as the only TIN assigned to taxpayer.

    3. If Part I of Form 8822 is complete and received in a BMF site, it should be processed. See IRM 3.13.5. Process Form 8822 per chart below.

  2. When an EIN has employment tax filing requirement codes (FRC) and an address change occurs, CP 148A generates to the taxpayer’s new address and CP 148B generates to the taxpayer’s previous address. If you determine the notices should not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field.

  3. The Remarks field of the transaction updating the taxpayer's address will contain the name, title, and phone number from the signature line of Form 8822. If the signature is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of transaction.

    If... And... Then...
    a) Form 8822 clearly indicates a primary name change (FKA, previous name, etc.), The Form 8822 is signed by authorized individual, Change the name
    b)Form 8822 clearly indicates a primary name change (FKA, previous name, etc.), The Form 8822 does not have an authorized signature, Correspond for verification with a 252C Letter
    c) Unable to determine if the taxpayer is changing their name, Unable to determine after researching Secretary of State’s office, Do not update the taxpayer's name. Send the 252C letter instructing the taxpayer to verify the name change after updating address.
    d) Any required information is missing,   Return Form 8822 to the taxpayer with 104C or 6800sce. Send the letter to the taxpayer's address on Master File. Instruct the taxpayer to complete Form 8822 and return to us.
    e) The taxpayer is affected by a Presidentially Declared Disaster Area,   Change the address(es) via telephone call or any other way the taxpayer informs us to change the address.
    f) The taxpayer checks Box 2 in Part 1, indicating that gift, estate, or generation-skipping transfer tax will be filed (Form 706, Form 709, etc.), The BMF SSN (SSN'V') is not established on the Master File, Input a TC 000 to establish the account. See Figure 28 in IRM 3.13.2.7.13(4).
    g)The taxpayer checks Box 2 in Part 1, indicating that gift, estate, or generation-skipping transfer tax will be filed (Form 706, Form 709, etc.), The SSN'V' is already established on the Master File, Update the address(es) as required. When updating the address on an SSN'V'/'W', the MFT> field of CC BNCHG must be completed: 51 for Form 709, 52 for Form 706. If the change is for a Form 709 account, the field NM-YR/QTR> must also be completed. If the change is for a Form 706 account, the field DT-OF-DEATH> must also be completed.
    f) The EIN on Form 8822 is not on the Master File, IDRS research shows the EIN was assigned to the taxpayer reflected on Form 8822, Input TC 000 with no FRCs.
    g) The EIN on Form 8822 is not on the Master File, IDRS research shows no record of the EIN being assigned, Send the taxpayer a 104C without an EIN asking for a copy of the notice assigning the EIN. When received, TC 000 the EIN with no FRCs.

Form 8822-B, Change of Address or Responsible Party - Business

  1. Form 8822-B will continue to be used for address change requests from BMF, EO, and EP taxpayers.

  2. Reg 135491-10 § 6109 requires BMF taxpayers to notify IRS if the Responsible Party has changed. Form 8822-B was revised to include this function.

  3. Ensure the EIN on the form is the only EIN assigned to the taxpayer. Take necessary actions to consolidate if more than one EIN is located. See IRM 3.13.2.13.

  4. Taxpayers using BMF SSNs (filers of Form 706 and 709 series) will use Form 8822 to request an address change, as will IMF taxpayers.

  5. Every field of Form 8822-B must be completed before it is considered processable. However, a location address is not required of every taxpayer:

    • Items 1-7 and Item 10 for Change of Address, or

    • Item(s) 4 and 8-10 for Change of Responsible Party


    If any items are missing, return Form 8822-B to the taxpayer at the address on Master File.

  6. Ensure the person signing Form 8822-B is authorized to represent the entity shown in Item 4a. See IRM 3.13.2.2 for definitions of an authorized representative.

  7. An individual TIN (SSN or ITIN) must be provided for the responsible party. Business entities can no longer be considered the responsible party of a business entity.

  8. Signatures on Forms 8822/8822-B and requests for address changes will be accepted according to the terms of Prima Facie Evidence. Prima Facie means at first appearance; at first view, before investigation . If there is no contradicting evidence to dispute the authority of that person, the signature must be accepted. This policy applies to signatures accompanied by titles such as owner, president, etc. This authority does not apply to third party requests. A Form 2848 is required for a third party not listed on CC CFINK.

  9. The Remarks field of the transaction updating the taxpayer's address will contain the name, title, and phone number if available from the signature line of Form 8822-B.

  10. If an EO taxpayer submits Form 8822-B, it will be processed in Ogden EO Entity. Fax to ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

Form 8822-B - Change of Address
  1. The Remarks field of the transaction updating the taxpayer's address will contain the name, title, and phone number if available from the signature line of Form 8822-B. If the signature is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of transaction.

  2. Process the address change portion of Form 8822-B as follows:

    If... And... Then...
    a) Form 8822-B clearly indicates a primary name change (FKA, previous name, etc), The Form 8822-B is signed by authorized individual, Change the name
    b) Form 8822-B clearly indicates a primary name change (FKA, previous name, etc), Unable to verify after researching Secretary of State website, Correspond for verification with a 252C Letter
    c) Unable to determine if the taxpayer is changing their name, Unable to verify after researching Secretary of State website, Do not update the taxpayer's name. Update the address as needed. Send the 252C letter after updating address instructing the taxpayer to verify the name change .
    d) Any required information is missing, Information cannot be found through research Return Form 8822-B to the taxpayer with 104C/6800sce Send the letter to the taxpayer's address on Master File. Instruct the taxpayer to complete Form 8822-B and return to us.
    e) You are speaking with the taxpayer by telephone discussing any issue, The taxpayer requests an address change, Change the address(es), entering the taxpayer's name, title, and phone number in the Remarks field of CC BNCHG. via telephone call or any other way the taxpayer informs us to change the address.
    f) The EIN on Form 8822-B is not on the Master File, IDRS research shows the EIN was assigned to the taxpayer reflected on Form 8822-B, Input TC 000 with no FRCs.
    g) The EIN on Form 8822-B is not on the Master File, IDRS research shows no record of this or any other EIN being assigned, Send the taxpayer a 104C/6800sce without an EIN asking for a copy of the notice assigning the EIN. Advise to apply for new EIN if unable to provide a notice. If response is received, TC 000 the EIN with no FRCs and the "new" address.
    h) The EIN on Form 8822-B does not match Master File, EIN cannot be found through research, Circle out the incorrect EIN and return Form 8822-B to the new mailing address on Form 8822-B requesting a valid EIN.
  3. If an acknowledgement letter is requested, send if taxpayer does not have Employment Tax FRCs. CPs 148A/B will generate if the EIN has Employment Tax FRCs.

  4. When an EIN has employment tax filing requirement codes (FRC) and an address change occurs, CP 148A generates to the taxpayer’s new address and CP 148B generates to the taxpayer’s previous address. If you determine the notices should not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field.

  5. Prepare Form 8822-B for destruction per local procedures.

Form 8822-B - Change of Responsible Party
  1. This part of the form is used to update the X-REF-TIN-ITIN-IND, XREF-TIN-ITIN, SORT-NAME, and/or CARE-OF-NAME fields on CC BNCHG. No other fields should be updated unless indicated on Form 8822-B.

  2. The Remarks field of the transaction updating the taxpayer's change of responsible party will contain the name, title, and phone number if available from the signature line of Form 8822-B. If the signature is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of transaction.

  3. Always verify the TIN being provided as the "new" TIN belongs to the name being provided. BMF taxpayers must have an individual (SSN or ITIN) as the Responsible Party.

    Reminder:

    A BMF taxpayer can no longer be the Responsible Party for another BMF taxpayer.

  4. We maintain the XREF-TIN-ITIN field for the following types of entities:

    • corporations (for profit only);

    • partnerships;

    • LLCs;

    • business trusts;

    • trusts (grantor's TIN);

    • estates (decedent's SSN).


    For instructions on updating the XREF-TIN-ITIN field, see IRM 3.13.2.9.20.

  5. To update the X-REF-TIN-ITIN-IND and XREF-TIN-ITIN fields, enter the appropriate indicator in the X-REF-TIN-ITIN-IND field:

    • 0 (zero) if TIN is an SSN or ITIN

    • Previously used 2 if TIN is an EIN, and 3 if the TIN is a parent’s EIN


    Enter the new TIN without hyphens in the XREF-TIN-ITIN, add appropriate comment in the Remarks field and x-mit.

  6. Process the change of responsible party section of Form 8822-B as follows utilizing thorough research of IDRS:

    If... And... Then...
    a) T/P is EO or a church,   Take no further action.
    b) T/P is an Estate and an SSN is being provided as "new" and it does not belong to the decedent, The decedent's SSN is on the Estate EIN as X-REF, Take no further action.
    c) T/P is an Estate and an SSN is being provided as "new" and it does not belong to the decedent, The decedent's SSN is not on the Estate EIN, Research IDRS to locate decedent's SSN. Update Estate EIN with decedent's SSN and XREF-TIN-ITIN-IND to "0" (zero)
    d) T/P is a Trust and an SSN is being provided as "new" and it does not belong to the grantor, The grantor's SSN is already on the Trust EIN, Take no further action.
    e) T/P is a Trust and an SSN is being provided as "new" and it does not belong to the grantor, The grantor's SSN is not on the Trust EIN, Research IDRS to locate grantor's TIN. Update Trust EIN with grantor's SSN and XREF-TIN-ITIN-IND to "0" (zero)
    f) There is a Care of Name on Master File, The Care of Name on Master File does not match the new Responsible Party Take no action unless a new address has been provided. The Care of Name rides with the address.
    g) There is a Care of Name on Master File, The Care of Name on Master File matches the previous Responsible Party, Enter the name of the new Responsible Party in the Care of Name field.
  7. Send 3064C to taxpayer at the address on Master File, In Care Of the new Responsible Party. Send 3064C without an EIN to the previous Responsible Party. If you do not have a new address for the previous Responsible Party, send the letter in care of the EIN.

  8. Prepare Form 8822-B for destruction per local procedures.

CP 148A and 148B, Dual Notice of Address Change

  1. Beginning Jan. 23, 2015, when an address change occurs on an EIN reflecting Employment Tax FRCs (Form 94X series), a CP 148A will generate to the taxpayer's new address and a CP 148B will generate to the taxpayer's old address.

  2. This notice was created to protect employers/payers/taxpayers from abusive third party payroll providers/Professional Employer Organizations (PEOs).

  3. Undeliverable CPs 148A/148B will be destroyed as classified waste in Receipt and Control Operation (RCO). If received in Entity, notify Headquarter’s analyst, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. Rev. Proc. 2010-16 requires IRS to update the taxpayer's address of record from every return filed. Therefore, it is possible one taxpayer could experience multiple "address changes" a year.

  5. You will need to know the reason an address change occurred to process taxpayer replies to CPs 148.

    • Locate the ADDR-CHG-CYC field on CC ENMOD/BMFOL'E.' The field is Item 32 on the ENMOD CC Job Aid. It is Item 26 on the BMFOL'E' CC Job Aid.

    • When a TC 150 is shown in the Entity module (CC ENMOD/BMFOL'E'), the taxpayer's name and/or address was changed from the return represented by the DLN of the TC 150. Compare the cycle of the TC 150 with the ADDR-CHG-CYC.
      If they match, the address was changed from that return. Use CCs BMFOL'I' and BMFOL'T' to identify the tax period and type of return.
      If they do not match, the address was not changed from the return.

    • Research CC ENMOD/BMFOL'E' for an Entity TC (013, 014). Compare the cycle of the TC with the ADDR-CHG-CYC to determine if the TC updated the taxpayer's address. Keep in mind, the change could have been input by any area of the Service, including Customer Service Representatives in AM.

  6. If you are making an address change and determine the CP 148 notices should not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field.

  7. BMF Entity will process the taxpayer responses as shown below:

    If... And... Then...
    A. Taxpayer returns one or both notices, agrees with the change and makes no other requests, Take no further action. Prepare for destruction per local procedures.
    B. Taxpayer returns one or both notices, does not agree with the change, Update address as indicated by taxpayer. Ensure Remarks field of CC BNCHG contains the name and title (and phone number if available) of the submitter. A new set of CPs 148 will generate.
    C. Taxpayer returns one or both notices, asks the source of address change, Research CCs ENMOD, BMFOL'E', BMFOL'I' and BMFOL'T' to determine the origin of the address change. Send Letter 104C appropriately explaining the source of the change.
    D. Taxpayer returns one or both notices, disagrees with address change and alleges it was triggered by fraud, ID Theft, or other nefarious motives, Use CCs ENMOD, BMFOL ‘E’, ‘I’, and ‘T’ and CC TRDBV to research EIN for source of address change. If address change was triggered by fraud, ID Theft, or other nefarious motives, route to IRM author ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Send interim letter to taxpayer.
    E. Unauthorized third party returns one or both notices, requests invalid address change, Take no action and route to IRM author ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ l. Courtesy copy your manager.

Undeliverable Mail and Notices

  1. Undelivered notices will be returned to Entity for research and correction of entity data. If received in Entity, CPs 575 will be routed to Cincinnati Accounts Management Center, EIN Function.

  2. Undels (Undelivered Mail) generated from BMF Entity will be the top priority when processing undelivered mail.

  3. Undeliverable mail will often have a yellow sticker from the United States Postal Service (USPS) that may show the taxpayer's new address. If the sticker has a new address, send 2475C/6800sce to the taxpayer's new address enclosing undeliverable CP/Correspondence letter.

  4. If the USPS yellow label does not contain a new address, destroy the undeliverable in the control team.

  5. Research CCs BMFOL'E', ENMOD, FINDE/FINDS, INOLE and IRPTR for a better address for the taxpayer. In most cases the address on CC INOLE will be the same as the notice. Refer to IRPTR MMLO. The Secretary of State web sites may provide a good address.

    Note:

    If a better address is found, re-mail notice and envelope, and Form 8822-B using 6800sce or 2475C. If 6800sce is used, input history item on CC ENMOD that says:
    6800SCE
    4UNDEL

  6. CC INOLE can give you alternatives to locating the taxpayer such as

    1. BMF sole proprietor—the IMF account for this taxpayer may contain a different address.

    2. Any BMF account can be checked with CC INOLE 'P' to show an address from the EPMF and vice versa.

    3. Research for another address under the XREF TIN. If address is found, re-mail notice and envelope using 6800sce or 2475C in care of the individual found from the XREF TIN. If 6800sce is used, Input history item on CC ENMOD that says:
      6800SCE
      4UNDEL

    4. Follow the steps below for processing:

      If... And... Then...
      1) Interim letter (2645C, 2644C, etc.) is received as undeliverable, Account issue has been resolved, Prepare undeliverable letter for destruction per local procedures.
      2) A new address cannot be found via IDRS, All X-REF TINs have been researched without finding a better address, Contact the taxpayer via telephone.
      3) Taxpayer can be reached via telephone, taxpayer supplies you with better address, Update the address per TP instruction include TP name and title and phone in remarks. Mail the notice/correspondence and envelope to the new address using 2475C or 6800sce.
      4) Unable to locate a better address, Unable to reach taxpayer via telephone, Input TCs 593 Action Code (AC) 082 on all active FRCs. Input TC 971 AC 661 which will generate the Undeliverable (UD) indicator. Prepare notice/correspondence for destruction per local procedures.
      5) There is indication the taxpayer is deceased, There are no active FRCs on the EIN, Input TC 971 Action Code 661 on all MFTs that reflect posted returns. Use the tax period containing the date of death. TC 971 AC 661 generates the Undeliverable (UD) indicator. Prepare undeliverable for destruction per local procedures.
      6) There is indication the taxpayer is deceased, There are active FRCs on the EIN, Research IDRS for an ESTATE EIN. If found, update the taxpayer's address to match the address on the estate EIN.
      If unable to locate an estate EIN, input TC 593-082 on all open FRCs. Input TC 971 Action Code 661 on all open FRCs which will generate the Undeliverable (UD) indicator on all open modules. Prepare undeliverable for destruction per local procedures.
      7) Taxpayer states mail is not theirs, Unable to locate valid address for taxpayer on EIN, Input TC 593-082 on all open FRCs. Input TC 971 Action Code 661 on all open FRCs which will generate the Undeliverable (UD) indicator on all open modules. Prepare undeliverable for destruction per local procedures.
      8) CP 148B is undeliverable,   Prepare for destruction as classified waste and notify Headquarters analyst, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  7. Undelivered CPs 26X notices (Notices of Form 2553—Election by a Small Business Corporation) will be returned to Entity for research and correction of entity data. You may need to ESTAB Form 2553 to secure a shareholder's address. However, undeliverable CPs 26X generated from ICO/Entity Unpostables should be returned to them for resolution.

  8. It is acceptable to re-mail a notice to another address.

  9. The taxpayer must provide clear and concise notification of a change of address. A different address on a letterhead or return address on an envelope is not acceptable for updating Master File. Correspond with the taxpayer at the "better" address asking for a completed Form 8822-B.

  10. If a 2475C/6800sce is undeliverable with taxpayer information attached and address has been recently updated on Master File since the previous letter was sent, re-send the 2475c/6800sce to the correct address.

  11. If an undeliverable is received and it was undeliverable previously, prepare for destruction per local procedures. Ensure a TC 593 AC 082 is on all open FRCs.

  12. If unable to locate a better address, input TC 971 AC 661 on any open tax module to generate the UD indicator.

Undelivered Correspondence

  1. Undeliverable correspondence initiated by Entity will be returned to Entity for research and correction of entity data. CCs ENMOD, BMFOL, INOLE, IRPTR, FINDE/FINDS can be utilized to locate a different address. Use the following procedures:

    If... Then...
    a) A different address is found, Re-mail the correspondence and envelope to the new address using the 6800sce or 2475C Letter without updating the address on Master File. If 6800sce is utilized, input history item on CC ENMOD that says:
    6800SCE
    4UNDEL
    If an undeliverable is received and it was undeliverable previously, prepare for destruction per local procedures. Ensure a TC 593-082 is on all open FRCs.
    b) A new address cannot be found, Input TC 593 CC 082 on the current tax period for all active FRCs. Input TC 971 Action Code 661 to generate Undeliverable (UD) indicator on all open modules. Prepare for destruction per local procedures.

Print Site Products with an "Undeliverable" Address.

  1. The Print Sites are identifying notices and letters that cannot be delivered by the United States Postal Service (USPS) standards. FINALIST was unable to correct the addresses on these accounts. The issues making the address "bad" are varied. For example,

    • The building number may not be valid for that street name;

    • The zip code may be incorrect or missing;

    • The street name does not exist within specific ZIP code, etc.

  2. Accounts with a campus address as the mailing address are also pulled for correction.

  3. Office Function Program (OFP) 390–00800 will be used when processing this work.

  4. See IRM 3.13.2.4 (4)(d) for processing instructions.

BMF Employment Codes (ECs)

  1. BMF Employment Codes (ECs) identify employers who are other than normal business employers.

  2. The BMF Employment Codes (ECs) are A, C, F, G, I, M, Q, S, T, and W.

  3. The primary programs processed by Entity TEs involving ECs are Form 941 and Form 940.

  4. Entity TEs are responsible for ensuring ECs are correct and the taxpayer is filing the correct return(s).

  5. BMF Entity is not able to add or change ECs A, F, G, Q, or T. If an entity needs action on one of these ECs , submit to Federal, State, and Local Government (FSLG) by e-mailing to *tege.fsl.cpm@irs.gov, ensure the e-mail is encrypted.

    Note:

    Do not prepare Form 3210.

  6. The ECs are applicable to certain Form 941, Form 943, and Form 944 filers. See table below for EC definitions:

    EC Entity Type
    A A government agency acting as an employer's fiscal agent under Section 3504 of the Internal Revenue Code (IRC)
    C Church or Church -controlled Organization filing Form 8274 (not subject to FICA or FUTA)
    F Federal Employer
    G State or Local Government Agency
    I Indian Tribal Government
    M Maritime Industry
    Q Quasi Governmental Entity
    S Foreign Subsidiary
    T State or Local Government Agency covered under Section 218 Agreement
    W Section 501(c)(3) of the IRC Non-profit Organization (not subject to FUTA)
    Z Federal Credit Union - Liable for Form 940
  7. The input of a "9" in the EMPLMNT-CD> field of CC BNCHG deletes any existing EC. However, the changing of ECs A, F, G, Q, and T has been limited to employees of TEGE/Federal State Local Government (FSLG). If a change to an EC is needed, contact FSLG at *tege.fsl.cpm@irs.gov.

  8. The Economic Opportunity Act (EOA) programs are carried out by state and local governmental entities or private non-profit organizations through grants or contracts with the Federal Government. When new entities are formed to carry out EOA projects they will be state or local government entities or non-profit organizations. Examples of EOA employers are as follows:

    • Anti-Poverty Programs;

    • Community Action Programs;

    • Head Start Programs;

    • Neighborhood Youth Corps;

    • Public Law 88–452;

    • Economic Opportunity Act, Office or Program;

    • Work Study or Work Training Program;

    • Youth Conservation Corps (YCC);

    • Job Corps; and

    • Volunteers in Service to America.

  9. If a Form 940 FRC is present on an EIN with an Employment Code , input TC 016 to delete the FRC. If you're dealing with ECs A, F, G, Q, or T, contact FSLG at *tege.fsl.cpm@irs.gov. Research CC BMFOL'I' for MFT 10 modules. If any are present and unsatisfied for the period (and later periods) the entity became exempt from FUTA, input TCs 590-020.

Employment Code (EC)"A"

  1. This Employment Code can only be changed by FSLG employees. Contact FSLG at *tege.fsl.cpm@irs.gov.

  2. This EC is given to government agencies acting as employer/payer's fiscal agents under IRC Section 3504. These agents may refer to themselves as:

    • Household Employer Agents, or

    • Fiscal agents, or

    • Employer agents, or

    • Fiscal intermediaries.

  3. The employer/payers may be disabled individuals or other welfare recipients receiving home-care services through a state or local government program.

  4. A fiscal agent may:

    • Represent many disabled individuals or other welfare recipients receiving home care services through a state or local program. These taxpayers may be referred to as "clients" by the agent,

    • Be a government entity or a non-governmental entity

    • Already have an existing EIN that is used to file employment taxes for the agent's own employees

    • Request a second EIN to be assigned to them for the specific purpose of acting as an agent for these employers under Section 3504, if they are a government entity.

      Note:

      Non-governmental agents are not encouraged to obtain a second EIN to file employment taxes on behalf of these household employers. The Household Employer Agent files aggregate employment tax returns for all of their own employees and for the employees of the household employers, including Form 940. However, if requested, non-governmental agents may also obtain a second EIN to file employment taxes on behalf of these household employers.

  5. The words Fiscal Agent will be behind the name of the governmental entity acting as a fiscal agent. If missing, add "Fiscal Agent" behind the agent's name.

  6. An entity with EC "A" will also have a Form 941 FRC 01.

Employment Code (EC)"C"

  1. This code is generated from a posted TC 070 on churches or qualified church-controlled organizations which have filed Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes.

  2. Forms 8274 are processed exclusively at OSPC.

  3. See IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers.

Employment Code (EC)"F"

  1. This code is assigned to agencies of the United States Government and can be changed by FSLG employees only. You can contact FSLG at *tege.fsl.cpm@irs.gov.

  2. If a new EIN needs EC "F" , or if an entity changes and becomes eligible for EC "F" :

    1. This EC may only be assigned with supervisory approval.

    2. An entity with EC "F" , will also have a Form 941 FRC of "02" .

    3. An entity will receive EC "F" whether the taxpayer currently has employees or not when processing Form SS-4, see IRM 21.7.13, Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EINs).

  3. The following agencies will have EC "F" :

    • Department of State;

    • Department of the Treasury;

    • Department of Defense;

    • Department of the Army;

    • Department of the Navy;

    • Department of the Air Force;

    • Department of Health and Human Services;

    • Department of Education;

    • Department of the Interior;

    • Department of Commerce;

    • Department of Labor;

    • Department of Transportation;

    • Department of Housing and Urban Development;

    • Department of Justice;

    • Department of Agriculture;

    • Department of Homeland Security;

    • National Guard; and

    • An executive department of the government or a component agency.

  4. An agency of the U.S. Government that is not part of any executive department or its components at the National Headquarters of the agency or in the field such as the following:

    • U.S. District Court;

    • U.S. Court of Appeals;

    • U.S. Tax Court;

    • General Services Administration;

    • U.S. Atomic Energy Commission;

    • Federal Trade Commission;

    • Government Accountability Office;

    • Office of Economic Opportunity;

    • Federal Power Commission;

    • U.S. Small Business Administration;

    • Library of Congress;

    • Interstate Commerce Commission;

    • Veterans Administration;

    • Smithsonian Institution;

    • Securities and Exchange Commission; and

    • National Aeronautics and Space Administration.

  5. Corporation wholly or principally owned by the U.S. Government which has been created by law and which performs a governmental function such as the following:

    • Federal Deposit Insurance Corporation;

    • U.S. Postal Service;

    • Tennessee Valley Authority;

    • Federal Home Loan Bank (Not Individual Home Loan Banks); and

    • Federal Reserve Board (Not Individual Regional Federal Reserve Banks).

  6. Federal instrumentalities such as the following:

    • Army and Air Force Post Exchange;

    • Navy or Coast Guard Ship Stores; and

    • Army and Air Force Motion Picture Services and Navy counterpart.

  7. Organizations that are closely connected to, but not an official part of the U.S. government establishment are entitled to EC "F" if they meet strict standards. These organizations conduct financial, social, morale or housekeeping activities such as the following:

    • Officer's Clubs;

    • Enlisted Men's Club;

    • Non Commissioned Officer's (NCO) Clubs;

    • Officer's Open Messes;

    • NCO's Open Mess; and

    • Billeting Funds, etc.

  8. Before assigning EC "F" to these organizations, a statement should be obtained from the Post, Camp, Station or Base Commander stating the following:

    1. The activity exists to promote the morale, comfort and well being of members of the Armed Forces, or authorized civilians.

    2. The activity is supported by an authorized non-appropriated fund as prescribed by the applicable regulations of the Service concerned.

    3. The activity is authorized by the Post, Camp, Station, Base or Major Command Commander, and is supervised by him/her.

    4. That the above referenced commander's supervision includes the periodic audit of the activities financial records, or that such audit is regularly performed by a higher authority, as the appropriate service regulations prescribed.

  9. Do not assign EC "F" to any of the following:

    1. Any religious, fraternal or benevolent organization

    2. Any ethnic or tribal organization for example, Indian tribe, tribal council, etc.

    3. Any private corporation or business entity that has in its name words such as "U.S., United States, Federal or Government" .

  10. If the type of entity cannot be determined or if the entity is a questionable "F" Code filer, take the following actions:

    1. Research the account as necessary.

    2. Contact the organization to clarify its status.

    3. If the organization is a true "F" Code, remove any erroneous filing requirements such as 1120, 1065, etc.

  11. If the organization is not a true "F" Code, take the following actions:

    1. Remove any erroneous filing requirements.

    2. Remove the "F" Code.

    3. Establish the entity with the correct filing requirements. Ensure that the organization does not have another EIN established for the same "F" Code entity.

    4. If the "F" Code is removed forward the information to AM/Adjustments to be assessed penalty and interest under the correct filing requirements.

Employment Code (EC) "G"

  1. Assign this code to all state and local government agencies. If a change needs made to the EC "G" , contact FSLG at *tege.fsl.cpm@irs.gov.

  2. When assigning EC "G" , also assign a Form 941 filing requirement of 01, because these taxpayers are responsible for income tax withholding even if they are not responsible for social security and Medicare taxes. However, if the taxpayer is from Guam or American Samoa, assign a filing requirement of 06, for the Form 941-SS.

  3. If you cannot determine from Form SS–4 that the entity is an agency of a state or local government or it is a privately owned organization, contact the entity to clarify the status prior to the assignment of EC "G" . If contact cannot be made using the telephone, input Letter 45C.

  4. The following organizations will be assigned EC "G" :

    • A state or commonwealth;

    • An agency, bureau, or department of any such state or commonwealth;

    • A county;

    • An agency, bureau, board, or department of any such county;

    • A municipality, town, village, ownership or any like unit of local government; and

    • An agency of a local government, such as a school district, Board of Education, public school, sanitation district, transit authority, welfare department, housing authority, cemetery, district soil/water conservation, water district, community service district, health department, etc.

  5. If a state or local government instrumentality requests and receives an exemption under IRC Section 501(c)(3), the EC remains a "G"

Employment Code (EC)"I"

  1. Assign EC "I" to Indian Tribal Governmental (ITG) entities. Chief Counsel ITG will determine if an entity requires an EC "I" . If so, verify that the BOD Code is TE. Update the Business Operation Date (BOD) Client Code to I. Add a Form 940 FR of either 3 (compliant) or 4 (non-compliant) at the time the EC "I" is added. Chief Counsel ITG will determine whether the tribe is compliant or non-compliant.

  2. If an Indian Tribal Governmental entity also has a 501(c)(3) exemption, the EC must be "W" without a Form 940 filing requirement.

  3. If Master File research indicates the Exempt Organization (EO) Status is 41, 70-72, treat the entity as if they are a "regular" ITG entity with a BOD Code of TE, EC of I, and a Form 940 FR of 3 or 4.

  4. If the EO Status of 40 or 42, the BOD Code should be TE, but make no changes to the EC, BOD Client Code or filing requirements. If the EO Status has been in 40 for several years and the organization is continuing to file Forms 941 only and there is no "I" case on EDS, update the EO Status to 41 and treat as a "regular" ITG entity.

Employment Code (EC) "M"

  1. Assign this code to those Maritime Industry entities which have made payments for employment taxes not yet reported.

  2. This situation arises when a shipping company estimates liabilities and makes payments currently; however, the actual liability is reported on a supplemental Form 941 filed at the termination of the voyage.

Employment Code (EC) "Q"

  1. This EC is used for quasi Governmental entities that do not qualify for an EC "F" or "G." The Federal, State, and Local Government (FSLG) staff saw a need for an EC that would allow penalties and interest to accrue. The EC "Q" was created for this purpose.

  2. This EC can only be assigned or altered by the Federal, State, and Local Government staff. If necessary, contact FSLG at *tege.fsl.cpm@irs.gov.

    Note:

    E-mail address is for internal use only.

Employment Code (EC) "S"

  1. This code is assigned to a domestic business that has applied for another EIN to extend social security coverage to certain employees of its Foreign Affiliate(s) by filing Form 2032, Contract Coverage under Title II of the Social Security Act.

  2. The filing of Form 2032 secures the election to withhold Social Security from the paychecks of American citizens working overseas.

  3. See IRM 3.13.2.17

Employment Code (EC) "T"

  1. This code is to be assigned to state and local governmental agencies that have obtained social security coverage for employees under an agreement between the state and the Commissioner of the Social Security Administration. Under IRC 42 Section 218, they are to pay social security tax directly to IRS. This EC can be altered by FSLG employees only. You can contact FSLG at *tege.fsl.cpm@irs.gov.

  2. This code will be input through CC BNCHG upon notification from Chief Counsel that a Section 218 agreement has been entered into by a state or local governmental agency.

    Note:

    This code is never assigned from Form SS–4.

  3. Updating the EC from a "G" to a "T" :

    If... Then...
    a) The account is for the same entity as indicated by SSA on the modification letter, Update the EC from "G" to "T" and update the Form 941 to FR 01 or 07 for Puerto Rico accounts.

    Note:

    Delete any erroneous Form 940 filing requirement. Do not update Form 941 FRC 9 or 10 to a 941-01.

    b) The account is not for the same entity as indicated by SSA, Research for a better EIN.
    c) No EIN can be found, Correspond with the taxpayer or state administrator.
    d) A filling requirement other than Form 941/940 (for example, Form 1120, 1065) is present, Research the account. Taxpayer contact may be necessary.
    e) The taxpayer corresponds that he is not active, Do not remove EC "T" . Correspond with the taxpayer informing them that Form 941 will still be required once a year and they should check the seasonal/intermittent box.

Employment Code (EC) "W"

  1. This code is assigned to tax exempt organizations of the type described in IRC Sections 501(c)(3), 501(e), 501(f) and 501(k) .

  2. These will be organizations operated exclusively for religious, charitable, scientific, literary, educational, or humane purposes, or for the purposes of testing for public safety, and indicates that the organization is not subject to Federal Unemployment Tax Act (FUTA).

  3. The organization is accorded this exemption from FUTA tax until their application for exempt status is ruled on or it is determined that an application has not been submitted.

Employment Code (EC) "Z"

  1. This code is assigned to Federal Credit Unions.

  2. This Employment Code does not behave like other Employment Codes as Federal Credit Unions are liable for Form 940. All other ECs indicate the taxpayer is not liable for FUTA, Form 940.

Integrated Data Retrieval System (IDRS)

  1. The Integrated Data Retrieval System (IDRS) is used to access and update taxpayer information. IDRS is to be accessed for official business only. Never access your own TIN, or the TIN of a friend, acquaintance, or family member. Unauthorized access is prohibited by law and can result in removal from the Service.

  2. This subsection lists many of the IDRS Command Codes (CCs) used by Entity TEs. This list is not all inclusive.

  3. One of the key elements on IDRS Entity TEs must understand is the Filing Requirement Code (FRC),

    1. The FRC is used to identify the type of return to be mailed to the taxpayer.

    2. If the taxpayer has a FRC and does not file a return, the FRC is used to perform a delinquency check.

  4. The FRCs are input with CC ESIGN, BNCHG or EOCHG or in some cases will be established when a return posts.

  5. Whenever an account is established (TC 000) on the BMF it must have an entry in one of the filing requirement fields, including not required.
    For example, a corporation will have an 1120 FRC and possibly FRCs for Forms 940 and 941. A social club may not need any FRCs, therefore, you must enter a "1" in the Not Required field at the end of the FRCs on CC BNCHG.

  6. The validity checks for filing requirements on CC ESIGN are in IRM 3.13.2.6.2.

  7. The validity checks for filing requirements on CC BNCHG are in IRM 3.13.2.6.3.2.

  8. The validity checks for filing requirements on CC EOCHG are in IRM 3.13.12 (EO Entity IRM).

  9. For a list of the MFT, Form, Type of Return, filing requirements, when to file and the Statutory date for all returns refer to Document 6209, IRS Processing Codes and Information.

Research Command Codes (CCs)

  1. Research must be performed to determine if there is an EIN already assigned to a taxpayer before a new EIN is assigned. Be sure to research using the Entity "sort line format" and the Accounts Management Modernized Internet EIN (Mod IEIN) "enter as taxpayer did" format. See IRM 21.7.13, Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EINs). Many consolidation cases have been created due to the taxpayer being on IDRS with two different name controls. Be very cautious so as not to create new work. You should research both ways: historical format used in Entity and Modernized Internet EIN "enter as taxpayer did" format.

  2. There are several systems available in the campus for research as follows:

    • The Taxpayer Information File (TIF) CC ENMOD;

    • The BMF with CCs BMFOL/BRTVU/INOLE;

    • Tax Modules that are on IDRS with CC TXMOD;

    • Everything available on IDRS with CC SUMRY;

    • The Entity Control Log of Bulk EIN Assignments;

    • On-Line Entity and related CCs;

    • The Name Search Facility (NSF) CC NAMES, for SSN research, and NAMEE for EIN research, and NAMEB search for EINs for both primary and "doing- business-as" (DBA) names; and

    • The Name Search Facility (NSF) CC NAMEI to research individuals.

    • IDRS CC Job Aids on SERP.

    • IAT New Name Tool

CCs MESSG and STATS
  1. CC STATS is the first page of IDRS that appears when the user signs on to IDRS. STATS will reflect today's date and the availability of IDRS.

  2. CC MESSG is used to report daily IDRS and miscellaneous information at each campus. CC MESSG can be accessed at a different site via Universal access.

  3. Some of the specific items shown on CC MESSG include:

    • Availability of IDRS realtime and CCs, including problems experienced by CCs;

    • Correspondex status and updates;

    • Lockbox information; and

    • Campus user support information.

CC FIEMP
  1. The use of this CC enables IDRS users to identify and contact case control owners by researching the ten digit IDRS number of the employee. The user will enter CC FIEMP, one blank space, then the ten digit IDRS number of the case control owner.

  2. CC FIEMP displays the following information:

    • Case control owners name;

    • Standard Employee Identification (SEID);

    • Employee's (or their manager's) telephone number; and

    • IDRS status of the employee (active or inactive).

  3. If CC FIEMP does not show the telephone number, the user may use the case owner's name or SEID to search the Discovery Directory on the IRS intranet or Outlook E-mail system to obtain a valid telephone number.

  4. CC FIEMP will only be used to research work related activities.

CCs NAMEE, NAMEB, NAMES and NAMEI
  1. CCs NAMEE and NAMEB search for EINs for both primary and "doing business as" (DBA) or trade names.

  2. CCs NAMES and NAMEI search for SSNs for both the primary and the secondary filer.

  3. These CCs access the national Name Search Facility (NSF) file at Enterprise Computing Center at Martinsburg and will search for phonetic and spelling similarities. Common abbreviations like Mr., Mrs., Jr., Irrv. Tr., M.D., Corp., and Inc. will not be used as search criteria. CC NAMES can search using last name "," first name or first initial or blank. Using a first name or an initial in addition to the last name is better than using the last name alone.

  4. NAMES/NAMEE does not perform searches on partial last names or partial first names.

  5. Search time for CCs NAMEE/NAMES and NAMEI/NAMEB is directly related to the quality of the input fields. The more specific the information entered, the shorter the search time.

  6. If the CC NAMEB first initial is a plus (+), matching is done on all 15 characters of the last name instead of the first 10 characters.

  7. NAMEB with the definer of X and a first initial of plus (+) will not use the additional last name characters (more than 10) as selection criteria.

  8. The most efficient search is done when the name and Zip Code fields are entered. The Zip Code field must contain a valid 3 or 5-digit Zip Code or will be left blank. It should not contain all zeros. The more specific the information entered, the shorter the search time. For example, a Zip Code search is faster than a state search. The Zip Code has priority over the state and the city, neither of which will be used if the Zip Code has been entered. The address (or partial address), if entered, is then used to further refine the search results.

  9. When a name is the only information entered, CCs NAMES/NAMEE will search default to a national search.

  10. If ** is entered in the state code field, a national search is performed.

  11. Do not query using blanks in the state and ZIP Code fields, because an error message will generate to say "Campus search not available for this campus."

  12. If "NO DATA FOR THIS NAME" is displayed, verify the input and try again after removing input fields in the following order street address, city name, and last 2 digits of Zip Code.

  13. NAMES/NAMEE does not automatically reduce the search. NAMES/NAMEE will display taxpayer names in the sequence of their probability of matching the requested name, with the best matches being displayed first.

  14. NAMEB and NAMEI do not use a formatted input screen like NAMES and NAMEE. Also if NAMEB and NAMEI does not find an exact match, the search will default to the point of searching for matching name. See IRM 2.3.60, IDRS Terminal Responses - Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP, for additional information.

  15. CC NAMEE - You can enter up to 70 characters in the Name Line. You must enter the zip code when present. If the zip code is not present then enter the state. The state can be optional when entering the zip code. To narrow the search, a minimum of 5 characters to identify the street address will be entered.

    Example:

    112 Peachtree St will be entered as "112 P" .

  16. The cycle format has been expanded to YYYYMMDD.

  17. For examples of needed fields for these command codes, see the IDRS Command Code Job Aid on SERP.

CC ENMOD
  1. This CC is used to provide a taxpayer's Entity account; BMF, IMF (Individual Master File), NMF (Non Master File), IRAF (Individual Retirement Account File) and EPMF (Employee Plans Master File). This CC shows all of the Entity data and transactions available on the Taxpayer Index File (TIF).

  2. The use of CC ENMOD is required prior to accessing CCs ENREQ, BNCHG, and INCHG.

  3. All Entity transactions post to CC ENMOD. Once CC ENMOD falls from the TIF, all Entity transactions are displayed on CC BMFOL'E'.

  4. There are two indicators for IDRS that will be displayed on CC ENMOD or CC BMFOL'E.' The indicators are Undeliverable As Addressed "UAA" and Undelivered "UD" . UAA will generate from FINALIST when it's not able to expand or hygiene an address. UD is generated from the input of TC 971 Action Code 661 when mail is received back from USPS as undeliverable.

  5. See IRM 2.3.15, IDRS Terminal Responses - Command Code ENMOD, for more information about CC ENMOD

  6. Always look for the Large Corporation Indicator (right below ENMOD) as Entity does not take any action on an EIN with a Large Corporation without consulting the assigned representative from the Large Corporation team. See IRM 21.7.1.4.11.4.

CCs FINDE/FINDS
  1. There are two new CCs to query the NSF database. When an EIN or SSN is entered, every name and address reported to that EIN will appear on your screen.

  2. CC FINDE searches the NSF data base using the taxpayer’s EIN and requires either of the following definers:

    1. D – Only BMF Domestic names and addresses are displayed.

    2. I – Only BMF International names and addresses are displayed.

  3. CC FINDS searches the NSF data base using the taxpayer’s SSN and requires either of the following definers:

    1. D – Only IMF Domestic names and addresses are displayed.

    2. I – Only IMF International names and addresses are displayed.

  4. To search using CC FINDE/FINDS, input the appropriate CC plus the definer D or I and use the taxpayers EIN/SSN (without hyphens or dash).
    Example
    FINDED020278969, will display the domestic names and addresses for EIN 02-0278969.
    The domestic or international addresses/names for the appropriate EIN will display in cycle/year order. The most current taxpayer information will display first and includes any subsequent names/addresses displaying in descending order.

  5. The cycle format has been updated to YYYYMMDD.

  6. See IRM 2.3.60 , Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP for additional information.

CCs INOLE, BMFOL
  1. Command Code INOLE is designed to display Master File entity data (including SSA name controls, Cross Reference information, and Merge Transactions) for a specific Taxpayer Identification Number (TIN) residing on the NAP. The request type (via command code definer) determines the kind of data desired by the requester. Requests are researched via the input TIN. If primary TIN is unknown, a request may be input with the spouse's TIN. There are five types of INOLE inquiries that can be requested.

  2. Command Code INOLE input with the definer "G" — an unedited or edited TIN will be input. This command will be useful when the tin type is unknown. The returning screen will contain any nameline information available for any account attributable to that number, regardless of file if edited TIN is input. This request type involves multiple database accesses and should be used only when necessary.

    1. Command Code INOLE input with the definer "T" — an edited TIN (either SSN or EIN) and file source will be input. This command will be useful when research is desired on all accounts with the same SSN or EIN. Nameline and street address information will be returned to the user for each matching account.

    2. Command Code INOLE input with the definer "S" — an edited TIN and file source will be input. This request type will be most useful when the specific account is already known. Name lines (current and prior), street addresses, tax year, Social Security name controls, cross reference and other information specific to the type of account being requested will be returned to the user.

    3. Command Code INOLE input with the definer "X" — an edited TIN and file source will be input. This request type will be most useful when researching TINs that have no Master File account. DM1 name controls, Cross reference and merge transaction information will be returned to the user. Information returned to the user will be specific to the file source input. On SSN requests, both tin types (valid and invalid) will be searched for data, regardless of file source input. If a file source of IMF valid is input, the resulting display will show data for both the valid and invalid accounts if such data exists.

    4. Command Code INOLE input with the definer "P" — an edited EIN, file source (P), and EPMF Plan number. This request type will be used to display EPMF Plan information. The EPMF SPECIFIC SCREEN is capable of displaying only five plan names. The screen display for the "P" definer is able to display up to ten plan names. The list of plan names displayed will begin with the plan number that is input, or the next highest number.

  3. The Business Master file on-line , BMFOL system provides read-only access to accounts on the Business Master File in Martinsburg, WV. All entities, master file tax modules and the most recent seven years of retention data are in on-line status. See IRM 2.3.59, IDRS Terminal Responses - Command Codes BMFOL and BMFOR.

    1. CC BMFOL with Definer "E" will show all Entity transactions posted to the Master File. This definer will also show
      Parent's EIN,
      X-REF TIN (owner's TIN),
      Railroad Retirement Board Number,
      Wages Paid Date/Business Operational Date and Business Close Date/Wages Last Paid Date,
      Employment Codes,
      Active FRCs,
      Entity module: Name, Address Fields.

    2. Definer "I" will show the modules that have been created on the EIN with an extension, return, or transaction code. The modules are listed in order of MFT. Entity will utilize several fields of the screen display.
      MFT
      TXPD (Tax Period)
      RET PST (Return Posted, Y=Yes, N=No)

    3. Definer "T" shows the specific tax module being viewed.
      Input the command code as follows:
      BMFOLTNN-NNNNNNN XXXXXXXX (X=MFT and Tax Period)

    4. Definer "R" shows the specifics of the return posted on the module. The input format is the same as Definer "T"

  4. Always look for the Large Corporation Indicator on Definer 'I' (fourth line of BMFOL'I') as Entity does not take any action on an EIN with a Large Corporation without consulting the assigned representative from the Large Corporation team. See IRM 21.7.1.4.11.4.

CCs SUMRY/TXMOD
  1. Command Code SUMRY should normally be used as a first contact with IDRS to determine if a tax module or Control Base exists in the TIF. The SUMRY display will show sufficient data to enable operators to close many cases and associate others in process without further research.

  2. CC SUMRY is used to request for display, a summary of a taxpayer's account which includes all tax modules meeting IDRS selection criteria. The display shows entity data on lines 1 and 2. Tax Module Data, including tax period, various indicators, IDRS Status, Control Base information, Control DLN, IDRS Module Balance and Freeze Codes for a specific tax period begins on line 3 and ends on line 4. Other tax period data follows every two lines until all tax modules have been summarized.

  3. Command Code TXMOD is used to request for display all tax module information for a specific tax period on the TIF. The display consists of Entity data, posted returns, posted transactions, pending transactions, and reject data if available on IDRS TIF. The display shows the latest control DLN of the return.

  4. Command Code TXMOD stores the TIN, File Source, TIN Type, MFT, Tax Period, Case Control Indicator, Name Control and, for EPMF, Plan Number as required data elements for subsequent processing.

  5. For TXMOD a command code definer is required. Definer "A" will display most tax module information present on the TIF.

  6. For more information on CCs SUMRY and TXMOD, see IRM 2.3.11, IDRS Terminal Responses - Command Codes TXMOD and SUMRY.

  7. Always look for the Large Corporation Indicator as Entity does not take any action on an EIN with a Large Corporation without consulting the assigned representative from the Large Corporation team. See IRM 21.7.1.4.11.4. The indicator can be found on:

    • Third line of CC SUMRY

    • Second line of CC TXMOD'A'

CCs RTVUE/BRTVU
  1. These CCs will display return information for both BMF and IMF.

  2. See the IDRS Command Code Job Aids on SERP for additional information on CC BRTVU and CC RTVUE.

CC ESTAB
  1. Use CC ESTAB to request documents from Files.

    Note:

    Whenever possible CCs BRTVU and/or RTVUE will be used instead of CC ESTAB.

  2. When requesting documents with CC ESTAB the DLN must be known.

    1. A Form 4251, Return Charge-Out, will be generated to Files for the document.

    2. Files will pull the document and route it to the requester.

  3. When requesting documents with CC ESTAB the file and type of information needed must be input.

  4. Be sure to use Form 2275, Records Request, Charge and Recharge, if document is not received after three timely requests.

  5. For additional information on CC ESTAB, see IRM 2.3.62 , IDRS Terminal Response - CC ESTAB and IRM 2.3.17, IDRS Terminal Responses - Command Code ESTABD.

CC TRDBV
  1. This CC is used to access tax return information after corrections have been made to the return by ERS and/or GUF.

  2. CC TRDBV is especially useful to Entity and Entity Unpostable TEs as it will show a DLN that has been renumbered or cancelled.

  3. Any case or document being processed under a Revenue Procedure will require the use of CC TRDBV.

  4. See IRM 2.3.73, Command Code (CC) TRDBV.

  5. Review of the IDRS Command Code Job Aid on SERP would be beneficial, see CC TRDBV .

CC MFREQ
  1. CC MFREQ Definer 'C' is used to request the Entity module or a tax module and its related entity data when case control is not required.

  2. MFREQ 'C' will download the module data from CFOL to the local IDRS while the user is waiting online.

  3. CC MFREQ Definer 'D' will bring the module data from Master File to IDRS approximately two weeks from the time of the request.

  4. MFREQ 'D' will create a dummy module on the local IDRS while waiting for IDRS information to load.

  5. The real module must not be on the local IDRS (TIF) for CC MFREQ to be used.

  6. See IRM 2.3.10.

CC EFTPS
  1. CC EFTPS is used to access payments made through the Electronic Federal Tax Payment System (EFTPS).

  2. This CC is not restricted.

  3. See IRM 2.3.70.

CC UPTIN
  1. CC UPTIN displays all open and closed Unpostables for a specific TIN and will maintain the Unpostable on it's file for display purposes for 90 days after it is closed.

  2. Each Unpostable Record will be sorted first by TIN, MFT, Tax Period and Transaction Code.

  3. The CC UPTIN data will be updated daily.

  4. Entity TEs working returns and issues involving Forms 2553 and 8832 should access CC UPTIN at both BMF campuses to get a clear picture of the taxpayer's case. If there is an open UPC 310/329, coordinate with the appropriate BMF Entity Unpostable Team:

    • Cincinnati - 859-669-4025 or 4012

    • Ogden - 801-620-6123 or 7093

    Note:

    Phone numbers are for internal use only.

CCs UPDIS/UPRES
  1. CC UPDIS will display the open unpostable case for a specific sequence number. CC UPDIS must be used prior to CC UPCAS and CC UPRES.

  2. CC UPRES allows the user to take action on the unpostable, either suspend or close.

  3. See IRM 2.3.48, IDRS Terminal Responses - Command Code UPDIS for the GUF System.

CC IRPTR
  1. Command Code (CC) Information Returns Processing Transcript Requests (IRPTR) allows IDRS users to request either on-line or hardcopy Information Returns Processing (IRP) transcripts from the Information Returns Master File (IRMF).

  2. CC IRPTR can be used to request data, either online or hardcopy transcripts, for a particular Payee (online or Hardcopy) or Payer (Hardcopy only) using Taxpayer Identification Number (TIN) along with one or more Tax Years (TY).

  3. See IRM 2.3.35, IDRS Terminal Responses - Command Code IRPTR.

  4. The IDRS Command Code Job Aid for CC IRPTR will show how to use the CC.

CC ESIGN

  1. BMF returns and payments are processed with Employer Identification Numbers (EINs). EINs are assigned from paper Forms SS-4 by Accounts Management, EIN Function. A taxpayer can also obtain an EIN by going online at http://www.irs.gov.

  2. CC ESIGN allows you to assign an Employer Identification Number (EIN). Always thoroughly research CCs NAMEE/NAMEB prior to initiating CC ESIGN. Always research using the "sort line format" and the Modernized Internet EIN "enter as taxpayer did" format.

  3. EINs are also assigned by Entity TEs when processing returns and payments in the form of "pipeline" , Rejects, and loose, unnumbered documents.

  4. The service no longer requires specific District Office codes to be used as the prefix for EINs assigned. When assigning an EIN, the Business Master File (BMF) sites will use (have used) the following prefixes:

    • Andover - 10, 12;

    • Atlanta - 60, 67;

    • Austin - 50, 53;

    • Brookhaven - 01, 02, 03, 04, 05, 06, 11, 13, 14, 16, 21, 22, 23, 25, 34, 51, 52, 54, 55, 56, 57, 58, 59, 65;

    • Cincinnati - 31,30, 32, 35, 36, 37, 38, 61;

    • Fresno - 15, 24;

    • Kansas City - 40, 44;

    • Memphis - 94, 95;

    • Ogden - 80, 90;

    • Philadelphia - 33, 39, 41, 42, 43, 45, 46, 47, 48, 62, 63, 64, 66 (reserved for taxpayers located in Puerto Rico, Guam, Virgin Islands, American Samoa, Northern Mariana Islands and Palau), 68, 71, 72, 73, 74, 75, 76, 77, 81, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 98, 99;

    • Modernized Internet EINs - 20, 26, 27, 45, 46, 47, 81, and 82 (The File Location Code (FLC) for TC 000 on EINs assigned via Mod IEIN will always be "28."

      Note:

      Long before the creation of Mod IEIN, Philadelphia used prefixes 26, 27 and 81 but had stopped.

    • International EINs will begin with prefix 98; and

    • Invalid EIN Prefixes are 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 69 (see IRM 21.7.13.2.4.1), 70, 78, 79, 89, and 96. EINs with one of these prefixes should never be put (back) on Master File with a TC 000. If you find an EIN on Master File with one of these prefixes, assign a new EIN and consolidate the invalid prefix into the new EIN.

  5. CC ESIGN will not allow the Primary Name line and the Sort Name line to be identical.

  6. If the assigned EIN has FRCs that are liable for federal tax payments, the taxpayer is pre-enrolled in the Electronic Federal Tax Payment System (EFTPS).

  7. Entity will complete every possible field of CC ESIGN when assigning an EIN. See IRM 2.4.8, IDRS Terminal Input - Command Codes ESIGN and BSIGN, IRM 21.7.13, Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EINs), and the IDRS Command Code Job Aid on SERP. The X-REF TIN TYPE and TIN of the entity's owner are required fields. If the taxpayer is a sole proprietor, we will also complete the SOLE PROPRTR SSN field.

  8. If you do not have the entity owner's TIN, a "9" will be entered in the X-REF TIN TYPE field. The X-REF TIN and X-REF TIN TYPE Fields will not be completed for non-profit organizations.

  9. See Exhibit 3.13.2-8 for the CP notice language generated by CC ESIGN.

  10. For disposition of Form SS-4, see IRM 21.7.13.3.2.11.

  11. The validity checks on filing requirements for CC ESIGN are listed in the chart below

  12. The valid range of values for Form 941 are 01, 02, 06, or 07. A Form 941 FR must have a "wages paid date" .

    If... Then...
    Form 941 FRC = 01 Form 940 FRC must be 1 or 2, unless EC is "G" or "W"
    Form 941 FRC = 02 EC must be "F" and Form 940 FRC must be blank
    Form 941 FRC = 06 Location Code must be 6601. Form 940 FRC must be "7" unless EC is "W"
    Form 941 FRC = 07 Location Code must be 6601. Form 940 FRC must be 1 or 2,. or "F" EC must be # or blank
    Form 944 FRC = 01, 02, 06, 07 Form 944 FRC is generated by Master File.
    Form 944–SS FRC= 06 Form 944 FRC is generated by Master File.
    Form 944–PR FRC = 07 Form 944 FRC is generated by Master File
    Form 1120C FRC = 0, 20 See CC EOCHG for positive filing requirements. A Form 1120C FRC 0 will delete the Form 1120C filing requirement on the BMF.
    Form 1120 FRC = 01, 03, 04, 06,07, 09, 10, 11, 16, 17, 18, 19, or 20 "Fiscal Year Month" (FYM) must be input The "Business Operation Date" (BOD) must be input. A FRC for Form 1065, 1066 or 1041 cannot be input.
    Form 720 = 1 or 4. The "Business Operation Date" must be input.

    Note:

    A Form 720 FRC is valid with all other filing requirements.

     
    Form 1041 = 1 or 2. The "Business Operation Date" must be input. The "Wages Paid Date" for FRC 2 must be present. A FRC for Form 1065, 1066 or 1120 cannot be input. The FYM must be input.
    If the FRC is 1041-1 only, CC ESIGN will generate an EIN within the six/seven million series
    Form 1041 QFT = 9 The "Business Operation Date" must be input. A FRC for Form 1065, 1066 or 1120 cannot be input. The FYM must be input.
    Form 1065 = 1 The "Business Operation Date" must be input. A FRC for Form 1041, 1066 or 1120 must not be input. The FYM must be input.
    Form CT–1 = 1 or 2 The "Business Operation Date" must be input. A Form 941 FR of 04 may also be input.
    Form 940 = 1, 2 or 7 The "Wages Paid Date" must be input.
    Form 940 FRC = 1 The Form 941 FR must be 01 or 06. The Form 943 FRC must be 1.
    Form 940 FRC = 2 The Form 941 FR must be 01 or 06. The Form 943 FRC must be 1.
    Form 940 FRC = 7 The location Code must be 6601. Form 941 FRC must be 7. The Form 943 FR must be 7.
    Form 943 = 1 or 7 The "Wages Paid Date" must be input,
    Form 943 = 7 The location code must be 6601.
  13. Form 945 valid range is 1. Form 945 FR is valid with all other filing requirements. If Entity can determine by taxpayer contact or the taxpayer indicates that they are liable to file Form 945 (for example, liable for non-payroll income tax withholding on backup withholding or withholding for pensions, annuities, IRAs, Indian gaming and gambling winnings) establish Form 945 FRC 01. Otherwise, DO NOT establish a 945 FRC. Form 1042 valid ranges are 0, 1 or 8. Form 1042 FR is valid with all other filing requirements. See Figure 3.13.2-4 for the CC ESIGN format.

    Form 2290 = 1 The "Business Operation Date" must be input.
    Form 1066 = 1 The "Business Operation Date" must be input. A FR for Forms 1120, 1041 and 1065 cannot be input.
    Form 11-C = 1 The "Business Operation Date" must be input.

    Note:

    Most Forms 11–C are not required to file Form 730

    Form 730 = 1 The "Business Operation Date" must be input. The FRC for Form 11–C must be a 1.

    Figure 3.13.2-4

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    Please click here for the text description of the image.

Update CCs

  1. This subsection covers IDRS CCs that are used to update Master File.

  2. For additional information on any CC, see the IDRS Command Code Job Aids on SERP.

CC ACTON
  1. Command Code ACTON may be used to establish control bases, to update or close control bases that are open, to correct name controls on dummy accounts, to add history items to modules on IDRS, and to generate TCs 902 to secure tax modules and their related entity data from the Master File.

  2. For more information on CC ACTON, see IRM 2.3.12 , IDRS Terminal Responses - Command Code ACTON and CC ACTON.

CC ENREQ/BNCHG
  1. CC ENREQ must be preceded by CC ENMOD. For specific information on character/space limitations for CC ENREQ/BNCHG, see IRM 2.4.9, IDRS Terminal Input - Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

  2. The following list reflects the filing requirements that can be input with CC ENREQ/BNCHG. With CC BNCHG a filing requirement can be added, changed or deleted on the BMF.

  3. Form 941 valid ranges are blank, 00, 01, 02, 04, 06, 07, 09, 10, 11, 13 or 14. A Form 941 FR 00 will delete the Form 941 filing requirement on the BMF.

    If... Then...
    Form 941 FR = 01 Form 940 FR must be a 1 or 2, unless EC input is: "W" , "G" or "T" is also input.
    Form 941 FR = 02 There must also be input an EC of "F" .
    Form 941 FR = 04 A TC 070 must be posted. See IRM 3.13.12, Exempt Organization Account Numbers
    Form 941 FR = 06 The location code must be 6601 or 9801.
    Form 941 FR = 07 The Form 940 FR must be a "7" , unless the EC input is a "W" or "T" .
    Form 941 FR = 09 The transaction code cannot be 000.
    Form 941 FR = 11 If an EC is present, it must be: "T" , "S" , "M" , "W" or "9" .
    If an EC is not present, input a Form 940 filing requirement code of "1" or "2"
    Form 941 FR = 13 The location code must be 6601.
    Form 941 FR = 14 The location code is input it must be 6601. If an EC is present it must be "W" or "T" and the Form 940 filing requirement code must not equal a "1" , "2" or "7" .
    If an EC is not present, the Form 940 filing requirement code must be "7"
    Form 944 FR = 01, 02, 03, 11
    944 SS FR = 06, 13
    944-PR FR = 07, 14
    Input 00 to remove the Form 944 FR. Use (0-9) to establish the 944 Establishment Year in year format (YYYY).
  4. Form 1120 valid ranges are blank, 00, 01, 03, 04, 06, 07, 09, 10, 11, 16, 17,18, 19 or 20. A Form 1120 FR-0 will delete the Form 1120 filing requirements on the BMF.

    Note:

    If a Sole Proprietor SSN is present on an EIN, an annual FRC (MFTs 02,05,06, etc.) cannot be added. If needed, delete the Sole Proprietor SSN by entering 000-000-0001.

    If... Then...
    Form 1120 FR = 01, 03, 04, 06, 07, 09, 10, 11, 16, 17, 18, 19 or 20 The FYM must be input
    A filing requirement for Form 1041 or 1065 must not be input or must be zero.
    Form 1120 FR = 15 The input campus must be OSPC.
    Form 720 FR = 9 The transaction Code cannot be 000.
    Form 1041 FR = 1 or 2 The FYM must be input. A filing requirement for Form 1065 or 1120 must not be input, unless it is zero.
    Form 1065 FR = 1 The FYM must be input. A filing requirement for Form 1041 or 1120 must not be input, unless it is zero.
    Form 1066 FR = 1 A filing requirement for Form 1120, 1041 or 1065 cannot be input, unless it is zero. The FYM must be 12.
    Form CT–1 FR of 1 or 2 The Railroad Retirement number must be input.
    Form 940 FR = 1, 2, or 7 A FR for Form 941, or 943 must be input.
    Form 940 FR = 1 A Form 941 FR of 01, 09, or 10 must be input. A Form 943 FR of 1 must be input.
    Form 940 FR = 2 A Form 941 FR of 01, 09, or 10 must be input. A Form 943 FR of 1 must be input.
    Form 940 FR = 7 A Form 941 FR of 7 must be input. A Form 943 FR of 7 must be input.
    Form 943 FR = 7 The location code must equal "6601" .
  5. Form 1042 valid ranges are blank, 0 or 1. A Form 1042 FR 0 will delete the Form 1042 filing requirement on the BMF.

  6. Form 990-T valid ranges are blank, 0 or 2. A Form 990-T FR 0 will delete the Form 990–T filing requirement on the BMF. Form 990-T FR = 2; The FYM must be input. A Form 1041, 1065 or 1120 filing requirement greater than zero cannot be input.

  7. Form 5227 valid ranges are blank or 0. A Form 5227 FR 0 will delete the Form 5227 filing requirement on the BMF. Use CC EOCHG to add/update FRC.

  8. Form 990–PF valid ranges are blank or 0. A Form 990–PF FR 0 will delete the Form 990–PF filing requirement on the BMF. Use CC EOCHG to add/update FRC.

  9. Form 2290 valid ranges are blank, 0 or 1. A Form 2290 FR 0 will delete the Form 2290 filing requirement on the BMF.

    If... Then...
    Form 11–C FR = 1 Form 11–C FR must be 1.
    Form 730 FR = 1 Form 730 FR must be 1.
  10. Forms 990/990EZ valid ranges are blank or 0. A Form 990 FR 0 will delete the Form 990 filing requirements on the BMF. Use CC EOCHG to add/update FRC.

    If... Then...
    Form 706GS(D) = Blank, 0 or 1 Input must be to a BMF EIN or SSN account only. MFT must be input to update Form 706GS(D) FRC.
    Form 706GS(T) = Blank, 0 or 1 Input must be to a BMF EIN account only.
    Form 706GS(T) FRC = 1 Only Forms 1041, 720, 940, 941 or 943, 944 FRCs may be input.
  11. Form 945 valid ranges are blank, 0, or 1. A Form 945 FR = 0 will delete the Form 945 filing requirement on the BMF. Form 945 is valid with all other filing requirements. If Entity can determine by taxpayer contact or the taxpayer indicates that they are liable to file Form 945 (for example, liable for non-payroll income tax withholding on backup withholding and withholding for pensions, annuities, IRAs, and gambling winnings) establish Form 945 FRC 01. Otherwise, DO NOT establish a 945 FRC.

  12. Not Required

    1. Valid range blank, 0 or 1.

    2. This field is used when the EIN needs to be placed on the BMF, but a filing requirement is not necessary. See Figure 3.13.2–3.

  13. Use this CC to request a BNCHG format for input of an entity change transaction. It must be preceded by CC ENMOD.

    1. ENREQ is designed to initiate BNCHG. CC ENREQ with a blank definer is keyed in after a response to ENMOD indicates that the entity is on the file. Response to "ENREQ" is a generated BNCHG format for BMF.

    2. CC ENREQ with an "R" definer is keyed in after response to ENMOD indicates that the entity is on the file. Response to CC ENREQ'R' is a generated BRCHG format for BMF or EPMF accounts.

    Figure 3.13.2-5

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    Please click here for the text description of the image.

  14. The TIN will be validated with CC ENREQ and EOREQ. In order for a TC 000 to be input, a TC 000 intend indicator of 1 must be input in space 20 with the CCs ENREQ or EOREQ. If the TIN is not on the Master File when the indicator is input it will allow the TC 000 to post. If the TIN is known to be on the Master File and no TC 000 intend indicator is input the appropriate TC (those other than TC 000) can be input. See Figure 3.13.2-6

  15. When the TIN has been validated the input transaction can be made. If the TIN is not validated, research or contact the taxpayer.

  16. If research or taxpayer contact does not resolve the discrepancy in the TIN, each case will have to be resolved based on the taxpayer's change.

  17. If a TC 000 intend indicator is input and the TIN is already on the MF, an error message "TIN EXISTS ON MF" will be generated.

    1. Compare the input TIN with the source document to determine if a transcription (finger) error was made.

    2. If a finger error has been made, correct the EIN and re-input the transaction. Be sure the TC 000 intend indicator is correct.

    3. If a finger error was not made, research using CC INOLE and NAMEE to ensure the EIN is for the taxpayer. If it is, it may be necessary to make an entity change. Re-input the transaction and change the TC 000 intend indicator to blank.

    4. If the input TIN is on the MF for a different taxpayer, assign a new EIN if the source document is other than correspondence. If the source document is correspondence, return it to the taxpayer with a Form SS–4 explaining that the EIN has already been assigned to another taxpayer. Before their correspondence can be processed, a valid EIN is needed.

  18. Because the ESIGN (TC 000) is held for quality review, care will be taken when changing information while the transaction is pending. If Quality Review needs to reject the ESIGN, the transaction will not post. If it is determined that the action must be input, use CC ENREQ with an intend indicator 1 to access the dummy module and use posting delay code as needed.

  19. The TE establishing the EIN needs to add to or change information, input CC ENREQ with an intend indicator 1 to access the dummy module. This will access CC BNCHG. Input the additional or correct information required and use posting delay code as appropriate.

  20. Complete research (including CC INOLE if necessary) will be performed prior to executing any entity change. Any transaction that needs to be cycled or held for later input can be cycled up to 6 cycles using a Posting Delay Code (PDC). See IRM 2.4 , IDRS Terminal Input.

  21. If the information that will print on the CP 575 needs to be changed, such as mailing address, primary name line, etc. use CC ESIGN'T' to remove the newly assigned number. Reassign an EIN to allow the CP 575 to be delivered with the correct information.

  22. The transactions input with CCs ENREQ/BNCHG follow:

  23. Transaction Code 000: This transaction code establishes an account on the BMF (See Figure 3.13.2–3). The following fields must be input:

    • TC 000, and

    • New Name Control, and

    • Primary Name, and

    • Complete Address, and

    • Filing Requirement (If a filing requirement is not needed, input a "1" in the NOT-REQUIRED field. See Figure 3.13.2–3.)

      Exception:

      If the TC 000 is input for a BMF SSN account, then no filing requirements should be input, including NOT REQUIRED.

      Note:

      Complete research (including CC INOLE if necessary) will be performed before executing any entity change. Any transaction that needs to be cycled or held for later input can be cycled up to 6 cycles using a PDC. See IRM 2.4 , Terminal Input.


    If the EIN assigned has FRCs that require federal tax payments, the taxpayer is automatically pre-enrolled in EFTPS.
    The "Notice of Intent" indicator 1 must be entered in line 1, space 20 of IDRS screen when establishing an EIN with a TC 000.

    Figure 3.13.2-6

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    Please click here for the text description of the image.

  24. Transaction Code 012: This transaction code reopens an inactive account where a consolidation has been attempted but failed (because of duplicate modules, invalid FRCs, etc.) or a TC 020 failed because modules exist (See Figure 3.13.2–5). Filing requirements of such accounts are all "8."

    The transaction will not post to the account unless all filing requirements are changed to either a significant code or zero.

    Note:

    Do not re-open an EIN if the words "ID THEFT " or "FRAUD " are on one of the name lines.

    Caution:

    The Detroit Computing Center (DCC) was assigned an EIN ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for the sole purpose of providing the “Payer” EIN on Form 1099-INT statements issued by IRS to taxpayers who have received interest on their federal refunds. The Detroit Computing Center is not a “true” taxpayer account entity. Do not input a TC 012 or post payments or returns to this account. Refer to SERP Alert 12A0279

    Figure 3.13.2-7

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    Please click here for the text description of the image.

  25. Transaction Code 013: This generated transaction code indicates the primary name line has been changed. See Figure 3.13.2–6.

    1. Always use the Master File name control, not a check digit or dummy name control when changing the name lines.

    2. If it appears that a change in ownership has occurred which will require a new EIN, correspond with the taxpayer using Letter 45C.

    3. Name changes to SSN accounts will be processed using TC 040 or TC 041.

    4. A name change can be processed from any type of correspondence, return, payment, etc., if one of the following is indicated in the examples; Formerly Known As (FKA); Also Known As (AKA); New name; Old name; Name change box is checked on a return (if present). You may research the Secretary of State's web site(s) for name change verification. If truly needed, phone contact with the taxpayer can be initiated.

    5. If none of the above is indicated, correspond with the taxpayer to verify the correct name.

    6. If correspondence, notices, or C letters sent by the Service that solicits or requires a response from the taxpayer are returned to the Service by the taxpayer with corrections marked on the taxpayer's Primary Name information, the correspondence will constitute clear and concise written notification of a name change. The taxpayer's signature is not required on the correspondence, notice or C letter.

      Figure 3.13.2-8

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      Please click here for the text description of the image.

  26. Transaction Code 014: This generated transaction indicates a change has been made to the mailing address fields. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction. If you are unable to determine the name and/or title, enter "SIGNATURE ILLEGIBLE" and the requester's phone number (if available). See Figure 3.13.2-9.

    Figure 3.13.2-9

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  27. Transaction Code 016: This generated transaction code indicates a change to any of the following fields:

    • BMF filing requirements/WPD/BOD;

    • Railroad Retirement Board Numbers;

    • Form 8123 code;

    • Fiscal Year Month (FYM);

    • Employment Code (EC);

    • Date of Death;

    • Sole Proprietor SSN;

    • Sort Name;

    • Location street address;

    • Location city, state, and ZIP;

    • Care Of Name;

    • X-REF-TIN-ITIN-IND/X-REF-TIN-ITIN;

    • EIN-EST-DT;

    • DT-WG-L-PD/DT-BUS-CLD; and

    • See Figure 3.13.2-10.

    1. To delete an erroneously input Sole Proprietor SSN, input 000–00–0001 in this field. To correct a wrong SSN, input the correct sole proprietor SSN. It will be over laid in the sole proprietor SSN field. To delete an erroneously input X-REF TIN, input "0" in the X-REF TIN IND field and enter 000-00-0001 in the X-REF TIN field, minus hyphens. To correct a wrong X-REF TIN, input the correct XREF TIN. Overlay it in the X-REF TIN field.

    2. These items are input as a result of correspondence and unprocessable returns and documents.

    3. A TC 016 with special DLN XX963-888-88888-X is generated to validate sole proprietor's Social Security Number (SSN) in the entity.

    Figure 3.13.2-10

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    Please click here for the text description of the image.

  28. Transaction Code 020: (This Transaction Requires Management/Lead Approval) This input transaction code deletes an account from Master File if no modules are present which contain return or credit transactions. Recently this TC has been used on EINs resulting from ID Theft or Fraud. When this is the case, the words "ID THEFT" or "FRAUD" will be entered on the Continuation of the Primary Name Line. This TC is restricted to BMF Entity TEs. See Figure 3.13.2–11.

    Note:

    Accounts with modules present will remain on the BMF but all the filing requirements will be changed to "8" to indicate that the account is in inactive status.

    Figure 3.13.2-11

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    Please click here for the text description of the image.

  29. Transaction Code 030: This generated transaction code indicates the location codes have been updated when a change in campus code is involved. If a TDA is being transferred, use document code 50; otherwise, use document code 63.

  30. Transaction Code 040: This input transaction code changes an SSN or name of an account to the valid portion of the BMF. See Figure 3.13.2-12.

    • This transaction must be input to a BMF valid SSN account.

    • If Primary Name is entered, New Name Control and Continuation of Primary Name are the only fields that may be entered. Remarks must also be entered.

    • If new SSN field is entered, Posting Delay Code and the Remarks fields are the only other fields that may be entered.

    • For specific instructions on inputting TC 040, see IRM 2.4.9-6.

    Figure 3.13.2-12

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    Please click here for the text description of the image.

  31. Transaction Code 041: This input transaction code changes an SSN or name of an account to the invalid portion of the BMF. This transaction must be input to a BMF invalid SSN account. See Figure 3.13.2-13.

    1. This transaction must be input to a BMF invalid SSN account.

    2. If Primary Name is entered, then no other data except Continuation of Primary Name may be entered. Remarks must be entered.

    3. If a new SSN is entered, then no other data except Posting Delay Code and the Remarks field may be entered.

    Figure 3.13.2-13

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    Please click here for the text description of the image.

  32. Transaction Codes 07X: TCs 074, 075, 076, 077, and 078 are used when processing Form 8832, Entity Classification Election. TCs 070 through 073 are used when processing Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes. See IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers

  33. Transaction Codes 090 through 097: are used when processing Form 2553, Election by a Small Business Corporation. See IRM 3.13.2.22.

  34. Transaction Codes 098 and 099: are used when processing Forms 56, Notice Concerning Fiduciary Relationship. See IRM 3.13.2.18.

CC ENREQ "R" /BRCHG
  1. CC BRCHG is restricted to Entity. Listed below are the transactions used by Entity for this CC.

  2. Transaction Code 011: is used to consolidate two EINs. See IRM 3.13.2.13.

  3. Transaction Code 053: identifies a change to accounting period as a result of an approved Form 1128, Application to Adopt, Change, or Retain a Tax Year. See IRM 3.13.2.20 .

  4. Transaction Code 054: identifies an approved FYM under Rev. Proc. 2006–46. See IRM 3.13.2.20.5 . TC 054 also represents an approved Form 8716 for a Personal Service Corporation.

  5. Transaction Code 055: identifies an approved FYM under IRC Section 444 on Form 8716, Election To Have a Tax Year Other Than a Required Tax Year. See IRM 3.13.2.21.

  6. Transaction Code 058: identifies a denied Form 8716. See IRM 3.13.2.21.3 (1).

  7. Transaction Code 059: identifies a denied Form 1128. See IRM 3.13.2.20.9 (1).

CCs LPAGE/LPAGD/LETER/LREVW
  1. These command codes are used to send and delete letters from IDRS.

  2. CC LPAGE initiates CC LETER which composes and sends the letter. This is the second step in building a letter. Enter all the information needed to generate a taxpayer letter, including the Salutation, Selective Paragraph codes, Signature Title code, and fill-in content. CC LPAGE must be preceded by one of the following — CC LETER, CC ADJ54, CC DOALL, CC EPLET, CC LREVW, CC NOREF, CC IAPND, CC IAREV, CC IAORG, or CC QRACN. CC LPAGE checks the complete letter request for validity and consistency with the Form Letter being requested. If valid, the command code accesses the CAF and Reporting Agents File (RAF) in order to generate additional copies of the letter with authorized representatives' names and addresses. If the letter to the taxpayer will close a case, you may enter a Control-Sequence-Number on the CC LPAGE screen, and when the letter goes out, we will close that control base.

  3. See Exhibit 2.4.6-2 for screen display. Upon termination of a successful CC LPAGE request, the TIN, MFT code, tax period, and plan number, if any, will be "unprotected" again, so that the user will be able to input data or type over these fields for their next IDRS transaction. For July 2006, LPAGE will check the letter pending database to see if there was an earlier letter input. If so, it will put out a message to use definer 'S' if the user wants to create a duplicate letter. At the end of a successful request, LPAGE will update this same database using input operator's employee number as the key.

  4. CC LPAGD deletes a letter sent the same day of Realtime processing. The same employee who input the original letter must input the LPAGD using the same TIN, MFT-CODE, Tax Period, Plan Number, and Form Letter Number. All these fields, including the input Employee Number must match or the letter request will not be deleted, and a taxpayer letter will be generated.

  5. This is another tool to improve the quality of outgoing correspondence. To use CC LREVW, set the "View" indicator on the CC LPAGE screen to "Y" and transmit. CC LREVW will be automatically executed for you. CC LREVW combines the Selective paragraph codes, fill-in content, and other optional entries you made on the LPAGE screen with the form letter you selected from the Master Letter File. The program operates like the end-of-day program, CRX03, and formats the letter with headings, salutations, 70 character print lines, and even page breaks identical to those used on the final letter. However, where CRX03 prints the letter on paper, CC LREVW will do it on your terminal screen. Your fill-ins will be highlighted with inverse video, so you will easily be able to see if you made any errors. The paragraphs you selected will be printed out completely. You can even see the name and title of the person you selected with your Signature Title code. After you have reviewed your letter, return to page one and make any corrections. When you are satisfied with your letter, set the "View" indicator to "N" and transmit CC LPAGE to send your letter.

CCs LLIST and LLIST'D'
  1. CC LLIST can be used to research whether a letter was input earlier in the day. Simply enter LLIST and the program will find all LPAGE records using employee number. If there is more than one screen, 'PAGE' will be used for display purposes. If the TIN/MFT/TAX PERIOD are entered, then only the LPAGE records for that one account will show. A search may also be done based on employee number. The order of the list will be 'LIFO' - last in first out.

  2. LLIST with definer 'D' can be used to delete individual LPAGE records. This command code should only be used after LLIST and only for deletes. You may delete more than one record on the same screen.

    • The cursor must be below the record you are deleting and above the PAGE prompt;

    • You cannot delete multiple records that are on different screens;

    • Keep in mind, this is no different than using LPAGD. Deletes should not be done for letters created prior to the GENDATA swap and deletes done after the swap will go on the next day's Quality Review matches; and

    • Any deletes on duplicates will begin with the last one input and will delete all earlier versions.

CCs TELEA/TELEC/TELED/TELER
  1. Taxpayer phone numbers can be displayed on the TIF (CC ENMOD).

  2. CCs TELEA, TELEC, and TELED are used to add, change, and/or delete a telephone number from the TIF.

  3. If an EIN does not have a phone number, CC TELEA can be used to add the phone number to the EIN. If the phone number on an EIN is incorrect, CCs TELEC or TELED can be used to correct the phone numbers.

  4. If the EIN does not come up on CC ENMOD, the taxpayer's telephone number(s) can be viewed via CC TELER.

  5. See IRM 2.4.29, IDRS Terminal Input - Command Codes TELEA, TELEC, TELED and TELER for Telephone Processing.

CC REQ54/ADJ54
  1. These command codes are used to make adjustments to tax, penalty, and interest.

  2. BMF Entity use these command codes to create a DLN that allows other documents to be attached to electronic DLNs.

  3. See IRM 2.4.16, Command Codes REQ54 and ADJ54 and IDRS Command Code Job Aid for CC REQ54.

CC TMSSN

  1. This command code is used to assign Internal Revenue Service Numbers (IRSNs), also known as Temporary SSNs.

  2. IRSNs are utilized when a taxpayer's SSN cannot be located and a return or payment must be processed.

  3. BMF Entity primarily uses IRSNs when processing Estate and Gift (E&G) returns, Form 706 and Form 709 families, and Form 8288. IRSNs are also used when processing INVALID SSN TRANSCRIPTS, see IRM 3.13.2.19.1.

  4. CC TMSSN has two definers: "I" and "B." These indicators stand for IMF and BMF respectively.

  5. See IRM 2.4.59, IDRS Terminal input - Command Code TMSSN.

  6. Currently there is a problem processing Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests. When a request is received for an IRSN, process within required time frame.

Internal Revenue Service Numbers (IRSNs)
  1. BMF Entity uses Internal Revenue Service Numbers (IRSNs) for processing documents/payments when an SSN cannot be located. IRSNs are also called "Temporary SSNs."

  2. IMF Entity uses IRSNs for non-citizen filers and Identity Theft cases.

  3. An IDRS Command Code (CC) was created for the purpose of assigning IRSNs: CC TMSSN.

  4. IRSNs are the same format as an SSN (XXX-XX-XXXX), however, IRSNs will always begin with "9" .

  5. IRSNs will always be on the invalid segment, "W" , for example, XXX-XX-XXXXW.

  6. The fourth and fifth digits signify the campus that assigned the IRSN. See the chart below for details:

    Campus 4th and 5th Digits Expansion Ranges
    Andover 08 38
    Atlanta 07 37
    Austin 18 06
    Brookhaven 19  
    Cincinnati 17 02
    Fresno 89 10
    Kansas City 09 39
    Memphis 49  
    Ogden 29 04
    Philadelphia 28 05
    International 66  
  7. Currently, IRSNs are assigned in Austin, Cincinnati, Fresno, Kansas City, and Ogden. Each campus has the ability to assign an International IRSN.

Unprocessable Returns and Documents/Rejects

  1. Background—In order for a return or payment to be processable, it must have

    • A valid TIN;

    • A legible name or name control;

    • A valid tax year ending; and

    • Legible tax data.

    Note:

    Edit the name control and/or tax period if not previously edited. Current year calendar annual returns should not have a tax period coded. Tax periods are edited in YYMM format.

  2. Returns and payments not meeting the requirements to be processable are considered unprocessable. Returns and payments that are unprocessable will be received from:

    • Receipt and Control (Under BBTS Control) - These returns are commonly called "Pipeline." All return types will be controlled to Entity for resolution of Entity criteria: EIN perfection, FYM issues, FRC issues, etc. These returns are usually numbered with a DLN.

      Note:

      The Receipt and Control Operation (RCO) Payment Perfection Unit (PPU) needs EINs assigned to returns and payments on a daily basis. A local Customer Service Agreement (CSA) may be developed to allow expeditious processing of payments.

    • Document Perfection/Code & Edit (Unnumbered Returns) - This work is known as "Loose Returns." These returns are always unnumbered (no DLN).

    • Reject function (ERS Suspense) - The term "Rejects" is used to describe this work. This work is tightly controlled and is always numbered. The returns should be in the same order as the DLNs on the transmittal when batch is completed. Returns and Payments received from ERS Suspense will be assigned and processed as soon as possible upon receipt. These cases are time sensitive and must be closely monitored

    Note:

    For Payments/documents received from Rejects (ERS Suspense), research the Remittance Transaction Research (RTR) database and leave audit trail on RTR. See IRM 3.5.10, Remittance Transaction Research (RTR) System.

  3. Electronic returns are found on the Employee User Portal (EUP) and payments from Rejects are researchable via the Remittance Transaction Research (RTR) database. Entity will perform IDRS research to ensure taxpayer is using correct EIN and name.

    • EINs should initially be researched on IDRS with CCs ENMOD, BMFOL (definers 'E,' 'I,' 'T,' and 'R'), INOLE (definers 'G,' 'S,' and 'T') and FINDE/FINDS (definer 'D'). Compare TIN on Form 8161/voucher with TIN on Master File (MF). Utilize CCs SUMRY, TXMOD, and UPTIN to ensure TIN is correct. Names will be researched via CCs NAMEE, NAMEB, NAMEI, and NAMES

    • If EIN is not on Master File and has a prefix of 20, 26, 27, 45, 46, 47, 81, or 82 indicating it was assigned by Modernized Internet EIN (MOD IEIN), utilize CC ESIGN to issue a new EIN if there is enough information to ESIGN, using appropriate Notice Information Code.

    • If EIN is not on Master File and is not a MOD IEIN, but can be verified with CCs NAMEE, NAMEB, NAMEI, FINDE, or FINDS, input TC 000 with CC BNCHG entering correct FRCs, X-REF TIN fields, etc.

    • If an EIN cannot be located and the check does not contain enough information to assign an EIN, it will be considered "Unprocessable." If the check contains enough information to assign an EIN, ESIGN using NIC "D" . Send 147C requesting a completed Form SS-4.

    • All EINs will be assigned with the procedures in IRM 3.13.2.7.2(8).

    • If a valid EIN is found, utilize CCs BMFOL, IMFOL, TXMOD, SUMRY, BRTVU/RTVUE and UPTIN to ensure FRCs and FYM are correct. Send 147C informing the taxpayer of their correct EIN.

    • Edit Form 8161/voucher by circling out incorrect information such as name control, MFT, tax period and/or EIN. Edit correct information and underline in appropriate field(s) of Form 8161. If the form is processable, underline the Tax Period at the top of Form 8161 and edit MFT in Field (14) of Form 8161. If payment is Unprocessable write "unprocessable" in Field (14) of Form 8161. Enter audit trail as shown in IRM 3.13.2.7.2, with TE number and date.

    • Enter account information history item with the "Add a Note" feature of RTR including corrected information with TIN, MFT, Tax Period, Name Control or "Unprocessable."

  4. If received at the incorrect campus, returns/documents belonging to specialty/centralized programs will be transhipped to the correct campus. Exempt Organization returns will be transhipped to Ogden regardless of the campus receiving the return first. International returns are processed in Ogden with the exception of Estate and Gift (Forms 706/709 series) which are processed in Cincinnati. Documents received with an address outside the campus jurisdiction will be processed at the campus received. For example, if a California taxpayer submits his Form 2553 to Cincinnati, it will be processed in Cincinnati. If an Ohio taxpayer submits his Form 8716 to Ogden, it will be processed in Ogden.

  5. See IRM 3.30.123, Processing Timeliness Cycles, Criteria, and Critical Dates, for Entity Control's processing time frames for unprocessable returns.

  6. All BMF returns and documents must be controlled for accountability. The Batch Profile Report is used to control and identify cases in Entity Control.

  7. Do not take action on an EIN reflecting a Large Corporation Indicator (LCI) before contacting the specific representative for that Large Corporation. The LCI can be seen on CCs ENMOD (directly under ENMOD), BMFOL'I' (fourth line), TXMOD'A' (second line), and SUMRY (third line). See IRM 21.7.1.4.11.4

  8. If you are processing a return with a Name Change box and it is marked, update Master File to reflect the name entered on the return. Underline the new name control. If the Name Change box is not marked, and the name is different than what is on our records, verify the name change with Secretary of State office. If unable to verify the name change, edit the correct name control from Master File onto the return and underline it. Correspond with taxpayer asking for verification of the name change. Ask taxpayer to include a copy of any amendment documents pertaining to name change when responding to us.

    Exception:

    Trusts. The name entered on trust returns will vary depending on the person completing the return. When evaluating if a TC 013 should be input, compare the dates the trust was created/funded on Master File and the dates entered on the return.
    Also, Form 1041 now has boxes for changes in trust name, fiduciary, fiduciary's name, and fiduciary's address. If any of these boxes are marked, input the change requested by the box. Do not write the Taxpayer asking for documentation!

  9. Copies of page 1 of returns and documents that indicate a change in name or an address for EO accounts will be received from:

    • Receipt and Control Operation (RCO),

    • Document Perfection/Code & Edit (DPO/C&E),

    • Reject function (ERS Suspense).

  10. For processing copies or originals of EO returns or documents , see IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers.

  11. BMF returns will be placed on the error register when the input name control does not match the name control on the Entity Index File (EIF).

    1. Error Resolution/Rejects will perform research to determine if the taxpayer is using the correct EIN.

    2. If Error Resolution/Rejects determines that the EIN is for the same taxpayer, but the BMF is not name controlled properly, a copy of the first page of the return and any research will be forwarded to Entity Control.

  12. Process the photocopy of the return as follows:
    Compare the way the taxpayer shows his/her name on the return with the name as shown on the BMF,

    If... Then...
    a) The name control on the BMF is not according to acceptable name control procedures, Input the correct name control to update the BMF.
    b) The business name is not identified on the BMF as a sort name, Input the sort name in the sort name field to correct the BMF.
    c) There are misspelled names on the BMF, Input the changes in the correct name line fields to correct the BMF.
    d) It is obvious the BMF is correct, Destroy the photocopy of the return and take no action.
    e) A PO Box is indicated with a mailing address, Input the mailing address as the location and the PO Box as the mailing address.
  13. Copies of prior year Form 941-E for taxpayers with EC "G" and Social Security tax indicated may be sent to Entity for filing requirement determination. Contact the state administrator to determine if the entity are covered under Section 218. If they are covered under Section 218, update the account to reflect EC "T" and a Form 941-01 filing requirement code. If they are not covered under Section 218, return the case to Code and Edit to be processed as a Form 941.

  14. Returns with no entity data, (no name, EIN, SSN) may be forwarded to Entity from Receipt and Control.

    1. Review the form for a legible name on the signature line, schedules, or any attached correspondence.

    2. If possible locate a valid telephone number for the name secured. Contact the taxpayer, and if sufficient information is provided, perfect the return and continue processing.

    3. If a state unemployment reporting number is present in the body of the return, the state unemployment agency may be contacted for the entity information.

      Note:

      IRS may disclose return information for the purpose of obtaining information not otherwise reasonably available.

    4. Every available option to perfect the return will be utilized, including contacting the taxpayer by phone.

    5. If the return cannot be identified in any manner, see your manager for disposition of the form.

  15. Form 1120S filed under Internal Revenue Code 1377 (termination of a shareholder) will be sent to Entity Control for verification of "S" corporation termination.

    1. Review the return to verify the termination is for that shareholder only and the "S" corporation has not been terminated.

    2. If the "S" corporation is terminated use normal procedures for an "S" corporation termination.

    3. If the termination is for that shareholder only, contact the taxpayer who filed the Form 1120S. Let them know that a separate return is not required to terminate a shareholder and they should file Schedules K–1 for their terminated shareholders with Form 1120S at the end of their normal tax year. Also inform them that the Form 1120S that was filed is being returned.

    4. Notate on Form 4227 "Return to taxpayer" and send to the Reject function to void the DLN and return to the taxpayer.

  16. Modernized e-File (MeF) will refer cases to Entity via ERS Action Code 321. The Employee User Portal (EUP) will be accessed to verify Entity information. Any needed Entity transactions will be input by Entity TEs to ensure the taxpayer's information on Master File is current and correct.

  17. Forms 7004 or 1120 with a subsidiary listing (Form 851) will be sent to Entity by Code and Edit for verification of the subsidiary names, tax period and EIN. However, Code and Edit must research using CCs INOLE or BMFOL before the case is sent to the Entity function. If Code and Edit has not researched the subsidiary name, tax period and EIN, return the case(s) to the Code and Edit function.

    Reminder:

    TCs 590-014 cannot be input on 1120-20 FRCs until further notice.

    If... Then...
    a) The parent corporation's EIN is not on BMF and you cannot locate a valid number via research, Use CC ESIGN to assign a new number.
    b) The subsidiary's EIN is not on BMF and you cannot locate a valid number via research, Inform originating office not to enter the TC 590 - CC 014.
    c) The subsidiary has changed their name, Edit the name control from Master File onto Form 851. Send 252C requesting name verification.
    d) Code and Edit has requested a change, Update the module with the change.
    e) The FYM is the same as the parent, Input TC 590-014 for tax period of return.
    f) The FYM is different, Change it to match the parent's FYM and input TC 590-014 for tax period of return. Dummy a module for tax period of return using CC MFREQ’D’ first.
    g) Research indicates the subsidiary information has already been updated and the parent's EIN is on the BMF, Take no further action.
    h) The subsidiary is an LLC (or partnership) without a TC 076, Do not change or add FRCs. Correspond with the taxpayer requesting a valid Form 8832.
    i) If an entity shown on Form 851 is a QSub, Do not terminate the Subchapter S election. Send 3064C to QSub asking if election has been terminated.

    Note:

    The TC 590-014 should be input for the tax period of the return being processed.

  18. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  19. When processing returns and a letter must be sent, ensure the correct MFT and tax period are entered into CC LPAGE. If a letter has been sent within the last 45 days on the same MFT and tax period, do not duplicate letters.

  20. Entities have the ability to convert to a trust for liquidation purposes. If Form 1041 is received indicating the entity has converted to a trust, update the EIN to reflect the correct name and FRC.

  21. Always use prefix 66 when ESIGNing an EIN to a taxpayer located in American Samoa, Federated States of Micronesia, Guam, Northern Mariana Islands, Palau, Puerto Rico and Virgin Islands. See IRM 21.7.13.7.3.8.3.2. CC CMODE will be utilized.

  22. Always use prefix 98 when ESIGNing an EIN to a taxpayer with an international/foreign location address. If return does not have mailing and location addresses and mailing address is international/foreign, assign prefix 98. CC CMODE is used for EIN prefix 98. See IRM 21.7.13.3.2.7(5) for more information.

Statute Dates

  1. This section contains information on Statute Dates. If the Assessment Statute Date is imminent (two months prior to the ASED) notify the manager or work leader and initiate the necessary action to resolve the case.

  2. The ASED is identified by Generalized Unpostable Framework (GUF) and must be monitored to assure that statute does not expire.

  3. The ASED is generally determined as three years after the Return Due Date (RDD) or IRS received date, whichever is later. See Document 6209 , IRS Processing Codes and Information, for RDD information.

    Note:

    A return under statute criteria must be statute cleared every 90 days until posted.

Processing BMF Returns

  1. The following instructions are to be used when processing returns and documents with:

    • Missing or invalid EINs,

    • Change in ownership,

    • Multiple EINs,

    • Form SS–4 attached,

    • An address on the return that does not match IDRS

    • Indications of Bankruptcy/Receivership

  2. Research must be performed on all cases using CCs NAMEE and NAMEB when the EIN is missing or invalid.

  3. Before applying a return to a different EIN, always compare the return's deposit history with the deposits posted on Master File for the tax period of the return. For specific locations on applicable returns, see chart below:

    Form Number Location of Deposit History
    940 Part 4, Item 13
    941 Part 1, Item 13 or Part 2
    943 Area between Item 16 and Item 17
    944 Part 1, Item 8
    945 Item 4
    1120 Item 32
    1041 Item 25
    1042 Item 68
    720 Part III, Item 5
    2290 Part I, Item 5
    7004 Part V, Item 7
    1066 Section II, Item 2
    8752 Item 2


    If unable to find EIN with matching deposits, assign an EIN.

  4. Historically, a new EIN would be assigned to a corporation that moved from one state to another and re-chartered. However, Chief Counsel has determined if the business ownership remains the same, the original EIN should be retained and used by the taxpayer.

  5. ERS Action Code 320 is assigned to returns that need Entity attention.

    • If an Employment return (Forms 94X) falls out to ERS and the address needs attention and there is a Large Corporation Indicator on the account, ERS will suspend the return and forward to Entity. Entity will contact the Large Corporation Team as prescribed in IRM 21.7.1.4.11.4 for verification the address change is valid. If the Large Corporation team cannot verify the address change, do not update Master File. Instruct ERS to not take action on the address when routing return back.

    • If research locates an EIN on CC NAMEE, the entity must be verified by using CC ENMOD, INOLE and BMFOL.

    • If Form 1128 is attached to the return and the FYM is the issue, after taking corrective actions, leave a clear and concise audit trail on the routing sheet so ERS knows the disposition of the return.

    .

  6. Enter the EIN on the return or document and underline the name control. Circle out the invalid EIN if present. Notify the taxpayer of the correct EIN. If the taxpayer submits an EIN clearly changed from the one the taxpayer was assigned, issue letter 147C as a non-suspense letter, see (7) below. If the taxpayer makes an error in writing his/her EIN by three or less digits, uses his/her SSN (specifically on Form 2290) or fails to include the EIN, do not correspond after research reveals a valid EIN. However, if this return is the first return filed (check CC BMFOL'I'), notify the taxpayer of their correct EIN.

    Exception:

    Do not send 147C to taxpayer if EIN has been redacted by the software used to prepare the return. For example, asterisks or pound signs in place of digits.

    1. If the EIN located is correct on the BMF Master File Indicator (MFI) "P" and no module on the BMF MFI "B" TC 000 the account on Master File "B" tape (Intend indicator 1 to create a dummy module). Enter the EIN on the return or document, underline the name control, and release for processing.

    2. If the EIN located is correct but not on the BMF , use CC BNCHG with TC 000 (intend indicator of 1) to place the account on the BMF. Enter the EIN on the return or document and underline the name control. Release the return.

  7. Edit Form 8161/voucher for ERS return by circling out incorrect information such as name control and/or EIN. Write correct information and underline in appropriate field of Form 8161. If return is unprocessable, enter such in Field 7 of Form 8161. Edit in Tax Period and MFT or unprocessable in Field (14) of Form 8161. Enter audit trail as shown in IRM 3.13.2.7.2, with TE number and date.

  8. If an EIN is not located, assign a new EIN with CC ESIGN using the appropriate Notice Information Code (NIC), see below. Enter the Business Operation Date (BO) shown on the return. Annual returns have a box which contain the words: Date Incorporated (1120), Date Entity Created (1041), and Date Business Started (1065). Otherwise, use the first day of the beginning of the tax period. Enter the Wages Paid Date (WP) for Form 941, Form 943, Form 944, and Form 940. Determine the date as follows:

    • If a Form 941 the WP is the first day of the quarter;

    • If a household employer contact the taxpayer, if possible, to determine the date wages were first paid. If unable to contact the taxpayer use the date
      of 01–01–YY (the year of the return),

    • If a Form 943 the WP is the first day of the year; or

    • If a Form 940 contact the taxpayer using the telephone for the date wages were first paid. If available, use Form 940, Part III to determine the WP date. If unable to locate the taxpayer use the first day of the current quarter.


    Enter the new EIN on the return or document and underline the name control.
    See below for the NICs and the notice generated by each.

    If Use NIC To generate CP
    The EIN is being assigned to a return/document for which no other valid EIN can be found A CP 576
    The EIN is being assigned to a return/document which indicates there is a change in the business organization (for example, a sole proprietor to a corporation) which requires a new EIN B CP 577
    Notice and prior period analysis is to be suppressed D

    Note:

    This will also suppress TC 474 and TC 590.

    None
    EPMF EIN established for Plan Sponsor from Form SS-4 F CP 580
    The EPMF EIN assigned from Form SS-4 G CP 582
    EIN for Employee Benefit Trust assigned via the EIN Toll-Free Telephone Service H CP 583
    The EPMF EIN assigned via the EIN Toll-Free Telephone Service for Plan Sponsor F CP 580
    The EPMF EIN assigned via the EIN Toll-Free Telephone Service L CP 582
    The EPMF EIN assigned from Form 5500 family P CP 581
    Form SS-4 received with a return/document R CP 575

    Note:

    The use of a Return Identity Code (RIC) from the chart below is mandatory.

    Return/Doc RIC   Return/Doc RIC   Return/Doc RIC
    11-C 63   3672 72   8288 18
    CT-1 09   4461 61   8716 87
    1040-NR N2   4461-A 62   8868 E8
    1041 05   5227 37   8871 PL
    1041-A 36   5300 (MFI ‘O’) 53   8872 PL
    1042 12   5301 50   940 10
    1065 06   5302 52   940-EZ Z1
    1065-B 06   5303 58   941 01
    1066 66   5304 54   943 11
    1120 02   5306 56   943-SS S1
    1120-F F1   5307 57   944 14
    1120-H H2   5309 59   945 JN
    1120-L L1   5310 55   990 67
    1120-M M1   5330 35   990-BL 56
    1120-ND N1   5500 74   990-EZ Z6
    1120-PC P3   5500-C 7C   990-PF 44
    1120-POL P1   5500-EZ 7E   990-T 34
    1120-REIT R2   5500-R 7R   Household Employees ZZ
    1120-RIC R1   7004 E2   8038 46
    1120-SF S3   706-GS(D) D6   3520-A 42
    2553 (MFI ‘B’) 53   706-GS(T) T6   SGRI SG
    3520 68   720 03      
          730 64      

    Note:

    If a RIC is not listed for the Return/Document, NIC "D" will be used. Send 147C requesting taxpayer to complete and return Form SS-4

    Reminder:

    When ESIGNing an EIN to Forms 1120, 1120S, and 1041, and the return is claiming a refund, enter CCC ‘E’ on the return. This will place the return in a Return Integrity and Compliance Services (RICS) filter for fraud monitoring.

    .

    Return Refund Line
    1120 Line 35
    1120S Line 26
    1041 Line 28
  9. Use the chart below to determine the Filing Requirement (FR):

    If... Then...
    a) The filer is a Form 941 filer, Enter a Form 940 FRC also
    b) The name is a corporation or Inc, Enter a Form 1120 FRC
    c) The name is a partnership, Enter a Form 1065 FRC
    d) The name is an estate, Enter a Form 1041 FRC
    e) The name contains words such as mortgage, investors, mortgage securities, asset followed by the word trust, Enter a Form 1066 FRC
    f) The above words are not present with the word "trust, " Enter a Form 1041 FRC
    g) The unprocessable return is for a Form 730, Enter a Form 11-C FRC
    h) The unprocessable return or document is a Form 1041, or Form 1065, or Form 1120, Enter the appropriate filing requirement and enter the FYM on the return.

    Note:

    If return is Form 1120 and primary name indicates LLC, enter the default filing requirement of Form 1065 as the filing requirement. Include allow to unpost in the audit trail.

  10. If a return or document indicates a change in ownership, the research is performed on the new entity.

    • Enter the new EIN and name control on the unprocessable return or document, circle out the old EIN, name control (and/or check digit) of the former owner. Release the return.

    • If it can be determined that the original owner filed a return for the final period but it posted without condition code "F," input a TC 591, CC 020 on the next tax period to indicate the original owner is no longer liable for this type of tax.

    • If a final return has not posted correspond with the original owner using Letter 696C requesting a "Final" return.

  11. Multiple EINs

    • If multiple EINs are present, verify using CCs NAMEE, NAMEB, or INOLE.

    • The most active EIN on the module is the taxpayer's EIN.

    • If they are the same taxpayer, process using the consolidating accounts procedures.

    • If they are not the same taxpayer, determine the correct EIN for the name on the return and process according to (3) and (4) above.

  12. Return received with a Form SS–4 attached:

    • Process the Form SS–4 per instructions in IRM 21.7.13

    • Use NTC-CD> R , the correct RIC and tax period ending.

    • Annotate the new EIN on the return and underline the name control.

    • Release the return for processing.

  13. Returns received with a Form SS-4 attached and the account has already been established on the Master File:

    • If the Notice Code (NTC-CD>) on ENMOD is A or B, this indicates that a new EIN was assigned from a return/payment and a notice was sent to the taxpayer requesting completion of a Form SS-4 (See Figure 3.13.2-14).

    • To keep a second notice from being sent to the taxpayer, an ESIGN'U' transaction must be entered by the following steps:

    • Bring up the account on ENMOD.

    • Input ESIGN'U' and transmit.

    Figure 3.13.2-14

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  14. Before releasing the return for processing, an audit trail containing the TEs IDRS number must be entered in the lower left corner of the return. The following applicable format will be used:

    • EIN 'F' MMDDYYYY (used when TE finds the taxpayer's valid EIN)

    • EIN 'E' MMDDYYYY (used when TE must assign a new EIN to the taxpayer)

    • EIN 'OK' MMDDYYYY (used when correct EIN was already entered on the return)


    This is the "Return Processable Date" . This is the date the return became processable for purposes of calculating penalties and interest.

  15. If the return contains indication that it is for a bankruptcy or receivership, refer to IRM 3.13.2.9.16 (1).

  16. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  17. If the returns/documents are numbered, they must be in DLN order, as shown on the transmittal, before releasing.

  18. Do not input TC 599 if the return is annotated with "3177" , TC 59X, is an amended return (CCC "G" ), RPS return, Rejected return, unpostable return, or was secured by Examination. (Refer to the campus PCD calendar, available from your assigned Planning & Analysis (P&A) staff analyst.)

  19. If a letter must be sent to the taxpayer, check the cycle date of the last address change. If it is prior to the IRS received date of the Form/document/correspondence then address the discrepancy in the letter to the taxpayer. If the last address change cycle update is later than the IRS received date, do not address the discrepancy in the letter and use the address on the Master File.

  20. If the Program Completion Date (PCD) for the return is impending or the return was due in the past four weeks, input TC 599 CC 018 for the tax period on the return and annotate "TC 599" in the left margin of the return.

    Figure 3.13.2-15

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Processing IMF Cases
  1. Despite being BMF processing sites, both Cincinnati and Ogden will receive IMF cases if the taxpayer submitted to a BMF site.

  2. Most often, an Internal Revenue Service Number (IRSN) is needed to process the return/payment. BMF Entity has the ability to use CC TMSSN which assigns IRSNs. See IRM 2.4.59, IDRS Terminal Input - Command Code TMSSN. Also see IRM 3.13.2.6.4.1.

  3. If assistance is needed, contact one of the IMF sites:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. See IRM 3.13.5, IMF Account Numbers.

Form 940/ 941 SCRIPS

  1. Entity is responsible for editing entity changes on all SCRIPS Forms 940/941. Entity will do the following when editing Forms 940/941 for SCRIPS:

  2. Edit an asterisk (*) to the left (as close to the entry as possible) of the incorrect EIN and/or name control. This will prompt the system to stop on the indicated field.

  3. Line through the incorrect information.

Forms 941, 943, 944, 945 and 940 - Employment Returns

  1. Form 941, Employer's Quarterly Federal Tax Return
    See Figure 3.13.2-16.
    Use Pub 15, Employer’s Tax Guide (Circular E), for resolving questions concerning Employer's Tax for Form 941, Form 940, Form 944 and Form 945.

    1. This return is filed by taxpayers with employees. Services performed by a son/daughter age 18 or older are taxable for social security and Medicare purposes.

    2. Services performed by a spouse are taxable for social security and Medicare purposes.

    3. Cash tips are wages and are subject to social security and Medicare tax. A separate line has been retained on the return for this item.

    4. The return is filed to report withheld income tax and social security and Medicare taxes.

    5. The return is filed on paper Forms 941 or e-file.

    6. The return is filed four times a year, with the tax period ending on the following dates and the return due accordingly:
      March 31 and the return due on April 30.
      June 30 and the return due on July 31.
      September 30 and the return due on October 31.
      December 31 and the return due on January 31.

      Exception:

      Intermittent filer

    Figure 3.13.2-16

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  2. Form 943 - Employer's Annual Tax Return for Agricultural Employees
    Use Pub 51, Agricultural Employer’s Tax Guide (Circular A), for resolving questions concerning agricultural employers. See Figure 3.13.2–17. This return is filed by Employers of Farm workers. A farm worker is an employee of the operator of a farm who:

    1. Raises or harvests agricultural or horticultural products; or Cares for the farm and equipment; or

    2. Handles, processes, or packages any agricultural or horticultural commodity, if over half is produced on the farm; or

    3. Does work related to cotton ginning, turpentine, or gum resin products; or


    Definition of Farm—includes stock, dairy, poultry, fruit, fur-bearing, animal and truck farms, orchards, plantations, ranches, nurseries, ranges and green houses or other similar structures used mainly for raising agricultural or horticultural commodities.
    Form 943 is filed to report federal income tax withheld and FICA taxes. The employer must withhold federal income tax from the cash wages it pays its farm-workers if the cash wages are subject to social security and Medicare taxes. Although non-cash wages are subject to federal income tax, an employer may withhold federal income tax only when the employer and its employee agree to do so.
    Paper Forms 943 are filed once a year with the tax period ending on December 31st and the return due on January 31st. If an employer makes deposits on time in full payment of the taxes due for the year, the return is due February 10.

    Note:

    Forestry and lumbering are not "Farm work" unless the products are for use in the employers farming operations.

    Figure 3.13.2-17

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  3. Form 940 - Employer's Annual Federal Unemployment (FUTA) Tax Return

    1. This return is filed by employers that have employees and are subject to Federal Unemployment tax.

    2. Non-agricultural and non-household employers are required to file this return if during this year or last year either paid wages of $1,500 or more in any calendar quarter or he had one or more employees for at least some part of a day in any 20 or more different calendar weeks.

    3. An Agricultural Employer files this return if during this year or last year they either paid cash wages of $20,000 or more in any calendar quarter; or employed 10 or more farm workers during some part of a day during any 20 different weeks.

    4. A household employer is required to report unemployment taxes on Form 940 if he paid $1,000 or more in any calendar quarter Household employers report wages paid on Schedule H (Form 1040).

      Exception:

      State and local government health and welfare agencies, who assume responsibility for reporting and paying FICA and FUTA taxes and any withheld income tax with respect to individuals furnished by the agency to provide domestic services (home care workers) for recipients of public assistance must obtain a separate EIN to report these taxes.

    5. The return is filed once a year with the tax period ending on December 31st and the return is due on January 31st. If the taxpayer deposits all FUTA tax when due, the taxpayer may file on or before February 10th. See Figure 3.13.2–18.

    Figure 3.13.2-18

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  4. Form 944 - Employer’s Annual Federal Tax Return . Form 944 is filed annually by certain small employers to report and pay employment taxes. Taxpayers who apply for an EIN via phone, mail, internet, or fax are assigned a Form 944 FRC based on a "yes" response to Form SS-4, Item 14. Effective 1-1-10, participation in the Form 944 project became voluntary. However, to "opt out" a taxpayer must call the IRS at 1-800-829-4933 or 267-941-1000 (toll call) between January 1 and April 1 or send a written request postmarked between January 1 and March 17.

    • Command Code BNCHG Element Name F944-YR/IND must equal 1 or 9.

    • See IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG

    • F944-CACHE-YEAR/IND

    • 2008 thru 2017 for year. Indicator values are 1 or 9

    • 1 -Turn on FR944 for year indicated

    • 9 -Turn off FR944 for year indicated

    • If input, both the year and indicator must be present

    If... Then...
    a) The taxpayer is filing Form 944 and there is no FRC for Forms 944 and 941 Establish a Form 944 FRC if the wages are under $4,000 annually
    b) The taxpayer is filing Form 944 and they qualify for a Form 944 FRC and the Form 941 FRC is present

    Note:

    Exercise caution when changing the FRC from 941 to 944. Form 944 is an annual return so the taxpayer could have filed Forms 941 and a 944. See Figure 3.13.2–19

    Delete the Form 941 FRC and establish a Form 944 FRC if the wages are under $4,000 annually.
    c) The taxpayer has a Form 944 FRC and the taxpayer did not opt out of the Form 944 program by April 1st. Entity cannot change the FRC unless IRS made an error. The taxpayer must file Form 944. Example: Taxpayer is notified in Feb. 2015 that he is now a Form 944 filer. Taxpayer files Form 944 in Jan. 2016 for the 2015 tax year showing liability of more than $4,000. Taxpayer's Form 944 will be processed regardless of the liability amount.

    Note:

    If the taxpayer has a Form 944 FRC and did not opt out by April 1st and files Form 941, the Form 941 will unpost. The taxpayer must be notified that he must file Form 944 (regardless of the liability amount)

    d) The Form 944 shows a tax liability of more than $4,000 and has a Form 944 FRC Taxpayer must file Form 944 (unless they "opt out" before April 1st of the tax year)

    Note:

    Once the Form 944 posts, the taxpayer will receive a letter stating that he exceeded the threshold and must file Form 941 for the next tax year.

    Note:

    If a permanent 944-bypass indicator is present on CC BMFOLE never post as a Form 944 filer. The taxpayer wants to file Form 941 quarterly. The one digit 944-bypass indicator is entered via BNCHG or EOCHG screens and is called “944-BYP”. A “1” is input to set the bypass, and a 9 to turn off the bypass. If 944-BYP input is “1” and FR944 FRC is on at master file, then FR944 must be input with “0”. See IRM 2.4.9, IDRS Terminal Input - Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG, for additional information

    Figure 3.13.2-19

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  5. Form 945 - Annual Return of Withheld Federal Income Tax

    1. Form 945 is a multi-use form. The taxpayer may file it to report federal income tax withheld from non-payroll payments such as pensions, annuities, IRAs, gambling winnings, Indian gaming profits and backup withholding.

    2. The return is due January 31.

    3. Form 945 posts to the BMF

    4. Taxpayers can request a separate EIN for the pension income, however, it is not a requirement. Separate branches within a company may want a different EIN for internal purposes.

    5. When the taxpayer provides the name of a plan on the Form 945, it indicates that the filing is for withholding on a pension plan. The taxpayer may use either their business EIN or their plan trust EIN for filing Form 945 in this case. The taxpayer may choose to switch between using a plan trust EIN and the business EIN each year.

    6. Primary Name Line - A business EIN will never have wording such as "PROFIT SHARING PLAN" . A plan trust EIN will always have wording such as "PROFIT SHARING PLAN" .

    7. Sort Name Line - A business EIN will never have "ACCOUNT UNDER TEFRA" in the sort name. A plan trust EIN will have "ACCOUNT UNDER TEFRA" in the sort name.

    8. Check BMFOL'I' or BMFOL'T' for MFT 16 to compare deposits when unsure where to post the return.

    9. A TC 011 (consolidation) will only be performed when two plan trust EINs were issued for the same plan trust. Never consolidate a plan trust EIN to a business EIN, even if the taxpayer indicates that they don’t want to use the plan trust EIN. These are two separate and distinct entities. Input a TC 591 CC 020 on the account that will no longer be filing the Form 945.

      Exception:

      If the plan trust EIN was assigned in error to process a return or payment, TC 011 must be done to consolidate the accounts.

    10. Processing Form 945. See Figure 3.13.2-20.

      If... And... Then...
      a) The taxpayer uses their business EIN, The EIN is valid, Use the business EIN to process the return. Circle out any plan name wording on the Form 945 such as "PROFIT SHARING PLAN" .
      b) The taxpayer uses their plan trust EIN, The EIN is valid, Use the plan trust EIN to process the return.
      c) The plan trust EIN is no longer on Master File,   Research to verify the plan trust EIN.
      The plan trust EIN is no longer on Master File, the EIN is valid, Re-establish the EIN via TC 000.
      The plan trust EIN is no longer on Master File, a valid EIN is not found Assign a new EIN with the information provided
    11. If the EIN provided is not valid or there is no EIN on the form and:

    If... Then...
    a) The name provided is a business name,
    • Research using NAMEE for a business EIN,

    • If found, process the return using the business EIN,

    • If no valid EIN is found, re-establish the EIN with the info provided.

    b) The name provided is a pension plan trust type name,
    • Research using NAMEE for a plan trust EIN.

    • If a plan trust EIN is found, use this EIN to process the return.

    • If a plan trust EIN is not found and a business EIN is found, check BMFOL'I' for deposits to MFT 16. If the deposits match, post the return to the business EIN. Circle out any plan name wording on the 945 such as "PROFIT SHARING PLAN" .

    • If no plan trust or business EIN is found, establish an EIN via CC ESIGN as a plan trust.

    Figure 3.13.2-20

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Form 1120 Series - Corporation Returns

  1. Entities that are incorporated under state law are considered corporations for Federal Tax purposes. A corporation must file one of the Forms 1120, unless it is an exempt organization. See Figure 3.13.2-21. Exempt organizations that are incorporated file one of the Forms 990 series returns.

  2. Foreign companies (including companies from Guam, Puerto Rico, Virgin Islands, and American Samoa) that incorporate within the United States will file Form 1120. If the foreign company is not incorporated in the United States, but does business in the United States (for example a branch office) it will file Form 1120-F.

  3. Use the beginning of the tax year (located at the top of Form 1120) as the Business Operational Date (BOD). If the date entered in the "Date Incorporated" box is during the year covered by the return, use that date as the BOD.

  4. Form 1120 (a domestic entity only) received from a Limited Liability Company (LLC) Limited Company (LC) must have a previously accepted Form 8832 (TC 076) on file. If the company has LP or LLP or LC after their business name, you are responsible for determining if the company is an LLC. You can research the entity module for a TC 076. Most Limited Liability Partnerships (LLPs) file Form 1065 for federal tax purposes, however there will be limited partnerships companies (LP) that will opt to file as a corporation for federal tax purposes. If you are undecided about the taxpayer being an LLC, contact the taxpayer.

    Figure 3.13.2-21

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    Please click here for the text description of the image.

  5. If Form 1128 is attached to Form 1120, see IRM 3.13.2.20 for Form 1128 processing procedures.

  6. The different types of Forms 1120 are as follows:

    • Form 1120, U.S. Corporation Income Tax Return.

    • Form 1120-C, U.S. Income Tax Return for Cooperative Associations.

    • Form 1120-F, U. S. Income Tax Return of a Foreign Corporation.

    • Form 1120–SF, U.S. Income Tax Return for Designated Settlement Funds (Under Section 468B).

    • Form 1120–FSC, U.S. Income Tax Return of a Foreign Sales Corporation.

    • Form 1120–H, U.S. Income Tax Return for Homeowners Associations.

    • Form 1120–IC–DISC, Interest Charge Domestic International Sales Corporation Return.

    • Form 1120L, U.S. Life Insurance Company Income Tax Return.

    • Form 1120–ND, Return for Nuclear Decommissioning Funds and Certain Related Persons.

    • Form 1120–PC, U.S. Property and Casualty Insurance Company Income Tax Return.

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

    • Form 1120–REIT, U.S. Income Tax Return for Real Estate Investment Trusts.

    • Form 1120–RIC, U.S. Income Tax Return for Regulated Investment Companies.

    • Form 1120S, U.S. Income Tax Return for an S Corporation.

  7. Corporation tax years can end any month of the year. A fiscal year ends January through November; a calendar year end is a December tax year end. A Subchapter S corporation, a personal service corporation and a life insurance company, must use the tax year of their owner (usually December 31) unless certain requirements are met. Once the fiscal year month (FYM) is determined (return filed), the taxpayer can only change their FYM by filing Form 1128.

  8. All corporate returns are posted to the BMF except Form 1120–IC–DISC which are Non Master File.

  9. Form 1120

    • Form 1120, U. S. Corporation Income Tax Return

    • This return is filed by domestic corporations that can be members of an affiliated group and be included in a consolidated return

    • Form 1120 is filed annually and the return is due on the 15th day of the fourth month after the end of the tax year.

    • For due dates of the Form 1120 family (except Form 1120-C, see IRM 3.11.16-2

    • When ESIGNing an EIN to Form 1120 and the return is claiming a refund, enter CCC ‘E’ on the return. This will place the return in a Return Integrity and Compliance Services (RICS) filter for fraud monitoring. See Line 35 on the 2016 form.

  10. Form 1120-C

    • This return is filed by cooperative associations.

    • It was created to replace Form 990-C beginning Jan. 1, 2007.

    • For due dates of Form 1120-C, see IRM 3.11.16-2

  11. Form 1120-F

    • Form 1120-F, U. S. Income tax Return of a Foreign Corporation

    • This return is filed annually and the return is generally due on the 15th day of the fourth month after the end of the tax year. For a foreign corporation with no office or place of business in the U.S., this return is due by the 15th day of the 6th month after the end of the tax year.

  12. Form 1120-SF

    • This return is filed by a corporation who establishes a fund for the principal purpose of settling and paying claims against the electing taxpayer under IRC Section 468B.

    • The return is filed annually and is due on the 15th day of the fourth month after the close of the fund's tax year.

    • The return must be on the same tax year as the electing taxpayer that created it.

  13. Form 1120-FSC

    • Forms 1120-FSC, U. S. Income Tax Return of a Foreign Sales Corporation, are filed at the Ogden Submission Processing Center.

    • Any election to be a foreign sales corporation made prior to Oct. 1, 2000, are now obsolete.

  14. Form 1120-H

    • This return is filed by homeowners associations. The filing of Form 1120-H is an election under IRC Section 528 and cannot be changed for the year of filing.

    • If the homeowners association does not elect to use Form 1120-H, it can file a Form 1120.

    • The homeowners association may file for tax exemption under IRC Section 501(c)(4) and will then file a Form 990.

    • The Form 1120-H is filed annually and the return is due on the 15th day of the fourth month after the tax year ends.

  15. Form 1120-IC-DISC

    • This return is an information return filed by an interest charge domestic international sales corporation (DISC), a former DISC, and a former IC-DISC

    • The IC-DISC election is made by filing Form 4876-A, Election To Be Treated as an Interest Charge DISC.

    • The return is filed annually and is due on the 15th day of the ninth month after the tax year ends. No extensions are allowed.

  16. Form 1120-L

    • This return is filed by domestic life insurance companies and foreign corporations carrying on an insurance business within the U. S. that would qualify as life insurance companies if they were U. S. corporations.

    • A benevolent life insurance company of a local character of which 85% or more of the income consists of amounts collected from members for the sole purpose of meeting losses and expenses may file for a tax exemption under IRC Section 501(c)(12) and then will file Form 990. An exempt organization may be required to file a Form 1120-L when it meets certain criteria.

    • This return is filed annually and is due on the 15th day of the fourth month after the tax year ends.

  17. Form 1120-ND

    • This return is filed by nuclear decommissioning funds under IRC 468A to report contributions received, income earned, the administrative expenses of operating the fund, and the tax on the income earned.

    • The tax year must be the same as that of the creating public utility.

    • The return is filed annually and is due on the 15th day of the fourth month after the close of the tax year.

  18. Form 1120-PC

    • This return is filed by domestic non-life insurance companies and any foreign corporation that would qualify as a non-life insurance company subject to tax under IRC 831.

    • Certain small mutual and stock non-life insurance companies may file for a tax exemption under IRC 501(c)(15) and then will file Form 990. An exempt organization may be required to file a Form 1120-PC when it meets certain criteria.

    • This type of taxpayer can be a member of a controlled group and file a consolidated return.

    • Normally the return will be filed on a calendar year, but can be a fiscal filer if the parent is a fiscal filer.

    • The return is filed annually and the return is due on the 15th day of the fourth month after the tax year ends.

  19. Form 1120-POL Filed exclusively at Ogden Submission Processing Center (OSPC)

    • This return is filed by political organizations, that is, a party, committee, association, fund (including a separate segregated fund set up by IRC Section 501(c) tax exempt organizations), such as a political action committee. A political organization will also be required to file a Form 990.

    • A tax exempt organization will file both Forms 990 and 1120-POL.

    • The return is filed annually and is due on the 15th day of the fourth month after the tax year ends.

    • Use the individual's name as the name control:
      Committee to Elect Patrick Doe: Input name control as PATRICK DOE COMMITTEE TO ELECT
      Committee to Elect Pat Doe: Input name control as PATDOE COMMITTEE TO ELECT

  20. Form 1120-RIC

    • This return is filed to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a Regulated Investment Company (RIC).

    • A Form 1120-RIC cannot be a member of a consolidated group.

    • Form 1120-RIC is an annual return required to be filed on the 15th day of the fourth month after the end of the RIC's taxable year.

  21. Form 1120-REIT

    • This return is filed to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a Real Estate Investment Trust (REIT).

    • Any Entity that elects to be treated as an REIT (or has made a valid election for a prior tax year) and meets the requirements to be taxed as an REIT must file this return.

    • Once the election is made it remains in effect until terminated or revoked. An election terminates automatically for any year the entity is not a qualified REIT. An election can be revoked by the taxpayer by filing a statement with the campus by the 90th day after the first day of the tax year. In general, if an election terminates or is revoked, the entity may not re-elect to be taxed as an REIT until the 5th taxable year after the year the termination or revocation is effective.

    • The revoking correspondence must be held in Entity until the final Form 1120-REIT is filed. Do not suspend. Associate the correspondence with the final Form 1120-REIT. Ensure the return has CCC " F" .

    • An REIT cannot be a member of a consolidated return.

    • Form 1120-REIT is an annual return required to be filed by the 15th day of the fourth month after the end of the REIT's taxable year.

  22. Form 1120S

    • S corporations are domestic corporations in which the income/loss flows through to the owners/shareholders.

    • The corporation must make a Subchapter S election on a timely filed Form 2553. If Form 2553 is attached to Form 1120S and the return has yet to be numbered, detach and process Form 2553. See IRM 3.13.2.22.

    • This taxpayer cannot be a member of a controlled group of corporations.

    • Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income.

    • This return is filed annually and is due by the 15th day of the third month after the close of the tax year. See IRM 3.11.217-1.

    • The Tax Reform Act of 1986 required all S corporations to use the same tax year/FYM as their owner. There are certain provisions (Form 8716, Form 1128, Rev. Proc. 2006-46) whereby an S corporation can use a fiscal tax year. This will be denoted by a TC 054 or TC 055 on the Entity module.

    • If an EIN must be assigned to a Form 1120S, NIC "D" will be input. Send 147C to the taxpayer to notify them of the EIN assignment, asking them to complete and return a Form SS-4. Also tell the taxpayer that they will be contacted separately regarding their Form 2553.

      Note:

      When ESIGNing an EIN to Form 1120S and the return is claiming a refund, enter CCC ‘E’ on the return. This will place the return in a Return Integrity and Compliance Services (RICS) filter for fraud monitoring. See Line 26 of the 2016 form.

    • If a valid paper Form 1120S is received in Entity because the current FRC on IDRS is 1120-01, check for an unreversed TC 090. If found, delete the 1120-01 FRC and release the return. The return will now read the DLN of the TC 090, post and generate an 1120-02 FRC. If TC 090 not posted, route return to originator explaining taxpayer does not have a valid Subchapter S election. See IRM 3.13.2.22 (3). This does not work for MeF returns as MeF returns must pass a FRC validity check. See IRM 3.13.2.9.19IRM 3.13.2.9.20 for resolving electronic returns with a FRC problem.

    • BMF Entity will receive a Form 1120S when Item H, Box (5) is checked. This box is labeled S election termination or revocation. Research IDRS for the taxpayer's status:

    If... And... Then...
    A) TC 091/096 is posted with an effective date prior to the tax period of the Form 1120S,   Edit return with "Allow to Unpost" and any other needed information and release.
    B) TC 091/096 is posted with an effective date within the tax period of the Form 1120S, 1) Tax period of Form 1120S is valid with the posted TC 091/096 effective date, Edit return as required and release.
    TC 091/096 is posted with an effective date within the tax period of the Form 1120S, 2) Tax period of Form 1120S is not valid with posted TC 091/096 effective date, Edit return with "Allow to Unpost" and any other needed information and release.
    C) TC 091/096 is posted with an effective date after the tax period of the Form 1120S,   Edit return as required and release.



    If there is not a TC 091/096 posted, look through the return for correspondence or other evidence of a statement of revocation/termination and proceed as follows:

    If... And... Then...
    1) Statement of Revocation is found, a) It is timely filed with the IRS received date of the return (edit said date on Statement of Revocation), Pull Revocation from return (or print if electronic), edit IRS received date. Process Revocation per IRM 3.13.2.22.16. Edit return as required. Associate documentation with posted TC 090 DLN.
    Statement of Revocation is found, b) It is not timely filed, Send 3064C telling taxpayer revocation statement attached to return was not timely filed. Edit and release. Associate documentation with posted TC 090 DLN.
    2) Statement of Termination is found, a) Termination is valid, Pull the Statement of Termination from the return (or print if electronic). Input TC 096 per IRM 3.13.2.22.18. Edit return as required and release. Associate documentation with posted TC 090 DLN.
    Statement of Termination is found, b) Termination is not valid, Send 3064C telling taxpayer statement of termination attached to return was not valid and their election will remain in effect. Edit return as required and release. Associate documentation with posted TC 090 DLN.
    3) Statement of Revocation/Termination is not found,   Edit return as required and release.
ERS Action Code 347 - Revenue Procedure 2013-30
  1. Rev. Proc. 2013-30 allows taxpayers to request relief by filing their Form 2553 and all required attachments with their Form 1120S as long as the current year Form 1120S is filed within 3 years and 75 days after the desired effective date. They may file electronically through Modernized e-File (MeF) or paper. Code and Edit will edit Error Resolution System (ERS) Action Code (AC) 347 on paper returns and MeF will generate ERS AC 347 for electronically filed Forms 1120S quoting Rev. Proc. 2013-30. For MeF returns, Entity TEs must print Form 2553 from the Employee User Portal (EUP). The instructions for this Rev. Proc. will be applied to numbered returns in the form of pipeline, Rejects, or Unpostables.

  2. Rejected returns will be assigned and processed as soon as possible upon receipt. These cases are time sensitive and may take several days to complete.

  3. Rev. Proc. 2013-30 modifies and supersedes Rev. Proc. 2003-43, Rev. Proc. 2004-48, and Rev. Proc. 2007-62 and supersedes the relief in Situation 1 of Rev. Proc. 97-48 as well as making obsolete the relief in Situation 2 of Rev. Proc. 97-48. Additionally, Rev. Proc. 2013-30 modifies, supersedes and makes obsolete certain relief in Rev. Proc. 2004-49.

  4. Two Multi Media Learning Objects (MMLOs) have been created to assist with the processing of Forms 1120S that have fallen out as Action Code 347 Rejects:

    • .S Corp - AC 347

    • LLC - AC 347.

  5. Requests for relief under Rev. Proc. 2013-30 filed on a return will be processed as follows:

    Note:

    Always ensure the IRS received date of the Form 1120S is also entered on Form 2553

    :

    If... And... Then...
    a) Initial Form 1120S is received with a Form 2553 attached requesting an effective date in a prior tax year, Form 2553 is complete with all required attachments and all necessary Forms 1120S are in house,
    1. Detach Form 2553 and required attachments to use as source document. For MeF returns, use the EUP print of Form 2553. Edit "D2553, TC 090" , the date and your IDRS number in the lower left margin of each Form 1120S and Form 8161 or local routing slip.

    2. Edit TC090, D1120S, the tax period, your IDRS number, and the current date on Form 2553.

    3. Input TC 090 per IRM 3.13.2.22.6

    4. Release paper Form(s) 1120S to ERS/Rejects with instructions to hold one week (7 calendar days) then release for processing.

    b) Form(s) 1120S received with a Form 2553 attached requesting an effective date in a prior tax year, Form 2553 is complete with all required attachments but all necessary Forms 1120S have not been received per CCs ENMOD, BMFOL, UPTIN, and TRDBV at both sites, Approve Form 2553 for earliest possible effective date.
    If a corporation, annotate Let Unpost - Convert to 1120 on return and release to Rejects.
    If an LLC, annotate Let Unpost - Cancel DLN
    c) Form 1120S received from a corporation with Form 2553 attached, Form 2553 is incomplete and all necessary Forms 1120S are in house,
    1. Input TC 093, if there is not a pending or posted TC 090. Do not input if EIN contains 1065 FRC.

    2. Input TC 971-375

      Note:

      Ensure FYM of return matches FYM on Master File even if return has an invalid fiscal year, otherwise TC 971 will go UPC 307. TC 971 cannot be input on MFT 02 if taxpayer is LLC unless there is a valid TC 076 posted for the current or prior year of the tax return. .

    3. Contact taxpayer via telephone (make two attempts) for missing information. Ask taxpayer to fax complete document within 48 hours. See Reminder below for telephone script.

    4. Annotate call on Form 12130 .

      Reminder:

      We must give the taxpayer ample opportunity to respond to our request. It is not acceptable to make two phone calls to the taxpayer or their representative within the same day to expedite your case. The return should be held for one full day after the second call.

    d) Requested information is received within 48 hours, Form 2553 is complete (including necessary statements required by Rev. Proc.),
    1. Detach Form 2553 and required statements to use as source document. For MeF returns, use the EUP.

      • Edit D2553, TC090, current date, and your IDRS number in the lower left margin of Form 1120S and Form 8161 or local Reject routing slip.

      • Edit "D1120S, the tax period, your IDRS number, the current date, and TC090" on Form 2553.

    2. Input TC 090 per IRM 3.13.2.22.6

    3. Annotate "TC 090" on Form 8161 or local Reject routing slip.

    4. Release paper Form 1120S to ERS/Rejects with instructions to hold one week (7 calendar days) then release for processing.

    e) If requested information is not received within 48 hours, Form 2553 is incomplete and IDRS research does not satisfy completion requirements,
    1. Input TC 092,

    2. Input TC 971-376, PDC 1 (Ensure FYM matches Master File)

    3. Detach Form 2553 and edit "D2553, TC 093/092" in lower left margin on paper Form 1120S and Form 8161 (or local reject routing slip) Edit "D1120S" and the tax period of the return on Form 2553.

    4. Return Form 2553 to the taxpayer for completion using the 312C/6800sce letter. Enter DLN of return in fill-in 03 of 312C or below Reference ID number on 6800sce. If using 6800sce, be sure to mark the box that tells the taxpayer if response is not received within 30 days, their Form 1120S will be converted to Form 1120. Put history item on CC ENMOD that reads: 6800SCE
      W2553

    5. Annotate return: Let Unpost - Convert to 1120 and release to Rejects.

    Note:

    It is important TCs 971-375 and 971-376 are not input on the same day. This program has a 48 hour "suspense period"

    Reminder:

    We must give the taxpayer ample opportunity to respond to our request. It is not acceptable to make two phone calls to the taxpayer or their representative within the same day to expedite your case.

    f) Requested information is not received within 48 hours and the entity is an LLC without TC 076 posted, Form 2553 is incomplete and IDRS research does not satisfy completion requirements,
    1. Input TC 092

    2. Detach Form 2553, edit "D2553, TCs 093 & 092" in lower left margin of paper return and Reject Routing Slip. Edit "D1120S" and tax period of return on Form 2553

    3. Return Form 2553 to the taxpayer for completion using the 312C/6800sce letter. Enter DLN of return in fill-in 03 of 312C or below Reference ID number pm 6800sce. If using 6800sce, be sure to mark the box that tells the T/P that failure to respond will result in processing being stopped on their return. Enter history item on CC ENMOD that reads:
      6800SCE
      W2553

    4. Annotate return: Let Unpost - Cancel DLN and release to Rejects.

    g) Form 1120S and Form 2553 are received, Entity does not qualify for the effective date requested because this is not initial Form 1120S,
    1. Approve Form 2553 for the next qualifying effective date.

    2. Annotate "D2553, BK95" in the lower left margin of Form 1120S and on Form 8161 (or reject routing slip).

    3. See row l below.

    h) If return is initial Form 1120S, Form 2553 is complete (including statement of reasonable cause) and a posted TC 090 has effective date later than tax period of return,
    1. Input TC 092

    2. Input TC 090 with new effective date, PDC 1, PSC "Z" ,

    3. Annotate "TCs 092/090" in lower left margin of return and on Form 8161 or reject routing slip.

    4. Send 385C to Taxpayer informing them the effective date of their S election has been approved based on Rev. Proc. 2013-30.

    5. Release Form 1120S to ERS/Rejects with instructions to hold one week (7 calendar days) then release for processing.

    i) Form 2553 is not attached, There is not a TC 090 posted on CC ENMOD of IDRS,
    1. Annotate "No 2553 No TC 090 Let Unpost" the date and your IDRS number in the lower left margin of Form 1120S and on Form 8161 (or reject routing slip).

    2. Release Form 1120S to ERS/Rejects.

    j) Form 2553 is not attached, There is a posted TC 090 for the tax period of the Form 1120S,
    1. Annotate "No 2553, TC 090" the date and your IDRS number in the lower left margin.

    2. Release Form 1120S to ERS/Rejects.

    k) The effective date of the TC 090 is the same or prior to the effective date requested on Form 2553, The TC 090 was input less than 45 days prior to the IRS received date on Forms 1120S/2553,
    1. Place a large X on Form 2553

    2. Annotate "TC 090" in lower left margin of Form 1120S and on reject routing slip (or Form 8161 for MeF Forms 1120S).

    3. Release Form 1120S to ERS/Rejects.

    l) Form 2553 cannot be approved for the requested tax year and is approved for the next qualifying year, 1) The taxpayer is a corporation,
    1. Annotate return: Let Unpost - Convert to 1120

    2. Input TC 971-376, PDC 1. Ensure FYM matches Master File,

    3. Input TC 090, suppress CP notice PSC>Z and send 385C informing taxpayer reason Form 2553 was not accepted for requested effective date and the Form 1120S was converted to a Form 1120.

    4. Annotate TC 090, BK95, 385C, on return and Form 8161 or reject routing slip.

    5. Release return to Rejects.

    l) Form 2553 cannot be approved for the requested tax year and is approved for the next qualifying year, 2) The entity is a multi member LLC ,
    1. Annotate return: Let Unpost - Cancel DLN

    2. Input 971-373 on MFT 06 (if Form 1065 FRC is present), same tax period as return being processed.

    3. Input TC 074 (if needed) TC 090 for earliest possible effective date with PDC 1. Suppress CP notice (PSC>Z) and send 385C with DLN inserted informing taxpayer the reason form 2553 was not accepted for requested effective date and Form 1120S was removed from processing.

    4. Release return to Rejects.

    Note:

    1065 FRC must be on EIN prior to TC 971-373, therefore SMLLCs will not receive

    m) Initial Form 1120S is received with Form 2553 attached and taxpayer needs a new EIN assigned, Form 2553 is incomplete,
    1. Assign EIN using NIC 'A' and RIC ”53'

    2. Include "Let Unpost" in audit trail as TC 971–375 cannot be input until EIN posts to Master File.

    3. Return Form 2553 to taxpayer for completion, see IRM 3.13.2.22.1.

    Note:

    Following is suggested script to be utilized when contacting the taxpayer via telephone for Rev. Proc. 2013-30 information. Remember, specific data should never be left on an answering machine. This is (TEs name) from the Internal Revenue Service and I am processing your Forms 1120S and 2553 filed under Rev. Proc. 2013-30. Before I can complete the processing of your forms I must ask for additional information. (State the needed information). Please fax this information to me at (your team's fax number) no later than (two days from today). If I do not receive the requested information within the time frame requested, your Form 1120S will be processed as a Form 1120 or removed from processing.

    Reminder:

    We must give the taxpayer ample opportunity to respond to our request. It is not acceptable to make two phone calls to the taxpayer within the same day to expedite your case.

  6. TC 971-375/373 indicates Form 1120S has failed to post to MF and a phone call was made or a letter has been issued to the taxpayer. TC 971-376 indicates the conversion of Form 1120S to a Form 1120, when there is no reply or when the reply received does not resolve the unpostable issue.

  7. If taxpayer is not an LLC, the LLC indicator must be deleted by inserting a "9" in the LLC indicator field. See IRM 3.13.2.25 (2).

  8. Process for converting Form 1120S to Form 1120.

    1. Circle out the "S" in the top left of return.

    2. Edit the name control if not previously edited.

    3. Edit Computer Condition Code 3 in the dotted section between Lines 1 through 6.

    4. Underline the Business Activity Code in Section B in the top left corner.

    5. Enter Audit Code 4 in left margin next to Line 12.

    6. On Reject Routing Slip instruct Rejects to renumber return to Form 1120.

  9. The most common examples of reasonable cause or inadvertence:

    • Miscommunication between the taxpayer's tax advisors/shareholders (for example attorneys, CPA/tax practitioner, accountants, bookkeepers, especially during incorporation period).

    • Circumstances beyond the taxpayer's control (for example unavoidable absence, illness), mistakes, or ignorance of the law.

    • Reliance on a paid professional (inside or outside the company) who failed to understand Form 2553 filing requirements.

    • Unavoidable delay in obtaining shareholder signature for the election.

    • One of the shareholders forgot to make the election or each shareholder thought the other was going to do it.

      Reminder:

      It is not possible to list every valid scenario that might be given by the taxpayer. If taxpayer acknowledges late filing with any plausible reason, and has included all other statements, give the taxpayer the benefit of the doubt and process form under Rev. Proc. 2013-30

  10. If the taxpayer responds with the correct return or responds and Form 2553 is approved for the tax year in question, input TC 971-377 to indicate the renumbered Form 1120 has been re-processed as a Form 1120S. See IRM 3.13.2.22.14.

  11. TC 971 AC 376 will freeze all refunds to the taxpayer. To lift the freeze, input TC 971 AC 377.

  12. If correspondence is received in response to our inquiry regarding Rev. Proc. 2013-30, see IRM 3.13.2.22.4.1 (1) for processing instructions.

  13. The return due dates of the Form 1120 family of returns were changed for tax years beginning after December 31, 2015. However, the return due date for Form 1120S was not changed. During Form 7004 processing, the return due date may have been altered from Form 1120S to Form 1120 and vice versa. For the purposes of Form 2553, any extension posted (and approved) on an MFT 02 module will satisfy the requirements of Rev. Proc. 2013-30.

ERS Action Code 321 (Ogden only)

  1. ERS Action Code 321 was created specifically for electronically filed consolidated tax returns with subsidiary EIN and Name Control mismatch. A Consolidated Return Resolution report will be submitted to Entity with a listing of each subsidiary EIN and name (along with the parent corporation's EIN and name) and whether or not the TC 590 Closing Code 014 was input. Entity will update the subsidiary's name and/or EIN as needed.

  2. Thorough research of both the parent and subsidiary accounts is necessary.

  3. Electronic filed returns will be routed to Entity by Rejects with a 10-day suspense period/turnaround time.

  4. If rejected MeF return is for a name and/or address change for the parent, access EUP to verify.

Form 1041 Estates and Trusts

  1. This form is the income tax return for estates and trusts.

  2. EINs in the 6/7 million series are reserved for Form 1041 filers. A 6/7 Million series EIN can be identified by the number 6 or 7 immediately following the hyphen (-).

  3. If the EIN on Form 1041 is not on Master File, but is a 6/7 million series, we can assume this EIN was part of a Bank List/Bulk Assignment that wasn't placed on Master File. See IRM 21.7.13.3.9.1. Establish the EIN with CC ESIGN (suppressing CP 576) or TC 000.

  4. When ESIGNing an EIN to Form 1041 and the return is claiming a refund, enter CCC ‘E’ on the return. This will place the return in a Return Integrity and Compliance Services (RICS) filter for fraud monitoring. See Line 28 of the 2016 form.

  5. The types of returns are

    • Form 1041, U.S. Fiduciary Income Tax Return.

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

    • Form 1041–ES, Estimated Income Tax for Fiduciaries.

    • Form 1041-QFT, Qualified Funeral Trusts.

    • Form 1041–N, Native Alaskan Settlement Trusts

  6. Form 1041-A is processed as an EO return; see IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers.

  7. Form 1041-QFT is processed at the Cincinnati Campus (CSPC) only. See IRM 3.13.2.7.8.

  8. The return is filed annually and is due on the 15th day of the 4th month following the close of the tax year. See Figure 3.13.2-22.

    Figure 3.13.2-22

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  9. The type of trusts that file Form 1041 are:

    1. Decedent's Trust - The fiduciary must file for a created trust from the estate of a decedent.

    2. Domestic Trust - The fiduciary must file for a domestic trust taxable under Treasury Regulation 1.645-1(c).

    3. Bankruptcy Estate - The fiduciary must file for an estate of an individual involved in bankruptcy proceeding under Chapter 7 or 11 of title 11 of the U.S. Code. Corporations, Partnerships, and LLCs in bankruptcy may create a Liquidating Trust, which is liable to file Form 1041.

    4. Trusts filing under Section 645 (Rev. Proc. 98-13) must state in the name line "Trust filing as an Estate under Section 645" and that designation needs to be input into IDRS. (Example, JOHN SMITH TR FILING AS AN ESTATE UNDER SECTION 645). After two years has elapsed for that entity, the trust needs a new EIN (at this point they are a new entity). There will not be an EIN consolidation issue since the new EIN will be input into IDRS as JOHN SMITH TR.

  10. Generally, a trust must adopt a calendar year (FYM 12) and the return is due on the 15th day of the 4th month following the close of the tax year. The following trusts are exempt from this requirement:

    • A trust that is exempt from tax under IRC Section 501(a);

    • A charitable trust described in IRC Section 4947(a)(1) ; and

    • A trust that is treated as wholly owned by a grantor under the rules of IRC Sections 671 through 679.

  11. If the taxpayer does not mark a box in Item A of Form 1041, and you can derive the exact type of entity by the name line, mark the appropriate box in Item A.

  12. Use the beginning of the tax year (located at the top of Form 1041) as the Business Operational Date (BOD). If the date entered in the Date Entity Created box is during the year covered by the return, use that date as the BOD.

  13. The chart below contains associated terms and types of trusts:

    Term Definition
    Fiduciary
    • Trustee of a trust, or

    • Executor, executrix, administrator, administratrix, personal representative, or person in possession of a property of a decedent

    Beneficiary A person designated as the recipient of funds or other property under a trust or an estate
    Corpus The principal sum of the capital of a trust or an estate, as distinguished from interest or income
    Maker/grantor The person(s) or organization that
    • Originated the trust, or

    • Has control over the trust

    Simple Trust A trust
    • For which the trust instrument requires that all income be distributed currently, with no authority to make charitable contributions or distribute amounts allocated to the corpus of the trust, and

    • That is a simple trust only for a year in which it distributes income and makes no other distributions to beneficiaries

      Note:

      When a trust does not meet these requirements for a year, it is a complex trust.

    Complex Trust A trust which, for the taxable year, does not qualify as a simple trust
    Grantor Trust A trust that
    • Is established by a living person or organization, created by a will, or

    • Is established so the income from the trust is taxable income of the grantor

    Non-taxable grantor trusts do not report income, deductions, and credits on Form 1041. The grantor may file Form 1041 for informational purposes only.
    Intervivos Trust A trust established by a grantor during his/her lifetime.
    Revocable Trust The grantor:
    • Has control of the trust (for example, has power to repeal or annul), and

    • Pays the taxes of the trust on his/her Form 1040. The grantor files Form 1041 for informational purposes only.

    Irrevocable Trust The grantor has no control of the trust and the trust pays the taxes.
    Testamentary Trust A testamentary trust is created by a will, which begins its existence upon the death of the person making the will, when property is transferred from the decedent's estate. Testamentary trusts are generally simple or complex trusts. A testamentary trust is irrevocable by definition, as it comes into being at the death of the grantor. It is also known as a "trust under the will" .
    Residual Trust A trust set up to receive the part of an estate that remains after the payment of all debts, charges, devices, and bequests to entities other than the beneficiary
    Conservatorship A trust set up for an incompetent person
    Guardianship/
    Custodianship
    A trust set up for a minor or incapacitated person
    Ancillary and Domiciliary Trust Returns A trust which exists in a foreign domestic state because the grantor is domiciled (resides) in another state within the United States.
    Family Estate Trust
    • A trust instrument provides evidence of ownership, such as certificates of beneficial interest in the trust.

    • The grantor is a trustee and executive officer; and

    • The corpus and undistributed income are distributed to the owners after the trust is terminated. This is also known as a family estate, pure trust, equity trust, equity pure, prime, or constitutional trust.

    Generation Skipping Trust A trust with younger generation beneficiaries who are more than one generation younger than the grantor’s generation.
    Pooled Income Trust (also known as Split Interest Trust) A split interest trust with a
    • Remainder interest for a public charity, and

    • Life income interest retained by a donor or for another person

    Clifford Trust A grantor type trust where the assets are placed in a trust but there is still some ownership. It is taxable to the grantor.
    Non-Explicit Trust
    • An arrangement that has substantially the same effect as a trust. It is treated as a trust even though it is not an explicit trust.

    • Non-explicit trusts do not include the decedent’s estate.
      Examples: Insurance and annuity contracts, arrangements involving life estates and remainders

    Non-exempt Charitable Trusts A trust that is set up for a charitable purpose but that is not eligible for exempt status
  14. If Form 1041 is being filed for an individual bankruptcy estate and an EIN must be assigned, the EIN will be assigned in the name of the debtor. The trustee's name will be entered on the Sort Name Line.

  15. When Form 1041 is filed for Corporations, Partnerships, or LLCs that are in bankruptcy, do not assign a new EIN unless the words "Liquidating Trust" are present. If these words are not present, annotate Allow to UPC 329 in audit trail and release return.

  16. If a Form 1040 is received that is overlaid with a Form 1041, do not detach form 1040. The final Form 1040 should be filed for the same year a taxpayer becomes deceased. Quite often, executors of estates will file Forms 1040 for tax periods beyond the year the date of death is in. These Forms 1040 must be converted to Forms 1041.

    • Research for an estate EIN. If an EIN is found, enter the EIN on the Form 1041. Do not send a letter.

    • If an EIN is not found, assign an EIN, suppressing the notice with NIC D. Do not send a letter.

    • Ensure the Computer Condition Code (CCC) F is entered on the return.

  17. A decedent's estate is fairly straightforward. The executor/administer/etc. will be placed on the Sort Name line.

  18. If processing Form 1041 that bears an EIN with "Section 645" annotated in the name line and Forms 1041 for two tax periods are posted to the EIN, assign a new EIN with NIC "B" , RIC "05" , and applicable tax period. Input TC 591-020 on the Section 645 EIN for the tax period of the Form 1041 being processed.

  19. If Form 1041 is received indicating "No Liability" , see IRM 3.13.2.9.12.

Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts

  1. The trustee of a trust that has elected to be taxed as a qualified funeral trust (QFT) files Form 1041-QFT to report the income, deductions, gains, losses, etc., and income tax liability of the QFT.

  2. Form 1041-QFT will be processed at the Cincinnati Campus only.

  3. Use the beginning of the tax year (located at the top of Form 1041-QFT) as the Business Operational Date (BOD).

  4. Follow these procedures if forms are received at centers other than CSC. Instructions apply to non-remittance

    1. Research to determine the correct filing requirement and if any estimated payments posted to the old EIN.

    2. Follow guidelines as appropriate under remittance QFTs.

  5. Follow these procedures to avoid balance due notices and incorrect filing requirements on QFTs with remittance. RCO/Extraction will call Entity when these returns are identified and the proper research must be completed before Deposit Activity process the payment. Forms 1041–QFT must be processed on a same day basis. Research to determine the filing requirement.

  6. If FRC "9" is present, continue processing as received (QFT entity has already been established).

  7. If FRC other than "9" is present (most likely FRC "1" ), determine the entry present on Line 4 (Part 1) of Form 1041–QFT (number of QFTs included on this return).

    1. If line 4 contains an entry of 2 or more, establish a new EIN with FRC "9" .

    2. If line 4 is blank, or contains an entry of 1, and the filer has applied for a new EIN, establish a new EIN with FRC "9" .

    3. If line 4 is blank, or contains an entry of 1, but the filer has not applied for a new EIN, change the filing requirement to FRC "9" , but retain the existing EIN.

      Note:

      All Forms 1041–QFT must be established with FRC "9" . Taxpayers who elect to file a "single" Form 1041 QFT in lieu of Form 1041, may retain their original EIN as previously used for filing Form 1041. Taxpayers who elect to file a "composite" Form 1041–QFT (filed for more than one trust), must obtain a new EIN.

Form 1065, U.S. Partnership Return of Income

  1. This return is filed to report the income, deductions, gains, losses, etc., from the operation of a partnership. See Figure 3.13.2-23.

  2. The return is filed by all domestic partnerships, foreign partnerships, and Limited Liability Companies classified as partnerships for federal income tax if those entities have income from a trade or business within the United States or have income from sources in the United States.

  3. The return is filed by religious and apostolic organizations that are exempt from income tax under IRC Section 501(d). These taxpayers are reorganized on the BMF with a Subsection Code 40. A Form 1065 filed by these organizations is treated the same as any Form 1065, except name changes and address changes affecting the name lines must be processed under instructions in this IRM.

  4. The Tax Reform Act of 1986 requires all partnerships to use the tax year of their owner, usually December 31. If the partnership/LLC has received permission to use a fiscal tax year or a fiscal tax year is the actual year end of the owner, a TC 054 or TC 055 will be posted on the Entity module. If the taxpayer has not received permission to use a fiscal year, the phrase "allow to UPC 307" will be entered in the audit trail. The invalid tax year will be addressed when the return becomes unpostable.

  5. Regulation 1.761-2(b)(2) allows a certain investing partnerships and unincorporated organizations operating under joint production, extraction, or use agreements to elect out of partnership treatment by filing their an initial Form 1065 with a list of the partners/members names and addresses. Attached must be a statement that the entity qualifies to elect out of Subchapter K under Reg. 1.761-2. The Computer Condition Code (CCC) F will be edited onto the return. Note: This is called an election out of Subchapter K election. A Private Letter Ruling (PLR) is required to revoke this election.

    Note:

    This is called a Subchapter K election. A Private Letter Ruling (PLR) is required to revoke this election.

  6. Under IRC Section 708, a partnership is terminated if there is a sale or exchange of 50 percent or more of the total interest in partnership capital and profits within a 12-month period. Known as a “technical termination,” the partnership is treated as contributing all of its assets and liabilities to a new partnership in exchange for an interest in the new partnership, followed by a distribution of the interest in the new partnership to the purchasing and other remaining partners. Treasury Regulation § 301.6109-1(d)(2)(iii) provides that the new partnership will retain the EIN of the terminated partnership. The partnership will file two short year Forms 1065: one with a year closing on the date on which the partnership terminates, and a second for the remainder of the year. See Treas. Reg. § 1.708-1(b)(3).

  7. The return is filed annually. For Form 1065 due dates, see IRM 3.11.15-3.

    1. For domestic partnerships on the 15th day of the 3rd month following the close of its tax year to comply with section 6072(b) (as amended).

    2. For partnerships that keep their records and books of account outside the United States and Puerto Rico, on the 15th day of the 6th month following the close of its tax year. The partnership must attach a statement to the Form 1065 stating that the partnership qualifies for the extension of time to file and pay.

  8. Use the beginning of the tax year (located at the top of Form 1065) as the Business Operational Date (BOD). If the date entered in the "Date Business Started" box is during the year covered by the return, use that date as the BOD.

  9. When Form 1065 is received from Code and Edit or ERS, research to determine the number of partners/members. If the return indicates the number of Schedules K-1 is "1" and the Schedule K-1 attached to the return has 100% interest in the partnership, correspond with the taxpayer as this is an invalid return. If the taxpayer fails to reply or states in their response they are no longer a partnership, input a TC 591 CC 020 to close the filing requirement. Route it back to the area that routed it to Entity.

    Figure 3.13.2-23

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Form 720, Quarterly Federal Excise Tax Return

  1. Form 720 is filed to report liability for certain excise taxes. See Figure 3.13.2–24.

  2. If the return is for a one time filers, mark the return final and suppress the notice.

  3. If the taxable period is a calendar quarter, Form 720 is due by the last day of the first calendar month following the quarter for which it is made.

  4. Form 720 is filed and processed at the Cincinnati Submission Processing Center.

  5. The Affordable Care Act (ACA) created the Patient Centered Outcomes Research (PCOR) tax which will be reported on Line 133 of Form 720. This tax begins with the second quarter of 2013 and will be reported once a year. Therefore, the correct FRC for this taxpayer is 720-4. The account must be updated with this FRC. If the taxpayer is reporting Line 133 and any other Line, 720-1 is the correct FRC. This guidance will be used when ESIGNing an EIN or updating an account.

    Figure 3.13.2-24

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Forms 11–C, Occupational Tax and Registration Return for Wagering, and 730, Monthly Tax Return for Wagers

  1. Form 11–C , Occupational Tax and Registration Return Wagering

    1. Form 11–C is filed by persons who accept taxable wagers to register certain information with the IRS and to pay the occupational tax imposed under IRC § 4411.

    2. The occupational tax is $50 per year if taxable wagers accepted are authorized under the laws of the state in which accepted or $500 per year for all other taxable wagers.

    3. All persons engaged in the business of receiving taxable wagers on their own behalf are required to file Form 11–C before accepting taxable wagers (principal operators). Anyone who accepts taxable wagers on behalf of a principal operator (agents) also is required to file Form 11–C before accepting taxable wagers.

    4. The first return will cover the tax period from the start of business until June 30 of the current year. For subsequent years, the form is due by July 1 as long as taxable wagers are accepted. The BOD is the date (month and day) listed at the top of Form 11–C. See Figure 3.13.2-25.

    5. Historically, the processing of Form 11–C has been centralized at the Cincinnati Campus. Beginning 2018, Form 11-C will be processed at Ogden Submission Processing Center.

    Figure 3.13.2-25

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  2. Form 730, Monthly Tax Return for Wagers

    1. Taxpayers must file Form 730 and pay the tax on wagers under IRC § 4401(a) if they are in the business of accepting taxable wagers, accept a wager, or conduct a wagering pool, or lottery for profit, or are required to be registered (because they receive taxable wagers on behalf of another who would otherwise be liable for the tax) and they fail to properly register.

    2. On wagers authorized under the laws of the state in which accepted, tax is imposed at a rate of .0025 percent of the amount of the wager. All other taxable wagers are subject to a rate of .02 percent of the amount of the wager.

    3. Form 730 is a monthly return that must be filed by the last day of the month following the month for which taxable wagers are reported. Once filed, Form 730 must be filed each month until a final return is filed, even if the taxpayer receives no wagers that month. These returns will show no activity. If no taxable wagers will be received in the future, a final Form 730 must be filed. The return must reflect the notation "Final Return." The BOD is the first day of the month entered above line 1 on the return.

    4. Persons liable for filing Form 730 must also file Form 11–C to be registered to accept wagers and to pay the occupational tax.

    5. Historically, the processing of Form 730 has been centralized at the Cincinnati Campus. Beginning 2018, these returns will be processed at the Ogden Submission Processing Center. See Figure 3.13.2-26.

    Figure 3.13.2-26

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Form 2290, Heavy Highway Vehicle Use Tax Return

  1. Form 2290 is filed to report the tax due on highway motor vehicles with a taxable gross weight of 55,000 pounds or more driven on public highways during the taxable period. See Figure 3.13.2–27.

  2. The taxable period begins each July 1 and ends the following June 30. For vehicles first put into service in July of the taxable period, Form 2290 is due by August 31. For vehicles first put into service after July of the taxable period, Form 2290 for that period is due by the last day of the month following the month of first use. The BOD is the first day of the month entered on line 1 of the return.

  3. Form 2290 is filed by the person in whose name a taxable vehicle is registered or required to be registered at the time of its first use on public highways.

  4. Vehicles put into service and actually operated by the Federal Government, a state or local government, or an Indian tribal government if the vehicle's use involves the exercise of an essential tribal government function, are exempt from tax.

  5. The processing of Form 2290 without payment due or using EFTPS is centralized at the Cincinnati Submission Processing Center.

    Figure 3.13.2-27

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Processing Forms 706 and 709 series

  1. Form 706 is filed by both American citizens and non U. S. citizens who are residents of the U. S. These decedents are taxed on their worldwide assets. Form 706-NA (attached to which may be schedules from Form 706) is filed by non-U.S. citizens who are not residents of the U.S. (also known as alien nonresident decedents). These decedents are taxed on U.S. property only.

  2. (2) Form 709 is filed by U.S. citizens, non-U.S. citizens who are residents of the U.S., and non-U.S. citizens who are not residents of the U.S. With respect to U.S. citizens who are not residents of the U.S., the Federal Gift Tax only applies to transfers of real property and tangible personal property physically situated in the U.S.

  3. The processing procedures for foreign taxpayers are the same as domestic taxpayers. See IRM 3.13.2.7.13.1 through IRM 3.13.2.7.13.7.

  4. Any change made to an SSN on the V (valid) or W (invalid) files, must include the following fields of CC BNCHG:

    • Form 706 - MFT> (52) and DT-OF-DEATH> (MMDDYYYY)

    • Form 709 - NM-YR-QTR>(YYYYMM) and MFT>(51)

  5. Research should always be performed to ensure the correct SSN is being used. If unable to locate a valid SSN or the taxpayer does not have an SSN, an Internal Revenue Service Number (IRSN) must be assigned via CC TMSSN. Once assigned, the IRSN will be established on the invalid portion of the "V" tape, which is the "W" tape.

    Figure 3.13.2-28

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Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return
  1. Form 706 is filed by the executor of an estate of a decedent who was a U.S. citizen or a non -U.S. citizen who was a resident of the United States to determine the estate tax imposed by Chapter 11 of the IRC on the decedent’s worldwide assets, (which is levied on the entire taxable estate, not just on the share of the estate received by a particular beneficiary). This form is also used to determine and the generation-skipping transfer tax imposed by Chapter 13 of the IRC.

  2. This return is filed with the decedents social security number and the entity is treated like a BMF SSN.

  3. The return is filed within 9 months after the date of the decedents death. A Form 4768 is filed to request extensions.

  4. With respect to decedents who died in Tax Year 2010 only, the executors of their estates had the option to elect that their estates not be subject to the estate tax but instead be subject to the provisions of section 1022 (the carryover basis rules). This election was made by filing Form 8939 by January 17, 2012 will be filed with Form 1040 to report Estate income. Notice 2011-66, 2011-35 IRB 184, sets forth limited relief for estates of decedents who died in Tax Year 2010 the executors of which did not file Form 8939 by January 17, 2012. Such relief can only be obtained through the private letter ruling program.

Form 706-A, United States Additional Estate Tax Return
  1. Form 706-A is filed by the qualified heir of a decedent to report a taxable disposition or cessation of qualified use of property valued under Section 2032A of the IRC on the decedents estate tax return.

  2. The form is filed with the qualified heir's social security number.

  3. The return is filed within 6 months after the taxable disposition or cessation of qualified use. A Form 7004 is filed to request an extension.

Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions
  1. Form 706-GS(D) is filed by taxpayers who are "skip persons" who receive a taxable distribution from a trust.

  2. The Form 706-GS(D) must be filed with the SSN, if the distributee is an individual, and the trust's EIN if the distributee is a trust.

  3. The return is filed on a calendar year basis by April 15th of the year following the calendar year when the distributions were made.

  4. Form 7004 is filed to request extensions.

    Figure 3.13.2-29

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Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations
  1. Form 706-GS(T) is filed by the trustee of any trust which has a taxable termination.

  2. The Form 706-GS(T) is filed with the trust's EIN.

  3. The return is filed by the trustee of the trust by April 15th of the year following the calendar year in which the termination occurs.

  4. Form 7004 is filed to request extensions.

Form 706-NA, United States Estates (and Generation-Skipping Transfer) Tax Return
  1. Form 706-NA is filed by the executor of an estate of a decedent who was not a citizen or resident of the United States to figure the estate tax imposed by Chapter 11 of the IRC on the value of the decedents gross estate located in the United States under the situs rules of the IRC and the generation-skipping transfer tax imposed by Chapter 13 of the IRC. Schedules from Form 706 may be attached to Form 706-NA.

  2. The Form 706–NA is filed with the decedents U.S. social security number (if any).

  3. The return is due 9 months after the date of the decedents death. A Form 4768 is used to request an extension of time to file.

Form 706-QDT, U.S. Estates Tax Return for Qualified Domestic Trusts
  1. Form 706-QDT is filed by the trustee or designated filer of a Qualified Domestic Trust (QDT) to figure and report estate tax due on certain distributions and taxable events with respect to a surviving spouse who is not a U.S. citizen. The return is also filed to report that the spouse has become a U.S. citizen and therefore, the QDT is no longer subject to the additional estate tax.

  2. The Form 706-QDT is due with the EIN of the trustee/designated filer, or, if the trustee/designated filer is an individual, with his/her SSN.

  3. The Form 706-QDT is generally filed on April 15th of the year following any calendar year in which a taxable event occurred during the spouse's lifetime, or a distribution was made to the spouse on account of hardship, or the spouse becomes a U. S. citizen. The return must also be filed within nine months of the death of the spouse, and within nine months after the trust ceases to qualify as a QDT. Extensions are granted by filing Form 4768.

Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
  1. Form 709 is filed by U.S. citizens, non-U.S. citizens who are residents of the U.S., and non-U.S. citizens who are not U.S. residents who make transfers subject to the Federal Gift Tax taxpayers who are subject to the Federal Gift Tax. Note, with respect to non -U.S. citizens who are not U.S. residents the Federal Gift Tax can only apply to transfers of real property and tangible personal property physically situated in the U.S.

  2. The return is filed by individuals using their social security number and the entity is treated like a BMF SSN. This return is never filed as a joint return.

  3. The return is filed on a calendar year basis by April 15th of the year following the calendar year in which the gift was made. An extension to file can be obtained by Form 8892. An extension of time to file the donor's income tax return also extends the time to file the gift tax return.

    Note:

    No extension transaction (TC 460) will post to the BMF when the donor has an extension of time to file his/her income tax return. IMF will show a posted TC 460.

Form 7004, Application for Extension of Time to File Certain Business Income Tax, Information, and Other Returns

  1. This form is filed to request an extension of time to file for Forms 706GS(D), 706-GS(T), 1041, 1041-N, 1041-QFT, 1042, 1065, 1065-B, 1066, 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-ND (§ 4951), 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120S, 1120-SF, 3520-A, 8612, 8613, 8725, 8804, 8831, 8876, 8924, and 8928.

  2. If a Form 7004 is found attached to a return, do not detach.

  3. Returns that can receive a five month extension are:

    • Form 1041, other than for a bankruptcy estate

    • Form 1065

    • Form 8804

  4. All remaining forms will receive a six month extension of time to file.

  5. The form must be filed by the normal due date of the type of return the taxpayer is requesting to file.

  6. Never allow a Form 7004 for MFT 02 (a corporate return) to post for a Limited Liability Company (LLC) when there is not a TC 076 on the Entity module. If Form 1120 FRC is present on the account, and there is not a TC 076, input TC 016 to zero out the Form 1120 FRC and add a Form 1065 FRC. This will cause Form 7004 to go Unpostable Code (UPC) 329.

  7. If Form 7004 contains "INC" in the name line, is coded for MFT 02, and Master File shows "LLC" , ensure a 1065 FRC is on Master File. This will cause Form 7004 to go UPC 329.

  8. If it is necessary to correspond with the taxpayer on a Form 7004, send the letter to the address on Master File and inform the taxpayer of any address discrepancy. The address on Master File should never be updated from an extension.

    Note:

    Never write the taxpayer when Form 3520-A is marked. This includes during the ESIGN process. Ensure NIC 'D' is used when ESIGNing.

  9. The MFT for this extension is determined by the type of return for which it is filed. See Figure 3.13.2-30.

    Figure 3.13.2-30

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Form 8868, Application for Extension of Time to File an Exempt Organization Return
  1. This form is filed to request a 3 month extension to file, except for the Form 990-T filed by a corporation, which is entitled to a six-month extension.

  2. Returns requesting an extension are:

    • Form 990

    • Form 990-BL

    • Form 990-EZ

    • Form 990-T

    • Form 1041-A

    • Form 4720

    • Form 5227

    • Form 6069

    • Form 8870

  3. The MFT for this extension is determined by the type of return for which it is filed.

Forms 1042 and 1042-S, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons and Foreign Person's U.S. Source Income Subject to Withholding

  1. Form 1042 is filed by the domestic filer and will already have an EIN. This taxpayer is probably filing other BMF returns and therefore should already have an EIN.

  2. Form 1042-S is the recipient's account and will be a foreign resident or a non-resident alien. The taxpayer may have an EIN, SSN or an ITIN. See IRM 3.13.2.9.6 (5).

  3. Whenever Entity Control receives a Form 1042 which does not show an EIN (including a Form 1042 return identifying the Filer by Social Security Number), it will research to see if a number has already been assigned. If none is found, Entity will assign an EIN and notify the filer in accordance with established procedure.

  4. Form 1042 filers may no longer be identified by a social security number. All returns forwarded by Document Perfection, which identify the filer by SSN will be treated as new filers, and an EIN will be assigned as in (1) above. Circle out the SSN, and enter the EIN above it.

  5. Qualified Intermediaries (Foreign Corporations)— Any Form SS-4 received indicating "Qualified Intermediary" or Form 1042 Filer on Line 8a or 9 with the other box checked, establish a 1042 filing requirement. DO NOT establish a 1120-F filing requirement.

  6. If the filing requirement is not present, use the information in the table below to establish the filing requirement for Form 1042. Use CC BNCHG to make the change.

    FORM 1042
    Tax Class Doc. Code MFT Code BOD WPD FYM FRC
    1 25 12 No No Yes 0 - Not required to be filed
    1 - Return required to be filed
    8 - Account Inactive
    Incompatible Filing Requirements: ......................None

Forms 1066 - U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

  1. This return is filed to report the income, deductions, and gains and losses from the operation of a Real Estate Mortgage Investment Conduit (REMIC). In addition, the form is filed by the REMIC to report and pay tax on net income from prohibited transactions. This return is filed under a separate EIN than the owner's primary EIN.

  2. When researching for an EIN, a new EIN must be assigned if the account found has a Form 1041, 1065, 1120, etc., filing requirement code. A partnership, corporation, trust, etc., cannot file a REMIC return with their partnership, corporation, etc., EIN. A new EIN must be assigned.

  3. Any entity that elects to be treated as a REMIC for its first tax year and meets the requirements of IRC § 860D(a) must file Form 1066.

  4. If a REMIC EIN is located and it does not contain the acronym "REMIC" , add the acronym "REMIC" to the end of the primary name line.

  5. For Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, name control the first four characters of the REMIC name.

    • Striped Tree Mortgage Pass-Through Certificate Series REMIC

    • Daisy Asset Investors TR 1 REMIC

    • Rose TR 1, Series A REMIC

  6. This return is generally filed by April 15th. However, if a "final" Form 1066 is being filed, the form is due by the 15th day of the 4th month following the date the REMIC ceased to exist. All taxpayers filing this return must have a calendar year tax year. See Figure 3.13.2–31.

    Figure 3.13.2-31

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Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts (OSPC Only)

  1. Do not correspond with anyone on Form 3520 or allow any notices to generate.

  2. Form 3520 will be forwarded to Entity for research of a valid TIN for Item 1b of Form 3520.

  3. If the "Individual" box is checked in Item B, Entity will research for an SSN. Use CC INOLE'T' to determine if SSN has already been established on the BMF. If the SSN is on the 'V' tape, it is considered valid. An SSN* on the 'W' tape is considered invalid.

  4. If an SSN cannot be found, assign an IRSN with CC TMSSN. then establish the IRSN on the 'W' tape of the BMF. CC INOLE'S' will provide all of the information from the SSN needed to establish the SSN on the BMF. Always assign the IRSN to the individual’s/beneficiary’s name.

  5. Access CC ENMOD with the SSN followed by a 'V' (or 'W'). Overlay ENMOD with ENREQ to receive BNCHG. Complete the following fields of CC BNCHG to establish the SSN on the BMF:

    • Enter "000" in the TC>field

    • The NEW-NAME-CTRL> field should be completed with the taxpayer's name control

    • Enter the taxpayer's name and address in the appropriate fields. Include a comma behind the state abbreviation

    • The MFT> field should contain "68"

    • Enter "PER F3520 FOR (TAX PERIOD)" in the REMARKS> field

  6. If the box for Partnership, Corporation, Trust or Executor is marked in Item B, the taxpayer will use an EIN.

    If... And... Then...
    a) The first, second, or third box under Check all applicable boxes: is checked, Line 2b is blank, Research for an EIN. If unable to locate a valid EIN, use CC ESIGN to assign an EIN. Use prefix "98" with NIC "D" , Always assign to individual’s/beneficiary’s name with trust descriptors following.
    b) The fourth box is checked under Check all applicable boxes:, Line 2b is blank, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  7. An extension of time to file Form 3520 is not needed. An extension for the taxpayer's annual return covers Form 3520.

    Form 3520
    Tax Class Doc. Code MFT Code BOD WPD FY FRC
    3 83 68 No No Yes 1 - Return required to be filed
    Incompatible Filing Requirement: .......................None

Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner (OSPC Only)

  1. Do not correspond with anyone on Form 3520-A or allow any notices to generate.

  2. Form 3520-A will be forwarded to Entity for research of an EIN.

  3. If the correct EIN is present on Line 1b of Form 3520-A, Entity will update the account with a 3520-A FRC.

  4. If an EIN cannot be found, use CC ESIGN to assign an EIN with prefix "98" . Use the NIC "D" . After assignment of EIN input a TC 016, PDC 1 to add the 3520-A FRC. Always assign to the individual’s/beneficiary’s name with trust descriptors following. If individual’s/beneficiary’s name not entered, research page 3 Item 6a.

    Note:

    ESIGN the EIN to the individual’s name with the first four letters of the last name being the name control.

  5. The following terms and acronyms are commonly seen in the processing of Form 3520-A. The acronyms will be used to reduce keystrokes.

    • CIBC - Canadian Imperial Bank of Commerce

    • FDCO - Fidecomiso (Spanish word for ‘trust’)

    • RESP - Registered Education Savings Plan

    • TFSA - Tax Free Savings Account

    • RBC - Royal Bank of Canada

    • SIPP - Self Invested Personal Pension

  6. If a valid EIN is present in line 3b, add 3520-A FRC. Entity will also perfect the name/name control on Master File. Often these taxpayers have had their EIN assigned to the trust descriptors, not the taxpayer’s name. Ensure the EIN is researchable post assignment.
    For example, if Tax Free Savings Account 123456 is entered, 1234 will be the name control.

  7. If EIN is not present, research for a valid EIN and edit to line. Ensure 3520-A FRC is present. If EIN is not present and not found, enter ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ without adding the FRC. If an SSN is present, take no action.

  8. If a valid EIN is present in line 4b, add 3520-A FRC. Entity will also perfect the name/name control on Master File. Often these taxpayers have had their EIN assigned to the trust descriptors, not the taxpayer’s name. Ensure the EIN is researchable post assignment.

  9. If EIN is not present, research for a valid EIN and edit to line. Ensure 3520-A FRC is present. If EIN is not present and not found, enter ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ without adding the FRC. If an SSN is present, take no action.

    Form 3520-A
    Tax Class Doc. Code MFT Code BOD WPD FY FRC
    3 82 42 No No Yes 1 - Return required to be filed
    Incompatible Filing Requirement: ....................... None
  10. Form 7004 is used to request an extension of time to file for the taxpayer's annual return. Form 3520-A "rides" with the annual return.

  11. If an unnumbered Form 3520-A is received with a statement the MLT owns a single piece of property or is not liable per Revenue Ruling 2013-14, pull the return from processing and destroy per destruction/burn box procedures. Input TC 591-020 on the tax period of the return.

Forms CT-1, Employer's Annual Railroad Retirement Tax Return

  1. This return is filed by a railroad employer. See Figure 3.13.2–32.

  2. Form CT-1 The return is processed only in the Cincinnati Submission Processing Center.

  3. This return is filed annually and is due by February 28th.

  4. All employers filing this return are on a calendar year end.

  5. There is no Form 940 filing requirement for these filers.

  6. See IRM 3.11.13, Returns and Document Analysis - Employment Tax Returns, for more information on Form CT–1 filers.

    Figure 3.13.2-32

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    Please click here for the text description of the image.

Form 8752, Required Payment or Refund Under Section 7519

  1. This return is filed by partnerships or Subchapter S corporations that filed and received approval of Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, and their election is still in effect for the tax year in question.

  2. The return must be filed by May 15th of the year following any tax year in which the election is effective. Personal Service Corporations that have made a Section 444 election will not file Form 8752.
    For example, S election is effective 7-1-16, FYM 09: Form 8752 is due May 15, 2017.

  3. Taxpayers can submit correspondence requesting an extension of time to file Form 8752. These requests must go to the Director or District Director for approval. Existing corporations are liable to file Form 8752 the first year of their Section 444 election if their deferral income is under $500. The taxpayer is not required to make a payment, but they must file a zero Form 8752.

  4. When a taxpayer is liable to file a Form 8752, the initial return must be filed for the first tax year the Form 8716 is effective.

    • If an existing C corporation with an FYM of 10 made an S election effective Nov. 1, 2016, and received approval on Form 8716 to use FYM 10, Form 8752 is required to be filed for November and December of 2016 and is due May 15, 2018. The initial Form 8752 will post to 201612-15.

    • If a new corporation electing S status and elects to have FYM 09 (Sept. 30th), the Form 8752 is due to be filed for the first year the Section 444 is in effect. If the TC 090 is effective Oct. 1, 2016, with FYM 09 (and TC 055 is for FYM 09), the Form 8752 is due May 15, 2017. The Form 8752 will be applied to the tax year ending Dec. 31, 2016 (201612-15).

  5. Error Resolution (ERS) may send Forms 8752 to BMF Entity so Entity can determine the deferral period of the Section 444 election. Once determined and annotated, return Form 8752 to ERS.

Form 8875, Taxable REIT Subsidiaries (OSPC)

  1. Forms 8875 must be signed by an officer of the taxable Real Estate Investment Trust (REIT) subsidiary and by an officer of the electing REIT. If either signature is missing, use Form 6800 to return Form 8875 to the taxable REIT subsidiary requesting the missing signature(s).

    • Your Form 8875 does not have the signature of the officer of the taxable REIT subsidiary. Please have the appropriate officer sign the attached Form 8875 and return it to our office.

    • Your Form 8875 does not have the signature of the officer of the electing REIT. Please have the appropriate officer sign the attached Form 8875 and return it to our office.

    • Your Form 8875 does not have the signatures of the officer of the taxable REIT subsidiary or the officer of the electing REIT. Please have the appropriate officers sign the attached Form 8875 and return it to our office.

  2. If Form 8875, Part I or Part II are incomplete, research IDRS for the missing information. If IDRS does not reveal the needed information, return the incomplete Form 8875 to the taxable REIT subsidiary. Below is suggested language for the letter to the taxpayer (Form 6800 may be used for returning Form 8875):

    • The EIN of the taxable REIT subsidiary is missing. Please complete the attached Form 8875 and return it to our office.

    • The EIN of the electing REIT is missing. Please complete the attached Form 8875 and return it to our office.

  3. If a Form 8875 is received with an attachment showing a list of taxable REITs, correspond with the taxpayer for additional information as follows:

    1. Inform the taxpayer that a separate Form 8875 must be submitted for each Taxable REIT Subsidiary (TRS) and that all portions of Form 8875 must be complete.

    2. Inform the taxpayer that each Form 8875 must be signed by persons authorized to sign the tax returns of the TRS and the electing REIT. The Form 8875 must contain the signatures of an officer of the taxable REIT subsidiary and an officer of the electing REIT.

    3. If Form 8875 is returned unsigned, return the Form 8875 to the taxpayer with a letter of explanation.

  4. On the EIN of the taxable REIT subsidiary, Input a fact of filing (TC 971) on CC ENMOD with CC FRM77 using Action Code 360 with the following components:

    MFT>00
    TX-PRD>000000
    NM-CTRL>Name Control of REIT - Item 1 of Form 8875
    TC>971
    TRANS-DT>MMDDYYYY (Current Date)
    SECONDARY-DT>Item 11 of Form 8875
    TC971/151-CD>360
    XREF-TIN>EIN of electing REIT - Item 6 of Form 8875
    XREF-NM-CTRL Name Control of electing REIT - Item 5 of Form 8875
    REMARKS>Form 8875

  5. If words such as Protective Election, Automatic Election, Amended, etc. are present, research CC ENMOD for a TC 971 AC 360. If posted, do not process Form 8875; file per local procedures. If a TC 971 AC 360 is not posted, continue processing Form 8875.

  6. Taxpayer inquiries regarding Form 8875 will be routed to Accounts Management.

  7. If it appears that information/correspondence related to Form 8875 was detached from Form 8875 and routed to Entity, research CC ENMOD with the taxable REIT subsidiary's EIN for TC 971 AC 360. If not present, input per (4) above.

  8. If "Revocation" is indicated on Form 8875, input TC 972 AC 360. Enter "T/P revoked Form 8875" in the Remarks field.

Miscellaneous Forms

  1. Substitute for Return (SFR) cases (Forms 940 and 941) - State Audit leads processed in the Collection Function require the establishment of an EIN if not present.

    • Perform all necessary research to determine if an EIN was previously assigned

    • If an EIN is found, notate the EIN on the SFR and return it to the Collection Function,

    • If an EIN is not found, assign an EIN via CC ESIGN with NIC "D" . Do not assign any filing requirements

  2. Schedule H (Form 1040 or Form 1041) Schedule H replaced Form 942. This schedule is filed to report household employee Social Security, Medicare and FUTA tax payments. This schedule may be routed to Entity attached to Form 1040, Form 1041 or may be a loose schedule from Document Perfection or AM/Adjustments. When schedule is received in Entity, the following actions will be taken:

    1. Perform the preliminary research to ensure that the taxpayer does not have an EIN.

    2. If an EIN is located, edit it on the EIN block of Schedule H and return to the originating function.

    3. If no EIN is located, assign an EIN using CC ESIGN, NIC "A" , Return ID "ZZ" and the tax period of the return involved.

  3. Form 1040-NR U. S. Nonresident Alien Income Tax Return, which has other than an individual’s name will be forwarded to Entity from Code & Edit (or Accounting) for assignment of EIN’s with the prefix of 98.

    1. IDRS CC CMODE will be used with the definer PH to access the international Master File at Austin Service Center.

    2. Master File Indicator "‘O’" will be used with Location code "’98’." NIC "D" will be used to stop notices to the taxpayer.

    3. Upon completion of the EIN assignment and audit trail, the document will be returned to the originator (Code & Edit or Accounting).

  4. Form 1120-IC-DISC Interest Charge Domestic International Sales Corporation Return, without EINs may be forwarded to Entity from Code and Edit. Perform all preliminary research to insure the taxpayer does not have an EIN.

    1. If an EIN is located, enter it on the return and forward to the Document Perfection Operation/Code & Edit Department.

    2. If an EIN is not located, assign one using CC ESIGN, MFI "O" , (alpha).

  5. Form 1725, Routing Slip, is utilized by many customers, specifically Compliance Revenue Agents and Officers, to notify Entity that a FRC change is needed on an EIN that has been examined. These requests will be honored if legible and valid. If the request is not valid, (for example an LLC asking to have FRC for an 1120 added to account) return the request to the originator explaining why you cannot honor their request.

  6. Form 2363 Master File Entity Change. This document is used to request an Entity change by IRS personnel that do not have access to IDRS. Entity TEs will ensure the Form 2363 is complete, specifically the "Prepared By" box, then evaluate the request and update the Master File if the request is valid.

    • Forms 2363 will reflect the taxpayer's name, name control and TIN on the FROM side of Form 2363. The taxpayer's X-REF TIN will be in the TO side of Form 2363. Across the body of Form 2363 (in FIRST NAME LINE and SECOND NAME LINE fields) the words ADD X-REF TIN will be hand written.

    • Forms 2363 will be submitted by Examination Agents to update Filing Requirement Codes for entities under examination.

    • Field agents will submit Forms 2363 when FRCs need updated, specifically the Forms 941/944 relationship. Since April 1st is the deadline each year for a taxpayer to switch from a Form 941 filer to a Form 944 filer and vice versa, any Forms 2363 received that indicate the taxpayer will be changing from one of the two Forms in the next calendar year will be held until the end of the year. The Control Team will establish a file in which the Forms 2363 will be held. The file will be purged and processed during dead cycles.

  7. Form 4219, Statement of Liability of Lender, Surety, or other Person for Withholding Taxes. This form will be received from RCO when an EIN needs assigned/found. Perform all necessary research to determine if an EIN exists before assigning a new one. NIC "D" will be used to suppress generation of a CP 57X. Send 147C notifying taxpayer of EIN assignment and request completion of Form SS-4.

  8. Form 4442, Inquiry Referral

    If... Then....
    a) Form 4442, Inquiry Referral is received, The case must be completed within 20 days of the date stamped by the fax machine. Process the taxpayer inquiry, Section B according to your IRM procedures. Complete Section C, Response/Final Resolution in blue or black ink according to the actions taken. Track and keep an inventory of the work.
    b) A fax number is present, Fax the Form 4442 back to the originating office.

    Note:

    If the issue is an EIN consolidation, retain the Form 4442 as part of your consolidation case. It is not necessary to return Form 4442 to originator.

    c) Form 4442 is received by Entity and the inquiry is not an Entity related issue, Send the Form 4442 to your campus transshipping coordinator. The coordinator will alert the originating transshipping site of their error. The case must be processed in the receiving site to avoid delay.


    If a Form 4442 is received in BMF Entity and there is an open BMF Entity unpostable on CC UPTIN, expeditiously forward the 4442 to BMF Entity Unpostables.

  9. Copies of Form 4876-A, Election to be Treated as an Interest Charge DISC will be forwarded to CSPC Entity from Code and Edit for processing.

    • If the EIN on document belongs to a Subchapter S corporation (TC 090 posted), input TC 096, effective for the date entered in Part I, Item E of Form 4876-A. Edit complete audit trail on Form 4876-A and associate a copy with posted TC 090 DLN.

    • If EIN on copy of document is valid, remove the 1120-01 FRC

    • If EIN on copy of document is not valid, research for valid EIN. If found, edit on document and remove 1120-01 FRC

    • If valid EIN cannot be located, assign one on the "O" tape via CC ESIGN without an 1120-01 FRC. Use NIC "D" . Send 147C instructing taxpayer to complete and return Form SS-4. Edit the EIN on the copy of Form 4876-A.

    Process the copy of Form 4876-A by removing the Form 1120 Filing Requirement. Input a TC 016 into CC BNCHG and 00 out the Form 1120 Filing Requirement to keep the taxpayer's account from being delinquent. After processing the copy of Form 4876-A, it will be destroyed as secure trash in the Entity Control team after Quality Review.

  10. Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. This form may be routed to BMF Entity for an EIN to be assigned. However, if this form is being filed, the taxpayer was in business the year of the return, therefore, should have an EIN. Be sure to research the name entered on the fourth line of the return as this is the liable entity. If this line is blank:

    • ESIGN an EIN on the "O" tape,

    • Assign to the name on the first line of Form 8027. It is labeled: Employer’s name (name as shown on Form 941)

    • Use NIC D.

    • Send 147C instructing taxpayer to complete and return Form SS-4.

    • Edit the EIN on Form 8027 and complete your audit trail.

    ,.
    This return is filed by the owner of the establishment, therefore it is possible for one EIN to file multiple Forms 8027.

  11. Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business—These forms will be sent directly to the Detroit Computing Center. No action is to be taken in Entity.

  12. Form 8329, Lender's Information Return for Mortgage Credit Certificates (MCCs), and
    Form 8330, Issuer's Quarterly Information Return for Mortgage Credit Certificates (MCCs).

    • Generally, these forms are non-remit. However, payment may be received for penalty payment. If so, apply to the 20-2325, Miscellaneous Forfeiture Receipts account.

    • These forms have a signature area, but are not required to be signed.

    • The address on Master File will never be updated from these forms unless a Form 8822-B is attached.

    • Never update the name on Master File from one of these forms. It is possible several entities share an EIN for bond issuing purposes. Edit the name control from Master File onto the form.

    • It is also possible that two entities will file the form together. If so, circle out the second name and EIN entered. Name control the form per Master File.

    • If EIN is not on form and unable to locate an EIN through IDRS research, contact the organization by phone for their EIN.

    • If an EIN must be assigned, use NIC 'D' and send a 147C requesting the organization to complete and return Form SS-4.

    • These forms are maintained in Files by TIN and calendar year.

  13. Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships. Do not process Form 8865: route to Accounts Management-Correspondence.

  14. Form 8873, Extraterritorial Income Exclusion. Do not process Form 8873 as a stand alone form. Form 8873 will be attached to a partnership, corporation or some other primary return. If Form 8873 is submitted as a stand alone form, return the form back to the taxpayer, so it can be associated and filed with a primary return.

  15. Form 8941, Credit for Small Employer Health Insurance Premiums. This form was first processed in year 2011. These documents may be received in Entity for EIN research and/or Name (control) verification. Perform necessary research, perfect document, and enter audit trail in lower left corner of document.

  16. Form 9956, Request for Temporary IRSN (Internal Revenue Service Number). This form is routed to Entity by other areas of the service when an IRSN is needed. See IRM 3.13.5.

  17. Form 12575, Notice of Fiduciary Relationship-Illinois Land Trust, was obsoleted in 2000. No area of the Service uses this form, therefore, if received in BMF Entity, the document should be destroyed as classified waste per local procedures.

"Funny Box" Returns

  1. Compliance has asked Submission Processing (SP) for assistance in identifying returns that are out of the ordinary, or "funny" . Entity TEs that work returns will assist both Examination (Exam) and Criminal Investigation (CI) in identifying questionable returns. A "Funny Box" has been created and placed in a central location for the deposit of questionable returns. At the end of each business day, the control team will retrieve the documents that have been placed in the Funny Box and route to CI - Fraud Detection Center:
    Internal Revenue Service
    Mail Stop 9001
    1973 N. Rulon White Blvd
    Ogden, UT 84404

  2. Identifying returns for Exam promotes the highest degree of voluntary compliance. Exam will provide support and assist SP during processing.

  3. CI investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC are defined as willful and deliberate attempts to evade or defeat the income tax.

  4. If the return is numbered, make a complete copy and indicate COPY across the front of the first page of the return. Place the copy in the Funny Box and continue processing the original return.

  5. Unnumbered returns can be placed directly in the Funny Box.

  6. See below for specific attributes of a return:

    "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡
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International Returns and Documents

  1. This section provides instructions for working unprocessable foreign returns. The Estate and Gift program (Forms 706 and 709 series) and Excise Forms 2290 and 720) are centralized at the Cincinnati Submission Processing Center. Beginning 2018, Excise Forms 11-C and 730 will be processed at the Ogden Submission Processing Center.

  2. All other foreign returns are processed at Ogden Submission Processing Center.

  3. If it is necessary to assign an EIN to an international taxpayer, the prefix 98 will be used. The prefix 66 will be used for taxpayers residing in Puerto Rico, Guam, Virgin Islands, American Samoa, Northern Mariana Islands and Palau.

Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

  1. Return is filed to report a foreign corporation's income, deductions, credits and tax to the United States.

  2. This return must be filed by any foreign corporation that

    1. Has income from any US source subject to U.S. withholding tax that was not paid to the U.S. government and reported on a U.S. withholding tax return by a U.S. withholding agent;

    2. Is engaged in a trade or business in the U.S.;

    3. Has tax preference items that affect the corporation's computation of its unrelated business income;

    4. Has overpaid income tax that it wants refunded;

    5. Is no longer engaged in a U.S. trade or business, but has deferred income from that US trade or business, or has gain from the disposition of property that ceased to be used in a U. S. trade or business within the last 10 years;

    6. Or concludes that its U.S. activities do not give rise to gross income which is effectively connected with the conduct of a trade of business within the U.S., but wishes to preserve its right to claim deductions and credits attributable to such gross income by filing a protective return. See IRC Treasury Regulation 1.882-4(a)(3)(iv).

    7. Claims the benefits of an income tax treaty with the U.S.

  3. An agent in the U.S. must file the return if the foreign corporation has no office or place of business in the U.S.

  4. For foreign corporations with no office or place of business in the U.S., this return is due no later than the 15th day of the 6th month after the end of the tax year.

  5. For foreign corporations with an office or place of business in the U.S., this return is due no later than the 15th day of the 3rd month after the end of the tax year.

Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation

  1. This return is filed to report the income, deductions, credits, and tax of a foreign sales corporation (FSC).

  2. This return is filed by corporations that have elected (by filing Form 8279) to be taxed as a FSC or small FSC. Form 8279 is no longer valid. If Form 8279 is filed, stamp on the Form 8279 "DENIED" and return to taxpayer and explain to the taxpayer that this form is no longer a valid form.

  3. Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, for which no EIN is located will be researched and processed as follows:

    1. If... And... Then...
      a) The EIN is not on the BMF,   Research to ensure the EIN is for that taxpayer, and establish on the BMF via CC BNCHG with a TC 060.
      b) The EIN is on the BMF, IDRS does not have a TC 060 posted, 1. Input a TC 060.
      2. Transcribe the EIN from the letter to the Form 1120-FSC and route the Form 1120-FSC for processing.
      3. If applicable, annotate the Form 1120-FSC "Form 8279 received, approved and input"
  4. If a taxpayer terminates their existing FSC election, input TC 065 - Notification of Revocation received.

  5. If an existing FSC is terminated, input TC 061 - Revocation of a FSC or Small FSC election.

U.S. Real Property Holding Corporation under Foreign Investment Real Property Tax Act (FIRPTA) for Corporation Filing Election Under IRC Section 897(i)

  1. Remittances may be received when an electing foreign corporation requests to be treated as a domestic corporation for the purpose of FIRPTA as prescribed by IRC § 1.897–3(c) of the regs.

  2. These remittances may be routed to Entity for the assignment of an EIN.

  3. EINs will be assigned to these entities on the BMF, MFI "O" .

  4. Use NID D when assigning the EIN to this type of entity.

Captive Insurance Elections

  1. Remittances may be received when an electing foreign corporation requests to be treated as a domestic corporation for the purpose of FIRPTA as prescribed by Treasury Regulation § 1.897-3(c).

  2. All information needed to establish the entity will be on the first page of the election.

  3. Establish the account with either a Form 1120–PC or 1120-L filing requirement. This will be indicated on the election.

  4. Use NIA when assigning the EIN to this type of entity.

Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

  1. This return is filed to report the total liability under Section 1446 for the partnership tax year.

  2. This return is also a transmittal form for Form 8805.

  3. Refer to Form 8805 for processing procedures.

Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax

  1. This form is filed to show the amount of effectively connected taxable income and tax payments allocated to the foreign partner for the partnership's tax year.

  2. A separate Form 8805 must be filed for each foreign partner. Process as follows:

    If... Then...
    a) The partner is a foreign corporation, Establish on the BMF with a Form 1120–FRC of 06.
    b) The partner is a foreign partnership, Establish on the BMF with a Form 1065 FRC of 1.
    c) The partner is a foreign trust or estate, Establish on the BMF with a Form 1041 FRC of 1.

Form 8813, Partnership Withholding Tax Payment (IRC Section 1446)

  1. This form is filed to make payment to the Internal Revenue Service of withholding tax under IRC § 1446.

  2. Establish on the BMF with MFI "O" .

Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests (OSPC Only)

  1. The following forms are used for reporting and paying the taxes due to the acquisition of U.S. real property interests:

    • Form 8288, U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests,

    • Form 8288-A , Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests

    • Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests

  2. The transferees (aka buyer or withholding agent) use the forms to report and pay any tax withheld on the acquisition of U.S. real property interests. These forms are used by individuals, corporations, partnerships, estates, and trusts to withhold tax on distributions and other transactions involving U.S. real property interests from a foreign seller.

  3. The transferee and entity subject to withholding must have a TIN (SSN/EIN/ITIN) or an IRSN to post the payments and to process the income tax withholding returns.

  4. When the Form 8288/8288-A/8288-B is received take the following actions:

    1. Verify the SSN entered is correct. If not correct, verify it does not belong to another taxpayer.

    2. Establish the account on the BMF using CC BNCHG (TC 000 on "V" tape ) under MFT 17.

    Note:

    There is not a Filing Requirement Code (FRC) for the Form 8288 family.

  5. BMF Entity will verify and perfect the name and SSN in the following locations for the specified form:

    • Form 8288 - Item 1 (Name and SSN) and Item 3 (Date of Transfer),

    • Form 8288-A - Withholding Agent's Name, Item 1 (Date of Transfer), and Withholding Agent's Federal Identification Number,

    • Form 8288-B - Item 4a (Name of Withholding Agent), Item 4b (Identification Number of Withholding Agent), and Item 6a (Date of Transfer)

  6. If the SSN is missing, research using the name of the buyer/transferee. If found, establish the SSN on BMF.

  7. If you cannot locate the missing SSN by research, assign an IRSN (9NN-29-NNNN or 9NN-04-NNNN) with CC TMSSN. The IRSN is an invalid number and will be established on the BMF (MFT 17) with a Definer "W" at the end of the IRSN.

  8. After the account has been established, send the Form 8288/8288-A/8288-B back to the originator.

  9. The words Kabushiki Kaisha or Geisha are the Japanese translation of the words "stock company" or "corporation" Therefore, if these words appear in a name line, they will be moved to the end of the name where the word "corporation" would normally appear.
    For example,
    Form 8288 shows the name as "Kabushiki Kaisha Green Door" When name controlling and/or assigning an EIN, the name will be formatted "Green Door Kabushiki Kaisha" .

  10. Currently there is a problem processing Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests. When a request is received for an IRSN, process within required time frame.

Correspondence Received

  1. Timeliness guidelines for acknowledging and processing taxpayer correspondence are outlined in IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates. Correspondence can be defined as follows:

    1. All written communications from a taxpayer whether solicited or unsolicited.

    2. Written communication in response to IRS requests for information or data.

    3. Written communication which requests information, including that which may accompany tax returns.

    4. Written communication, including annotated notice responses, that provide additional information or dispute a notice.

    5. A statement that explains if the taxpayer needs to contact the Service, they should return a copy of the letter with their name, telephone number and the best time to call.

    6. Correspondence pertaining to assignments of EINs, name changes, address changes (that involve other entity changes), differences in filing requirements, terminations, and mergers will be forwarded to Entity Control Team for necessary action.

    7. Correspondence received from the taxpayer or other area of the campus where the action requested has already been taken will be destroyed per local procedures.

  2. If a Form 8821 or Form 2848 is attached to correspondence and it indicates any form other than the immediate issue, make a photocopy and attach the photocopy to your case. Route the original Form 8821/2848 to the CAF team.

    Reminder:

    The POA should receive a copy of any correspondence that is part of the case resolution. This is achieved by inserting the MFT and Tax Period when initiating CC LPAGE and a Y in the CAF> field of CC LPAGE. This allows the information present on the CAF to be shared with CC LPAGE.

  3. Before taking action on any piece of correspondence you should verify the taxpayer’s EIN via CCs INOLE, ENMOD and BMFOL. If the EIN is not present, CCs NAMEE and NAMEB should be utilized. If unable to locate the taxpayer’s correct EIN, return the correspondence with a 6800sce, marking the appropriate box(es), or Correspondex Letter 0045C.

  4. When a taxpayer replies to an IRS notice or letter and requests an Entity change, it is not necessary that the taxpayer sign the request. This is IRS initiated clarification.

  5. If a mis-routed taxpayer reply to IRS correspondence is discovered in a batch of documents, and/or contains a non-Entity issue, do not process the reply. Route the reply or issue to the appropriate functional area. If correspondence, route based on the IDRS number located in the "In reply refer to:" area of the IRS generated letter. If the IDRS number is from Accounts Management, route to Image Control Team (ICT) for scanning to CIS. If however, if there is an Entity issue, it will be addressed and an interim letter sent.

  6. Correspondence received from taxpayers requesting an action must be answered and the following statement or similar reference must also be included in the reply: "This is in reply to your correspondence of (date)" and explain the action taken, even if the action was exactly what the taxpayer requested.
    EXCEPTION: Correspondence requesting any type of name or address change will only be acknowledged if there is a direct demand from the taxpayer for confirmation. This direction applies to MOD IEINs also.

    Note:

    If the taxpayer's correspondence is not dated, use the postmark date. If that date is unknown, use the date three days prior to the earliest IRS received date.

  7. If the words Federal Deposit Insurance Corporation (FDIC) is on any of the name lines, do not change the name or address on Master File. Truly, you should never receive this type of correspondence.

  8. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information: the nature of the taxpayer's inquiry and our actions taken.

  9. When corresponding with the taxpayer, use the appropriate letter that accurately addresses the taxpayer's situation and always use the selective paragraphs that are available in the correspondex letters before using open paragraphs. For example, do not use a 385C to inform the taxpayer of their valid EIN or denied/rejected election. Do not use a 147C on any election issues. Before sending the letter, ensure the same letter has not been sent to the taxpayer within the last 45 days. If so, do not send the same message to the taxpayer. If the taxpayer specifically requests a 147C, send a 147C.

  10. When using CC LETER, you must determine the Taxpayer's correct address. If the address on the correspondence matches Master File (mailing or location), use that address. If the address on the correspondence does not match Master File use the address on Master File and direct the taxpayer to complete and return Form 8822–B (or Form 8822 for Estate and Gift taxpayers).

  11. When using CC LETER, do not select the paragraph codes for blank forms/documents. Every Correspondex letter has a hard coded paragraph instructing taxpayers to call 1-800-TAX-FORM if forms/documents are needed. If a blank form must be sent to the taxpayer, print and enclose as an attachment to the Correspondex letter.

  12. If correspondence is received from an unauthorized representative (no POA attached or on CC CFINK), a letter must be sent to the taxpayer explaining the action we cannot take. The letter must begin with: "This is in response to the inquiry of (date), from (representative). We have no record that you authorized (representative) to act for you in this matter. Please notify (representative) that we have replied directly to you."

    Note:

    If third party's address is the taxpayer's mailing address, do not send the above paragraph to taxpayer. By having the third party's address on Master File, the taxpayer has authorized the third party to receive information.

  13. If the correspondence cannot be resolved within thirty days, an interim letter (2645C) will be sent explaining the reason and when final action can be expected. The interim reply will include the appropriate toll free number.

  14. Signatures will be accepted according to the terms of prima facie Evidence which means if the signature is below a perjury statement, the validity of the signature will not be questioned.

  15. A CP 576 is issued when an EIN is assigned from a return or document. CP 576 requests a Form SS-4 from the taxpayer. When the SS-4 is received, input additional data from the SS-4 to IDRS, use CC ESIGN modifier " U" to update the NIC. Dispose of the Form SS-4 per IRM 21.7.13.3.2.11, Assigning Employer Identification Numbers-Disposition of Form SS-4 and Supporting Documentation.

  16. If correspondence is received concerning a trust filing under Section 645, refer to IRM 3.13.2.28.

  17. When you correspond, examine the case completely so that all of the conditions can be included in the same correspondence. If additional information is needed, the second correspondence must include a paragraph of apology for any inconvenience.

  18. If the taxpayer's inquiry is able to be resolved over the phone and the taxpayer does not want a written response, annotate the facts of the phone conversation on the taxpayer's correspondence.
    Add the following history item to IDRS with CC ACTON:
    CALL2TP
    RE: ENTITY

  19. If the taxpayer requests we send our letter to an address other than what is on Master File, do so.

  20. Use the chart below when providing a phone number for the taxpayer to contact various Business Operating Divisions (BODs) within IRS:

    T/P - BOD Number
    IMF w/ W&I Indicator 1-800-829-0922
    IMF w/ SBSE Indicator 1-800-829-8374
    International IMF and BMF 1-267-941-1000
    BMF 1-800-829-0115
    NMF (Non-Master File) 1-888-829-7434
    Estate and Gift 1-866-699-4083
    Excise 1-866-699-4096
    TE/GE 1-877-829-5500
    TAS
    Teletype (TTY)/Telephone Device for the Deaf (TDD)
    1-877-777-4778
    1-800-829-4059

Request for EINs

  1. Follow the procedures below, when the correspondence reveals that the taxpayer should file a return and the correspondence is received 30 days or more prior to the due date of that return:

    If... And... Then...
    a) The correspondence reveals that the taxpayer should file a return, The correspondence is received within 30 days of the due date of the return. Perform all necessary research to determine if an EIN was previously assigned.
    b) No EIN is located, The taxpayer states they need to make a payment, Assign an EIN. Use the CC ESIGN procedures located in IRM 21.7.13, Assigning Employer Identification Numbers.
    c) The EIN is changed from the one the taxpayer entered,   Issue Letter 147C as a non suspense letter to the address on Master File.
    d) Sufficient information is not available to assign an EIN with the proper filing requirements, fiscal year month, etc.,   Acknowledge the taxpayer's correspondence with Letter 45C. Instruct the taxpayer to secure Form SS–4 from for completion. All Correspondex letters contain a hard coded paragraph directing taxpayers to IRS.gov for forms.
  2. If the taxpayer states "CCR PLEASE EXPEDITE" or "GOVERNMENT CONTRACTOR" on their correspondence or envelope, this case must be given expeditious treatment.

  3. An EIN is only assigned from correspondence when the required return due date is within 30 days or the correspondence accompanies a payment.

  4. Follow the procedures below if correspondence is received from a representative of a pension trust (or multiple pension trusts) requesting assignment of an EIN in order to comply with the withholding requirement of the Tax Equity and Fiscal Responsibility Act (TEFRA):

Form SS-4 Issues

  1. If correspondence is received stating Form SS-4 has not been processed, process as follows:

    If... And... Then...
    a) Previously assigned EIN is located on IDRS, Your research does not match the address on the correspondence. Send 147C to address on correspondence requesting previous addresses and business names the T/P may have used.
    b) No previously assigned EIN was located,   Send Letter 45C to the taxpayer including instructions on obtaining a Form SS-4.
  2. If a CP 575/576 or 147C letter was sent within the last 45 days, do not send another 147C letter unless taxpayer’s address has changed.

  3. Instructions for processing requests for copies of Forms SS-4 by Taxpayers can be found in IRM 21.7.13.3.2.12, Assigning Employer Identification Numbers (EINs) - Form SS-4 Retention (Past and Present) and Requests for Copies of Form SS-4. These requests should be routed to AM:EIN Function quoting IRM 21.7.13.3.2.11.

    If... And... Then...
    a) The correspondence is not clear as to the taxpayer's intent, The representative is acting as payer for multiple plans, Correspond to inform the representative that the withholding may be reported on their Form 945 filed under their previously assigned EIN unless they want an individual EIN assigned specifically for use in reporting withholding for multiple pension trusts under their control.
    b) Individual EINs are requested,   Inform taxpayer that individual Forms SS–4 must be submitted for each pension trust. Refer taxpayer to Modernized Internet EIN application at www.irs.gov.
    c) An EIN is requested solely for use in reporting for TEFRA, An EIN is not located with all available research, Refer the taxpayer to the AM/EIN function (1-855-215-1627) or Mod IEIN (internet EIN application).
    d) The taxpayer has changed their EIN, The EIN is on the BMF, 1. Issue Letter 147C as a non suspense letter to the address on Master File
    2. Do not issue Letter 147C if the taxpayer transposes 3 or less characters of the EIN or the taxpayer fails to include the EIN.
    e) Employees are indicated, The EIN is on the BMF, 1. Update the account to reflect a Form 945 FRC of 01.
    2. Supply the taxpayer with the telephone number and website to request forms, 1-800-TAX-FORM (1-800-829-3676) and www.irs.gov/formspubs.
    f) An EIN is located on another MF, The EIN is on the BMF, 1. Notify the taxpayer of the previously assigned EIN (Letter 147C).
    2. Establish the account on the BMF with a Form 945 FRC of 01.
  4. Field Agents often require an EIN to open assessments for non-compliant taxpayers. The agents should complete Form SS-4 and sign the document. The Forms SS-4 should be faxed to BMF Entity, Attention: Lead TE: Cincinnati 855-270-4081 or Ogden 855-214-7520. Assign the EIN completing as many fields of CC ESIGN as possible. Item 10 will always be Other. Notice Indicator Code "D" will be used.

Retaining Previously Assigned EIN

  1. If a taxpayer indicates they had a previous EIN and are requesting retention of the number, research NAMEE/NAMEB/INOLE/FINDE'D' to determine if the taxpayer can retain the previous EIN.

    If... And... Then...
    a) Research indicates the EIN is Valid, The EIN is not on the BMF, Input a TC 000 with the taxpayer's current information.
    Research indicates the EIN is Valid, The EIN is on the BMF, Update the account with the current information and notify the taxpayer appropriately.
    b) Research cannot verify the EIN is valid, It can be determined the EIN is a 6, 7, 8 million number assigned from a group/block of EINs, Input a TC 000 and notify the taxpayer appr