3.13.36 EPMF Account Numbers

Manual Transmittal

June 27, 2018

Purpose

(1) This transmits revised IRM 3.13.36, Campus Document Services, EPMF Account Numbers.

Material Changes

(1) Editorial changes made throughout.

(2) IRM 3.13.36.25.(6)(d)-Clarified Consolidation instructions

(3) IRM 3.13.36.26.7(2)-Clarified Form 14704 instructions

(4) IRM 3.13.36.26.7.1(13)-Clarified Form 14704 instructions

(5) IRM 3.13.36.26.7.1(14)-Clarified Form 14704 instructions

(6) IRM 3.13.36.26.7.1(15)-Clarified Form 14704 instructions

(7) IRM 3.13.36.26.7.1(16)-Clarified Form 14704 instructions

(8) IRM 3.13.36.33.1(9)-Clarified change in sponsorship instructions

Effect on Other Documents

This supersedes IRM 3.13.36 dated July 1, 2017.

Audience

Wage and Investments
Employee Plans Master File Account Numbers employees

Effective Date

(07-01-2018)

Sean E. O'Reilly
Acting Business Systems Planning Director
TE/GE Government Entities and Shared Services

Service Level Agreements (SLA)

  1. National Service Level Agreements (SLA) exist between Operating Divisions. IRM 3.13.36 contains specifics regarding SLA that pertain to activities performed using this IRM.

Taxpayer Advocate Service (TAS) SLA

  1. The Taxpayer Advocate Service (TAS) SLA contains basic requirements for handling TAS-referred cases, and includes specific actions to take on TAS referrals and specific timeframes for completing those actions.

  2. Find the SLA at http://tas.web.irs.gov/policy/sla/default.aspx and procedures in IRM 13, Taxpayer Advocate Service.

Operations Assistance Requests (OAR)

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

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

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

  4. For OARS not requiring expedite processing, the Operation Division or Functions Liaisons acknowledge receipt via Form 3210, secure messaging email, fax, or by phone within three workdays of receipt or the OAR.

  5. Make every effort to expedite completion of OAR cases. Form 12412 indicates timeframes for OAR Case completion. Employees:

    1. Work with your manager and the Taxpayer Advocate contact listed on Form 12412 to arrive at agreed upon timeframes for follow-up based on the facts and circumstances of the particular case.

    2. Immediately notify your manager if you can't resolve a taxpayer’s case by the requested timeframe or by a negotiated extension date.

    3. Discuss your findings and recommendation for final case disposition with your manager and the appropriate TAS contact. The TAS contact communicates the final case decision to the taxpayer. However, you and your manager can also tell the taxpayer of the decision.

    4. The TAS employee elevates this disagreement to his/her manager who discusses it with the appropriate Operating Division manager, if you, your manager, and the TAS contact can't agree upon the resolution to the taxpayer’s problem. Elevate any disagreement up the chain to your manager's manager.

    5. Upon case resolution, the TEGE employee assigned the OAR completes section VI of Form 12412 and returns it to the TAS Case Advocate assigned the case. Return the Form 12412 within three (3) workdays of completing all actions and posting all transactions.

  6. For more detailed information, please refer to: IRM 13.1.19, TAS Operations Assistance Request (OAR) Process.

Overview

  1. This manual focuses on the processing of delinquency notices, Form SS-4, Application for Employer Identification Number, and other entity related issues on the Employee Plans Master File (EPMF). The entity data include the Employer/Sponsor name, address, and Employer Identification Number (EIN). The plan data include the plan filing requirements, the plan name, plan number, plan year ending and certain characteristics of each of the employer's plans that may be required to identify a particular filer.

  2. Use these procedures for processing EPMF Entity issues. The Employee Retirement Income Security Act (ERISA), ERISA Filing Acceptance System (EFAST) 2 project moved processing to a vendor contracted by the Department of Labor (DOL). EFAST2 is a computerized processing system designed to simplify and expedite the receipt and processing of the Form 5500 and Form 5500-SF using electronic filing technologies. Each year more than one million pension, welfare and fringe benefit plans file the Form 5500 and Form 5500-SF to satisfy annual reporting requirements under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. These are considered EFAST2 returns.

    1. EFAST2 processing includes validation of the plan entity.

    2. Changes to the EPMF, including establishing accounts TC 000, name, and address changes, occur by posting of the return record coming from EFAST2.

    3. IRS establishes EPMF accounts from Form SS-4.

  3. The DOL vendor processes all Forms 5500. These returns are only available electronically to IRS via the vendor's EFAST2 Website.

  4. The Ogden Campus processes the paper Form 5500–EZ. Unless otherwise specified in the specific Entity instructions, use the procedures in IRM 3.13.36 when resolving all Form 5500–EZ accounts. Report problems encountered the same business day as discovered to the TE/GE Headquarters Program Analysts overseeing the program.

  5. The IRS processes all Forms 5330. If we processed the return before January 1, 2001, a fact of filing posted to the EPMF and the assessment made on Automated Non-Master File (ANMF). Most returns processed January 1, 2001 or later process as a BMF document and post to the master file. A TC 154 posts as a fact of filing to the EPMF for the Form 5330.

  6. Various letters are referenced throughout this IRM that best address the situations. We strongly advise you to use these letters to leave an accurate audit trail. However, other letters are acceptable as long as the content is accurate and management approved the paragraphs.

  7. We strongly advise any tax examiner using this IRM be familiar with the contents of IRM 21.3.3, Incoming and Outgoing Correspondence/Letters, IRM 21.7.13, Assigning Employer Identification Numbers ,IRM 2.3, IDRS Terminal Responses, and IRM 2.4IDRS Terminal Input.

Glossary of Terms

  1. The following lists a glossary of frequently seen terms used in processing EP Returns and correspondence.

Terms Starting With A

  1. Account – A 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. Account Management Service (AMS) – AMS is a web-based resource allowing users to resolve various taxpayer issues by providing the IRS employee the ability to view and update taxpayer accounts and case information through a common user interface.

  3. Administrator – A person or group of persons specifically so designated as Plan Administrator by the terms of the document under which the plan is operated.

  4. Affiliated Corporation – Each Corporation has its own charter. They can have a different tax year from the parent corporation unless they file a consolidated return.

  5. Amended Return – A subsequent return filed before or after the due date, which changes information submitted on the original return.

  6. Assess – To impose or increase tax, penalty, and/or interest.

  7. Asset Code – Code used to identify end of year total assets.

  8. Audit Information Management System (AIMS) – A computerized database that is a subsystem of IDRS. It provides a system to establish and requisition returns, as well as update, assess, and abate taxes, penalties, and credits on returns that are under examination's jurisdiction.

  9. Automated Data Processing (ADP) – The handling and processing of data from electronic machines with a minimum of human intervention.

  10. Automated Non-Master File (ANMF) – The Automated Non-Master File (ANMF) system supports accounting for assessments, liabilities, payments, and credits for transactions not compatible with master file processing, timeliness or data.

Terms Starting With B

  1. Batch – A group of like documents within a program code.

  2. Block – A group of 100 or less returns identified with the same block Document Locator Number (DLN) in order to control the returns.

  3. Business Master File (BMF) – A magnetic tape file maintained at Martinsburg Computing Center (MCC) containing information about taxpayers filing business returns (Forms 1120, 941, 944, 940, Form 5330 and Form 5500 Penalties, etc.) and related documents.

Terms Starting With C

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

  2. Centralized Authorization File (CAF) – This file contains information regarding authorization that taxpayers have given third parties to receive specific tax information.

  3. Check Digits – Two alpha characters assigned by the computer, applying a mathematical formula, to the Taxpayer Identification Number (TIN).

  4. Command Code – A five character code used to input data on the Integrated Data Retrieval System (IDRS).

  5. Computer Condition Code (CCC) – Alpha or numeric codes, which alert the computer to specific conditions appearing on the return.

  6. Computer Generated (C-GEN) – The computer automatically produces the programmed information or computation.

  7. Computer Paragraph (CP) – Computer generated notices to request information or give information to the filers regarding certain aspects of their tax returns. Also, certain notices are generated to inform the campus of postings to the master file requiring additional action.

  8. Consolidation – The moving of data from two or more EINs or Plan numbers into one.

    Example:

    The taxpayer entity has erroneously been assigned more than one EIN or plan numbers for the same account.

  9. Controlled Group of Corporations (Common Control Employers) – This is a plan adopted by a parent and each of its subsidiaries or one adopted by brother/sister corporations. A plan adopted by such a controlled group is subject to special requirements.

  10. Controlling DLN – This DLN controls the location of a return in the files. It can be an original return DLN, amended Return DLN, or a new DLN assigned to certain Examination, Collection, or Adjustment documents. (Also known as a re-file DLN).

  11. Corporate Merger – A corporate merger is where one corporation buys out another corporation and merges into one. The corporation that doesn't survive must submit the applicable final returns to close out its account. The surviving corporation continues to use the EIN originally assigned to it.

  12. Corporation – A business organization formed by a group of people joined together to act as a single entity.

  13. Correspondence Suspense – Tax returns from which correspondence initiates, either generated through IDRS or input by a tax examiner, and held for a reply from the taxpayer.

  14. Cross-reference (X-REF) – Identifies related TINs and the sort name (DBA-Doing business as).

  15. Cycle – One week’s processing at the campus and MCC. The cycle is denoted by a six-digit code. The first four digits represent the processing year and the last two digits represent the processing week in that year.

Terms Starting With D

  1. Deferred Benefit – A benefit that becomes payable at some future date.

  2. Defined Benefit Plan – A pension plan in which the plan document define the retirement benefits.

  3. Defined Contribution Plan – A retirement plan that provides for individual accounts and the benefits are based solely on the amount contributed and any investment gains or losses.

  4. Definer – A one-character alpha symbol input with certain command codes to request a specific type of action.

  5. Delinquent Filer Voluntary Compliance (DFVC) – A DOL delinquency filer program for Form 5500 filers only.

  6. Delinquent Return – A return filed and received after the due date.

  7. Division – A division of a corporation is like an "arm" of the parent corporation. It isn't a separate entity. The parent corporation consolidates the division’s tax information with its return. A division can make Federal Tax Deposit (FTD) payments, however, the parent corporation’s name, address, EIN , etc. remains unchanged.

  8. Document – A form, voucher, or written evidence of a transaction, which establishes or affects an account.

  9. Document Locator Number (DLN) – The DLN is a controlled number assigned to every return or document input through the SDP system. The 14th (last) digit is the year of processing which is computer-generated. The DLN is used to control, identify, and locate documents processed in the ADP system. The DLN identifies the type of document and/or return received including the date and year of input.

  10. Due Date – A prescribed filing date for a calendar or fiscal year return.

  11. Dummy Module – A module on IDRS to record information when a tax module or an entity module isn't present. It contains the name control, TIN, MFT, and tax period. Replaced by the true module when the generated TC 902 finds a match on the master file.

Terms Starting With E

  1. EBSA – Employee Benefits Security Administration.

  2. Editing – Examining and perfecting returns by correcting misplaced, incorrect, or illegible entries.

  3. Edit Sheet – A form coded and attached to a return for use in transcribing data from the return.

  4. EFAST2 – The ERISA Filing Acceptance System (EFAST) provided by a DOL contractor to process the new Forms 5500 and 5500–SF. The system uses data captured through imaging.

  5. Employee Benefit Funds/Trust – Types of trusts holding the assets of the plan.

  6. Employee Plans and Exempt Organizations Application Control Systems (EACS) – IDRS provides access via a special case control number available by use of CCs PLINQO, PLINFE, and PLINF.

  7. Employee Plans Master File (EPMF) – A computer file containing data relative to all filed Form 5500 series returns and their related attachments. The data includes sponsor/employer entities, plan entities, administrator data, and return modules.

  8. Employee Retirement Income Security Act of 1974 (ERISA) – This law overhauled prior pension laws. Congress passed the law to protect the interest of the participants and/or their beneficiaries.

  9. Employer Identification Number (EIN) – A nine-digit number which identifies the particular company, partnership, proprietorship, exempt organization, etc. which sponsors a plan.

  10. End User Access System – A computer system with the capability of accessing Form 5500-EZ and Form 5500 online images produced from the Department of Labor’s (DOL) EFAST processing system. We used this system before EFAST2 implementation and it’s no longer available.

  11. Entity – That portion of the master file record identifying the taxpayer. It contains the taxpayer’s name, address, SSN or EIN, employment code if applicable, name control (first four characters from the taxpayer’s name), location codes, filing requirement codes, fiscal period, plan number, plan year month, plan effective date and date of establishment. This can also be a dummy module.

  12. EPLAN – IDRS CC used to make plan data changes.

  13. ESIGN – IDRS CC used to assign an EIN through IDRS.

  14. ESOP – Employee Stock Ownership Plan.

  15. Exceeds Core – When a merge of accounts is in process and the two accounts exceed the merge computer program size. A no merge transcript generates (NO MRG EXC).

Terms Starting With F

  1. Federal Records Center (FRC) – Used by file clerks to indicate when the campus no longer houses a requested return. We shipped the return to the FRC building.

  2. Field – An area within a section defined by a fixed length or position. It may be blank or contain data.

  3. Field Error – An error caused when any field fails to meet the computer requirements for that field (and field alone).

  4. File Folder Number – A nine-digit number assigned to the plan’s application for internal control and public service purposes. This number appears on all determination opinion letters issued to the filer.

  5. File Location Code (FLC) – Digits 1 and 2 of the DLN. Identifies the campus where the return is filed. ADP EFAST processed returns have unique FLCs in their DLN to differentiate them from returns processed by the IRS. There are three different FLCs: 56 for original paper filing, 72 for amended paper filing, and 62 for electronic filing. EFAST2 returns have two FLC's: 92 for electronically filed Form 5500's and 93 for electronically filed Form 5500-SF's.

  6. File Source – A one-character code, which follows the TIN. The common values are:

    • Blank – Valid SSN or EIN

    • * – Invalid SSN (IMF)

    • V – Valid SSN (BMF)

    • W – Invalid SSN (BMF)

    • P – Valid SSN (IRA)

    • X – Invalid SSN (IRA)

    • P – Valid EIN (EPMF)

    • X – Invalid EIN (EPMF)

    • D – Temporary TIN

  7. Filing Requirement Code (FRC) – Identifies the type of return a taxpayer must file.

  8. Fill In – A narrative statement used for taxpayer correspondence when a preprinted statement isn't available or suitable.

  9. Final Return – The last return to be filed when the plan terminates and distributes all assets.

  10. Fiscal Year – A 12-month period that ends on the last day of any month except December.

  11. Fiscal Year Month (FYM) – Any month a taxpayer elects as the ending month of an accounting year.

  12. Fund – The amount of set aside money accumulating for the purpose of making benefit payments. A fund may be held in the form of cash, securities, or insurance company benefits.

Terms Starting With G through L

  1. GMF – Generalized Mainline Framework.

  2. GPP – General Purpose Program.

  3. Group Insurance Arrangement (Welfare Plans) – This is an arrangement providing benefits to the employees of two or more unrelated employers. The fully insured plan uses a trust to hold the assets.

  4. Individual Master File (IMF) – A magnetic tape file maintained at MCC containing information about taxpayers filing individual returns and related documents.

  5. INOLE – IDRS CC used to display current master file entity information.

  6. Integrated Data Retrieval System (IDRS) – A computer system with the capability to instantaneously retrieve or update stored information, working in harmony with master file or taxpayer accounts. This system aims at quick resolution of problems and inquiries concerning current and prior taxpayer returns.

  7. Internal Revenue Code (IRC) – The tax laws governing all tax return processing.

  8. Internal Revenue Manual (IRM) – A series of books containing the policies, procedures, instructions, and guidelines by which IRS operates.

  9. LETER – IDRS CC used to input letters.

Terms Starting With M

  1. Martinsburg Computing Center (MCC) – A computer center located in Martinsburg, West Virginia, where employee pension plans post to the master file.

  2. Master File (MF) – A magnetic tape record containing all information with respect to returns and related documents.

  3. Master File Tax Account Code (MFT) – A two-digit number that identifies the type of tax return.

  4. Merger – When two or more entities combine, the remaining entity is the successor and the other entity would file a final return using the EIN of the successor.

    Note:

    DON’T confuse this with consolidations (TC 011).

  5. Microfiche – A sheet of microfilm containing rows of micro images of pages of printed matter.

  6. Microfilm – A media to provide photographic records of printed tax data on a reduced scale.

  7. Module – Part of a taxpayer’s account which reflects tax data for one class of tax and one tax period.

  8. Money Purchase Plan – Is a defined contribution plan in which the plan document states the plan sponsor’s contribution. The plan sponsor must contribute the amount stated. The formula included in the plan states the contributions made on behalf of each employee as a percentage of earnings.

  9. Multi-Employer Plan – A plan in which more than one employer participates, is collectively bargained (union agreement), and no employer contributes fifty percent or more of the annual contributions. This is commonly known as a union plan set up and administered by the union.

  10. Multiple-Employer Collectively Bargained Plan – This is the same as Multi-Employer Plan except that the plan doesn't totally satisfy the definition of a "Multi-employer" plan. That is, it has at least one employer who contributes 50 percent or more of the contributions to the plan.

  11. Multiple-Employer Plan (Pre-EFAST) – This is a plan in which two or more unrelated employers participate in the same plan. The employees aren't members of a controlled group of corporations, nor is the plan collectively bargained. If the contributions from each employer are available to pay benefits to all who participate in the plan, only one return must be filed for the plan as a whole (commingled funds). Each participating employer must file a Form 5500 C/R and complete only certain line items.

  12. Multiple-Employer Plan (EFAST) – This plan is maintained by more than one unrelated employer and isn't a multi-employer plan. An administrator files Form 5500 for the plan as a whole. To report coverage information of participating employers additional Schedule R’s may be required to be attached to the return.

Terms Starting With N through O

  1. Name Control (NC) – For EFAST2 returns, the vendor sends the return information to the EPMF as received; therefore, the we use first four characters of the name line regardless of whether it is a trust, estate, personal name or business. We accept the name control as received. We use the name control to check the master file and assure that the TIN corresponds with the proper taxpayer.

  2. National Account Profile (NAP) – A national TIN file of entities on the IMF, BMF, EPMF, and IRAF. We use it to validate the TIN or the TIN/name control for IDRS input command codes and for researching with CC INOLE.

  3. Non-Qualified – A plan that doesn't meet the rules under IRC 401(a), either by design or deemed by the IRS to have failed to meet a qualifying provision under 401(a).

  4. Notices – Computer-generated messages that result from an analysis of the taxpayer’s account on the master file.

  5. No Record (NR) – Term used by file clerks to indicate a particular transaction, usually a tax return, for a given taxpayer doesn't exist.

  6. Not In File (NIF) – Abbreviation used by files personnel to indicate to other files personnel that a document isn't in the files and isn't charged out.

  7. Overlay – The act of typing over entries displayed on the terminal screen.

Terms Starting With P

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

  2. Partnership – An association of two or more persons, each of whom, acting as principal for himself and as an agent for the other, combines his property, labor, or skill in a lawful enterprise or business for the purpose of joint profit.

  3. Pension Benefits – A benefit which becomes payable as a result of disability, retirement, death, termination of the plan or severance of employment or some other stated event.

  4. Pension Plan – A plan established and maintained by an employer, primarily to provide systematically for the payment of definitely determinable benefits to the employees. Such benefits usually commence at retirement, or disability, or separation from service and are payable over a period of years, or for life.

  5. Perfecting – Making documents and returns acceptable to a specific program through a code and edit examining procedure.

  6. Plan – A permanent arrangement providing benefits for the employees of an employer.

  7. Plan Administrator – The person or group of persons specifically designated to administer the plan and responsible to follow the terms of the plan document under which the plan operates.

  8. Plan Characteristics – The features that identify the type, limitations, and benefits of a plan.

  9. Plan Data Module – Part of a filer’s account which reflects plan entity data for one plan. The plan data module establishes by the input of a TC 000 (Doc Code 64) via CC EPLAN or by the input at KDO of a TC 121 via EACS.

  10. Plan Effective Date – The date the plan first became effective, as specified in the plan document.

  11. Plan Module – A component of an employer/sponsor’s account which reflects the plan name, plan number, plan year ending, and administrator data. In addition, certain items reflected on the return display in the module as well as all information shown on an application for determination of a qualified plan.

  12. Plan Name – A name used by the employer/sponsor for each of his/her plans. Once established, the employer/sponsor should continue to use it for every filed return for that plan.

  13. Plan Number – A three-digit number assigned by the employer/sponsor for each plan with 001–500 for pension and profit sharing plans and 501–999 for welfare and cafeteria plans.

  14. Plan Period – Length of time for which a return is filed. The IRS uses a six-digit code to indicate the end of the plan period for a given return. The first four digits represent the year and the last two digits represent the month.

  15. Plan Sponsor – Employer, employee organization, association, committee, board of trustees, or similar group who maintain or establish a plan.

  16. Plan Year Ending – The accounting period chosen by employer/sponsor for a plan, defined in the plan document, for which all returns for the plan will be filed.

  17. Power of Attorney (POA) – The authorization that a taxpayer gives a third party to deal with us on its behalf and receive specific tax information.

  18. Prior Year (PY) – A prior year return is a return whose plan year begins before the current processing year.

    Example:

    In July 2016, prior year returns will be all returns with plan year beginning December 2014 (201412) and prior.

  19. Profit Sharing Plan – A plan established and maintained by an employer to provide for the participation in profits by employees or their beneficiaries. There must be a definite formula for determining the portion of profits to be contributed to the plan as well as a definite formula for the allocation of such contributions to the employees. The distribution may be accomplished by the payment of cash or deferred benefits after a fixed number of years, upon the attainment of a stated age, or upon the occurrence of some event such as illness, disability, retirement , death or severance of employment.

  20. Public Inspection – EPMF returns are open for public inspection with exception of Schedule B when attached to Form 5500–EZ, Schedules E, SSA, and Form 5330.

  21. Pull – Remove a block or document from its storage location.

Terms Starting With R through S

  1. Recharge – Transfer control of a document directly from one DLN to another.

  2. Re-file – Sending the return/document back to files for filing in its original position in the block.

  3. Reinput – Reprocessing the document.

  4. Reject – An unacceptable return or document with incorrect or incomplete information.

  5. Renumber – To assign a new DLN to a document.

  6. Return – A legal form or written evidence used by the taxpayer to record tax information.

  7. Self-Employed Plan – Plan of a sole proprietor or partnership with no common law employees or one or more common law employees.

  8. Single-Employer Plan – The most common type plan, where one employer adopts or establishes a plan for his/her employees. He/she may adopt other plans, each of which is considered a single employer plan.

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

  10. Sole Proprietor – A self-employed person who owns the entire interest in an unincorporated trade or business; may or may not have employees. This type of entity reports their business income or loss on Schedule C of their individual tax return.

  11. Subsidiary – A subsidiary of a corporation must have its own EIN. A subsidiary files a separate charter with the Secretary of State and issues its own stock. It files its own Forms 941, 944 and 940, but has the option of filing Forms 1120 with the parent corporation or separately. However, it must have the same tax year as its parent corporation.

  12. Suspense Period – The number of workdays assigned to each suspense record to wait for the requested information needed to process the record. If we don’t receive the information, the record processes without it at the end of the suspense period.

Terms Starting With T

  1. Tax Module – Part of a filer’s account which reflects tax data for one type of tax and one tax period.

  2. 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 four digits represent the year and the last two digits represent the month.

  3. Taxpayer Delinquency Investigation (TDI) – A tax account that has a filing requirement for which we haven’t received a return and a CP 403, 406, or TYD-14 generated.

  4. Taxpayer Identification Number (TIN) – Either an EIN or SSN. Every taxpayer on the master file has a permanent number for identification of the tax account.

  5. Taxpayer Information File (TIF) – A database that contains taxpayer information.

  6. TDI Notice Codes – These codes can accelerate a notice to TDI status, delay a notice, or reduce the time between notices.

  7. Terminated Plan – A plan amended to terminate benefit accruals and distribute the assets. Plan sponsors must submit a final return by the last day of the 7th month after distributing all plan assets.

  8. Transaction Code (TC) – A code 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 identifying the actions taken on a taxpayer’s account.

  9. Transcript – A copy of entity and tax data from the master file concerning a taxpayer’s account.

  10. Trust Agreement – An agreement by two or more parties to form a trust for the benefit of some other person or persons.

  11. Trust Fund – A fund held by another party (trustee) or parties (trustees) under a trust agreement from which payments are to be made as provided by the trust agreement.

Terms Starting With U through W

  1. Unpostable – An input transaction that attempts to post or update the master file but couldn't because of inconsistencies with the posted transactions, filing requirements, or other input data. This matching occurs at MCC by comparing campus data and master file information.

  2. Unprocessable – A document that is incomplete, illegible, or otherwise unsatisfactory for input.

  3. UPCAS – IDRS CC used to suspend an unpostable case.

  4. UPDIS – IDRS CC used to display an unpostable case.

  5. UPRES – IDRS CC used to input closing action on an unpostable case.

  6. UPTIN – IDRS CC used to display all open and closed unpostables on a specific TIN for a period of 90 days.

  7. Validity Check – The routine checks a computer program makes with the transcribed information to ensure the information meets certain predetermined conditions.

  8. Valid EIN – A nine-digit number beginning with a Campus prefix of two digits, followed by seven digits in a valid series (NN-NNNNNNN). A valid EPMF EIN adds the file source definer "P" which immediately follows the nine digits (NN-NNNNNNNP).

  9. VEBA Trust – (Voluntary Employee’s Beneficiary Trust) – This is a trust arrangement approved by us for the funding of one or more welfare plans. The VEBA has a BMF trust filing requirement (Forms 990 or 1041). The participating employers/sponsors have EPMF filing requirements under their own EINs for each plan that participates in the VEBA trust.

  10. Vested – Workers pension rights are called "vested" when they guarantee future retirement payments, even if the employee leaves the company before retirement age.

  11. Welfare Benefit Plan – A plan whose primary purpose isn't for retirement. Welfare benefit plans provide benefits such as medical, dental, life insurance, apprenticeship, and training. They can be unfunded, fully insured, or a combination.

  12. 52–53 Week Year – Plan years reported under the 52–53 week rule may end on a particular day of the week instead of the end of the month. The plan year may end not more than 6 days before and not more than 3 days after the end of the month.

EPMF Forms and Schedules

  1. Form 5500, Annual Return/Report of Employee Benefit Plan (with 100 or more participants). Form 5500 must be filed electronically.

  2. Form 5500–EZ, Annual Return of One-participant Retirement Plans. A one-participant plan can file a Form 5500 or 5500-EZ. This means the plan covers you and/or your spouse or covers one or more partners.

    Example:

    You will find this information on LN 6 and LN 7a with a total of 2 on Form 5500.

  3. Form 5500–SF, Short Form Annual Return/Report of Small Employee Benefit Plan.

  4. Form 5330, Return of Excise Taxes Related to Employee Benefit Plans. The Form 5330 processes as a BMF form.

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

  6. Schedule A–(Form 5500)–Insurance Information. Instructions for the 2005 revision reflects EBSA guidance on reporting of insurance fees and commissions.

  7. Schedule B–(Form 5500) – Actuarial Information. Changes to the 2005 form and instruction revision provide instructions on reporting investment returns, actuarial assumptions, and the summary of eligibility and benefits provisions used in plan valuations. Schedules MB and SB replaced Schedule B beginning Plan year 2008.

  8. Schedule C–(Form 5500)–Service Provider and Trustee Information.

  9. Schedule D–(Form 5500)–DFE/Participating Plan Information.

  10. Schedule E–(Form 5500)–ESOP (Employee Stock Ownership Plan) Annual Information.

  11. Schedule G–(Form 5500)–Financial Schedules.

  12. Schedule H–(Form 5500)–Financial Information (Large Plan).

  13. Schedule I–(Form 5500)–Financial Information (Small Plan).

  14. Schedule MB–(Form 5500) – Actuarial Information for Multiemployer Defined Benefit Plans and Money Purchase Plans.

    Note:

    Replaces Schedule B.

  15. Schedule R–(Form 5500) Retirement Plan Information. Effective for the 2005 plan year, we modified Line 8 to identify plan amendments and decrease, as well as increase, the value of benefits. We added Part IV of Schedule R to include plan coverage questions previously included on Schedule T, which is no longer required by IRS.

  16. Form 8955–SSA (Formerly Schedule SSA)Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits.

  17. Schedule SB–(Form 5500) – Actuarial Information for Single-employer Defined Benefit Plans.

    Note:

    Replaces Schedule B.

  18. Form 5500-EZ filers for 2005 and later plan years no longer need to attach any schedules to the form. Filers who requested a timely extension must continue attaching the Form 5558 to a Form 5500-EZ filed after the normal due date. Filers subject to Schedules B and/or P reporting should complete the schedule(s), retain a copy for their records, but shouldn't attach the schedule to a filed Form 5500-EZ.

Transaction Codes

  1. Transaction Codes (TC) are three-digit numbers that identify a transaction being processed. They are a record of transactions posted to a taxpayer’s account on master file. A TC can be input from a coded document, an IDRS input, or it can be generated by the computer.

  2. An IDRS input TC is generally input by a campus or area office employee attempting to make a change to the taxpayer’s account.

  3. A generated TC occurs when certain conditions are present on the taxpayer’s master file account.

    Example:

    If a return posts to an account that has excess credit, the computer’s programming automatically generates a refund.

  4. The following listing of TCs shows an indication of whether they are input or generated and an explanation of how they function.

    Transaction Input (I) or Generated (G) Explanation
    000 I Establish an account/add new plan
    001 G Resequence an account due to an EIN/Plan number change
    002 G EIN/Plan number change failed to resequence
    005 G Resequence account for attempted merge
    006 G Resequence account to master file location
    011 I Consolidate EIN/Plan number
    012 I Reactivate Plan/Entity account
    013 I Change name of sponsor/plan
    014 I Change address
    015 G/I Change location code
    016 I Change entity codes/filing requirement codes
    017 I Change file folder number
    019 G Zip Code assignment
    020 I Deactivate an account and plan
    026 G Delete FROM account from master file
    053 I Change plan year month ending
    121 I Post an application of plan characteristics
    122 I Reverse TC 121 or TC 123
    123 I Update plan characteristics
    125 I Post plan termination from Form 5310
    126 I Reverse TC 125
    127 I Change administrator data
    128 I Change plan name and administrator data
    141 G Delinquency inquiry
    142 G Delinquency investigation
    150 G Form 5500 series returns posted
    151 I Reverse TC 150 or TC 154
    154 I Form 5330 posted
    155 G First letter issued from EFAST
    156 G Second letter issued from EFAST
    240 I Form 5500 Penalty Assessments
    420 I/G Examination Indicator
    421 I/G Reverse TC 420 or TC 424
    424 I Examination request indicator
    428 G Examination or appeals transfer
    446 G Merged transaction indicator
    460 I Extension of Time for Filing
    474 I Interrupts normal delinquency processing
    475 I Reverse TC 474
    560 I/G Change Statute Date (January 2003)
    590 I/G Not required to file for a specific tax period.
    591 I/G No longer required to file
    592 I Reverses all TC 59X. Also updates FRC from 0 to 1
    593 I Unable to locate the taxpayer
    594 I Closing code 74, return previously filed for this period only
    594 I Closing Code 97, previously filed return with document present
    595 I Referred to Examination
    596 I Referred to CID
    597 I Closing code 97, prior year return
    598 I Closing code 97, shelved
    599 I Closing code 97, original return secured
    971 I Action Codes for Form 5500 penalties.
    973 I Additional Original 5330 return filed in the same module and when a Form 5500 penalty is assessed.
    976 G Duplicate return
    977 G Amended return

Transaction and Document Codes

  1. Form 5500 series returns post with Transaction Codes 150, 977 (amended return) and 446 account moved or TC 154 for Form 5330 fact of filing.

  2. Forms 5330 process as a BMF return since January 1, 2001 (MFT 76, Tax Class 4). Prior to January 1, 2001, the assessments posted on ANMF. Form 5330 with a period ending 198412 or earlier still posts to ANMF. Amended Form 5330 claims before January 1, 2001 still process as ANMF.

  3. The valid Document Codes (4th and 5th digits of DLN) are as follows:

    Document Document Code MFT Transaction Codes
    Form 8955–SSA or Schedule SSA without primary return 36 – – Receipt and Control boxes and ships these forms to the Social Security Administration.
    Prior to 2010 – 150, 977, 155, 156
    Form 5500 and Fact of Filings (Plans with 100 or more participants 37 74 150, 976, 977, 155, 156, 446
    Form 5500–C Pre-EFAST only (Plans with less than 100 participants) 38 74 150, 976, 977, 155,156, 446
    Form 5500–EZ and Fact of Filings (One participant and/or spouse plan) 31 74 150, 976, 977, 155, 156, 446
    Form 5500–R Pre-EFAST only (Filed for two years between Form 5500–C) 30 74 150, 976, 977, 155, 156, 446
    Form 5500–SF and Fact of Filings (Plans with fewer than 100 participants for small pension and welfare benefit plans) 32 74 150, 976, 977, 466
    Form 3177 77 or 49 74 151, 420, 421, 424, 428, 474, 475, 930, 932
    Examination (AIMS)
    Form 5599, TEGE Examined Closing Record
    Form 5650, EP Examined Closing Record
    Form 5596, TEGE Non Examined Closings
    Form 5597, TEGE IMF/BMF/EPMF Request
    47 or 77 – – 300, 301, 420, 421, 424
    Delinquent Tax Period 14 or 49 – – 141, 142, 59X
    CAF Programs 77 – – 960, 961, 962
    Form 5330 (Return for excise tax related to plan) 35 76 150, 154, 460/620, 973
    Form 5558 Extension of time to file a Form 5330 77 76 460/620
    Form 5558 Extension of time to file a Form 5500 series return 55 74 460
  4. Forms 5558 for Form 5500, Form 5500-SF, Form 8955–SSA and Forms 5500–EZ post to the EPMF for granted extensions. If a Form 5500 return appears to be late, research the BMF using CC BMFOL and the IMF using CC IMFOL to determine if a TC 460/620 posted to an account that the plan sponsor reported the income tax for the business associated with the plan that has the same return year as the 5500 series return.

  5. Forms 5558 for Forms 5330 post to the BMF with a TC 460/620.

Pending Transaction Identification Codes

  1. Pending transaction identification codes relate to an adjustment, reject, or unpostable transaction. They indicate that the transaction, scheduled for posting in a later cycle, has rejected, or has been deleted and won't post. IDRS reflects pending transaction identification codes to alert others to actions that could affect the posting of other transactions. Pending Transaction Identification Codes/IDRS Merge Related Transaction Codes

    Pending Transaction Code Explanation
    AP Pending tax module transaction before PN status. Reflected through the day of input until tapes update each evening or until input released by Quality Review (if reviewed). The transaction doesn't yet have a true DLN. It reflects only the sequence number of input to a specific module (e.g., first transaction to an account on a given date would be 000001). While a transaction is AP, you can void it by input of CC TERUP.
    CU Corrected Unpostable – Unpostable corrected with URC 0, 5, or 6. Specific correction isn't indicated (neither change nor code), but both can be determined by researching the closed unpostable register or CC UPTIN.
    DC Corrected Nullified Unpostable – The cycle reflected indicates the week in which the Reject function resolved the case. The action taken isn't shown nor is the record of these closures maintained by the Unpostable Unit. Only the Reject Control Function can advise on these cases.
    DI A delinquent or entity transaction which appears on IDRS transaction only. Never posts to the master file.
    DN Transaction deleted on IDRS only. The IDRS record is distorted as a result of this deletion. To determine if the TC posted, request the master file record. Check unpostable records only in instances when the TC hasn't posted.
    DP Deleted payment or a TC deleted by user support using CC DELET when more than one of the same transaction is pending.
    DQ Deleted by Quality Review or CC TERUP
    DR Retained for research
    DU A transaction deleted from the Unpostable file
    DW A transaction deleted via optional age routine in the weekend IDRS computer batch processing (weekly updates).
    EP Pending entity module transactions before PN status. Won’t have a complete DLN and may be reviewed by Quality Review.
    ERS Identify an ERS transaction appended to the entity as "ERS" when displayed with a tax module. Limited to TCs 903 and 904.
    NU A nullified unpostable transaction to be resolved by campus reject processing.
    PN A pending transaction that passed all IDRS validity checks and has a complete DLN. All ANMF transactions posted after establishment of the module remain as PN.
    RJ A reject transaction. All RJ transactions append to the entity. They display on the tax module if the MFT, plan number and tax period are for the displayed tax module.
    RS A resequenced transaction extracted from the resequencing file at MCC. Includes all TCs 904 when first appended. Account resequences generally take 2 cycles to post; however, resequencing can delay posting from 1 to 11 weeks, depending on the master file. If the resequencing fails, the account returns to its original condition in the 3 cycles.
    TP A payment received in the campus input to IDRS from the RPS with the cycle of input. It won't be included on a master file transaction tape until passing all validity and consistency checks and updated to PN status with the expected MCC posting cycle.
    Unnn An open unpostable transaction (nnn=the numeric unpostable code).

Entity Control Processing Timeframes and Batching Requirements

  1. Process the following forms within the timeframes given below and as prescribed in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates. All timeframes start from the IRS received date unless otherwise specified. These timeframes also apply to undeliverables.

  2. Incoming mail and cases are either delivered to the Entity Clerical Unit (ECU) Support area or are picked up by an ECU designee from the appropriate area(s) on a daily basis. The ECU batches the work within 24 hours, therefore, allowing the work to be available for processing.

  3. We suggest sorting received work at a "TINGLE" type table. These tables, consisting of fifteen sort bins, promote accuracy and speed.

  4. The ECU batches incoming mail and cases received on the Batch/Block Tracking System (BBTS). BBTS provides an overview of an entire Entity Unit’s inventory. We use BBTS to control correspondence and tax forms received from the Area Offices, Receipt & Control, all Units, and Taxpayers. The program provides a method of control for processing within the Entity Unit and also a system for tracking work assigned to individual Tax Examiners. This program provides statistics for National Office analysis and is currently used in the Entity Units in each of the submission processing campuses.

    BBTS Table

    Batch Title Batch Description Required
    Timeframe
    Suggested
    Batch
    Size
    Acceptable
    Overaged
    Percentage
    BBTS OFP Codes
    Form 5330 Forms 5330
    Rejects1
    RTRS
    5 25 5 390–72860
    Form 5500–EZ Form 5500–EZ 5 25 5 390–72840
    Form 5558 Extension Form 5558 5 25 5 390–72880
    Form SS-4 Form SS-4 5 25 5 390–10002
    Delinquency CP 403 Delinquency Notices 30 25 20 390–72850
    Delinquency CP 406 Delinquency Notices 30 25 20 390–72851
    TDI Transcripts TDI Transcripts 30 25 20 390–72852
    Undeliverables Undeliverables 30 25 20 390–72853
    Correspondence Correspondence (e.g.,
    Address Changes
    CP Notices, 212, 580 series, etc.)
    30 25 20 390–72800
    Correspondence No Merge Transcripts 30 25 20 390–72800
    Special Projects   30 25 20 390–72855
    1 When we receive a Reject case in the ECU, it is already aged.
    *** Process EPMF TDIs before the next notice issues. Input CC ASGNB when the TDI is received to suppress the notice for 15 cycles.

     

  5. The point of count is a step in the process when work is counted, released, completed and/or resolved. A document, module, transcript, etc., is counted as one. Refer to IRM 25.8.1, OFP Codes Overview.

    Example:

    Count consolidations once under the specific category of the document worked and once for each additional employer identification number or plan consolidated excluding the original number.

    Note:

    For counting purposes, count both TC 011 and TC 151 as a consolidation.

Quality Analysis

  1. The Entity Supervisor, Work Leader or Tax Examiner monitors recurring problems in processing areas. The Entity Supervisor initiates a Quality Analysis (appraisal) when appropriate. Notify the Ogden TE/GE Submission Processing Programs (SPP) Staff at Mail Stop 1110 of all quality analysis reviews. The Quality Analysis should include examples and figures showing volumes and percentages. Forward an information copy to the Chief, Planning and Analysis Staff.

  2. Quality Support Tax Examiners: you are assigned the following:

    1. Review the area responsible for the error.

    2. Respond to your manager within five workdays with recommended corrective action.

    3. Follow-up on significant problems to assure corrective actions were taken.

  3. Implement any instructions written by Submission Processing Campus (i.e., desk procedures) to clarify the IRM 3.13.36, EPMF Account Numbers, upon approval by the Entity Department Manager and the Ogden TE/GE Submission Processing Programs (SPP) Staff at Mail Stop 1110.

  4. This IRM includes information and instructions to work EP Entity cases and can't cover all situations, so use judgment to work the case. Contact your manager or lead tax examiner to determine if your decision is valid. Request an IRM change to add instructions if you encounter repeated problems or issues that aren't currently in the IRM.

Protection of Taxpayer/Filer Accounts

  1. The greatest potential for unauthorized disclosure of tax information occurs when employees handle phone inquiries from filers.

  2. Exercise special precautions to identify the filer or his/her authorized representative when answering such inquiries.

    Note:

    If in doubt check CFINK.

  3. All items on Form 5500 Series Returns are disclosable to the public except Schedule SSA, Schedule E, and Schedule F. In addition Schedule B, when attached to Form 5500-EZ, isn't disclosable.

  4. The Form 5330 isn't disclosable.

Third Party Disclosure and Request for Information

  1. For issues regarding Disclosure, Third Party Request for Information, Freedom of Information Act request, Privacy Act, etc. refer to IRM 11.3 , Disclosure of Official Information.

  2. For specific questions regarding Disclosure and CAF, refer to your campus Disclosure Manager.

Form 5500 Series Return Due Dates

  1. Filers must file all Form 5500 series returns, except the Direct Filing Entity (DFE), on or before the last day of the seventh month following the close of the plan year unless we granted extensions. See the table below for dates for Form 5500 Series Returns, except the DFE return:

    PLAN YEAR ENDING: Return Due Date (* weekends and legal holidays considered) Extended Due date 2 ½ months (* weekends and legal holidays considered) :
    201701 8-31-17 11-15-17
    201702 10-2-17  
    201703 10-31-17 1-16-18*
    201704 11-30-17 2-15-18
    201705 1-2-18* 3-15-18
    201706 1-13-18 4-17-18*
    201707 2-28-18 5-15-18
    201708 4-2-18* 6-15-18
    201709 4-30-18 7-16-18*
    201710 5-31-18 8-15-18
    201711 7-2-18*06-30-17 9-17-18*09-15-17
    201712 7-31-1807-31-17 10-15-1810-16-17*
    201801 8-31-1808-31-17 11-15-1811-15-17
    201802 10-1-18* 12-17-19*
    201803 10-31-18 1-15-19
    201804 11-30-18 2-15-19
    201805 12-31-18 3-15-19

    Note:

    For penalty processing, the return is late if postmarked after the due date or extended due date (if applicable). If the return due date falls on a weekend or holiday, the return is due the following business day.

  2. Filers must file Direct Filing Entity (DFE) other than GIAs no later than 9 1/2 months after the end of the DFE year.

  3. Form 5558 is for the sole purpose of requesting a one time, automatic 21/1 month extension. This one form extends the filing from the last day of the seventh month after the plan year ends until the 15th day of the third month after the normal due date.

    Example:

    A calendar year return is due July 31, but with the Form 5558 extension, the due date is October 15.

  4. Other extension forms used to extend the employer's normal federal income tax return also grant an extension for their EP return, provided both:

    • The plan year and the employer’s tax year are the same.

    • The extended date of the federal tax return is later than the due date of the EP return.

      Example:

      Form 7004 grants an automatic extension for 6 months after the corporate return is due and is sufficient for 5500 series return or Form 4868 grants an automatic 6 month extension to 1040 series filers, which would give Employee Plans 2 1/1 additional months.

  5. An additional 3 month non-automatic extension is available for exempt organizations, which file the Form 990 series returns. Even though they aren't federal income tax returns, they may use Form 8868 to extend their 990 series return for six months from their return due date, e.g., May 15 to November 15. This also allows them until November 15 to file their Form 5500 series return.

  6. All fiscal return filers also follow these rules. First, establish their normal due date for filing their federal income tax (or Form 990 series) return. By using another extension form other than Form 5558, add the number of months approved to their normal due date. If this extended date is beyond the normal due date of Form 5500 series returns, it’s valid, as long as it met the valid conditions for the federal income tax (or Form 990 series) return.

    Caution:

    Form 5558 can NEVER be used in addition to another extension form to gain more time. Whenever Form 5558 is used, don't consider any other extension form. Simply add 21/1 months to the normal 5500 series return due date and consider this the extended due date. If there is no Form 5558 attached to the return, or none is sent in response to any proposed penalty letter, research CC BMFOL and CC IMFOL for any other extension form that may be valid for the 5500 series return.

Filing Requirements and Master File Codes

  1. Active plan modules have a plan filing requirement as follows:

    1. T for Form 5500–SF filed as a short form for Form 5500.

      Note:

      Replaces Form 5500–C/R.

    2. X for Form 5500

    3. N for Form 5500–EZ filers or for filers of Form 5500-SF filed in lieu of form 5500-EZ, with $250,000 or less in total plan assets and box 8b isn't checked.

  2. When the latest return module doesn't contain an unreversed TC 150 or 977, but contains a TC 591, 593, 595, or 596, the plan filing requirement is blank.

  3. Other possible transactions and their results are:

    1. When the latest return module contains a TC 150 or 977 not coded with CCC "F" , and one of the following transactions: TC 591, 593, 595, or 596, the plan data module has a plan filing requirement and a plan status code.

    2. When the latest return module contains a TC 151, 591, 593, 595, or 596 and no TC 150 or 977, the plan filing requirements are blank and the plan status code is zero (0).

    3. When the latest return module contains a TC 150 or 977 coded with CCC "F" , with assets distributed, and no participants present, the plan filing requirements are blank and the plan status code is zero (0).

    4. When the latest return module contains a TC 150 or 977 coded with CCC "F" , and one of the following transactions: TC 591, 593, 595, or 596 the plan filing requirements are blank and the plan status code is zero (0).

    5. When the latest return module contains a TC 150 or 977 not coded CCC "F" , the plan data module has a plan filing requirement and a plan status code.

      Note:

      The entity filing requirements contain a "1" for each type form present. If several plans have the same FR, the entity FR only reflects "1" for that type return. To post a TC 020 to the entity module, all plan filing requirements must be blank and the entity filing requirements must be zero (0) or (8).

  4. If no TC 150 has posted, a filing requirement is present if a filing requirement is input on a TC 000 (Doc Code 64) or TC 121 or TC 123.

  5. Plan filing requirements update by posting of a return or input of TC 016 (Doc Code 64).

  6. When a TC 020 (Doc Code 64) posts to the plan, the plan filing requirements change to 8 if an unreversed TC 12X or a return module is present.

    1. If there is no unreversed TC 12X or no return module present, the plan data module erases.

    2. Only a TC 012 (Doc Code 64) posts to a plan with filing requirement 8.

  7. To post a TC 020 (Doc Code 63) to delete the entity, all plan filing requirements must be blank or 8.

  8. Location Codes—These identify the Area Office (AO) for an entity’s location, as determined by the mailing address. The computer assigns Location Codes to entity transactions containing a recognizable City and State.

Filing Requirements for Final Returns

  1. When the latest return module contains an unreversed TC 150 or 977 with Computer Condition Code (CCC) "F" (final return), the plan filing requirement is blank.

  2. CCC "F" generates on current year Forms 5500/5500–EZ if Return Process Code (RPC) "T" is present.

    Note:

    CCC "F" is input on "fact of filing" Forms 5500 if Part I, Line Item B(3) is checked "YES" . CCC "F" is input on "fact of filing" Forms 5500–EZ if Part I, Line Item A(3) is checked "YES"

    .

  3. The RPC "T" generates when:

    1. Schedule H/I Line 5a is "YES" .

    2. Total end-of-year assets is zero.

    3. Total participants end-of-year is zero.

Computer Condition Codes

  1. EFAST/EFAST2 uses some of the same Computer Condition Codes (CCC) used in the current IRS system, but some new codes were added and some codes have different meanings when present on an EFAST/EFAST2 return. Learn to recognize and use them, as required, in resolving delinquency notices.

    CCC
    Code:
    EFAST2 or IRS: Explanation:
    A EFAST2 Generated when SSA edit tests are still unresolved after correspondence.
    B EFAST2 Generated when Schedule B edit tests are still unresolved after correspondence.
    C EFAST2 Input on a substitute or secured return.
    D EFAST2 Input when we receive a damaged document.
    D IRS Input on 5500 series returns when the filer begins and ends the PYE on the first day of the month, and Code & Edit or Error/Rejects edited the prior month for the PYE.
    E EFAST2 Generated when there is an entity test failure on the return.
    F EFAST2/IRS Final return. Input on fact-of-filing returns. Generated on current years' returns when all conditions for final return are met.
    G EFAST2/IRS Generated on amended returns. May be input or generates when amended return box is checked or when CCC "L" or "Q" is present.
    H EFAST2 Generated when PBGC edit tests are still unresolved after correspondence.
    I EFAST2/IRS Generated on an incomplete return.
    J IRS Bypass correspondence input on reinput returns.
    L EFAST2 Input on late replies to correspondence.
    N EFAST2 Generates when the return is filed after the due date with no extension of time to file.
    O EFAST2/IRS One day (month) return—On Form 5500 series returns, it indicates that the plan begins and ends within the same month. It causes the return to post to the next month’s tax period. CCC "O" is always present with CCC "S" (Short Period).
    P EFAST2 Generates when DOL failed edit checks are still present after correspondence. Can be present with CCCs "I" and/or "N" .
    Q EFAST2 EBSA referral. Input when DOL/EBSA receives a return or missing information that is entered on a return.
    Q IRS Input on returns referred from DOL/EBSA to IRS.
    R EFAST2/IRS Generates when reasonable cause for late filing is attached to the return.
    S EFAST2/IRS Generates on a short plan year or short period return.
    U IRS Input when essential information is missing and can't be secured through research (unprocessable).
    V IRS Reasonable cause blank line items, input when the filer provides reasonable cause for line items being blank.

    Note:

    Managerial Approval Required.

    X IRS Reserved for future use on Form 5500–EZ.
    Y EFAST2/IRS Generates to indicate a 52–53 week filer. Plan years reported under 52–53 week rule may end not more than six days before and not more than three days after the end of a month.

    Note:

    Multiple return condition codes can post under the same TC code.

Amended Return

  1. Amended returns are identified by the vendor or Unpostables (UPC 808), or through correspondence with the filer.

  2. Amended prior year returns have limited data transcribed.

Types of Entities

  1. When processing EPMF documents, you often need to determine the type of entity. You may use the filing requirements on the BMF to determine the type of entity; such as Partnerships which have 1065 filing requirements, Corporations which may have 1120 or 1120S filing requirements or Trusts which may have 990 T or 1041 filing requirements. An individual/sole proprietor isn't required to have a BMF entity if there are no employees. In some instances you may need to assign another employer identification number to the entity based on the type of organization. See IRM 3.13.2, BMF Account Numbers, and IRM 21.7.13, Assigning Employer Identification Numbers, for additional information necessary for determining if a change of ownership requires a new EIN.

  2. We assign an EIN based on the type of entity.

    • An individual/sole proprietor should use the same EIN, even if he or she owns several businesses.

    • Each separate partnership must have its own EIN, even if some of the same individuals are in each partnership.

    • A corporation should have only one EIN if the articles of incorporation (by-laws) remain the same.

    • A trust EIN should only be used to file 5500 series returns with three (3) rare exceptions as follows:

    • A multi-employer plan uses a trust EIN to file.

    • A single-employer plan may only use the trust EIN if the sole-proprietor died or gone bankrupt and the sponsor hasn't changed and/or the assets weren’t distributed or transferred. This should only be used to file a final return.

    • The trust EIN may be used to file a Form 5500–EZ, or Form 5500–SF in lieu of Form 5500–EZ, only if the employer has no other EIN on the BMF or EPMF. If after researching IDRS, you determine that the filer is filing using his trust EIN because he isn't required to have an EIN for his business, don't assign another EIN. Ensure that the EIN is truly the plan’s trust EIN and not the EIN of a bank or other entity.

  3. The following is a list of change of ownership:

    Change in Ownership

    From: To:
    Individual/Sole proprietor Partnership
    Individual/Sole proprietor Corporation
    Partnership Sole proprietor/Individual
    Partnership Corporation
    Corporation Sole proprietor/Individual
    Corporation Partnership
    Corporation New Corporate Charter
    Individual Bankruptcy Receivership

     

Type of Work Received and Responsibilities

  1. As an EPMF Tax Examiner you receive a variety of work. The following is a list of different types of work. However, the list isn't all inclusive.

    1. Form 5330

    2. Form 5500-EZ

    3. Form 5558

    4. Consolidations of EINs and/or Plan Numbers

    5. Correspondence

    6. Merge Fail (NOMRG) Transcripts

    7. Taxpayer Delinquency Investigation (TDI) Notices

    8. Not Liable Transcripts

    9. Undeliverables

Parts of EPMF Entity

  1. The EPMF entity consists of the sponsor/employer entity and the plan entity, which includes the administrator data. Each plan maintained by a sponsor has a plan name as well as a plan number. The plan name, plan number, effective date, plan assets, type of plan, and plan year ending all help identify a particular plan.

    1. The posting of an EFAST/EFAST2 return or an IRS processed Form 5500–EZ change the EMPF Entity.

      Note:

      IRS accepts the EFAST/EFAST2 primary name line posted information received as long as there is no impact to the filer. Don't input a TC 013 to change the EPMF primary name line based on BMF name line rules. Consider the posting to be the filer's intent.

    2. The following section includes information you need to know when processing Forms SS–4 and delinquency notices responses.

Sponsor/Employer Identification Number (EIN)

  1. This number identifies the filer entity of an EPMF account. The sponsor/employer identification number on the EPMF is equivalent to the employer identification number on the BMF. If an entity has an EIN on the BMF, that same EIN should be used to file all EPMF forms. Rules that apply to the assignment of BMF EINs generally apply to the assignment of EINs on the EPMF.

  2. The sponsor/employer may be one of the following:

    1. The employer, in the case of an employee benefit plan established or maintained by a single employer. This could include a sole proprietor/self-employed individual with no employees.

    2. The employee organization, in the case of a plan established or maintained by an employee organization;

    3. The association, committee, joint board of trustees, or a similar group of representatives who establish or maintain the plan.

      Note:

      A sole proprietor/self-employed individual with no employees isn't required to have an EIN, except if the filer needs to file a Form 5500/5500–EZ.

    4. A Direct Filing Entity (DFE) filing is a separate entity similar to c) above and isn't a trust.

  3. A trust EIN identifies the pension benefit fund/trust in which all or part of the assets of the plan may be placed. We establish these EINs on the BMF and usually include the name of the plan. The trust EIN should never be used to file the 5500 series return with three rare exceptions:

    1. A multiple-employer plan (Form 5500 Part 1 Box A(1), A(3), or A(4) is checked) may use a trust EIN to file.

    2. A single-employer plan may only use the trust EIN if the sole-proprietor sponsor died or gone bankrupt and the sponsor hasn't changed and/or the assets weren’t distributed or transferred. This should only be used to file a final return.

    3. The trust EIN may be used to file a Form 5500–EZ, or Form 5500–SF in lieu of Form 5500–EZ, only if the employer has no other EIN on the BMF or EPMF. If after researching IDRS, it is determined that the filer is filing using his trust EIN because he isn't required to have an EIN for his business, don't assign another EIN. The Tax Examiner must ensure that the EIN is truly the plan’s trust EIN and not the EIN of a bank or other entity.

Administrator Identification Number (AIN)

  1. This number identifies the person or group of persons specifically designated as plan administrator by the terms of the plan documents under which the plan operates. If the administrator has an EIN on the BMF, use that same EIN for the AIN.

    1. The administrator may or may not have an account on the EPMF. Only those administrators who are also plan sponsors have EPMF accounts.

    2. You may find the administrator’s name, address, and AIN in the plan data module under the EIN of the sponsor/employer.

    3. The administrator won't necessarily remain the same throughout the life of the plan.

    4. The plan sponsor may also be the administrator, and the same plan administrator may administer several different plans for different sponsors. A sponsor may have different administrators for different plans.

Plan Number

  1. A plan number is a three digit number assigned by the plan sponsor to differentiate between plans which are, or may be, established or maintained by the same plan sponsor, as shown in the table below:

    If the plan is a: Then the plan number starts with:
    Pension Plan 001–500
    Welfare Plan 501–999
    Fringe Benefit Plan 501–999
    Direct Filing Entity (DFE) 001–500
    Group Insurance Arrangement (GIA) 501–999
    Multiple-employer Plan (Other) plan. 333-339 (Pre EFAST only)

    Note:

    If the taxpayer noted a plan number on his Form 5500, but EFAST/EFAST2 posted it to another plan number (e.g. taxpayer reported number 501, EFAST/EFAST2 posted number 001) change the posted number to the reported number if you determine that the reported number is the correct plan number.

  2. Once assigned, the filer must use the same number consistently to identify the same plan.

  3. If a plan terminates, its number can't be used for any new plan. Instead, use the next available higher number for the new plan.

  4. If a sponsor has more than 500 of either type of plan, we assign a second EIN. This EIN states "Second EIN for plans" in the sponsor entity line on IDRS.

  5. The plan number along with the plan name identifies a plan from other plans for a given sponsor.

  6. The plan name, plan number, the type of return filed, and the plan month ending make up the plan entity. As long as the plan is in effect the name and numbers stay the same.

Plan Name

  1. The Entity function must be able to correctly identify a plan name before inputting any entity changes.

    1. The plan name should be the formal name of the plan or sufficient information to identify the plan, abbreviate if needed.

    2. A direction from the Manager, EP Determinations instructs tax examiners to leave the words "The" and "DBA" in the plan name line.

    3. The plan name should include the sponsor’s name when only the type of plan is provided.

      Example:

      The names below are fictional.

      IF: THEN:
      Cafeteria Plan Stanford & Auburn Associates Section 125 Cafeteria Plan
      Defined Benefit Plan Leaping Lizards Inc Defined Benefit Plan
      Money Purchase Pension Plan May Hartford Money Purchase Pension Plan or May Hartford Mon Pur Pen PLN
      SEP Plan John Pierce SEP Plan
  2. The plan name, plan number, and plan effective date should be the same each year a return is filed.

  3. What may appear to be a new plan or a change in the plan name may not actually be a change. The filer may use abbreviations, initials, or vary the word order in the plan name.

    Example:

    Jim Snow Profit Sharing Plan/J. Snow P-S Plan

    Example:

    Retirement Plan for A. Tree Inc./A. Tree Inc. Retirement Plan

    Example:

    John Sea SERP/Self-Employed Retirement for John Sea

  4. Other plans with name differences may appear to be the same plan, but are not.

    Example:

    Jim Snow Pension Plan A/Jim Snow Pension Plan B

    Example:

    A. Tree P-S Trust/A. Tree & Sons P-S Trus

    Example:

    Pension Plan for Hourly Employees/Employees Pension Plan

  5. Compare the plan assets and type of pension plan as well as plan name to determine if the plan on the document is the same as the plan on master file.

    1. The end-of-year assets from the previous plan period (from master file research) should match the beginning-of-year assets on the document.

    2. Limited data is captured from the Fact Of Filing (FOF) records. Therefore, the end-of-year assets won't display if a return processed as FOF.

    3. The type of pension plan on master file may match the type of pension plan on the document. (Welfare plan type displays on CC EMFOL).

  6. The filer may change pension types by amending the plan, but you need to contact the filer to determine if this occurred.

    Exception:

    To change from a defined benefit plan to a defined contribution plan, the defined benefit plan must formally terminate and a new defined contribution plan with a new plan number must be established. However, the filer may change from defined contribution to defined benefit with just an amendment to the plan.

    1. You may also consider the plan effective date as a means of identifying the correct plan.

Plan Year Ending

  1. The plan year ending is the month and year the plan year ends in YYYYMM format.

    Example:

    June 2, 2014 through June 1, 2015 plan year ending would be 201506.

  2. When assigning or establishing a plan number from a Form 5500 return, or trying to determine where a return eventually posts for delinquent return processing, apply the following procedures in IRM 3.13.36.17.5 (3) through IRM 3.13.36.17.5 (5) to determine the plan year ending.

  3. If there is no plan year ending on the document:

    1. Examine any schedules or other attachments for a plan year ending.

      Caution:

      Only use Schedule A for determination of plan year ending if no other schedules or attachments have the information and only if all the Schedules A have the same plan year endings.

    2. If still unable to determine the plan year ending, use the printed form year and a plan month ending of 12.

  4. If the plan year ending entered by the filer at the top of the return differs from the plan year ending on the preprinted return or label, use the filer entry.

  5. Use the number of the month the plan year ends as the plan month ending unless the filer both began and ended the plan year on the first day of the month. In that case, use the prior month as the plan month ending. This applies only to full year returns.

    Example:

    Plan year began 5/1/2009 and ended in 5/1/2010. The plan year ending would be 201004.

  6. A taxpayer may file a short year return (less then 12 months) but should never file a return for longer than 12 months.

Research

  1. Entity Control Tax Examiners: Be familiar with the research tools available, including how and when to use the different methods and systems. Due to the complexity of the EPMF, perform thorough research of EPMF and BMF before taking any entity action.

  2. Entity Tax Examiner: Know what research tool(s) to use in each situation to obtain the required information.

  3. Use the research instructions throughout this section when working Entity cases. Research the:

    1. Taxpayer Information File (TIF) using Command Codes ENMOD, TXMOD, and SUMRY for pending transactions and case control information on IDRS.

    2. National file of name and address data using Command Codes NAMEE and NAMEB to find an EIN when you know the filer's name.

    3. National Account Profile (NAP) using Command Code INOLE.

      Note:

      This command code displays abbreviated entity data (sponsor name and address, sponsor name control, plan names and numbers, administrator AIN, effective date, plan year ending month, and plan filing requirements) extracted from the master file.

    4. EPMF with Command Code EMFOL.

    5. EPRTF with Command Code ERTVU.

    6. BMF with Command Code BMFOL.

    7. EP/EO Application Control System (EACS) with Command Code EDS/PLINF.

    8. Generalized Unpostable Framework (GUF) for an unpostable return using Command Code UPTIN.

      Note:

      This command code lists all open and closed unpostable documents for a particular EIN. Closed unpostables remain on the file for 90 days after closure.

    9. Research the EFAST2 Website to view and/or print the Form 5500 filing processed by the vendor.

  4. See IRM 2.3 , IDRS Terminal Responses, for input instructions and the uses of ENMOD, INOLE, EMFOL, TXMOD, SUMRY, NAMEB, ERTVU and UPTIN.

  5. Each account has both an Entity module and plan module and can have multiple tax modules.

    1. Before January 1, 2004, if there was no activity on a tax module for ten years or more, the tax module dropped from master file. We no longer drop the tax module.

    2. If there is no activity on a plan module for ten or more years, and there are no related tax modules, or all tax modules were deleted, the plan module drops.

    3. If there is no activity for ten years or more on an entity module and there are no related plans or all related plans dropped, the entity drops.

Integrated Data Retrieval System (IDRS)

  1. IDRS is a system enabling employees in the campus and area offices to have instantaneous visual access to certain taxpayer accounts. Some capabilities of the system include:

    • Researching account information and requesting returns.

    • Entering transactions such as adjustments, entity changes or establishing taxpayer accounts, etc.

    • Entering collection information for storage and processing in the system.

    • Automatically generating notices, collection documents and other inputs.

  2. IDRS provides protection for both the taxpayer and the IDRS user employee. The taxpayer must be protected from unauthorized disclosure of information concerning his/her account and unauthorized changes to it. The IDRS user employee must be protected from other personnel using his/her identification to access or make changes to an account.

  3. IDRS users have authorization to access only those accounts required to accomplish their official duties.

CADE 2

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

    Note:

    The CADE Master File, as it existed from 2004 – 2011, transitioned from Production and retired at the end of 2011.

  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 are changes to campus cycles which begin with cycle 201201.

  4. The new BMF, EO and EPMF campus cycles are:

    1. Campus Cycle: Thursday – Wednesday

    2. Master File Processing: Friday – Thursday

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

    4. Unpostables: New available Tuesday; Closing Tuesday

  5. BMF, EO and EPMF transaction posting time frames are outlined as follows:

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

    2. Transactions are viewable as posted transactions using IDRS command codes on Monday following the weekly master file processing run on Thursday.

    Note:

    With the acceleration of the IDRS weekly analysis performed the weekend directly after the master file processing on Thursday, transactions post instead of being in pending status on Monday.

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

    1. 01 = Friday

    2. 02 = Monday

    3. 03 = Tuesday

    4. 04 = Wednesday

    5. 05 = Thursday

    Note:

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

IDRS Research Tools/Command Codes

  1. IDRS Research Tools/Command Codes (CCs) are available for Business Master File (BMF) and Employee Plans Master File (EPMF) research. The following sections provide instructions on how to use these CCs for EPMF account resolution.

Command Code ACTON
  1. Use CC ACTON to establish control bases, to update or close control bases that are open, to correct name controls on dummy accounts and to add history items to modules on IDRS. The presence of an open control base on a module indicates that the module is controlled for the purpose of adjustment, correspondence with the taxpayer, or some other action. Update control bases when needed (per ACTON) to indicate changes in status or action taken on a case. The presence of an open control base causes the retention of the module on IDRS. When establishing an entity on IDRS, adding a history item with activity code "ENTC" causes IDRS to retain the entity posted transactions on the entity module for 49 days from the history item input date. See Figure 3.13.36-1 for Command Code ACTON formats and descriptions. For more information on CC ACTON see IRM 2.3.12. Command Code ACTON Descriptions

    Figure 3.13.36-1

    FORMAT DESCRIPTION
    ACTON
    H, aaaaaaaaaa
    Establishes a history item
    ACTON
    Cnn, aaaaaaaaaa,a
    Updates the control information.
    ACTON nn yyyymm aaaa
    C#,,a,aaaa
    Nnnnnnnnnnn,mmddyyyy
    Establishes a dummy account
    ACTON
    Cnnn,,C
    Closes the control base
    ACTON
    Cnn,aaaaaaaaaa
    Nnnnnnnnnn
    Reassigns the control base
    ACTON nn yyyymm aaaa/
    C#,aaaaaaaaaa,a,aaaa
    *,*
    Changes the name control on a dummy account
    ACTON nn nnnn aaaa/
    H,aaaaaaaaaa
    Changes the name control and adds a history item
Command Code BMFOL
  1. The use of CC BMFOL provides on-line research of nationwide entity and tax data information posted to the BMF. BMFOL allows expanded research capability. BMFOL displays an index (summary) of tax modules, showing the tax year available. The screen contains nationwide information including entity, posted returns, generated tax data, status history, adjustment, and audit history data for a specific TIN. The BMF contains information provided via weekly computer tapes submitted from each campus. Several validity checks occur before posting the information to the BMF. The BMF updates weekly on Thursday morning. See Figure 3.13.36-2 for a list of CC BMFOL formats and descriptions. For more information on CC BMFOL see IRM 2.3.59.

    Figure 3.13.36-2

    FORMAT DESCRIPTION
    BMFOLInn-nnnnnnn Requests the BMF summary screen information
    BMFOLEnn-nnnnnnn Requests the BMF entity screen information
    BMFOLRnn-nnnnnnn NNYYYYMMPNN Requests the BMF return screen information
    BMFOLTnn-nnnnnnn NNYYYYMMPNN Requests the BMF tax module screen information
Command Code EMFOL
  1. Use CC EMFOL to research posted EP master file information. This file updates weekly as the master file itself updates. Input the sponsor EIN with a definer to use this command code. The type of information required determines the definer used for the request:

    1. Use definer I to view an index. The index displays all plan numbers, plan names and tax periods on the record for a particular sponsor EIN. This screen also indicates whether a TC 150 posted for a particular plan number and plan period and whether there is a record on CC ERTVU for the return. CC EMFOLI provides the return status code displayed before the YYYYMM which indicates the status of the return posted:

      RETURN STATUS CODE EXPLANATION
      C Current
      H Historic
      I Interim
      U Unpostable
    2. Use definer E to view the Filer Entity Screen. This screen displays the sponsor name and address, name control, CAF indicator and all transactions (TC 000, 011, 012 etc.) associated with the sponsor's entity module. This screen also displays the prior primary name for name change transactions, and XREF EIN for account consolidations, the date of establishment, and notice indicators.

    3. Use definer L with a plan number to view the Plan Data Screen. Use this screen to research all entity information associated with the plan itself; the plan name, effective date, type of plan, filing requirements, sponsor phone number, etc. Also use this screen to research data from the plan application and plan termination documents as well as all transactions associated with the plan entity module.

    4. Use definer D with a plan number to view the Plan Administrator Screen. Use this screen to research the administrator EIN, name, address, and phone number associated with a particular plan.

    5. Use definer T with a plan number and plan period ending to view the Tax Module Screen. This screen displays the controlling DLN and all transactions associated with a particular tax module, including TC 151 and TC 154 information.

    6. Use definer S with a plan number and plan period ending to view the Status History Screen. This screen displays the historical status of the tax module.

    7. Use definer H to view a Help Screen.

    8. Use definer C to view the EPMF Last Reported Data screen. This screen displays the cross reference information for any EIN that has been entered on line 4b on Form 5500. The DLN, EIN, Plan number, Tax Period, and new plan number are displayed.

    9. The figure below shows a format and description of the definer codes used with EMFOL. See Figure 3.13.36-3

    10. For more information on CC EMFOL see IRM 2.3.64.

    Figure 3.13.36-3

    FORMAT: DESCRIPTION:
    EMFOLH On-line help menu
    EMFOLEnn-nnnnnnn Displays the entity information including the sponsor/employer name, telephone, and address. Also displays indicators, codes, notice information, and posted entity transactions.
    EMFOLInn-nnnnnnn Displays the index of all plans, tax periods, and returns for a specific EIN.
    EMFOLLnn-nnnnnnn nnnn Displays the plan data including data posted in plan, application, and termination sections, and posted transactions for a specific amount.
    EMFOLDnn-nnnnnnn nnn Displays the plan administrator data including the administrator name, address, and phone number for a specific account.
    EMFOLSnn-nnnnnnn nnnyyyymm Displays the status history of the specific tax module.
    EMFOLTnn-nnnnnnnPnnnyyyymm Displays the tax module including the control DLN indicators, the IDRS status, dates, and the posted transactions for a specific tax period and plan number.
    EMFOLCnn-nnnnnnn Displays the cross reference information for any EIN entered on line 4b on Form 5500. The DLN, EIN, Plan number, Tax Period, and new plan number display.
Command Code ENMOD/ENREQ/BNCHG/BRCHG
  1. Use CC ENMOD to research the sponsor entity to find the name, address, and thorough entity information from input of the TIN. It also shows any pending changes to the sponsor entity, and any pending plan information, unpostable or reject conditions, account merges, delays and correspondence history.

  2. CC ENMOD must precede the input of CC ENREQ. The CC BNCHG is the resulting screen. Use the CC BNCHG format to establish and make changes to the taxpayer/sponsor on the BMF or the EPMF.

  3. CC ENMOD must precede the input of CC ENREQ with Definer R. The CC BRCHG is the resulting screen. Use the BRCHG format only to merge BMF or EPMF account numbers. The figure below shows a format and description of ENMOD, ENREQ, BNCHG and BRCHG. See Figure 3.13.36-4

    Figure 3.13.36-4

    FORMAT: DESCRIPTION:
    ENMOD nn-nnnnnnn Requests a display of entity information
    ENREQ nnnnnnn Requests CC BNCHG format
    ENREQR Requests the CC BRCHG format

    Note:

    If you input a change to a taxpayer’s account in error, you can delete the transaction on the same day of input using CC TERUP and the sequence number.

  4. The transaction codes used with CC ENMOD/BNCHG determine the types of changes you can input.

    TRANSACTION CODE: TYPE OF CHANGE:
    000 Establish new entity
    012 Reopen entity
    013 Change taxpayer’s name
    014 Change taxpayer’s address
    016 Change location address or DBA
    020 Make entity inactive (Manager approval needed)
  5. Use CC BNCHG to establish the sponsor entity and perform sponsor entity changes.

  6. Use CC BRCHG to merge/consolidate sponsor entities. TC 011 is the only transaction code input by EPMF using the CC BRCHG.

  7. For more information on CC ENREQ/BNCHG/BRCHG see IRM 2.4.9 .

Command Code EPLAN
  1. Use CC EPLAN to add, revise, or delete a plan data module of an EPMF account. The following transaction codes used with CC EPLAN determine the type of changes you can make.

    TRANSACTION CODE: TYPE OF CHANGE:
    000 Add new plan to an EPMF entity
    011 Change plan number (as a result of a merger)
    012 Reactivate plan
    013 Change plan name
    016 Change plan filing requirement code
    017 Change file folder number (performed by district office)
    020 Make plan inactive
    053 Change plan year ending month
    127 Change plan administrator data
    128 Change plan name and plan administrator simultaneously
  2. Use CC EPLAN to establish or change a plan data module on EPMF. The response to the CC EPLANR request is a generated format to be completed with the information needed for a particular plan. See IRM 3.13.36.22.4.

  3. For more information on CC EPLAN see IRM 2.4.46 .

Command Code ERTVU
  1. Use CC ERTVU to research the Return Transaction File. It updates weekly. Most of the information, including the Edit Sheet, as well as some generated data, displays with this command code.

    Note:

    Plan Year Ending 199112 to the current year displays with this command code. Therefore, whenever using ERTVU to research an older plan period return (plan years through 199911), always research EMFOL first to determine the current information about the return posting. You may need to request the original document or research the EFAST2 Website in some cases if the most current return isn't available in ERTVU.

    1. The line numbers from the return as well as an abbreviated literal display with the information.

    2. Input this command code with an EIN, plan number, plan period, and a definer code.

    3. Use a blank definer for Forms 5500, 5500-SF, and 5500–EZ (5500C, 5500R Pre-EFAST only).

    4. The first page of each return screen contains the information from the Edit Sheet, a line number index, and a list of what schedules are present for that return.

    5. Use definer "N" to view the index.

    6. Use definer "A" (for 1993 and later returns) to view Schedule A.

    7. Use definer "B" to view Schedule B.

    8. Use definer "C" to view Schedule C.

    9. Use definer "D" to view Schedule D.

    10. Use definer "E" to view Schedule E.

    11. Use definer "F" to view Schedule F.

    12. Use definer "G" to view Schedule G.

    13. Use definer "H" to view Schedule H.

    14. Use definer "I" to view Schedule I.

    15. Use definer "P" to view Schedule P.

    16. Use definer "R" to view Schedule R.

    17. Use definer "S" to view Schedule SSA.

    18. Use definer "T" to view Schedule T.

    19. Use definer "X" to view Form 5330 (EPMF data only).

    20. Use definer "Z" to resurrect a deleted unpostable EFAST return.

  2. When using CC ERTVU, determine whether all attached Schedules A are available for viewing. Compare the count of Schedules A attached on the Edit Sheet (page 1 of ERTVU screens) with the number of Schedules A available for that account on ERTVU definer A.

  3. To view returns, use a return status code.

    1. C - use for a current return record. This is the latest completed processing return record posted to that tax period. If there is an amended return posted, it’s the current return record.

    2. D - use for viewing deleted returns.

    3. H - use for the historical return record. If an amended return posted, you can use the historical record to view the original posted return.

    4. I - use for viewing the interim return record. This is a return that is in correspondence status at EFAST. It hasn't completed processing and isn't posted to the master file.

    5. U - use for viewing an Unpostable return record.

  4. For EFAST/EFAST2 returns, you can request a return record using the return DLN. You must also use the appropriate definer to view the associated schedules and you must also use the return status code.

  5. If you determine an EFAST/EFAST2 return was deleted erroneously, based on incomplete or missing information, you can resurrect it by using CC ERTVU definer "Z" . Input CC ERTVUZNN-NNNNNNNDPPPYYYYMM, the next screen displays the following message, "Data Accepted, Record will be updated in the next processing cycle." Once the data resurrects make the necessary changes to correct the account and post the return.

  6. CC ERTVU is strictly for EPMF accounts; therefore, File Source P isn't required. If not using File Source P, use a space in its place. The table below is a list of definer codes and other criteria to use for ERTVU requests.

    DEFINER USED: PLAN # REQUIRED: PYE REQUIRED: SCREEN INFORMATION RESULT:
    Blank Yes Yes Return
    A Yes Yes Schedule A, Insurance Information (Beginning PY 1994)
    B Yes Yes Schedule B, Actuarial Information
    C Yes Yes Schedule C, Service Provider and Trustee Information
    E Yes Yes Schedule E, ESOP Annual Information
    F Yes Yes Schedule F, Fringe Benefit Plan Annual Information Return (Beginning PY 1993)
  7. Use CC ERTVU to provide the EFAST Filing Status Codes displayed after the EFAST IND which indicates the status of the return posted:

    1. C – Complete

    2. 1 – Suspended 1

    3. 2 – Suspended 2

    4. O – Orphaned Complete – No Parent

    5. E – Orphaned Complete – Bad Entity

    6. D – Discarded

  8. For more information on CC ERTVU see IRM 2.3.65.

Command Code ESIGN
  1. Use CC ESIGN to assign EINs. The taxpayer provides the information needed to assign the EIN on a IRM SS–4 , Application for Employer Identification Number, or a Form 5500 Series return correspondence. The EIN may be for a taxpayer/sponsor, administrator, or trust. After completing research, if you haven’t found an EIN, then assign one. Use the CC ESIGN with the Definer R to assign an EIN. Precede it with the CC NAMEB.

  2. For more information on CC ESIGN see IRM 2.4.8.

Command Code ESTAB
  1. Use CC ESTAB to request returns and documents from the Campus and Federal Records Center returns files. Those handling the requests sort these requests into a manageable order, then print and forward Forms 4251, Return Charge Outs, to the requesting area.

  2. For more information on CC ESTAB see IRM 2.3.62.

Command Code FRM49
  1. Use CC FRM49 to input transactions resulting from the analysis of the taxpayer responses to CP 403 and CP 406. Use these notice responses to input transaction codes 590–599 to update tax modules on the TIF. Transaction Codes 59X need closing codes (cc) except TC 592. See IRM 2.4.26, IDRS Terminal Input, for detailed explanation for input.

Command Code INOLE
  1. The CC INOLE accesses the NAP with a definer code and TIN.

  2. The definer code determines whether the input TIN is edited or not edited and whether a file source is needed.

  3. Definer code "G" with CC INOLE.

    1. Use this definer when you don’t know the TIN type or the master file.

    2. An unedited TIN or an edited TIN and file source may be input.

    3. The display is limited entity data from every master file that matches the TIN input.

    4. If there is only one TIN on the NAP that matches the input it defaults to the definer "S" display.

  4. Definer code "T" with CC INOLE.

    1. Use when you want to know if the TIN is on more than one master file and the filer name and address.

    2. This definer also lists the plan numbers (if any) for EPMF accounts.

    3. An edited TIN must be input, a file source must not.

    4. If there is only one TIN that matches the input it defaults to the definer "S" display.

  5. The figure below shows a format and description of definer codes for CC INOLE. See Figure 3.13.36-5.

    Figure 3.13.36-5

    FORMAT: DESCRIPTION:
    INOLEGnnnnnnnnn Displays name line information available for any account associated with that TIN.
    INOLETnnn-nn-nnnn
    or
    INOLETnn-nnnnnnn
    Displays name line and address information for all accounts with the same TIN
    INOLESnnn-nn-nnnn
    or
    INOLESnn-nnnnnnn
    Displays specific data for the account addressed
    INOLEXnnn-nn-nnnn
    or
    INOLEXnn-nnnnnnn
    Displays Social Security Administration (SSA) name controls, cross-reference, and merge transaction information.
    INOLEPnn-nnnnnnn Displays EPMF plan information. A total of ten plan names can be shown on one screen.
  6. The INOLET screen displays BMF and/or EPMF entity information of the requested EIN.

  7. For more information on CC INOLE see IRM 2.3.47 .

Command Code LETER/LPAGE/LPAGD
  1. These CCs are programs that work in IDRS real time to send IDRS CORRESPONDEX letters. Enter CC LETER with a TIN and other necessary information. CC LETER runs a security check against the IDRS user to protect taxpayer data. If the security check passes, the TIF is searched for the related name and address. If the TIN isn't located on the TDI, LETER checks the NAP. If the account isn't on the NAP, CC LETER generates the CC LPAGE screen with the name and address lines left blank; but if CC LETER finds a match, it builds an LPAGE screen with the name and address in the proper fields. CC LPAGE 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.

  2. Use CC LPAGD to delete a letter sent on the same day. 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 it won't delete the letter request and a letter to the taxpayer generates.

  3. See Figure 3.13.36-6 below for a list of CC LETER formats and descriptions. For more information on CC LETER see IRM 2.4.6 .

    Figure 3.13.36-6

    FORMAT: DESCRIPTION:
    LETER nn-nnnnnnnP nn yyyymm nnnn
    nnnnC
    Requests information from NAP to generate CC LPAGE screen
    LPAGD nn-nnnnnnnP nn yyyymm nnn
    nnnnC
    Deletes letter (must be input the same day as letter request).
Command Code MFREQ/RECON
  1. Use CC MFREQ with Definers "C" or "D" to request an entity module or a tax module and its related entity data when case control isn't required.

    1. MFREQ with Definer "C" downloads the module data from CFOL to the local IDRS while the user is waiting on-line. The real module must not be on the local IDRS system (TIF). The module extracts to the TIF again via the Weekly TIF update approximately two weeks after the request.

    2. MFREQ with Definer "D" brings the module data from master file to the local IDRS approximately two weeks from the time of the request.

    3. Accessible files include IMF, BMF, IRAF, and EPMF.

  2. The figure below shows a format and description for CC MFREQ. See Figure 3.13.36-7

    Figure 3.13.36-7

    FORMAT: DESCRIPTION:
    MFREQCNN-NNNNNNNP
    74 200912 NAME 001
    MFT, Tax Period, Name Control and Plan number
    MFREQCNN-NNNNNNNP
    00 000000 NAME
    Zeros can be used for MFT and Tax Period without the plan number if doing MFREQ for ENMOD
  3. Use CC RECON with blank definers only to request an entity module or a tax module and its related entity data when case control isn't required.

    1. A real module must already exist on IDRS. The module extracts from master file to the TIF again via the Weekly TIF Update batch routines approximately two weeks after the request is input.

    2. Accessible files include IMF, BMF, and EPMF.

  4. The figure below shows a format and description for CC RECON. See Figure 3.13.36-8

    Figure 3.13.36-8

    FORMAT: DESCRIPTION:
    RECON NN-NNNNNNNP
    74 200912 NAME 001
    MFT, Tax Period, Name Control and Plan number
    RECON NN-NNNNNNNP
    00 000000 NAME
    Zeros can be used for MFT and Tax Period without the plan number if doing RECON for ENMOD
Command Code NAMES, NAMEI, NAMEE, NAMEB, FINDS and FINDE
  1. Name Search Facility (NSF) allows IDRS users to query a national file of name and address data at Martinsburg Computer Center (MCC) using a taxpayer name and address to locate a Social Security Number (SSN) or an Employer Identification Number (EIN). The NSF contains the full taxpayer name as it was filed on a return. It maintains multiple addresses for each taxpayer name. The NSF stays current with real-time updates, and daily and weekly batch updates. CCs NAMEB/NAMEI are the primary method of accessing the NSF. See IRM 2.3.60 for more information.

    • CC NAMES and CC NAMEI searches for SSNs.

    • CC NAMES and CC NAMEI searches for both primary and secondary filer names.

    • CC NAMEE and CC NAMEB searches for EINs.

    • CC NAMEE and CC NAMEB searches for both primary and "doing-business-as (DBA)" names.

    • CC FINDS searches for the primary and secondary SSN/IRSN/ITIN.

    • CC FINDE searches for EINs.

  2. The figure below shows a format and description of NAMEB/NAMEI. See Figure 3.13.36-9

    Figure 3.13.36-9

    FORMAT: DESCRIPTION:
    NAMES/NAMEI Researches the NSF at MCC for a taxpayer's SSN.
    NAMEE/NAMEB Researches the NSF at MCC for a business EIN.
  3. Use CC NAMEB with a CC Definer –

    DEFINER CODE: DEFINER DESCRIPTION:
    B Only BMF records are displayed
    E Only EPMF records are displayed
    N Only ANMF records are displayed
    X A hardcopy listing is desired
Command Code REQ77/FRM77
  1. Use CC REQ77/FRM77 to input transactions resulting from the analysis of the taxpayer responses to CP 403 and CP 406. Use these notice responses to input transaction codes 151 to move incorrectly posted returns from one module to another. CC REQ77 with a blank definer results in the FRM77 format. If no taxpayer account information (TIN, MFT code, Tax period, and name control) generates from the input of REQ77 with a blank definer, then use a prior CC ENMOD or SUMRY if the input transaction changes entity information. Use CC TXMOD if the transaction addresses a tax module. If the taxpayer account information generates from the input of a REQ77, no prior CC is needed. See IRM 2.4.19 , IDRS Terminal Input, for detailed explanation of input.

    Figure 3.13.36-10

    FORMAT: Description:
    REQ77 Requests the CC REQ77 format after accessing a prerequisite.
Command Code TERUP
  1. The purpose of these CC TERUP and TERUP (Definer P) is to allow an employee to delete his/her erroneous entry on the day of input. An employee can only delete his/her own entries. Input of any one of these CCs creates a transaction record matched with all of that day’s IDRS transactions during end of day processing. Any transaction whose data elements match those same data elements of the TERUP transaction is deleted. This deletion takes place before a DLN being assigned or a transaction being generated for master file processing.

    Note:

    The TERUP transaction sequence number must match the targeted transaction sequence number exactly in order for the deletion to occur. If these don't match, the deletion won't take place. When CC TERUP is input and subsequently deletes the transaction, the pending status of the deleted transaction appears as "DQ" on the following day.

  2. CC TERUP (Definer P) can only be used for the EPMF to delete a transaction code input to EPLANR.

    Note:

    Either CC TXMODA or ENMOD must precede CC TERUP.

  3. For more information on CC TERUP see IRM 2.4.13.

Command Code ASGNI/ASGNB
  1. Use CC ASGNB when resolving TDI’s. ASGNB has five functions present on the TIF, but EPMF entity is only concerned with one: posting notice codes for subsequent processing and alpha case codes. ASGNI processes IMF accounts and ASGNB processes BMF and ANMF accounts.

  2. If the user enters CC ASGNB, ASGNB appears on the screen.

    1. Use CC ASGNB with Definer Code F to delay the notice. Use Notice Code D to delay action on an account for the number of cycles requested. The number of cycles may be 00–15.

    2. Use CC ASGNB with Definer Code L after inputting CC ENMOD or SUMRY, and if input with a two digit number of cycles delays action on the account the number of cycles input.

    3. Use CC ASGNB with Notice Code R to reissue a TDI.

    Note:

    More than one delay can be input and more than one notice can be reissued on this format.

  3. CC ASGNB brings up the ASGNB input screen. See IRM 2.4.27, IDRS Terminal Input, for detailed explanation for input.

Command Code TXMOD/SUMRY
  1. Use CC TXMOD to request a display of 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 and is available on IDRS TIF. Transaction DLNs are shown if Command Code Definer D or L is input. A command code definer is required for CC TXMOD. Definer (A) displays most tax module information present on the TIF. See IRM 2.3.11, IDRS Terminal Responses, for detailed explanation for input.

  2. Use CC SUMRY in tax account research. Normally use it as a first contact with IDRS because it provides an overall display of the filer’s account by giving a summary of all tax modules on IDRS for a specific EIN. The display shows entity data on lines 1 and 2, tax module data, tax period, various indicators, IDRS status, control base information, control DLN, IDRS module balances and freeze codes for a specific tax period. Other tax period data follow every two lines until all tax modules have been summarized.

  3. For more information on CC TXMOD/SUMRY see IRM 2.3.11.

Requesting Documents

  1. EFAST processed returns aren't available in hard copy. You must research IDRS CC ERTVU to view these returns. The EFAST2 Website can also be used for research to view and print Form 5500 series filings.

  2. If a filer from an employee plan requests a copy of their Form 5500, Annual Return/Report of Employee Benefit Plan Participants, the filer must send the request to the Department of Labor (DOL) at the following address:

    Public Disclosure Room N-1513
    Employee Benefits Security Administration
    U.S. Department of Labor
    200 Constitution Avenue, NW
    Washington, DC 20210–1111

  3. Send Public Disclosure requests for Employee Plan Form 5500 Series (except for the Form 5500–EZ, Annual Return of One Participant Pension Benefit Plan) to the DOL at the address above.

  4. If the filer requests a copy of their Form 5500–EZ, route the request to OAMC EP Accounts M/S 6552.

    Internal Revenue Service
    Mail Stop 6552
    1973 North Rulon White Blvd.
    Ogden, UT 84404

EIN Assignment

  1. Entity may need to assign EINs while working correspondence, TDI’s, and Forms SS–4 attached to returns. Refer to IRM 21.7.13, Assigning Employer Identification Numbers (EIN).

  2. If you don’t find an EIN after research and the one on the return belongs to another filer:

    1. Assign an EIN using CC ESIGN with Master File Indicator (MFI) "P."

    2. Use Abbreviations when necessary to limit the number of characters to a total of 70. Be sure you don't change the essence of the sponsor/employer's name line when you abbreviate. See the Chart of Employee Plans Abbreviations, IRM 3.13.36.22.4 (19).

    3. Use the appropriate notice indicator with the valid MFI to generate a notice to the filer informing them of the new EIN.

  3. Use this ERAS (EIN Research and Assignment System) command code to assign a new EIN when the Entity function determines that no EIN exists for the entity.

  4. ERAS analyzes the Master File Indicator (MFI) input to determine what series EIN to assign.

  5. Use the following MFI when assigning an EIN:

    1. MFI "P" generates a TC 000 to both the BMF and EPMF. Use this MFI when assigning an EIN to the employer/sponsor of a plan.

    2. MFI "O" generates a TC 000 to the BMF with no filing requirements. Use this MFI when assigning an EIN to the administrator of a plan or to the pension/profit-sharing/retirement fund or trust with no employees (no BMF return will be filed—the EIN is for record-keeping purposes only).

    3. MFI "B" generates a TC 000 to the BMF. Use this MFI when assigning an EIN to the pension/profit-sharing/retirement plan fund or trust with employees.

  6. Input the appropriate EPMF Notice Indicator to generate the correct notice to the filer. A CP 58X generates to the filer informing them of their EIN along with a Form SS-4 to complete and return to the IRS. When we receive the Form SS-4, input CC ESIGNU.

  7. EPMF Notice Indicators must be followed by a Return Identity Code and tax period. See Figure 3.13.36-11 for Notice Indicators and Return ID Codes.

  8. Trust EIN—The trust identification number identifies the pension benefit fund/trust in which all or part of the assets of the plan may be placed.

    1. Form SS–4 request for EIN for trust—refer to IRM 21.7.13, Assigning Employer Identification Numbers (EIN).

    2. VEBA Trust—Voluntary Employees Beneficiary Association Trust. This EIN shouldn't be used to file Form 5500 series returns. Each sponsor must file using his/her own EIN.

  9. Entity receives requests to re-establish EINs for Retirement Trusts, Profit sharing Plans or Pension Plans if the account dropped from master file due to inactivity. The requests come in the form of a fax, Form 4442, Form 945 or in rare cases by e-mail from filers or Employee Plan Practitioners. Batch these requests on BBTS as correspondence with a 10 day turnaround timeframe. The cases are in batches of 25, with a 30 day aged criteria. Use the following procedures to re-establish the EIN by inputting a TC 000.

    IF: AND: THEN:
    IDRS research on an EIN indicates no record found
    1. The EIN provided is in the valid range, verify the EIN by accessing CC ESIGN on the B tape.

    2. The EIN provided doesn't belong to another filer.

    3. The EIN provided isn't a re-configuration of a SSN.

    4. Research the Schedule P filed by the corporation.

    5. Contact the filer for verification of the EIN by requesting a copy of the CP 57X.

    Input a TC 000 to re-establish the EIN with the information provided. Don't ESIGN a new EIN.
    Notify the filer of their EIN.

    Note:

    Re-establish the EIN needs on the BMF.

    Note:

    For additional Form 945 instructions – refer to IRM 3.13.2, BMF Account Numbers.

  10. The filer shouldn't use the trust EIN to file the 5500 return with three rare exceptions:

    1. A multiple-employer plan (Form 5500 Part 1 Box A(1), A(3), or A(4) is checked) may use a trust EIN to file.

    2. A single-employer plan may only use the trust EIN if the sole-proprietor sponsor died or gone bankrupt and the sponsor hasn't changed and/or the assets weren’t distributed or transferred. This should only be used to file a final return.

    3. The trust EIN may be used to file a Form 5500–EZ, or Form 5500-SF in lieu of Form 5500-EZ, only if the employer has no other EIN on the BMF or EPMF. If after researching IDRS, you determine that the filer is filing using his trust EIN because he isn't required to have an EIN for his business, don't assign another EIN. Ensure that the EIN is truly the plan’s trust EIN and not the EIN of the bank or other entity.

  11. If an employer/sponsor states that they have more than 500 pensions or welfare benefit plans, assign a new identification number to accommodate the additional plans.

    1. Assign another EIN to the entity and add "Second EIN for Plans" to the sponsor entity name line on IDRS. Suppress the notice with Notice-Information-Cd "D" .

    2. Send the filer a letter indicating why we assigned the second EIN.

    Figure 3.13.36-11

    EIN FOR: ASSIGNED BY: NOTICE INDICATOR: CP NOTICE: MFI:
    Taxpayer SS–4 F 580 A P
      SS–4 more than 2 name lines F 580 B  
    Plan Sponsor/Employer 5500 Return no EIN P 581 P
    Administrator SS–4 G 582 A O
      SS–4 more than 2 name lines G 582 B  
    Trust SS–4 H 583 A B & O
      SS–4 more than 2 name lines H 583 B  
    Administrator 5500 return unidentified EIN J 584 O

    Figure 3.13.36-12

    FORM: FILING REQUIREMENT: RETURN ID CODE: DOC CODE:
    5500 X 74 37
    5500–EZ N 7E 31
    5500–SF T   32
    5308   00 77
    5330   35 35
  12. Include the following information when using CC ESIGN to assign an EIN.

    1. Master File Indicator

    2. Location Code – EIN Prefix

    3. Name Control

    4. Entity Name and Address Information

    5. Notice Information Code

    6. Return Identity Code

    7. Return Identity Tax Period

    8. Phone Number

    9. Remarks

    Note:

    See IRM 3.13.36.19.2.7, CC ESIGN

  13. The Form SS–4 process is at three campuses: Cincinnati, Brookhaven, and Philadelphia. The following is a list of Campuses and their respective EIN Prefixes for EIN assignment. See Figure 3.13.36-13 .

    Figure 3.13.36-13

    CAMPUS: EIN 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 30, 32, 35, 36, 37, 38, 61
    FRESNO 15, 24
    KANSAS CITY 40, 44
    MEMPHIS 94, 95
    OGDEN 80, 90
    PHILADELPHIA 26, 27, 39, 41, 42, 43, 45, 46, 47, 48, 62, 63, 64, 66, 68, 71, 72, 73, 74, 75, 76, 77, 81, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 98, 99
    INTERNET EIN 20, 26, 27, 45
    Small Business Association (SBA) 31
    Fictitious EIN 78, 79

Bulk/Bank Assignment Requests

  1. The Bulk/Bank EIN program assigns blocks of EIN(s) to a fiduciary or any other person authorized to represent 10 or more trusts/estates or pension plans. For additional information regarding Bulk/Bank Assignment Requests, see IRM 21.7.13, Assigning Employer Identification Numbers.

Form SS–4 Processing

  1. When assigning an EIN from a Form SS–4, input MFI "P" if the taxpayer is requesting the EIN for the sponsor of a pension or welfare plan.

    Exception:

    If the taxpayer indicates that they are a Pension Trust or Administrator, by checking the box on Form SS–4, input MFI "O" .

  2. If needing additional information, refer to the IRM 21.7.13, Assigning Employer Identification Numbers

EPMF Entity Changes

  1. Entity changes occur through the posting of the EFAST/EFAST2 return, or a campus processed Form 5500-EZ ; however, sponsor entity changes may be input through IDRS via CC BNCHG and administrator and plan entity changes are input via CC EPLAN.

Preparation of Entity Changes

  1. Before inputting any entity changes:

    1. Complete all necessary research to ensure the changes are valid. See IRM 3.13.36.19 for research instructions. If in doubt, contact the filer.

    2. Check for any IDRS controls. If found, follow local procedures to contact the employee with the control.

    3. Check for an unreversed TC 420 or TC 424. This indicates an open AIMS base. If the status is 08 or under, make the entity change. If the status is 10 or higher, the case is assigned to the group or agent. Write up a referral for an entity change. Exam then makes the change if appropriate.

  2. EPMF transactions other than TC 000 (Doc Code 63 and 64) and TC 150 resequence for three cycles to allow the TC 000 to post. TC 150s resequence for eight cycles.

Posting Delay Code (PDC)

  1. When needing multiple transactions to adjust an account and some must post in later cycles than others, input a Posting Delay Code (range 1–6) with the transactions to be "cycled" .

  2. The action to post these transactions to the MCC master file defers until the indicated number of posting cycles passes.

  3. Determine the required number of delay cycles with respect to the first transactions to post.

    Example:

    In a complex adjustment with seven transactions where two must post three cycles after the first four and the last must post a cycle after the second two, input a Posting Delay Code of three (3) with the fifth and sixth transactions and of four (4) with the last transaction.

  4. Input all the transactions at the same IDRS terminal session. You won't have to guess at the actual posting cycle which can vary based on operational factors at the Campus (Quality Review Operations) and at MCC (Annual "dead" processing cycles).

  5. The "cycled" transactions hold on the MCC Resequencing Transaction files until the specific number of deferred posting attempts occurs, thus maintaining the required staggered sequence among the transactions.

  6. The posting delay capability is available for the following IDRS transaction programs:

    1. DP Adjustment Command Code ADJ54 (Doc. Code 54).

    2. Entity Change Command Codes: INCHG, BNCHG, BRCHG, EPLAN, and EOCHG (Doc. Codes 50, 53, 63, 64, 80, and 81).

    3. Pre-journalized Credit Transfers CC DRT24 and DRT48 (Doc. Codes 24 and 48).

    4. Dual Debit/Credit Transfer CC FRM34 (Doc. Code 34).

    5. Miscellaneous Transactions CC FRM77 and CC FRM7A (Doc. Codes 77 and 78).

  7. The Posting Delay Code won't post with the transaction or be shown with the IDRS pending transaction. The projected MCC posting cycle on the IDRS "PN" status pending transaction extends to account for any significant Posting Delay Code impact on the transaction.

  8. The posting delay capability with these IDRS transaction programs should satisfy most "cycled" adjustment needs. For other IDRS transaction programs the cycling capability is in some cases inappropriate (as with CC ESIGN) or unnecessary (as with CC FRM14 TDI or FRM49). The posting delay capability is part of the basic structure of our transaction processing.

  9. Use of the posting delay code won't bypass any NAP checks that are programmed for a command code.

EPMF Entity Transaction Codes

  1. Entity changes come from the posting of the EFAST/EFAST2 return or a campus processed Form 5500-EZ, but the following transactions may also be input to change the EPMF entity.

  2. Transaction Code 000 - this transaction code establishes an account on the BMF/IMF/EPMF not previously established on the master file or dropped from master file due to inactivity. Use CC BNCHG, and input the following required fields along with information necessary to establish the account:

    1. New name control

    2. Primary name

    3. Street address, location address, care of names and sort names aren't required fields but should be input if available.

    4. City, State and Zip

    5. Remarks

  3. Transaction Code 011 - this transaction code consolidates or merges two or more EINs assigned erroneously to an EPMF Entity. Use CC BRCHG to consolidate sponsor entities. TC 011 is the only transaction code input by EPMF Entity using CC BRCHG. Overlaying CC ENMOD with CC ENREQR generates CC BRCHG. See the Multiple EINs section in IRM 3.13.2, BMF Account Numbers.

    Note:

    Check for any IDRS open controls before taking any action. If an open control is present contact the employee with the control.

  4. Transaction Code 012 – this transaction code reopens an inactive account on the master file. Filing requirements of such accounts are all "8" .

  5. Transaction Code 013 – this transaction code indicates the primary name line changed. Always use the master file name control, not a check digit or dummy name control when changing the name lines.

  6. Transaction Code 014 – this transaction code indicates the mailing address line changed.

    1. If inputting a domestic street address, then input the mailing city, state and zip.

    2. If inputting a domestic mailing city, state and zip or major city and zip code, then also input the mailing street address.

    3. If inputting a major city code, then input a mailing zip code. For a listing of major city codes refer to Document 7475, State Abbreviations, Major City Codes and Address Abbreviations.

    4. If you can determine that the correspondence requesting the address change was initiated by a third party, research the CAF using CC CFINK. If you find a proper authorization, update the address as requested. If you don’t find a proper authorization, send Letter 135C and destroy the request.

      Note:

      Don't reference the taxpayer’s EIN on the letter.

    5. Zip code changes require you to input a complete address change. A TC 014 generates.

  7. Transaction Code 014 – this transaction code could also indicate a change to a foreign address.

    1. If inputting a foreign street address, then input the foreign city and foreign country.

    2. A foreign postal code may be input.

    3. If inputting a foreign country, then the state field must be a comma "," and a period "." . See IRM 3.13.2, BMF Account Numbers.

    4. If inputting a foreign city or postal code, then input the foreign street address.

  8. Transaction Code 016 – this transaction code indicates a change to:

    1. Sort name

    2. Care of name

    3. To delete a sort name and/or Location address input $$

    4. Location street address

    5. Location city, state, and zip

    Note:

    When the mailing and location addresses are the same, don't input a separate action to delete the location address. If the location address is incomplete, don't input a TC 016 to correct or delete the incomplete location address because EFAST continually passes incomplete location addresses to the EPMF causing unnecessary redundant corrective actions.

    Reminder:

    Don't input the primary name when changing only one or more of the four fields listed in (a) through (d).

  9. Transaction Code 020 – This transaction code deletes an account from master file if no modules are present which contain return or credit transactions.

    1. Accounts with modules present remain on the BMF/EPMF but all the filing requirements change to "8" to indicate that the account is in inactive status.

    2. Turn off the plan filing requirement for all plans by a TC 591 CC 97 or a TC 020 Doc Code 64 before inputting a TC 020 Doc Code 63.

      Caution:

      When using TC 020 be very sure that you don't delete a good account. DON'T INPUT A TC 020 WITHOUT THE EP MANAGER'S APPROVAL.

  10. When any transaction posts that changes the primary name line (first 35 characters) the prior name displays in the posted transaction section with the transaction code that made the change.

    1. The prior name line displays on CC EMFOL definer E.

    2. There are cases when a name changed in error and knowing the prior name line would help resolve the case. Posting the prior name line helps when trying to resolve EIN problems.

Plan Data Module-Transaction Codes

  1. Command Code EPLAN is available for input of plan data module information.

  2. Establish the plan data module by the input of a TC 000 (Document Code 64 using CC EPLAN or generated by the vendor) or by a TC 121/123 input by the AO via EACS.

  3. If inputting a TC 000 Doc Code 64, and a TC 000 is already pending for the same plan number, an error message, "TC 000 PENDING FOR THIS PLAN NUMBER," generates.

    1. The program also recognizes deleted TC 000s (DU, DN, DQ, etc.) as pending transactions.

    2. If there is a TC 121/123, don't input TC 000.

    3. If receiving an error message on input of a TC 000, research CC ENMOD. If the original transaction was deleted (See Document 6209 for pending transaction codes), and research indicates that a TC 000 is needed for the plan, overlay the TC 000–ADD–INDICATOR "N" with a "Y" . Input the rest of the transaction as usual. This overrides the error message and allows another TC 000 to be input.

  4. TC 000–Input via CC EPLAN to establish a plan.

    1. Use TC 000 to establish a plan number. Always input TC 000 when you establish a plan.

    2. When you establish an EIN on the EPMF, remember to establish the plan also.

    3. Input the following identifying data for the transaction to be valid: Transaction Code, plan year ending month, plan first name line, Administrator Same Indicator or Administrator first name line, AIN, city, state, and zip code, remarks.

    4. Input the following identifying data if available: Plan second name line, Administrator second name line, Administrator street address, effective date, and filing requirements. If the Administrator Same Indicator is used, the Administrator name lines, address, city, state, zip, and AIN must be blank.

      Note:

      You don’t need to enter filing requirements when establishing a plan from a Form 5500–EZ.

    5. Input a posting delay code if needed.

    6. Always input the plan name, AIN, and administrator name and address (use mailing address if two addresses are shown) exactly as the filer entered the information on the return unless needing abbreviation due to space limitations. (See IRM 3.13.36.17.4 for more information on how to establish a plan).

    7. If a valid AIN is entered on the return, you don’t need to research the AIN before inputting the TC 000. An AIN is invalid if it doesn't have 9 numeric characters and/or the first two digits (DO Prefix) are: 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 78, 79, 89 and/or all 9s.

  5. TC 011–Input via CC EPLAN to Change a Plan Number/Consolidate two plan numbers.

    1. Use TC 011 when there is an indication that the master file contains more than one plan number for the same plan. The accounts should be consolidated. (See IRM 3.13.36.25 for more information on consolidations).

    2. You don’t need the new plan number to be established on master file if only requiring a plan number change.

    3. Input the following identifying data: Transaction code, new plan number, remarks.

    4. Input a posting delay code if needed.

    5. Use Letter 1072C to notify the filer of the correct plan number to enter on their return.

  6. TC 012–Input via CC EPLAN to Reactivate a Plan.

    1. Use this Transaction Code when a plan was deleted in error.

    2. The plan filing requirement is "8" .

    3. Input the following identifying data: transaction code, remarks.

    4. A posting delay code may be input.

  7. TC 013–Input via CC EPLAN to Change Plan Name.

  8. When there is an indication of a change in name on the return or through correspondence, input transaction code 013.

    Note:

    Perform complete research to ensure that the change in plan names doesn't indicate a new plan.

    1. Input the following identifying data: transaction code, plan first name line, plan second name line (if available), remarks.

    2. Input a posting delay code if needed.

  9. TC 016–Input via CC EPLAN to Change Plan Filing Requirement.

    1. When you determine that plan filing requirements should be changed, input transaction code 016.

    2. Input the following identifying data: transaction code, filing requirement code, and remarks.

      FILING REQUIREMENT CODES: FORMS:
      X Form 5500
      T Form 5500–SF replaces Form 5500–C/R
      Z Form 5500–EZ
      N Not Liable
    3. A posting delay code may be input.

  10. TC 017–Input via CC EPLAN to Change File Folder Number.

    1. The Area Office or the National Office inputs TC 017 to update their records.

    2. Input the following identifying data: transaction code, file folder number, and remarks.

    3. The plan effective date is optional.

    4. Input a posting delay code if needed.

    5. Input the plan filing requirement code if known (otherwise optional).

  11. TC 020–Input via CC EPLAN to Deactivate/Delete Plan Number.

    1. Use TC 020 to change the filing requirements for a specific plan to "8" . Also use it to delete an erroneously established plan.

    2. When a TC 020 posts to the plan data module, the plan filing requirement is "8" if a TC 12X or TC 150 is present in the module. However, if there is no unreversed TC 121, 122 or 125 or no TC 150 in the module, the module erases.

    3. Input the following identifying data: transaction code, remarks.

    4. Input a posting delay code if needed. See IRM 3.13.36.22.2.

      Caution:

      When using TC 020 be very sure that you don't delete a good account. DON'T INPUT A TC 020 WITHOUT THE EP MANAGER'S APPROVAL.

  12. TC 053–Input via CC EPLAN to Change Plan Year Month

    1. Use TC 053 to change the Plan Year Ending for a specific plan.

    2. Form 1128 is an acceptable form for changing the Plan Year Ending.

    3. Input the following data: transaction code, plan year ending month, remarks.

    4. Input a posting delay code if needed.

  13. TC 127–Input via CC EPLAN to Change Administrator Data.

    1. When there is an indication of a change to the Administrator's entity data, input TC 127 using CC EPLAN.

    2. Input the following identifying data: transaction code (127), Administrator first name line or Administrator Same Indicator, Administrator city, Administrator state, Administrator Zip Code, Administrator Identification Number (AIN), remarks.

    3. If using Administrator Same Indicator, the Administrator AIN, name lines, city, state & zip must be blank.

    4. Input a posting delay code if needed.

    5. Input the following identifying data if available: Administrator second name line, Administrator street address.

    6. If the Administrator first name line is present, the Administrator Same indicator must be blank.

    7. When the administrator state is present and not a foreign address, the zip code must be present.

    8. When a zip code is present a foreign address can't be present.

  14. TC 128–Input via EPLAN to Change Plan Name and Administrator Data.

    1. When there is a change to the administrator's entity data and to the plan name, input TC 128.

    2. Input the following identifying data: transaction code, Administrator EIN or Administrator Same Indicator, plan first name line, Administrator first name line or Administrator Same Indicator, Administrator city, Administrator state, Administrator zip Code, and remarks.

    3. If using the Administrator Same Indicator, Administrator AIN, name lines, city, state, and zip must be blank.

    4. Input the following data if available: plan second name line, Administrator second name line.

    5. Input a posting delay code if needed.

  15. Input via CC FRM77 (Document Code 77) the following transaction codes:

    1. TC 122, Reversal of Plan (reverses TC121/123).

    2. TC 126, Reversal of Plan Termination (AO input).

    3. TC 151, Reversal of TC 150.

  16. Input via AO EACS the following transaction codes:

    1. TC 121, Establish a New Plan.

    2. TC 123, Update or establish a Plan.

    3. TC 125, Complete Plan Termination/Merger.

  17. CC EPLAN transactions validate the input EIN, name control, and plan number against the NAP.

    1. The input format for CC EPLAN is EPLAN with definer "R" , the sponsor EIN with file source code "P " , the name control, and the plan number. An intent indicator "Y" is also required if the input transaction is a TC 000 (intent indicator "N" generates automatically if a "Y" isn't used.) See IRM 3.13.36.19.2.5 for input format.

    2. If inputting a TC 000 to establish a new plan, use INTENT–IND "Y" .

    3. For all other CC EPLAN transactions, no INTENT–IND is needed; INTENT–IND "N" automatically generates.

    4. If the EIN on the input transaction isn't established on master file, an error message generates. The Entity function must establish the EIN using CC BNCHG before inputting the EPLAN transaction.

    5. The name control used on the CC EPLAN transaction must match the name control on master file.

    6. If inputting a CC EPLAN transaction (other than a TC 000), the plan number must be established on the master file or an error message generates.

  18. The administrator data input with the CC EPLAN transaction must match as closely as possible what the filer actually entered on the return in 3a. However, when using CC EPLAN, never enter the literal "SAME" for the Administrator name lines; instead use the Administrator Same Indicator if it’s valid for the transaction code.

    1. The Administrator Same Indicator is a one position field which can be either a "1" or blank. Input a "1" to indicate the Administrator information is the same as the Sponsor data. The sponsor name, mailing address, and EIN on master file automatically generates into the administrator data lines on the plan module.

    2. If needing a sponsor name or address change, you must input these changes before inputting a CC EPLAN transaction using the Administrator Same Indicator.

    3. The Administrator Same Indicator must be present if the Administrator's name, AIN, city, state, and zip Code are blank.

    4. When establishing a plan from Form 5330, use the Administrator Same Indicator. There is no administrator data on this form.

    5. When establishing a plan from Form 5500–EZ, use the Administrator Same Indicator unless item 3a is completed and the filer wrote the administrator information on the back or in the margin of the form.

    6. If no administrator data is present on Form 5500 or 5500–C/R, enter Administrator Same Indicator.

    7. If inputting the Administrator Same Indicator, the administrator section must be blank.

    8. If inputting the administrator address, and there are two addresses on line 3a, use the mailing address for the administrator's address. The administrator's address may be used when correspondence to the sponsor returned as undeliverable. If there is room on the second name line, add in-care-of.

  19. When entering plan name lines for CC EPLAN transactions, enter the plan name exactly as written by the filer if possible. For specific name instructions refer to IRM 3.13.36.17.4. If the plan name is sixty-nine (69) characters or less, input the complete plan name as entered by the filer.

    1. Use as many of the spaces in the first line of the plan name (P1) as possible without splitting a word before continuing on to the second name line.

    2. Don't abbreviate unless absolutely necessary to fit the entire plan name into the spaces allocated.

    3. If needing to abbreviate, use the Chart of Employee Plans Abbreviations. See Figure 3.13.36-14

    4. If the plan name includes the sponsor's name and this makes the entire plan name more than sixty-nine (69) characters, omit the sponsor's name.

    Figure 3.13.36-14

    EMPLOYEE PLANS COMMON ABBREVIATIONS TABLE
    Account ACCT International INTERNL
    Administrative ADMNST RV Joint Board JTBD
    Administrative Committee ADMADMNST RV COMM Long Term Disability LTD
    Annuity ANN Master MASTR
    Association ASSN Money Purchase MNY PURCH
    Brotherhood BRTHD Money Purchase Pension Plan MNY PURCH PNSN PLN
    Cafeteria CAFTRA Municipality MNCPLTY
    Committee CMMTE Partner PRTNR
    Compensation CMPNSTN Pension PNSN
    Contribution CONTRBTN Plan PLN
    Defined benefit DEF BEN Professional Association PA
    Defined Contribution DEF CON Professional Corporation PC
    Department DEPT Professional Service PS
    Employee EMPLYE Profit Sharing PS
    Employer EMPR Prototype PROT
    Flexible Fringe FFB Retirement RTRMNT
    For Benefit of FBO Retirement Account RTRMNT ACCT
    Foundation FDN Savings and Loan S&L
    Fringe Benefit FB Self Employed SE
    Fund FD Self Employed Retirement Plan SERP
    Group GRP Self Employed Retirement Trust SERT
    Hourly HRLY Trust TRST
    Incorporated INC Trustee TTEE
    Individual Retirement Account IRA Welfare WEL
    Insurance INS 401(K) 401K
  20. IRM 2.4, IDRS TERMINAL INPUT, provides specific instructions for input of Command Code EPLAN for plan data changes.

  21. The EPMF won't accept any transaction other than TC 000, TC 121, or TC 123 as a vehicle to establish the plan data module. TC 121 and TC 123 generate from EACS based on the filing of the plan application in the Area Office.

  22. No access command code is needed before using CC EPLAN to make any plan data module changes.

  23. When your research indicates a need for establishing the plan, input CC EPLAN with CC Definer "R" , the EIN with file source code P, the name control, the plan number, and an INTENT–IND "Y" .

  24. EPLAN automatically generates a history item on ENMOD.

Addresses

  1. This section gives instructions on domestic, domestic foreign, and foreign addresses.

Domestic Mailing and Location Addresses

  1. According to postal regulations, mail delivers to the last address immediately preceding the city, state and zip code. To input the mailing address, always use the P.O. Box as the mailing address if present.

    Exception:

    If the taxpayer indicates the street address is the mailing address and the P.O. Box is the location address, leave the P.O. Box as the location address. This applies to trusts and estates only.

  2. A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

  3. If both a location address and mailing address are present:

    1. Input the location street address on the location street address line.

    2. Input the location city, state, and zip code on the location city/state/zip line.

    3. Enter a comma after both the city and state and enter the zip code last.

  4. Use the following examples:

    Received Input Entry
    Gold's Tire Primary Name: Golds Tire
    101 Lily Ln (location address) Mailing Street or Foreign City/Postal Code: PO Box 154
    Flower, FL 40425 Mailing City or Foreign County/State/Zip: Begonia, FL, 40423
    PO Box 154 (mailing address) Location Street Address: 101 Lily Ln
    Begonia, FL 40423 Location City/State/Zip: Flower, FL, 40425
    Received Input Entry
    Cottonwood Laundry Primary Name: Cottonwood Laundry
    1560 East Water St. (location address) Mailing Street or Foreign City/Postal Code: 950 Main St
    Cottonwood, TX 72346 Mailing City or Foreign County/State/Zip: Tulsa, OK, 61783
    950 Main St. (mailing address) Location Street Address: 1560 E. Water St
    Tulsa, OK 61783 Location City/State/Zip: Cottonwood, TX, 72346
  5. To delete a location address:

    1. Use CC ENREQ/BNCHG or EOREQ/EOCHG.

    2. Input $$ in the first two positions of the location street address.

    3. Make sure the location city, state and zip line is blank.

  6. When changing the mailing address from a street to a Post Office (P.O.) Box number, retain the street address as a location address. We retain the street address as an audit trail for locating organizations.

    Caution:

    If the organization is part of a GEN, don't retain the former street address as the location address when the mailing address changes to a P.O. Box.

  7. Don't input the additional four digits of the 12-digit zip code on TC 000, TC 014, and TC 019. The Finalist computer program automatically expands the 9-digit zip code to 12 digits.

  8. The Street Address (STAD) has a maximum of 35 characters when entered. If entering the STAD, input the city and state fields. You may use a major city code followed by 2 commas and the zip code.

Guidelines for Domestic Mailing and Location Addresses

  1. Use the following guidelines when inputting the mailing or location street address:

    1. Don't leave a blank space between the house or building number and an alpha suffix.

      Example:

      Organization submits: 1234 B North Street
      Input:1234B North St

    2. Input a house or building number when possible. If no number is present, use a building name. Otherwise, contact the organization.

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

    4. If present, always input the street suffix; e.g., street, drive, lane, and terrace.

    5. If present, always input the street directional; e.g., North, South, East, and West.

    6. If the address contains a fraction, input as a slash (/).

    7. If the address contains a hyphen between two numbers, omit the hyphen and leave a space.

      Example:

      Organization submits: 289–01 Main St
      Input:289 01 Main St

      Note:

      Don't delete the hyphen if it indicates a range or is part of an apartment number.

    8. If there are two directionals in a street address, abbreviate the first directional and leave the second spelled out.

      Example:

      Organization submits: North South Main St
      Input:N South Main St

      Exception:

      If the address contains NW, NE, SW, SE, don't spell out any part of the directional.

    9. Change RFD and RD (rural delivery) to RR. Delete any leading zeros.

    10. Always enter "and" in place of the symbol "&."

    11. If the address contains a decimal, convert the decimal to a fraction.

      Example:

      Organization submits: 1.5 miles south of Hwy 19
      Input:1 1/2 miles south of Hwy 19

    12. If the organization doesn’t provide a street address or P.O. Box, input the word "Local" on the street address line. This should only occur in very small towns.

    13. If the city and state are missing or incomplete and the zip code is present, research the Zip Code Directory, USPS Publication 65, to determine the city and state. If you can’t determine the city and state from the Zip Code Directory, the envelope if attached, or phone contact, destroy the EIN application.

    14. If the zip code is missing, research the Zip Code Directory, and enter the zip code.

    15. Optional: If the city is a major city, input the Major City Code in place of the city and state on both the mailing and location addresses. Enter the Major City Code, two commas and then the zip code.

Domestic Street Address Abbreviations

  1. Use the following street address abbreviations when necessary:

    Word Abbreviation Word Abbreviation
    Air Force Base AFB One-fourth 1/1
    Apartment APT One-half 1/1
    Avenue AVE Parkway PKY
    Boulevard BLVD Place PL
    Building BLDG Post Office Box PO Box
    Care of % RFD RR
    Circle CIR RRD/RD RR
    Court CT Road RD
    Department DEPT Room RM
    Drive DR Route RT
    East E Rural Delivery RR
    First 1ST Rural Route RR
    Floor FLR Second 2ND
    General Delivery GEN DEL South S
    Highway HWY Southeast SE
    Highway Contract HC Southwest SW
    In care of % Street ST
    Lane LN Suite STE
    North N Terrace TER
    Northeast NE Third 3RD
    Northwest NW West W

    Exception:

    Abbreviate East, North, South and West only when used as a direction of a street, avenue, etc.

  2. Use the following abbreviations to limit street address fields to 35 characters:

    Word: A-K: Abbreviation: Word: L-W: Abbreviation:
    Alley ALY Lake LK
    Annex ANX Lakes LKS
    Arcade ARC Landing LNDG
    Bayou BYU Light LGT
    Beach BCH Loaf LF
    Bend BND Locks LCKS
    Bluff BLF Lodge LDG
    Bottom BTM Loop LOOP
    Branch BR Mall MALL
    Bridge BRG Manor MNR
    Brook BRK Meadows MDWS
    Burg BG Mill ML
    Bypass BYP Mills MLS
    Camp CP Mission MSN
    Canyon CYN Mount MT
    Cape CP Mountain MTN
    Causeway CSWY Neck NCK
    Center CTR Orchard ORCH
    Cliffs CLFS Oval OVAL
    Club CLB Park PARK
    Corner COR Pass PASS
    Corners CORS Path PATH
    Course CRSE Place PL
    Courts CTS Pike PIKE
    Cove CV Pines PNES
    Creek CRK Place PL
    Crescent CRES Plain PLN
    Crossing XING Plains PLNS
    Dale DL Plaza PLZ
    Dam DM Point PT
    Divide DV Port PRT
    Estates EST Prairie PR
    Expressway EXPY Radial RADL
    Extension EXT Ranch RNCH
    Fall FALL Rapids RPDS
    Ferry FRY Rest RST
    Field FLD Ridge RDG
    Fields FLDS River RIV
    Flats FLT Row ROW
    Ford FRD Run RUN
    Forest FRST Shoal SHL
    Forge FRG Spring SPG
    Fork FRK Springs SPGS
    Forks FRKS Spur SPUR
    Fort FT Square SQ
    Freeway FWY Station STA
    Gardens GDNS Stravenue STRA
    Gateway GTWY Stream STRM
    Glen GLN Summit SMT
    Green GRN Trace TRCE
    Grove GRV Track TRAK
    Harbor HBR Trail TRL
    Haven HVN Trailer TRLR
    Heights HTS Tunnel TUNL
    Hill HL Turnpike TPKE
    Hills HLS Union UN
    Hollow HOW Valley VLY
    Inlet INLET Viaduct VIA
    Island IS View VW
    Islands ISS Village VLG
    Isle ISLE Ville VL
    Junction JCT Vista VIS
    Key KY Walk WALK
    Knolls KNLS Way WAY
        Wells WLS

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

  1. Use the following state codes in place of the city and state for CC ENREQ/BNCHG and EOREQ/EOCHG:

    Country: State Code: Zip Code:
    Americas AA 340XX
    Europe AE 09XXX–098XX
    Pacific AP 962XX–966XX
    Example 1: Example 2:
    PVT Daisy Flower Jean Rose, PPC (SW), USN
    Company F, PSC Box 100 USS Oak
    167 Infantry Regt FPO, AP 96667
    APO, AE 09801  
     
    Always use APO or FPO in the address.
  2. Use the following State and zip codes for territories and possessions:

    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
    Federated States Micronesia FM 969nn
    Marshall Islands MH 959nn
    Palau PW 969nn
  3. Research in a geographical dictionary if the name of the foreign country isn't present and you can't determine it.

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

  1. Since ISRP isn't able to input foreign addresses, Entity receives a copy of the first page of a return with a complete address from Code & Edit to input the foreign address.

  2. Use the following guidelines to enter foreign addresses:

    1. Don’t abbreviate the country. Input the country in the city field of the mailing city/state/zip line.

    2. Input the state field as a comma (,) and a period (.).

    3. Leave the zip code field blank.

    4. Always enter the foreign street address and mailing street address when the state codes is ",." .

    5. To delete a foreign street address, input $$ in the first two positions of the foreign street address.

      Note:

      When an organization indicates an address change and the change is to a foreign address, retain the street address as an audit trail for locating organizations.

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

    1. Always input the location street address.

    2. Enter at least 3 alpha characters for the location city field. Don't use major city codes. Enter a comma after the location city field.

    3. Input the foreign country in the location state field. It must be at least 3 alpha characters followed by a comma "," .

    4. Input a period "." in the location zip field.

  4. To delete a foreign address as a location address:

    1. Input $$ in the first two positions of the location street address.

    2. Don't input the location city, state, and zip.

  5. The following are examples of foreign entities:

    Input: Entry:
    Primary Name: MOTORWAYS 1980 LIMITED
    Continuation Primary Name:  
    Sort Name:  
    Care of Name:  
    Foreign Street Address: PO BOX 738
    Mailing Street or Foreign City/Postal Code: WINNIPEG
    Mailing City or Foreign Country/State/Zip: CANADA,.
    Location Street Address: 60 EAGLE DR
    Location City/State/Zip: BOWIE, MD, 20749
     
    Primary Name: GRAND METROPOLITAN LTD
    Continuation Primary Name:  
    Sort Name:  
    Care of Name:  
    Foreign Street Address: 1112 HANOVER SQUARE
    Mailing Street or Foreign City/Postal Code: LONDON WIADP
    Mailing City or Foreign Country/State/Zip: ENGLAND,.
    Location Street Address: 62 LOUVRE
    Location City/State/Zip: PARIS, FRANCE,.
     
    Primary Name: FERNANDO]DUMAS
    Continuation Primary Name:  
    Sort Name:  
    Care of Name:  
    Foreign Street Address: ST COME LINIERE
    Mailing Street or Foreign City/Postal Code: BEAUCE QUEBEC
    Mailing City or Foreign Country/State/Zip: CANADA,.
    Location Street Address:  
    Location City/State/Zip:  
     
    Primary Name: DOLPHIN TRADING CORP
    Continuation Primary Name:  
    Sort Name:  
    Care of Name: % ALVIRA BROOKES VP
    Foreign Street Address: 901 CENTRE ST NORCEN STE 30
       
    Mailing Street or Foreign City/Postal Code: CALGARY ALBERTA
    Mailing City or Foreign Country/State/Zip: CANADA,.
    Location Street Address:  
    Location City/State/Zip:  
     
    Primary Name: AMERICAN EMPLOYEES COMMISSARY
    Continuation Primary Name: WELFARE ASSOCIATION OF OTTAWA
    Sort Name:  
    Care of Name:  
    Foreign Street Address: 110 WELLINGTON ST
    Mailing Street or Foreign City/Postal Code: OTTAWA ONTARIO
    Mailing City or Foreign Country/State/Zip: CANADA,.
    Location Street Address:  
    Location City/State/Zip:  
     
    Primary Name: JOHN J]GREEN
    Continuation Primary Name:  
    Sort Name:  
    Care of Name: % ATLANTA & GULF
    SERVICES LTD  
    Foreign Street Address: 7575 TRANS CANADA
    HWY APT 103  
    Mailing Street or Foreign City/Postal Code: ST LAURENT
    Mailing City or Foreign Country/State/Zip: CANADA,.
    Location Street Address:  
    Location City/State/Zip:  

Inputting Foreign Addresses

  1. If entering a foreign address, enter the mailing street or foreign city/postal code and mailing city or foreign country/state/zip fields. Enter as follows:

    1. Input TC 014.

    2. Enter the new street address in the "Foreign Address" field (FA).

    3. Enter the city and identifying data in the "Mailing Street or Foreign City/Postal Code" field.

    4. Enter the country in the "Mailing City or Foreign Country" field.

    5. Enter a period (.) in the "State" field.

  2. When inputting the Foreign Address (FA) with CC EOREQ/EOCHG, Document Code 80:

    1. If the account has a foreign address, always enter this field.

    2. If no street address is present, enter "local."

    3. Input the American possessions of American Samoa, Mariana Islands, Marshall Islands, Puerto Rico, Virgin Islands and Guam as domestic addresses.

    4. Use TC 000, 013, 014, or 016 if Document Code is 80.

    5. To delete the FA, enter $$.

Transaction Code 151

  1. Use the following instructions when processing a TC 151 to move incorrectly posted returns.

  2. EP Entity receives Form 4442 from Revenue Agents requesting the input of a TC 151 to correct Form 5500 returns. Batch and monitor the Form 4442 as an expedite case, with a 3 day turn around timeframe.

  3. You can move posted returns to a different EIN, Plan Number, and/or tax period with TC 151. Don’t input a TC 151 without EP Manager's approval. A TC 151 causes the EPMF to be different than the EFAST master file and should only be used after thorough research. This transaction takes three cycles to post. If inputting multiple transactions, this takes longer. Don't cycle delay. When the TC 151 transaction completes, a TC 446 posts to the module.

    Note:

    Check for any IDRS open controls before inputting a TC 151. If an open control is present, contact the employee with the open control. Research CC EMFOLT for a CP 283 open control. Satisfy the CP 283 before inputting the TC 151. If an open control is present, contact EP Accounts, and send the return via fax to satisfy the CP 283. EP Accounts returns the case and you may then do the TC 151. See IRM 3.13.36.28 (14).

  4. Use this transaction code to move a posted TC 150/976/977 when you determine that the return posted incorrectly. Also use this transaction code to reverse a posted TC 154/155/156.

  5. Before inputting a TC 151, research to determine if both return modules have the same name control. If the name controls don't match, input a TC 013 to change the name on the module before completing the TC 151. If needed, input a TC 013 to change the name after the return moves.

  6. If both a TC 150 and a TC 977 posted to the same module, posting a TC 151 moves the return with a DLN that matches the TC 151 reversal DLN. If both a TC 150 and TC 977 are present, and the TC 151 moves the TC 150, the TC 977 changes to TC 150. If needing to move both returns, input two TC 151 transactions.

  7. Returns under audit, indicated by a TC 420 or 424, can't be moved. A TC 151 attempting to move a return under audit unposts as an UPC 851.

  8. Before inputting a TC 151, research to determine if the return module contains an unreversed TC 420 or 424, indicating that the return is under audit, and coordinate with Baltimore AIMS coordinator, e-mailing the following information: EIN, Plan Period and Plan Number. Ask the coordinator to reverse the TC 420 or 424 in order to input the TC 151. Allow two weeks for the TC 420 or 424 to reverse.

    Note:

    If inputting a TC 151 for a Revenue Agent always input the Plan Period requested to post first before moving other Plan Periods.

  9. The following fields are required when inputting TC 151 for MFT 74 using CC REQ77/FRM77.

  10. REV–DLN—a 14 position field used to input the posted return DLN from the return module containing the return being moved.

    1. The first five positions of the DLN must be valid.

    2. The first two digits must be a valid District Office Code or campus Code.

    3. The third digit must be a zero.

    4. The fourth and fifth digits must be 37, 38, 31, 30, or 47.

  11. The 151–CD is the other required field. The valid codes are as follows:

    1. 020–TC 150 posted to the wrong plan number.

    2. 021–TC 150 posted to the wrong plan year ending.

    3. 022–TC 150 posted to the wrong EIN.

    4. 023–TC 150 posted to the wrong plan number and plan year ending.

    5. 024–TC 150 posted to the wrong plan number and EIN.

    6. 025–TC 150 posted to the wrong plan number, plan year ending and EIN.

    7. 026–TC 977 posted to the wrong plan number.

    8. 027–TC 977 posted to the wrong plan year ending.

    9. 028–TC 977 posted to the wrong EIN.

    10. 029–TC 977 posted to the wrong plan number, plan year ending and EIN.

    11. 030- TC977 posted to wrong plan and EIN.

    12. 031-TC 977 posted to wrong plan number and plan year ending

    13. 032-TC 976 posted to wrong plan number

    14. 033 - TC 976 posted to the wrong plan year ending

    15. 034-TC 976 posted to wrong EIN

    16. 035-TC 976 posted to the wrong plan number and plan year ending

    17. 036-TC 976 posted to wrong plan number and EIN

    18. 037-TC 976 posted wrong plan number, plan year ending, and EIN

  12. The 151-CD is a three position input field. Enter a leading zero with the appropriate code. For TC 977, the 151–CD 26–29 can only be valid if the tax period is 8811 or prior. For tax period 8812 and later, use the 151–CD for a TC 150.

  13. The following fields are required depending on the value of the 151 code.

    1. XREF–PN—A three position field used as a cross reference plan number.

    2. Input the XREF–PN field if the 151–CD is 20, 23, 24, 25, 26, 29, 30, 31, 32, 35, 36, or 37.

    3. The valid range for the XREF–PN field is 001–999.

    4. Input the XREF–TIN field if the 151–CD is 22, 24, 25, 28, 30, 34, 36, or 37.

    5. Input the XREF–TXPRD field mif the 151–CD is 21, 23, 25, 27, 31, 35, or 37.

  14. A return move fails if under any of the following conditions:

    1. The module has an unreversed TC 420 or 424.

    2. The TC 151 attempts to move a return to an entity that doesn’t exist.

    3. The TC 151 attempts to move a return to a plan that doesn’t exist.

    4. The TC 151 attempts to move a return to an account with a name control that didn’t match the TC 151 name control.

    5. The TC 151 attempts to move a return to an inactive plan (plan filing requirement = "8" ).

    6. A successful move would create a module or section of a module which exceeds the limits established by programming.

    7. The TC 151 attempts to move a return to a module already involved in an account, plan, or return merge.

Consolidating Accounts—Entity and Plan Module

  1. Use the following instructions when consolidating accounts:

    Caution:

    Correcting accounts consolidated in error is a tedious procedure. Research the accounts thoroughly before inputting a TC 011. If research doesn't provide 100 percent certainty, call the filer or write to him/her. Managerial Approval Required.

    1. If accounts are consolidated and we shouldn’t send a CP 212 Notice to the filer, enter a "Z" in the para select field of the TC 011 to suppress the notice.

    2. Don't consolidate accounts when one account states, "Second EIN for Plans" in the entity area.

    3. If the "FROM" account filing requirement is "8" , reactivate the account (TC 012) or the TC 011 unposts UPC 811.

  2. When there is an indication that an employer/sponsor has more than one identification number, perform complete master file research (use CC EMFOL ) on the EPMF in order to resolve the duplicate EIN issue.

    1. Compare the "TO" and "FROM" accounts to ensure both accounts are for the same entity.

    2. If both EINs are on the EPMF and only one is on the BMF, consider the BMF number the correct account.

    3. If one EIN is on the EPMF and a different EIN is on the BMF, consider the BMF number the correct account.

    4. If both EINs are on the BMF, but only one is active, retain the active number.

    5. If both EINs are on the BMF and both are active, with the same or compatible filing requirements, and both numbers are within the same district area, retain the lowest number with Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, Form 941, Employer's Quarterly Federal Tax Return, or Form 944, Employer's Annual Federal Tax Return, filing requirements and take steps to consolidate the BMF numbers.

    6. Use the EIN with the earliest established date if the EINs involved in the consolidation deal with one or more EINs from within the district area and one or more from outside the district.

      Note:

      Don't consolidate an account with Form 990 or Form 1041 filing requirements. Don't consolidate corporate mergers.

    7. If neither EIN is on the BMF, retain the EIN preferred by the filer. If no preference is indicated, retain the lower number with approved plans (TC 12X posted).

    8. Whenever there is doubt whether to consolidate the accounts, contact the filer.

    9. For Consolidation Transaction Codes, see Figure 3.13.36-15

    10. Before consolidating any accounts, compare the plan names and plan numbers of all accounts. If there is an indication of an erroneous plan establishment, see IRM 3.13.36.25 (5) for instructions to correct the situation before entity consolidation.

    11. If a TC 420 is present, contact the Area Office before inputting a TC 011; don't consolidate the account until a TC 421 posts.

  3. After performing all research and comparisons of the accounts, input TC 011 (Doc Code 63) via CC BRCHG on EPMF and on BMF if applicable.

    1. When only the "FROM EIN" is present on the EPMF, you don’t need to establish the "TO EIN" before inputting the TC 011.

    2. Notice CP 212 generates from the input of the TC 011 (Doc Code 63). It notifies the filer of the correct EIN to use.

  4. Entity function: Resolve all no merge conditions before attempting to consolidate either an entity or a plan. See IRM 3.13.36.30 for no merge conditions.

  5. The EPMF Entity function receives a copy of the source documents from BMF account consolidations when the BMF tax examiner determines that the accounts may need consolidation on the EPMF also.

    1. If both BMF EINs are also established on the EPMF and belong to the same entity, take steps to consolidate the two accounts.

    2. Use the same "TO EIN" as the BMF EIN used.

    3. If only one of the BMF EINs has an EPMF account, ensure that the active EPMF number matches the active BMF number.

  6. Plan consolidation

    1. Entity function: do complete research before consolidating plans to verify that they are, in fact, the same plan. Plans with similar names may actually be separate plans.

    2. If the "FROM" account filing requirement is "8" , reactivate the account (TC 012) or the TC 011 unposts UPC 811.

    3. When you determine that master file contains more than one plan number for the same plan, input TC 011 (Doc Code 64) to consolidate the plans.

    4. Consolidate to the older of the two plan numbers.

    5. If the filer has no preference, consolidate to the plan containing return modules.

    6. If neither or both plans contain return modules, consolidate to the highest plan number.

    7. If the filer indicates the correct plan number but the plans don't appear to be identical, contact the filer for verification. See IRM 3.13.36.22.4 for instructions for correct plan identification.

  7. If a TC 150 or TC 977 posted to both accounts (entity or plan) for the same plan and plan period, take the following action:

    1. Determine where the returns should post.

    2. If the returns are duplicates and were processed by us, input a TC 151 to reverse one of the posted returns.

    3. If the returns aren't duplicates, were processed by us and you can determine the correct account, input a TC 151 to reverse the incorrectly posted TC 150/977 and reprocess (non EFAST) the return to the correct account.

    4. If unable to determine where the return(s) should post, contact the filer.

    5. You need to use the appropriate PDC on the TC011 to allow the TC 151 to post before the TC 011.

  8. If an unreversed TC 121 or TC 123 posted to both accounts (entity or plan module) for the same plan and plan period, take special care before consolidating these accounts.

    1. A posted TC 121 indicates that the filer established the account by sending a form to the Cincinnati Determination Office that describes the characteristics of the plan.

    2. A posted TC 123 indicates a form filed that updates the characteristics of a plan established from a TC 121.

    3. The presence of an unreversed TC 121 or TC 123 (TC 122 reverses these transactions) on both accounts indicates that there were originally two separate accounts intended by the filer. Don’t input a TC 122 without EP Manager's approval.

    4. Perform complete research before merging plans. Contact the filer if unable to determine the correct merge action.

    5. If the filer verifies that the accounts are duplicates and should be consolidated, input a TC 122 on the "FROM" account before input of the TC 011.

  9. If the "FROM ACCOUNT" has an open delinquent module, and the "TO ACCOUNT" has a satisfying transaction posted on the corresponding module, input a TC 590 CC 97 to the "FROM ACCOUNT" to prevent any notices from issuing on the old account before the merge completes.

    Note:

    If there are delinquent modules or potentially delinquent modules on either or both accounts that would be satisfied if the merge could be completed, input a TC 590 CC 97 to the appropriate modules to prevent erroneous delinquency notices to the filer.

  10. If both accounts have corresponding delinquent modules, input a TC 590 CC 97 to the "FROM ACCOUNT" . After the merge completes, input a TC 592 to the consolidated account to allow the delinquency process to continue if the module wasn't satisfied by a TC 150, another TC 590, a TC 591, 593, 594, 595, 597 or 599.

  11. Before inputting a TC 011, research to determine if the return modules have the same name control. If the name controls don't match, input a TC 013 to change the name on the module to move the return before the TC 011 completes, cycle delaying if needed. If needed, input a TC 013 to change the name after the return moves.

  12. If the consolidation passes all merge fail checks, a TC 026 generates to the old account.

  13. If the consolidation doesn't pass all merge fail checks, a Merge Fail Transcript generates to identify up to the first fifty (50) conditions.

    1. If there are more than fifty conditions which caused the merge to fail, a computer generated message "More No Merge Conditions May Be Present" , appears on the transcript.

    2. Research the entity on the EPMF and the BMF.

    3. Resolve the no merge condition by following the instructions in IRM 3.13.36.30.

    4. Reinput the TC 011.

  14. File the source document, including a complete working trail, behind the last posted return for the consolidated plan if the return posted before the EFAST process. (This could be the return you are working from if there are no later returns already posted).

    Figure 3.13.36-15

    Transaction Code: Description:
    TC 001 Carries complete account of old (FROM) TIN to the new TIN
    TC 002 Posts on the old (FROM) TIN and carries complete contents of TC 001 carrier back to the original (FROM) TIN if name controls mismatch
    TC 005 Posts on the new (TO) TIN and posts as an 004/006 combination if consolidation is successful
    TC 006 Posts on good (TO) TIN without the 005 if consolidation is unsuccessful
    TC 011 Posts to the old (FROM) TIN to change EIN of an account on MF and prevents other posting except 002, 003 and 026
    TC 012 Account Re-established-Active
    TC 020 Account Deleted-Inactive
    TC 026 Posts to the old (FROM) TIN. Account deleted. TIN changed. It appears on the entity module only in "DI" pending status.

Conditions Which will Cause a Merge to Fail

  1. Name control on the FROM account doesn't match the name control on the TO account.

  2. A TC 150 or TC 977 (posted before cycle 8229) posted on both accounts for the same plan and plan period.

  3. The TO account filing requirements are all 8s (a TC 020 was input).

  4. Both accounts have an unreversed TC 121 and/or TC 123 on the plan module.

  5. The merge of the two accounts produces an oversize module.

  6. The TO account contains a memo freeze (indicates that a merge is already in process on the account). Don't automatically cycle the merge. Proceed with caution.

  7. Both accounts have a delinquent module and the TDI location codes aren't equal.

  8. Both accounts have a TC 960 on the same plan and plan period input by the same campus.

  9. Both accounts have a TC 960 on the same plan and plan period input by different campuses.

  10. Both accounts have an unreversed TC 420 on the same plan and plan period.

  11. A module in one account contains an unreversed TC 424 posted in a cycle equal to or later than an unreversed TC 420 in the other account module for the same plan and plan period.

  12. Both accounts have an unreversed TC 424 posted on the same plan and plan period.

  13. One account contains an unreversed TC 977 posted later than an unreversed TC 420 or TC 424 in the other account for the same plan and plan period.

  14. See IRM 3.13.36.30 for instructions for resolving these no merge conditions.

General Instructions for Processing Documents or Returns Including Form 5500 series

  1. Observe the following procedures for all work processed in Entity Control.

  2. Batch all work with appropriate local form.

  3. Make all edit markings and Entity Control action trails in purple pen or pencil. This color indicates EP Entity reviewed the document.

  4. Make corrections to the name, address and TIN fields directly on the return. In addition, underline the name control, and employee stamp on the left side of the return.

    Note:

    Employee numbers are required on all returns and documents sent to Files. Be sure to reference the employee number on routing slips when sending documents to other areas. Employee numbers aren't required on documents that will be destroyed.

  5. Perfect the entity for processing: e.g., missing or invalid EINs, plan changes or establishment, multiple EINs, name control and address.

  6. Perform research in all cases using CC NAMEB. If research locates an EIN on CC NAMEB, verify the entity by using CC ENMOD, INOLE or EMFOL before taking any action.

Forms 990–T, Exempt Organization Business Income

  1. For processing of Form 990–T, refer to IRM 3.13.12, Exempt Organization Account Numbers.

Form 2848, Power of Attorney and Declaration of Representative

  1. A taxpayer files Form 2848 to grant certain individuals a Power of Attorney to represent the taxpayer, receive and inspect confidential tax information for Forms 5500, 5500-C, 5500-EZ, 5500–SF, and Form 5330 (MFT 74 and 76).

  2. The Entity Function receives Forms 2848, for MFT 74 and MFT 76, from the Ogden, Memphis and Philadelphia CAF units. When there isn't a plan number edited on the Form 2848 in the plan number box:

    1. Research IDRS for the missing plan number.

    2. If you find the plan number, edit the plan number in the plan number box.

    3. Route or Fax the Form 2848 back to the CAF Unit for processing.

    4. If you don’t find the plan number, edit the Form 2848 as invalid and return the Form 2848 to the CAF Unit.

Form 5330, Return of Excise Taxes Related to Employee Benefit Plans

  1. A Form 5330 is filed for an employee plan to report tax on funding deficiencies, excess contributions, prohibited transactions, etc.

  2. Forms 5330 post to the BMF, a fact of filing TC 154 posts to the EPMF.

  3. The Entity Function receives Forms 5330 from Error Correction/Rejects, RTR's, Unpostables and/or Code and Edit when either:

    1. There is no valid Filer’s Identifying Number.

    2. There is no valid Plan Sponsor's EIN.

    3. There is more than one Filer’s Identifying Number (EIN or SSN).

    4. The TIN isn't established on the BMF/EPMF.

    5. The TIN in block "B" doesn't match the name control of the filer in block "A" .

    6. There is no valid Plan Number in block "G" .

    7. The plan number hasn't established on the EPMF.

  4. The Filer’s Identifying Number may be either an EIN or SSN.

    IF: THEN:
    The filer's identifying number in block B is an EIN and the EIN isn't established on the BMF, but has an EIN on EPMF. Establish the same EIN on the BMF.

    Note:

    Establish the EIN or SSN on the BMF before the return can post.

    The filer's identifying number in block B is an SSN and the SSN with the suffix of V isn't established. Don’t edit the EIN from Block E. Input a TC 000 to establish the account using CC ENREQ/BNCHG. Input the following CC ENREQ information:
    ENREQ 000-00-000V 1
    Name C ENTC *EC
    Input the following information in the BNCHG screen:
    The required fields are: TC 000, name control, primary name, mailing address, city, state, zip, MFT 76 and remarks.
    The filer's identifying number (both the EIN and SSN field) in block B is blank.
    1. Research CC NAMEB/NAMEI using the filer’s name in block "A"

    2. If found edit the EIN or SSN in block B.

    3. If not found, and there is an EIN in block E, edit the EIN to block B.

    4. If not found and there is no EIN in block E, call or write to the filer.

    5. If no response assign an EIN and establish the Plan.

    The Plan Number in block "G" is blank or not in the valid range.
    1. Research the EIN or SSN provided in block "B" to determine the Plan Number.

    2. Search the form and attachments for a plan number. If found, and the plan number is established on the EPMF, enter the plan number in block "G" .

    3. If the account contains more than one active plan number, use plan number 999.

    4. If unable to determine the Plan Number, call or write to the filer.

    5. If no response, establish the Plan Number on the EPMF with no filing requirements. If there is no plan number on the documents, establish using plan number 999. See IRM 3.13.36.17.3, Plan Number.

    6. If the account is an SSN, edit block "G" using plan number 999.

    7. After all corrective actions, send the document back to Error Correction/Rejects.

Form 5308, Request for Change in Plan/Trust Year

  1. Entity takes no action to update the master file from Form 5308.

  2. If the filer files a Form 5308 in error at the campus and we receive it in Entity with neither an approval or disapproval attached to the correspondence, mail the Form 5308 to:

    Internal Revenue Service
    ATTN: EP Letter Rulings
    Stop 31
    PO Box 12192
    Covington, KY 41012-0192

Form 5500 Penalty Assessment Payment

  1. Forms 5500 penalty assessment payments post to the BMF.

  2. The Entity Function receives payment vouchers ( CP 283) from Deposit, Error Correction/Rejects and/or Code and Edit when either:

    1. There is no valid Filer’s Identifying Number.

    2. There is no valid Plan Sponsor's EIN.

    3. The TIN isn't established on the BMF/EPMF.

    4. There is no valid Plan Number in block.

    5. The plan number hasn't established on the EPMF.

    IF: THEN:
    The EIN is missing on the payment voucher.
    1. Research CC NAMEB using the filer’s name shown on the payment voucher.

    2. If found edit the EIN on the payment voucher and return to requesting area.

    3. If not found, call or write to the filer.

    4. If no response assign an EIN and establish the Plan. Edit the EIN and plan number on the payment voucher and return it to the requesting area.

    The plan number is missing on CP 283 pre-paid correspondence.
    1. Research EMFOLT to identify the plan number used to generate the CP 283.

    2. If found, edit the Plan number on the correspondence and route back to area requesting plan number verification.

    The Plan Number is missing or isn't in the valid range CP 283/295.
    1. Research EMFOLT/BMFOLT to see what plan number was used to generate the CP 283/295.

    2. If there are no plan numbers established for the account, establish plan 001.

    3. If found, edit the Plan number on the payment voucher and route back to area requesting plan number verification.

    4. If unable to determine the Plan Number, call or write to the filer.

    5. If no response establish the Plan Number on the EPMF with no filing requirements. If there is no plan number on the documents, establish using plan number 001. See IRM 3.13.36.17.3.

    6. After all corrective actions, send the document back to Error Correction/Rejects or Code & Edit.

    Note:

    For Form 5500 MFT 74, never use plan number 000.

Form 5500–EZ Filing Requirements

  1. The filing requirement established for a Form 5500–EZ is an "N" .

    1. The plan is a one-participant plan required to file an annual return and isn't eligible or chooses not to file the annual return electronically on Form 5500-SF; or

    2. The plan is a foreign plan required to file an annual return.

  2. A one-participant plan means a retirement plan (that is, a defined benefit pension plan or a defined contribution profit-sharing or money purchase plan), other than an Employee Stock Ownership Plan (ESOP), which:

    1. Covers only you (or you and your spouse) and you (or you and your spouse) own the entire business (which may be incorporated or unincorporated) or

    2. Covers only one or more partners (or partners and their spouses) in a business partnership

    3. Doesn't provide benefits for anyone except you (or you and your spouse) or one or more partners (or partners and their spouses).

  3. Form 5500–EZ filing requirements changed for plan years that began on or after January 1, 2007. As a result of this change, a Form 5500–EZ doesn't have to be filed for a plan year (other than the final plan year) if the filer has one or more one-participant plans that separately or together have total assets of $250,000 or less at the end of that plan year. Filers filing under the previous $100,000 assets rule may discontinue filing until they reach the $250,000 total asset threshold or until they terminate the plan and file their final Form 5500–EZ.

  4. Form 5500–EZ filing requirements before January 1, 2007, for 1995 and later years, if the filer has one or more, one-participant plans separately or together and have total assets of $100,000 at the end of any plan year beginning on or after January 1, 1994, must file a Form 5500/5500–EZ, for the year the assets exceed $ 100,000 and for each year thereafter, even if total plan assets are reduced to $100,000 or less.

    Example:

    If plan assets in a plan that otherwise satisfies the requirements for filing the Form 5500/5500–EZ totaled $ 100,000 at the end of the 1994 plan year, and a distribution occurred in 1995 so that plan assets totaled $85,000 at the end of the 1995 plan year, a Form 5500/5500–EZ must be filed for the 1995 plan year.

  5. Process Forms 5500-EZ using a plan number in the 001–500 series.

    1. If a welfare plan number is assigned to a pension plan, input a TC 011 using CC EPLAN to change the plan number to the next available number in the 001–500 series.

    2. If the plan on the return appears to be a welfare plan (Plan name includes words indicating a welfare plan), follow local procedures to contact Cincinnati for a determination as to whether to process the return. (All Forms 5500–EZ should be retirement plans.)

Form 5500–EZ Paper Processing
  1. Beginning January 1, 2010, IRS began processing paper Form 5500–EZ at OSPC. Route Forms 5500–EZ to the Ogden Campus if received in any other campus.

  2. Entity receives Form 5500–EZ returns from Error Correction/Rejects, Unpostables and/or Code and Edit when:

    1. The sponsor EIN is invalid or missing.

    2. The plan number is invalid or missing.

    3. There is more than one EIN or plan number.

    4. Form SS-4 is attached.

    5. The sponsor has entered an SSN.

    6. Initial box is checked.

    7. Foreign address is present.

    8. The tax period is for longer than allowed.

      Note:

      Research thoroughly to make sure the filer has no other EIN on the BMF or EPMF.

    IF: THEN:
    The filer's identifying number (EIN) in 2b is blank or invalid
    1. Research CC NAMEB/NAMEI using the filer’s name in 2a.

    2. If found edit the EIN in block 2b.

    3. If not found, call or write to the filer.

    4. If no response assign an EIN and establish the Plan.

    5. After all corrective actions, send the document back to Error Correction/Rejects or Code & Edit.

    The Plan Number in 1b is blank or not in the valid range 001–999
    1. Research the EIN provided in 2b to determine the Plan Number.

    2. Search the form and attachments for a plan number. If found, and the plan number is established on the EPMF, enter the plan number 1b.

    3. If there are no plan numbers established for the account, establish plan 001.

    4. If the account contains more than one active plan number, use plan number 999.

    5. If unable to determine the Plan Number call or write to the filer.

    6. If no response, establish the Plan Number on the EPMF with no filing requirements. If there is no plan number on the documents, establish using plan number 999. See IRM 3.13.36.17.3, Plan Number.

    7. After all corrective actions, send the document back to Error Correction/Rejects or Code & Edit.

    Appendix A - Revenue Procedure 2014–32 Transmittal Schedule OMB 1545–0956 received before June 2nd, 2015 Edit CCC's R and V on Form 5500-EZ, detach Appendix A and route to EP M/S 1110.

    Note:

    If the filer writes on the top of the return "Delinquent return submitted under Rev. Proc. 2014–32, Eligible for Penalty Relief" or similar wording and the Appendix A isn't attached, edit the CCC's R and V and make a copy of the front page of the Form 5500-EZ to route to EP M/S 1110.

    Appendix A - Revenue Procedure 2014–32 Transmittal Schedule OMB 1545–0956 received after June 2nd, 2015 Process as normal, no special handling.
  3. Process Forms 5500–EZ using a plan number in the 001–500 range. Never correct the plan number to a number greater than 500.

    1. If a welfare plan number is assigned to a pension plan, input a TC 011 using CC EPLAN to change the plan number to the next available number in the 001–500 range.

Form 14704 Transmittal Schedule - Form 5500-EZ Delinquent Filer Penalty Relief Program

  1. Form 14704 will be attached to delinquent Form 5500-EZ filings. As of June 2015, there is a fee for participating in the program.

  2. A filer may submit as many delinquent returns as necessary under the program. The fee schedule is dependant upon the number of returns submitted per plan number.

    1. 1 return - $500

    2. 2 returns - $1000

    3. 3 or more returns - $1500

  3. When received in Deposit, the fee should be posted to the earliest tax period listed on Form 14704.

  4. All returns with a Form 14704 attached will be sent to Entity for processing.

Form 14704 Paper Processing
  1. Research BMFOLT and TXMOD to determine if the correct payment was made for the number of returns submitted.

  2. Payments should be posted to the BMF for MFT 74 and the earliest tax period. Deposit should request entity establish the BMF before posting the payment. If the BMF has not been established when the return reaches Entity, enter a TC 000 to establish the BMF.

  3. You may need to research UPTIN for payments which have gone unpostable. If the payment is on UPTIN, assume that it will post correctly and process the forms accordingly.

  4. If a Form 3244, Payment Posting Voucher, is present with the correct payment amount but is not posted to the expected account, assume that the filer submitted the payment and process the forms accordingly. In most cases, the money will post to BMFOL in a reasonable amount of time. Suspend the case on the P-tape for 30 days. After 30 days if the money has still not posted, forward the information on the Voucher and Form 14704 to the SPP analyst at M/S 1110 for further research.

  5. If the payment is correct, edit the returns with CCC codes R and V. Employee stamp each return and indicate that the Form 14704 was detached and forward the returns to Code and Edit for processing.

  6. If there is no P-Tape on the account, enter a TC 000 to establish the P-tape and a second TC 000 with the appropriate PDC to establish the plan data module before sending the returns for processing.

  7. If Deposit has not put a rocker under the money amount on the Form 14704, rocker the money amount before forwarding the form. If the money has posted to a tax period other than the first tax period listed, rocker the tax period that the money has posted to.

  8. If the payment is found but needs to be moved to a different EIN or plan number, indicate where the payment should be moved on the Form 14704 before forwarding to AM so that they can move the payment.

  9. If the EIN or Plan Number is incorrect on the Form 14704, perfect the document before sending to AM.

  10. Forward Form 14704 to OAMC EP Accounts at M/S 6552.

  11. If a Form 3244, Payment Posting Voucher, is present leave it attached to the return, not the Form 14704.

  12. If the correct payment was not submitted, either no payment or payment for fewer returns than indicated on the Form 14704, contact the filer by phone or correspond using Letter 1074C asking for the missing payment amount.

  13. Suspend the case on the P-tape for 45 days. After 45 days, verify on BMFOLT and TXMOD that the missing payment has been submitted.

    1. If the correct payment has been received, edit and stamp the returns and forward to Code and Edit for processing, and forward Form 14704 to OAMC.

    2. If no payment has been submitted, employee stamp the returns and move the Form 14704 to the back. Forward the returns to Code and Edit for processing.

    3. If only partial payment was received and further payment has still not been submitted, process the returns separately and accept the earliest tax periods that qualify first.

  14. If Form 5500-EZ is received with Rev Proc written on the form but no Form 14704 is attached, contact the filer by phone or correspond using Letter 1074C asking for the Form 14704. Suspend the case for 45 days to allow the filer to submit the Form 14704.

    1. If the filer supplies the Form 14704, resume processing.

    2. If the filer does not supply the Form 14704, employee stamp the returns and forward the returns to Code and Edit for processing.

  15. If the Form 5500-EZ has been posted, send the Form 5500-EZ to files to be associated with the original return. If penalties have been assessed on the account, send the taxpayer a 1074C letter with the appropriate paragraph. If no penalties have been assessed, it is not necessary to send a letter. If the Form 5500-EZ has been posted and there are indications that it is an amended return, forward the return to Code and Edit for processing.

  16. If a Form 5500-SF has posted to the same EIN, Plan Number, and tax period as the Form 5500-EZ, send the Form 5500-EZ to Code and Edit for processing.

  17. If the Form 14704 indicates more than one return and the corresponding payment is posted, but there are fewer returns than indicated, assume that the payment is correct and process what is present.

  18. A report that includes Received Date, Taxpayer's Name, EIN, Tax Period, Amount of Fee, Accepted Y/N, and Comments needs to be completed and sent to the SPP Analyst weekly.

Form 5500–SF Filing Requirements

  1. The filing requirement established for a Form 5500–SF is a "T" if filing the Form 5500-SF as a short form instead of a Form 5500.

  2. A Form 5500–SF may be filed instead of a Form 5500 if:

    1. The plan (1) covered fewer than 100 participants at the beginning of the plan year 2009, or (2) under 29 CFR 2520.103–1(d) was eligible to and filed as a small plan for plan year 2008 and didn't cover more than 120 participants at the beginning of plan year 2009.

      Note:

      If an IRC 403(b) plan would have been eligible to file as a small plan under 29 CFR 25020.103–1(d) in 2008 (that is, the plan was eligible to file in the previous year under the small plans requirements and has a participant count of less than 121 at the beginning of the 2009 plan year), then it can rely on 29 CFR 2520.103–1(d) to file as a small plan for the 2009 plan year.

    2. The plan didn't hold any employer securities at any time during the plan year.

    3. At all times during the plan year, the plan was 100 percent invested in certain secure, easy to value assets such as mutual fund shares, investment contracts with insurance companies and banks valued at least annually, publicly traded securities held by a registered broker dealer, cash and cash equivalents, and plan loans to participants (see the instructions for line 6a).

    4. The plan is eligible for the waiver of the annual examination and report of an independent qualified public accountant (IQPA) under 29 CFR 2520.104-46 (but not by reason of enhanced bonding), which requirement includes, among others, giving certain disclosures and supporting documents to participants and beneficiaries regarding the plan’s investments.

    5. The plan isn't a multiemployer plan.

  3. The filing requirement established for a Form 5500–SF is an "N" if filing the Form 5500-SF in lieu of filing a paper Form 5500–EZ.

  4. A filer may file a Form 5500–SF in lieu of the Form 5500–EZ if:

    1. The plan is a one participant plan.

    2. The plan doesn't provide benefits for anyone except you, or you and your spouse, or one or more partners and their spouses.

    3. The plan covered fewer than 100 participants at the beginning of the plan year.

  5. A one-participant plan means a retirement plan (that is, a defined benefit pension plan or a defined contribution profit-sharing or money purchase plan), other than an Employee Stock Ownership Plan (ESOP), which:

    1. Covers only you (or you and your spouse) and you (or you and your spouse) own the entire business (which may be incorporated or unincorporated); or

    2. Covers only one or more partners (or partners and their spouses) in a business partnership; and

    3. Doesn't provide benefits for anyone except you (or you and your spouse) or one or more partners (or partners and their spouses).

Form 5500 Filing Requirements

  1. The filing requirement established for a Form 5500 is an "X" .

  2. Filers must file a return/report every year for every pension benefit plan, welfare benefit plan, and for every entity filing as a DFE as specified below (pursuant to IRC 6058 and ERISA sections 104 and 4065).

  3. All pension benefit plans covered by ERISA must file an annual return/report except as provided in this section. The filer must file the return/report whether or not the plan is "tax-qualified" , benefits no longer accrue, contributions weren't made this plan year, or contributions are no longer made. Pension benefit plans required to file include both defined benefit plans and defined contribution plans.

  4. The following are among the pension benefit plans requiring a filed return/report.

    1. Profit-sharing plans, stock bonus plans, money purchase plans, 401(k) plans, etc.

    2. Annuity arrangements under Code section 403(b)(1) and custodial accounts established under IRC 403(b)(7) for regulated investment company stock.

    3. Individual retirement accounts (IRAs) established by an employer under IRC 408(c).

    4. Church pension plans electing coverage under IRC 410(d) .

    5. Pension benefit plans that cover residents of Puerto Rico, the U.S. Virgin Islands, Guam, Wake Island, or American Samoa. This includes a plan electing to have the provisions of section 1022(i)(2) of ERISA apply.

    6. Plans that satisfy the Actual Deferral Percentage requirements of IRC 401(k)(3)(A)(ii) by adopting the "SIMPLE" provisions of section 401(k)(11).

      Note:

      For more information see the Form 5500 instructions.

Forms 5500 Received By IRS

  1. We may receive Forms 5500 indicating the taxpayer isn't liable.

    If: And: Then:
    The taxpayer isn't liable The taxpayer has active filing requirements. Follow instructions in IRM 3.13.36.33.5 to final the filing requirements.
  2. We may receive unprocessed Forms 5500. Research the return using the tools in IRM 3.13.36.19.

    If: And: Then:
    There is a TC 150 posted for the same Plan Number and Plan Year Reasonable cause is attached. Route the return and all attachments to EP Accounts at Mail Stop 6552.
      Research on IDRS shows a CP 213 or CP 283 indicator is present on the module or a CP 213 or CP 283 is attached. Route the return and all attachments to EP Accounts at Mail Stop 6552.

    Note:

    If more than one return is attached, treat each Plan Year separately and only send to EP Accounts the documents that correspond with the EIN, Plan, and Tax Year on the CP 213 or CP 283.

      Research on IDRS shows an open control is present on the module. Contact the employee with the open control for resolution (e.g. route to the employee or forward the return for processing.)
      The return is amended. Forward the return to EP Classification according to the instructions in IRM 3.13.36.33.2 (6).
      The return is a true duplicate. "X" the return and prepare for destruction per local procedures.
    No TC 150 posted The return has a Plan Year ending of 200912 or later. Return to the filer according to the instructions in IRM 3.13.36.34.
      There is general correspondence attached. Batch as EP Correspondence.
      IDRS research shows a 403/406 notice indicator on the module or there is a 403/406 attached. Batch as a CP 403/406 Notice response.
      There are no attachments or notice indicators, or they were satisfied. Forward the return to EP Classification according to the instructions in IRM 3.13.36.33.2 (6)

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

  1. Forms 5558 for Forms 5500 and Forms 5500–EZ post to EPMF with a TC 460 for approved extensions.

  2. If we receive a Form 5558 for Form 5500 in Entity, perform the necessary research using the appropriate IDRS command codes, and/or EFAST2 Website to locate an EIN or Plan number.

    IF: THEN:
    We receive Forms 5558 and the EIN and/or Plan Number is missing, research IDRS for the EIN and/or Plan Number. If you find the EIN and/or Plan Number, Edit the Form 5558 with the EIN and/or Plan Number and route to Code and Edit for processing.
    You find the EIN and the Plan Number isn't established
    1. Establish the plan using the information provided by the filer on the Form 5558, any IDRS information on plans previously established and/or any information found on the EFAST2 Website.

    2. Use the next Plan Number in succession.

    3. Route to Code and Edit for processing.

    You don’t find an EIN and/or a Plan Number.
    1. ESIGN an EIN, establish the plan using Plan Number 001 and the information provided by the filer on the Form 5558.

    2. Suppress the notice using NIC E.

    3. Write to the filer using a 1072C letter notifying the filer of their new EIN and/or Plan Number.

    4. Route to Code and Edit for processing.

    Forms 5558 are attached to correspondence dealing with penalty issues or reconsiderations. Route the correspondence and Form 5558 to EP Accounts Mail Stop 6552.
    Forms 5558 are attached to correspondence stating the organization is no longer required to file Form 5500 pursuant to 29 CFR 2520.104–20. See IRM 3.13.36.33.5 (3)m. Input a TC 591 CC 97 to close the filing requirements. Cross (X) out the Form 5558 to be destroyed.
    Forms 5558 are attached to correspondence stating Form 5500–EZ is a one-participant plan that had total assets of $250,000 or less at the end of every plan year beginning on or after January 1, 2007. See IRM 3.13.36.33.5 (3)m.
    1. Research IDRS to verify the information.

    2. Input a TC 016 to change plan filing requirements to "N" . Do Not input a TC 59X.

    3. Cross (X) out the Form 5558 to be destroyed.

    Forms 5558 are received that have the "First Time Filer" box checked.
    1. Research IDRS. Determine if the EIN and/or plan number is established.

    2. If the EIN and plan number are established, take no action.

    3. If the EIN and/or plan number aren't established, establish using TC 000.

  3. Forms 5558 for Forms 5330 poste to the BMF with a TC 460/620.

  4. If we receive a Form 5558 for Form 5330 in Entity, perform the necessary research using the appropriate IDRS command codes.

    Note:

    When working Forms 5558 for Forms 5330 verify the plan is established. If the plan hasn't established input a TC000.

    IF: THEN:
    If we receive Forms 5558 with an SSN in the filer's identifying number box, research for an EIN and/or Plan Number. If you find an EIN and/or Plan Number.
    1. Research IDRS to verify the filer's information.

    2. Edit the EIN and Plan Number on the Form 5330.

    3. Route to Code and Edit or Error Correction/Rejects for processing.

    4. Write to the filer using a 1072C letter to notify the filer of their correct EIN and/or Plan Number.

    If you don’t find an EIN, use the SSN provided. Verify the SSN information. Edit Plan Number 000 on the Form 5558 if the filer hasn't provided one. Route to Code and Edit for processing.
    If you don’t find an EIN and/or a Plan Number and a SSN isn't on the Form 5558.
    1. ESIGN an EIN, establish the plan using Plan Number 001 and the information the filer provided on the Form 5558.

    2. Suppress the notice using NIC E.

    3. Write to the filer using a 1072C letter notifying the filer of their new EIN and/or Plan Number.

    4. Route to Code and Edit or Rejects for processing.

    If Forms 5558 are attached to correspondence dealing with penalty issues or reconsiderations on Form 5330. Route the correspondence and the Forms to EP Accounts Mail Stop 6552.
    If Forms 5558 are attached to a Form 5330 received in correspondence and the return hasn't posted. Research IDRS to verify the EIN and Plan Number and route to Receipt and Control for processing.

Zip Code Error Records Register Procedures

  1. MCC matches returns with entity data and other entity change transactions which contain a City-State against a Zip Code Assignment Program (FINALIST) to validity check and correct zip codes. MCC performs this validity check before posting the transaction. If the FINALIST program is unable to correct an entered Zip Code, the program accepts the Zip Code entered and posts it to master file without changes. The FINALIST program is also capable of generating a zip code if one isn't entered. Generation of a zip code is possible ONLY if entering a complete and accurate street address including directional, suites, etc., city and state code.

  2. The Zip Code Error Register produces annually when the system is unable to correct or generate a complete Zip Code because either:

    1. A domestic address has no Zip Code.

    2. The first five (5) digits of the Zip Code end in 00.

    3. The Zip Code is one of the "campus Unique" Zip Codes.

  3. Research the account using CC INOLE. If CC INOLE shows no record of the account on the EPMF, take no action. Otherwise:

    1. Research the BMF for a better Zip Code and address. Update the EPMF to match the BMF Zip Code and address information.

    2. Use the National Zip Code Directory to find the correct Zip Code for the filer's address. Update the EPMF to reflect the correct Zip Code.

    3. If you can’t find a better Zip Code using the procedures above, try calling the filer to secure the correct address, including the Zip Code.

Correspondence

  1. Review taxpayer initiated correspondence indicating the taxpayer is out of business, isn't liable for filing a return this period, or is no longer liable for filing. When identifying data (such as correct name or EIN) is missing, research for this information.

  2. The Entity function receives correspondence when it contains requests for changes to or inquiries about sponsor, administrator, or plan entity data.

  3. Perform complete research before making any changes to the filer's account(s) to ensure that erroneous changes aren't made.

  4. Refer to instructions in this IRM when you determine that entity changes are needed. If you need to update the BMF Entity, send the information to the BMF Entity Function only after you update the EPMF.

  5. Call or write to the filer. If attempting to call, try on three different occasions (three sequential days at three different times) or write using a "C" letter or "SC" letter when you don’t reach the taxpayer. All TE/GE "C" letters have the toll-free number hard coded in the selective paragraphs. If issuing a letter for a TE/GE return and the letter doesn't have the toll-free number hard coded in the paragraph, use EXTREME caution when typing the customer service phone number, 1–877–829–5500. If you need to type the entire paragraph, it should read: "If you have any questions, please call us toll-free at 1–877–829–5500. "

  6. The Correspondex (CRX) and the Correspondence Expert System (CES) are both excellent tools for producing letters requesting information from the taxpayer, as well as for providing information to the taxpayer. These systems permit us to insert local phone and local fax numbers in instances where taxpayers need a specific type of service. With this flexibility, there is increased risk of user error when keying in these local numbers.

  7. There have been several separate instances of CRX letters erroneously generated with private citizens’ cell, residential or commercial phone numbers inserted instead of the correct local IRS contact numbers. These errors caused considerable burden for the taxpayers and private citizens who received these calls, as well as embarrassment and re-work for the service.

  8. Conduct local reviews to ensure the accuracy of the local phone and fax contact numbers and text before issuing these letters. Verify the CRX system default information before sending a letter to the taxpayer. There is an excellent CES user job aid for Correspondex Letters on SERP at http://serp.enterprise.irs.gov/databases/forms-ltrs-pubs.dr/crxltrs.dr/crx letters.toc.htm

  9. It is imperative that all correspondence be controlled correctly and in a timely manner. Follow the basic steps for controlling and working all correspondence found in IRM 21.3.3.

  10. If EP correspondence comes back as undeliverable, research for a better address using the following research tools:

    1. EPMF and BMF

    2. Recently posted returns

    3. Telephone directories

    4. Telephone numbers found on IDRS

    5. Telephone numbers listed on undelivered mail if previously provided by the taxpayer

    6. When you locate a good address, return the correspondence using Letter 2475 C with the undeliverable document .

      Note:

      Be sure to update the date on the correspondence.

    7. If you don’t locate a different address and we made every attempt to contact the taxpayer, destroy the correspondence. If the correspondence is part of a case being held in suspense (i.e., correspondence on returns), associate the correspondence with the document.

  11. If we previously sent a 2475 C letter to the filer and:

    1. The undeliverable EP correspondence doesn't have a 2475C letter attached, send a 2475C letter.

    2. A 2475C letter is attached to the EP correspondence, input a TC 593 CC 097 using FRM49, input TC971 Action Code 661 which generates the Undeliverable (UD) indicator, and "X" the notice.

    Note:

    If the returned 2475C letter now has a "yellow label address change sticker" provided by the USPS, follow the instructions in IRM 3.13.36.28 (12) below.

  12. When we receive undelivered IRS-initiated correspondence with a "yellow label address change sticker" provided by USPS on the original envelope, research EPMF/BMF for a better address (CCs ENMOD, EMFOLE, FINDS and FINDE, etc.).

    1. Compare the yellow label address change sticker to the posted/pending name and address information to verify it is an address change for the same taxpayer.

    2. If you don’t find a better address, use yellow address provided by USPS to update the taxpayer's last known address.

      Example:

      If the yellow label shows Allison M. Profit Sharing Plan with a newer address and ENMOD/ EMFOLE shows Allison M. Profit Sharing Plan and the old address matches the taxpayer's last known address and the address update cycle is before the address on the USPS yellow label use the yellow sticker address information to update the taxpayer's address.

    3. Input TC014 and re-send the Entity generated CP/Correspondence letter to the taxpayer's new address.

  13. If we receive correspondence from the filer dealing with penalties or a CP 213 or CP 283 is attached, route the correspondence to EP Accounts Mail Stop 6552.

    Note:

    The CP 213 no longer generates as of January 1, 2013. Its replacement is the CP 283.

  14. The CP 213 notices generated, depending on the condition code (N, I, or R), are shown below:

    • CP 213(N) – Employee Plan Proposed Penalty Notice issued when receiving the Form 5500 after the due date.

    • CP 213(I) – Employee Plan Proposed Penalty Notice issued when receiving the return after the due date and/or it’s incomplete.

    • CP 213(R) – Reasonable Cause Established – Form 5500 penalty not assessed.

  15. Research of CC EMFOLT shows the TC 971 /Action codes input by EP Accounts defining the CP 213 status:

    • 285 – Reasonable cause for late filing accepted.

    • 286 – Reasonable cause for incomplete filing accepted.

    • 287 – Reasonable cause for late and incomplete filing accepted.

    • 288 – Return signed.

    • 289 – Extension to file approved.

    • 290 – Return posted under a different EIN or Plan Number.

    • 291 – Received reply to the CP213 notice, more information requested from the filer on the appropriate C letter. Penalty Assessed

    • 292 – No reply to CP 213 Notice or the filer agrees with the penalty on the CP 213. Penalty Assessed

    • 293 – Filer under DFVC Program. Reasonable cause statement denied.

    • 294 – Destroy CP 213 Notice per research.

    • 295 – IRS requesting corrected return from filer.

  16. If the correspondence is in reference to Area Office inquiries of the taxpayer, forward the correspondence to the respective Area Office.

  17. If we receive correspondence requesting instructions on how to proceed when a plan participant can't be found, provide the following information:

    a) When a plan can't locate a participant, the Department of Labor requires four things:
      1) Send certified mail to the old address.
      2) Check related plan records for an up-to-date address.
      3) Check with the beneficiary designated by the participant.
      4) Use the Letter Forwarding Program of the Internal Revenue Service or Social Security Administration.
    b) Send the request to participate in the IRS Letter Forwarding Program to:
      IRS Letter Forwarding Unit
    P.O. Box 47421 Stop 93
    Doraville, GA 30362
      After participating in the Letter Forwarding Program the filer may put the assets designated for the missing plan participant into an Individual Retirement Plan (IRA). See Rev. Proc. 94–22.
  18. The CP 214 is a reminder notice sent to all filers with an active Form 5500–EZ filing requirement two months before their plan ending date. The notices generate monthly.

    1. The notice summarizes the filing requirements for one-participant plans and tells the filer to verify whether or not they are required to file.

    2. The notice doesn't require a response from the filer. If the filer responds that they aren't required to file because they are under $250,000, or gives another reason that they aren't liable to file similar to those listed in IRM 3.13.36.33.5, "X" the correspondence.

      Exception:

      Follow the instruction in IRM 3.13.36.33.5 (3) n when the filer claims that they rolled the plan over into an IRA.

    3. If the filer states that they don't have to file because they previously filed a final return, research IDRS to determine if he/she properly filed a final return.

    4. If the filer properly filed a final return, input a TC 016 to remove the filing requirements.

    5. If the filer filed a return that doesn't meet all of the requirements of a final return as listed in IRM 3.13.36.12, use a 1074C letter to inform the filer of the requirements of filing a final return.

    6. If the filer asks for any other actions to be taken on the account, including but not limited to address changes, EIN consolidations and plan consolidations, treat as normal correspondence.

    7. If the filer sends a Form 5500–EZ for a prior tax period attached to a CP 214, verify if the return has posted. If the return hasn't posted, check the amount of the EOY assets on line 7a(2). If the amount is below $250,000, edit an R and a V in the top portion of the form just under the Entity information to restrict penalties.

  19. EP Entity may receive CIS images from EP Account and Account Management Call Site Assistors, when a CP 403/406 is attached to an Imaged Form 5500/5500EZ or TC 141 is on the account. EP Entity researches IDRS for a TC 150, if present and the delinquency is satisfied, "X" the return. If the delinquency isn't satisfied, follow TDI procedures and if no TC 150 is present, input TC 594 CC 074. Batch CIS images in correspondence.

  20. If we receive a loose schedule or return in correspondence, use the following chart to determine proper disposition.

    IF: THEN:
    Loose Schedules A, C, D, E, F, G, H, I, R, T, Form 5500 Destroy
    Loose Schedule B or Schedule SB, Form 5500 received from DOL vendor, EBSA or IRS Destroy
    Loose Schedule B or Schedule SB, Form 5500 received from other than DOL Vendor, EBSA or IRS Return to the filer using Notice 1393.
    Loose Schedule P, Form 5500 OAMC, EP Accounts Unit M/S 6552
    Response to a CP 213 or CP 283 OAMC, EP Accounts Unit M/S 6552
    Response to a CP 214 Process as EP Correspondence
    Loose Schedule SSA, Form 5500 or Form 8955-SSA, question 1(b) checked or no box 1(b) is present on the Schedule/Form Route to Receipt and Control for processing.
    Loose Schedule SSA, Form 5500 or Form 8955–SSA, question 1(b) not checked Destroy
    Form 5500–EZ (received from Field Office and EP Entity Ogden) Route to Numbering for processing.
    Form 5500–EZ
    (all others)
    Route to Numbering for processing.
    Form 5500
    (all others)
    Forward the return to EP Classification using the instructions in IRM 3.13.36.33.2 (6)
    Returns, Schedules and/or attachments for Pension Benefit Guaranty Corporation (PBGC) Pension Benefit Guaranty Corporation
    P.O. Box 644880
    Baltimore, MD 21264–4880
  21. If you receive inquiries requesting an address on where to send Employee Plan Applications for determinations, i.e., Forms 5300, 5307, 5309, 5310, 5310–A or 5316, provide the following addresses:

    Regular Mail: Express Mail or Delivery Service:
    Internal Revenue Service Internal Revenue Service
    P.O. Box 12192 201 West Rivercenter Blvd
    Covington, KY 41012–0192 Attn: Extracting Stop 312
      Covington, KY 41011
  22. Telephone Contact—If a filer calls to provide an answer requested by IRS, attach a record of the filer's response as part of the audit trail of the return.

  23. You can create letters to the filer through IDRS using CC LETER. The most common letters used by the Entity function are the 1072C and the 1074C letters.

    Note:

    Always use the paragraphs in your letter that allow you to include your name, phone number and your business hours should the taxpayer need to contact you.

  24. Your response should read, "This is a response to your correspondence dated....." If the letter isn't dated, use the postmark date. If the postmark date is unknown, use the date three days before the IRS received date. If the document is an EEFax you may use the EEFax received date as the IRS received date on original document/return submissions.

Area Office Correspondence (AO)

  1. Forward correspondence regarding applications for plans, terminations, or any other AO determination requests to the appropriate AO.

  2. Direct all technical questions relating to EPMF from filers or their representatives to the TE/GE call site at 1-877-829-5500.

  3. There is no longer be any EPMF technical assistance provided on site at the processing campuses.

    1. Each EPMF functional area should designate one employee to review all technical assistance questions.

Merge Fail (NOMRG) Transcripts (Entity and Plan Data)

  1. Merge Fail (NOMRG) Transcripts are computer generated when an account or plan data account consolidation fails.

  2. In most instances a TC 011 fails due to improper training and/or research. Resolving no merge conditions enhances your ability to do a quality job when consolidating accounts and/or plan modules.

  3. The following instructions are for handling all EP NOMRG transcripts. However, the Submission Processing Campus determines the area(s) in which they will be resolved.

  4. These transcripts generate when an invalid condition exists in the account of the old and/or new EIN or the old and/or new plan data module.

    1. These no merge checks help ensure that erroneous consolidations don't post.

    2. Each transcript has a title and a code to indicate the invalid condition.

    3. In those cases where the code is numeric, it is similar to an EPMF Unpostable Code.

      Example:

      If the name controls of both accounts aren't the same, a Merge Fail Transcript titled "NOMRG–NC Condition 803" generates. "803" is also used for UPC 803 when the input name control doesn't match the EPMF name control.

  5. In all cases, check for input errors before attempting to resolve the merge fail condition.

  6. Complete research to determine the correct action before inputting the new TC 011 or destroying the NOMRG transcript.

  7. If the merge fail condition involves the plan data module, a complete transcript for an individual entity generates for each merge fail condition.

  8. When working these transcripts, follow all procedures indicated in this manual.

  9. In every case, if you determine that this was an erroneous merge attempt, destroy the transcript. Notify the taxpayer of the correct EIN to use with the appropriate letter.

  10. See IRM 3.13.36.25 for account consolidation instructions.

NOMRG–NC Condition 803

  1. This transcript generates when both the name control and the cross reference name control in the FROM account mismatch either the name control or the cross reference name control in the TO account.

  2. Ensure that the accounts belong to the same entity and should be consolidated.

  3. Input TC 013 to change the name on the incorrect account. Input a new TC 011.

  4. If you can't determine that the accounts should be consolidated or if the accounts shouldn't be consolidated, inform the originator of your action. Also, inform the taxpayer of his/her correct EIN.

  5. If a TC 001 addressing a no merge "No Merge 803," follow the instructions below:

    1. Don't attempt another merge of these accounts.

    2. Destroy the transcripts. Contact both taxpayers in writing to inform them of the EIN to use.

NOMRG–DRT Condition 808

  1. This transcript generates when two tax modules have the same plan number and plan period month ending and each tax module contains an unreversed TC 150 (or a TC 977 posted before cycle 8229).

  2. Follow instructions in IRM 3.13.36.25 to resolve this condition.

  3. If you can resolve the no merge condition, and the accounts should be consolidated, reinput the TC 011.

  4. If you determine that the consolidation attempt was in error, destroy the transcript.

DOC 64–DRT Condition 808

  1. This transcript generates when two plan data modules have the same plan period month ending and each plan data module contains an unreversed TC 150 (or a TC 977 posted before cycle 8229).

  2. Process the same as in IRM 3.13.36.30.2 above.

NOMRG–INA Condition 811

  1. This transcript generates when the TO account entity filing requirements are "8" . (A TC 020 was input).

  2. Verify that the correct account was closed.

    1. If the correct account was closed, no further action is needed.

    2. If the account was closed in error, input TC 012 to reopen the closed account. Input a new TC 011.

DOC 64–INA Condition 811

  1. This transcript generates when the To account plan filing requirements are "8" (a TC 020 was input to the plan).

  2. Process the same as in IRM 3.13.36.30.4 above.

NOMRG–DPL Condition 850

  1. This transcript generates when both accounts have the same plan number and each plan module contains an unreversed TC 121 or TC 123.

  2. See IRM 3.13.36.25 for instructions.

  3. If the accounts should be consolidated, input a new TC 011.

  4. If the accounts shouldn't be consolidated, destroy the transcript.

DOC 64–DPL Condition 850

  1. Process the same as in IRM 3.13.36.30.6 above.

NOMRG–EXC Condition 869

  1. This transcript generates when a successful merge of the two accounts would produce a module or a section of a module that is larger than the limits established for programming.

  2. Research the two accounts involved and determine if a TC 011 is needed. Contact the filer if necessary to make the determination. If the two accounts shouldn't be consolidated, dispose of the transcript in accordance with campus procedures.

    1. If after all research the two accounts involved are for the same entity and should be consolidated, control the account and input TC 011.

    2. Monitor the account for six weeks to determine if a good merge occurred.

    3. If the merge wasn't completed, contact the EPMF Entity Analyst for assistance in resolving this condition.

  3. If there are delinquent modules or potentially delinquent modules on either or both accounts that would be satisfied if the merge could be completed, input TC 590 CC 097 to the appropriate modules to prevent erroneous delinquency notices to the filer.

DOC 64–EXC Condition 869

  1. Process the same as in IRM 3.13.36.30.8 above.

NOMRG–011 Condition MEMO

  1. This transcript generates when the TO account contains a memo freeze (indicates that a plan or entity merge is already taking place).

  2. If the second TC 011 was input in error, no further action is needed.

  3. If we determine that the accounts should be consolidated, input TC 011 to the correct account.

  4. The appropriate Function works this transcript.

DOC 64–011 Condition MEMO

  1. Process the same as in IRM 3.13.36.30.10 above.

NOMRG–141 Condition 141

  1. This merge fail takes place because there is a 141 freeze on the "To account" . A successful merge can't take place when this occurs. Review the accounts for other no merge conditions. If found, resolve according to instructions in this section.

  2. Once you determine that these accounts should be merged, input a new TC 011.

NOMRG–LOC Condition TDI LOC

  1. This transcript generates when each account has a delinquent module (status 02 or 03) and either:

    1. Each entity has TDI location codes and the TDI location codes aren't equal.

    2. Only one entity has TDI location codes and the TDI location codes don't equal the primary location codes of the other entity.

    3. Neither has TDI location codes and the primary location codes aren't equal.

  2. Input TC 590 CC 097 on the "From account" to turn off the delinquent module status.

  3. Input a TC 011 once the delinquent module status turns off.

  4. Input a TC 592 on the "Consolidated account" once the TC 011 posts to allow the delinquency process to continue if the module isn't already satisfied by a TC 150, 590 (other than the one input to resolve the NOMRG condition), 591, 593, 594, 595, 597 , 599 or a 977.

NOMRG–846 Condition 960 #1

  1. This transcript is generated when two return modules have the same plan year endings and each of the return modules contains a TC 960 which was input by the same campus.

  2. Refer the transcript to the CAF (Centralized Authorization File) Unit requesting that they resolve the problem according to IRM 21.3.7, Processing Third Party Authorizations onto the Centralized Authorization File (CAF).

  3. When one of the accounts has a reversed TC 960, if we should consolidate the accounts, input a new TC 011.

DOC 64–846 Condition 960 #1

  1. Process the same as in IRM 3.13.36.30.14 above.

NOMRG–848 Condition 960 #2

  1. This transcript generates when two return modules have the same plan year endings and each of the return modules contains a TC 960 which was input by different campuses.

  2. Refer the transcript to the CAF (Centralized Authorization File) Unit requesting that they resolve the problem according to IRM 21.3.7.

  3. When one of the accounts has a reversed TC 960, if we should consolidate the accounts, input a new TC 011.

DOC 64–848 Condition 960 #2

  1. Process the same as in IRM 3.13.36.30.16 above.

Merge Fail Checks Involving AIMS (Audit Information Management System)

  1. When an attempt to consolidate two accounts fails because of an AIMS transaction, we must reverse the AIMS transaction and delete the AIMS data base before the merge can take place.

  2. For all no merge transcripts that involve AIMS, take the following action:

    1. Forward the case, including all transcripts, to Exam.

    2. Attach a cover sheet or routing slip (coordinate this locally with Exam) explaining the condition.

NOMRG–420 Condition 814

  1. This transcript generates when both accounts have the same plan numbers, plan period ending months, and unreversed TC 420s.

  2. See IRM 3.13.36.30.18 above.

DOC 64–420–Condition 814

  1. Process the same as in IRM 3.13.36.30.18 above.

NOMRG–AIM Condition 870

  1. This transcript generates when both accounts have the same plan numbers, plan period ending months, and one module contains an unreversed TC 424 which posted in a cycle equal to or later than an unreversed TC 420 in the other module.

  2. See IRM 3.13.36.30.18 above.

DOC 64–AIM Condition 870

  1. Process the same as in IRM 3.13.36.30.18 above.

NOMRG–DA Condition 871

  1. This transcript generates when both accounts have the same plan numbers, period ending months, and each plan data module contains an unreversed TC 424.

  2. See IRM 3.13.36.30.18 above.

DOC 64–DA Condition 871

  1. Process the same as in IRM 3.13.36.30.18 above.

NOMRG–AMD Condition 874

  1. This transcript generates when both accounts have the same plan numbers, plan period ending months, and one account contains an unreversed TC 977 which posted in a cycle later than an unreversed TC 420 or TC 424 posted in the other account.

  2. See IRM 3.13.36.30.18 above.

Accounts Management Services (AMS) Desktop Integration (DI) Entity Transcripts

  1. AMS uses DI to electronically deliver Entity transcripts on a weekly or monthly basis replacing the printed paper forms. A computer program extracts and sorts the data and loads cases into the DI system as inventory items. The DI system automatically assigns inventory cases to employees based on their skill codes and the number of cases in inventory. The Entity or Unpostable manager, lead or clerk may also manually assign transcript inventory to employees in their unit.

  2. Assigned and unassigned cases will reside on DI. The reports to track Entity's transcript inventories are also available on DI.

Using Accounts Management Services (AMS)/DI for Research and Corrections
  1. AMS allows authorized users to resolve various taxpayer issues by providing us the ability to view and update taxpayer accounts and case information through a common user interface. You can use AMS for many taxpayer actions, regardless of whether the taxpayer's account resides on IDRS or CADE.

  2. In Entity, tax examiners can complete the following actions using AMS/DI:

    • Research the taxpayer account

    • Activate up to 30 self-elected IDRS Command Codes

    • Launch into external IRS system without leaving DI

    • Electronically record, store and retrieve nationwide case history

    • Update taxpayer address and phone numbers

    • Order forms

    • Prepare specific forms and transcripts

    • Create selected IDRS Correspondex letters

  3. AMS is the system/process that incorporates the capabilities of Desktop Integration (DI) and Correspondence Imaging System (CIS).

EPMF Delinquency Notice Process

  1. The Entity Function receives and processes (CP 403 & CP 406) EPMF delinquency notices. This involves analyzing, researching, processing notice responses and inputting corrective actions. These notices generate during a scheduled delinquency check when a Form 5500 or 5500-SF hasn't posted to the module twenty weeks after the return due date.

  2. The instructions provided in the following sections assist in the processing of Taxpayer Delinquency Notices. They also provides background information on which EP returns are subject to delinquency checks and how Taxpayer Delinquent Investigations (TDI) notices are issued.

IDRS Delinquency Check Procedure

  1. Tax Delinquency Investigation (TDI) notices CP 403/406 are delinquent cases placed on the Taxpayer Information File (TIF). Each case stays on this file for a period determined from the date the last tax module was satisfied in the entity. The TIF updates weekly with any satisfying transactions input to the terminal during the week.

  2. If a Form 5500 return hasn't posted twenty weeks after the return due date, the first delinquency notice CP 403 goes out. If we receive no response, and don't input a delay, the second notice CP 406 goes out fifteen weeks later. Fifteen weeks after the second notice CP 406, TDI Analysis auto closes the EP TDI module with a TC 598 CC 97.

  3. The employee plan delinquency checks scheduled at Martinsburg Computing Center (MCC) for Form 5500 and Form 5500–SF are as follows:

    Cycle Plan Period Form 5500/Form 5500–SF
    201805 201601–201602
    201808 201603–201604
    201811 201605–201606
    201814 201607–201608
    201817 201609–201611
    201820 201612
    201823 201612
    201826 201612
    201829 201612
    201832 201612
    201835 201612
    201838 201612
    201841 201612
    201844 201612
    201847 201612
  4. Use the delinquency check schedule in determining when to assign additional tax examiners to the program.

    Example:

    If the check is in cycle 201305, the notice will go out in 201306. Allow three weeks for an average response from the filer and assign additional tax examiners to the program based on the number of delinquency notices issued at a specific campus in cycle 201306.

  5. If the plan effective date is 01/01/2007 and subsequent and the plan filing requirement is X or T, and no TC 150 ever posted, the module is included in the next scheduled delinquency check that occurs 12 months from the effective date.

    Exception:

    If a TC 000, Doc Code 64 transaction date is present, and the effective date is more than two years before the TC 000, there will be no check.

  6. If a return is in Interim status for correspondence, a transaction code posts to the return module. These transaction codes were in use for plan year 200812 and prior. EFAST2 doesn't send correspondence.

    1. For first letter, the transaction code is 155.

    2. For second letter, the transaction code is 156.

    3. If one or both of these transaction codes are present in a module, the module won't be delinquency checked. However, if these transactions post after performing the master file delinquency check, they won't stop the notices from generating.

  7. Once the master file delinquency check runs, only the posting of either a TC 59X or a TC 150 stops the two delinquency notices from generating and stops the module from going to status 03. If plan filing requirements are "8" (a TC 020 posted), no further TC 141 posts to the account. However, the two delinquency notices will still go out if the master file check is already done. In this case, input a TC 012 to reopen the account to allow a TC 591 to post and satisfy the delinquent module. Then close the account via input of TC 020.

  8. EPMF Delinquency Notice Transaction Codes (TC) are as follows:

    Transaction Code Explanation
    TC 141 Two TC 141’s indicate that the CP 403 Notice was issued. Three TC 141’s indicate that the CP 406 Notice was issued.
    TC 142 Records the issuing of a taxpayer delinquency investigation (TDI). Advise taxpayer to submit the missing return.
    TC 155/156 Incomplete return received. A letter for the missing information issued by the vendor. Used for plan year 200812 and prior.
    TC 590 No return required for the tax year TC 590 is posted. Satisfies only that tax year.
    TC 591 No return required for the tax year TC 591 is posted or any future years. The plan is no longer required to file.
    TC 592 Reverses all TC 59X transactions. Return is still required unless TC 150 or 977 is in the module.
    TC 593 Unable to locate taxpayer. Return is still required unless TC 150 or 977 is in the module.
    TC 594 Copy of the return received by the IRS. Satisfies only the tax period in which TC 594 is posted.
    TC 597 Surveyed by National Office. Return still required if no TC 150 or 977 has posted.
    TC 598 Shelved by National Office direction only. Satisfies this module only.
    TC 599 Original return secured.
    TC 977 Identifies an amended return.

Processing Timeliness of EPMF Delinquency Notices

  1. Control and perform initial processing on all cases within 15 calendar days of the IRS received date.

  2. All IDRS controlled cases (suspended cases) become over-aged at 45 days. Don't change the IRS received date under any circumstances.

  3. Process Delinquency Notices within 20 calendar days of the IRS received date unless another notice is going out within the twenty calendar days from the IRS received date; then the forty-five calendar days criteria becomes second priority.

  4. Critical notices are those in which the second notice or TYD–14 will o out within 20 calendar days of the IRS received date. Input a 15 week delay using CC ASGNB, if we can't satisfy the delinquency before the second notice or TYD–14 (TC 142) will go out.

  5. Management ensures case processing following the processing timeframes set forth in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates.

Batching Return Delinquency Responses

  1. Report all incoming EP delinquency notices received in Entity Control on the Batch/Block Tracking System (BBTS). Report all receipts by volume and received date.

  2. Sort all notice responses by critical and non critical dates. Consider a response critical if a second notice or Form TYD–14, Taxpayer Delinquency Investigation (TDI), will issue in the next cycle or within 20 calendar days of the IRS received date. Take action on critical date notice responses before the weekend update to prevent issuance of a subsequent notice.

  3. The clerical staff inputs a 15 week delay using CC ASGNB when unable to close the delinquency notice ending inventory within a three week period. If we can't satisfy the delinquency before the 15 week delay expires, input a second CC ASGNB on the 12th week to suppress the second notice or TYD–14 (TC 142) from being issued.

    Note:

    Each CP 403 or CP 406 notice response contains the critical cycle for which the next notice will be issued. The critical cycle is printed to the right of the Form Number on the notice.

  4. Batch the following as critical items:

    • Notice Response received after the TDI (TYD–14) issuance

    • Any response to a letter written from analysis of the notice response

  5. Batch all notice responses determined to be "critical" in folders to be worked immediately.

  6. Batch critical responses with returns attached separately from critical responses with no return attached. Create and expedite a sub-batch of notice responses with returns.

  7. After Entity works the delinquency notice responses with Form 5500 or Form 5500–SF returns attached and the return needs processing as an original (TC 150) or amended (TC 977), process the returns as follows:

    1. Forward the Form 5500 to EP Classification using the instructions in IRM 3.13.36.33.2 (6), remove the CP 403 or 406.

    2. Route the Form 5500–EZ to numbering for processing.

  8. Batch all other notices as non-critical.

  9. Batch CP 403 First Notice and CP 406 Final notices separately in a batch size of twenty-five.

  10. You may prefer to batch all critical work in a colored folder and non-critical in manila folders to differentiate between the two and ensure the proper time restraints are adhered to.

  11. During the period of high volume receipts, do an additional sort of non-critical work before batching. Identify and batch work that will be critical the next week. This prevents having to do an additional sort each week of all work batched as non-critical and processing wasn't completed the same week that it was batched. Label each batch of work with the volume, the batch number and the IRS received date.

  12. Count the following documents as receipts for reporting:

    • EP Delinquency Notice responses or correspondence received in lieu of a notice. (Correspondence received in lieu of a notice must have the same work calendar day cycle as an actual notice).

    • Taxpayer initiated correspondence relating to a delinquency notice.

IDRS Control Base

  1. Place the following suspended delinquency cases under IDRS control. See IRM 3.13.36.19.2.1, CC ACTON.

    1. When issuing a letter.

    2. When inputting a delay.

    3. When a case becomes overaged.

  2. An open control base on a module indicates control for the purpose of initiated correspondence, and adjustment or other action. An open control base retains the module on IDRS indefinitely. Update it when necessary to reflect changes in status or in action taken. Once the control base closes, it drops from the IDRS data base provided no other criteria exists for retaining the module.

  3. Cases are controlled by various IDRS Command Codes. Each control base contains several elements of data, fully explained in IRM 2.3.12, IDRS Terminal Responses. The control base and history information is a very important section of TXMODA. If updated properly, the control base and history information section can give you a complete account of what transpired on a case.

  4. If an open control already exists for another service employee, contact the other employee before taking any action. If a control base is closed, contact isn't necessary.

    Note:

    Follow the concept of only one tax examiner assigned to an account. The exception to this concept is a case controlled with Status Code B (Background) which allows more than one examiner to have open case controls.

  5. Listed below are data entries for control bases and history information:

    Control Base Number Symbol (C#) Control base number and history item
    STATUS Status Code
    ACT-DATE Action Date
    ACTION-EMP Action Employee
    ACTIVITY Activity Code
    RCVD-DATE Received Date
    ASSIGN-TO Assign To Employee Number
    CAT Category Code
  6. When establishing a control base on IDRS, input the following elements:

    • Control Base Number Symbol (#)– When controlling a module, the computer automatically assigns the number of the control base in chronological order. More than one base can be assigned at a time. If there are more than one open or assigned bases on a module, refer to this as multiple bases.

      Note:

      The assigned employee must be contacted for permission before the status can be changed or adjustments input.

    • Status Code– Case History Status Codes define the status of an open or closed base.

    • Action Date– The action date specifies the date the input or action employee (ACTION-EMP) assigned the control base to the assigned employee (ASSIGN-TO).

      Note:

      The IDRS number of the employee(s) is displayed in this section. In some instances, they are the same individual.

    • Activity Code– Use activity codes to describe the reason for controlling the module or the action taken. They can be an individual entry or a string of entries updated with each new action or status of the case management.

    • Received Date– Ensure that the IRS received date is accurate. The received date indicates the date received at IRS, input from the date stamped on the notice correspondence.

    • Assign To– Specifies who has or controls the case

    • Category Codes– A four–digit code describing the type or source of an account case. The category codes most commonly used for controlling EP Delinquency Notice cases by Entity are:

      Category Code Description
      ENTC Entity Change Case
      OTHE Other Adjustments. Use for controlling all other adjustments.
      ATAO Taxpayer Advocate Service (ATAO). Use when controlling all initiated TAS cases.
      STAT Statute Cases. Use when controlling statute cases received in Entity.
      TDIC Correspondence and insufficient responses Form 5500 Cases
      TDID Taxpayer promised to file case
      TDIE Entity problem case
      TDIF Fiscal year month problem case
      TDIH Credit
      TDIO Other: Use when controlling return delinquency notice responses and correspondence received and initial processing not completed.
      TDIT Transcripts: Use when controlling TC 594/599 research transcript cases.
      TDIU Return Delinquency Unpostables
      TDIZ Correspondence and insufficient responses Form 5500–EZ cases
      TPCI Taxpayer correspondence inquiry. Use when controlling taxpayer initiated correspondence.
      TPRQ All other cases
  7. Use the following Case History Status Codes when controlling a case. Don't confuse them with IDRS Collection Status Codes or Plan Data Status Codes.

    Case History Status Codes Explanation
    A Assigned – Case is actively being worked
    B Background – Non-workable case, being monitored
    C Closed
    S Suspense – Short Term Delay
    M Other –Long Term Delay

EPMF Delinquency Notices

  1. The following are EPMF Delinquency Notices:

    • CP 403 Request For Information About Your Form 5500 or 5500–SF. This is the first delinquency notice.

    • CP 406 Final Notice * Your Annual Form 5500 or 5500–SF is Overdue. This is the final delinquency notice. It goes fifteen weeks after the first notice.

TDI Definitions

  1. Critical Cycle – Consider a response critical if a notice or Form TYD–14, Taxpayer Delinquency Investigation, will be issued within 20 days of the IRS received date.

  2. Plan Status Codes –IDRS computer generated codes which indicate the condition of the plan status data module.

  3. Satisfying Transaction (Closing Transaction) – A transaction when posted to a module satisfies the filing requirement. Satisfying transactions are TC 150 and TC 590, TC 591, TC 593, TC 594, TC 595, TC 596, TC 597, TC 598, and TC 599.

  4. Status Codes – IDRS computer generated codes which indicate the condition of a plan data module. The status code designates the current collection status of the module. See the Status Code Chart below:

    TDI Notice Codes Chart

    STATUS CODES
    CODE ABBREVIATION EXPLANATION
    02 DEL STATUS Return not posted; letter of inquiry mailed.
    03 TDI STATUS IDRS—in delinquency status
    04 EXT FILING Extension of time for filing granted
    06 NO DEL RET Acceptable reason for non-filing
    10 RE NT EVEN Return filed, no tax liability

     

  5. TDI Notice Codes – These codes describe a condition or generate an action notice to TDI status or delay the issuance of a scheduled notice when a tax examiner attempted to resolve the account.

Types of Employers or Sponsors

  1. The information provided in the following sections should provide sufficient background information to determine if a response to a notice is proper and the employer/sponsor is or isn't required to file a return. All responses received as a result of a delinquency notice should be from one of the following types of employers or plan sponsors:

    1. Single-employer plan – See IRM 3.13.36.32.1.

    2. Controlled group – See IRM 3.13.36.32.2.

    3. Multi–employer Plan – See IRM 3.13.36.32.3.

    4. Multiple Employer Collectively Bargained Plan – See IRM 3.13.36.32.4.

    5. Multiple-Employer Plan (other) (Pre-EFAST Only) – See IRM 3.13.36.32.5.

    6. Group Insurance Arrangement a type of DFE– IRM 3.13.36.32.7

  2. The entity function ensures that all delinquent returns processed have the correct EIN, name control and plan number and that all necessary entity changes were made. Make all entity changes at the earliest possible time to update the master file.

    1. EPMF changes to the Employer/Sponsor name line, administrator entity data, plan name line, address and zip code to be processed through IDRS. Input the appropriate transaction to update the EPMF entity if the filer indicates on the delinquency notice response to change the name of the sponsor or administrator. If there is an indication of an address change from a street address to a P.O. Box, change the mailing address to the P.O. Box and retain the street address as the location address unless there is already a location address present. We need to retain the street address as an audit trail for locating the filer.

    2. If there is an indication of a plan name change indicated on the notice, take special care to ensure that this isn't a different plan.

    3. Send the appropriate letter to notify the employer/sponsor that our records changed to reflect their request.

      Exception:

      Don't input sponsor name changes, plan name change or Administrator data changes from returns received as notice replies if a more current return already posted to the plan unless the filer specifically requests such a change in the reply.

Single-employer plan

  1. This is the most common type where one employer adopts or establishes a plan for its employees. The employer may adopt more than one plan for its employees. Each plan adopted is a distinct single employer plan.

  2. One return annually is required to be filed for each plan adopted.

    Example:

    XYZ Corporation adopts a fixed benefit plan and a profit sharing plan for its employees. The administrator must file two returns—one for the fixed benefit (defined benefit) plan and one for the profit sharing (defined contribution) plan.

Plan of controlled group of corporations (or common control employers)

  1. Generally considered one employer for Form 5500 reporting purposes. A "controlled group" is a controlled group of corporations under IRC 414(b), a group of trades or businesses under common control under IRC 414(c), or an affiliated service group under IRC 414(m).

  2. This is a plan adopted by a parent and each of its subsidiaries or one adopted by brother/sister corporations. The method of plan operation determines the filing requirement.

  3. Originally the Form 5500 Series return instructions required the annual filing of a single return whenever the parent and subsidiary or brother/sister corporations adopted the same identical plan.

  4. This is still the case if all contributions to the plan made by the parent and subsidiary or brother/sister corporations are available to pay benefits to all participants of all the participating corporations. In other words, there is one pot of money and all employee participants receive payment from this pot regardless which of the corporations made the contributions to the plan.

    Example:

    Parent Corporation (A) has subsidiaries B, C, and D. They all adopt the same plan and benefits are payable to all participants regardless of any one employer’s contributions. The administrator must file one return annually (commingled funds).

Multi-employer Plan

  1. This is a plan in which more than one employer participates, is collectively bargained (union agreement), and no employer contributes fifty percent or more of the annual contributions. In many instances, all employers engage in the same line of business (e.g., construction, transportation, etc.) Commonly known as a union plan, the union and contributing employers set up and administer the plan. Each employer contributes a certain amount per employee (in a particular trade or business) to the union plan. The plan has an annual filing requirement. The "Board of Trustees" or similar group administering the union plan files the return.

    Example:

    A carpenter's union (W) in conjunction with employers establishes a plan for all carpenters in the union. Employers X, Y, and Z all employ carpenters who belong to W and agree to pay ten cents per hour for each hour worked by the carpenters to the union for its retirement plan. Although X, Y, and Z make the contributions to the plan, they don't haveto file a Form 5500 Series return. The administrators of union W plan must file a single return for the plan.

    Exception:

    Although most union plans operate as described above, the contributing employers may designate their contributions be available to pay only their union employees. If this happens, don't treat them like a multi-employer plan; each employer must file a return.

Multiple-Employer—Collectively-Bargained Plan

  1. This is the same as above except that the plan doesn't satisfy the definition of a "Multi-employer" plan. That is, it has at least one employer who contributes fifty percent or more of the contributions to the plan so a new type or title had to be given to these plans.

Multiple-Employer Plan (Other) (Pre-EFAST Only)

  1. This is a plan in which two or more unrelated employers participate in the same plan. None, or not all of the employers are members of a controlled group of corporations or are collectively bargained. If the contributions from each employer are available to pay benefits to all participants in the plan, the administrator must file one return for the plan as a whole (commingled funds). Also, for pension plans (plan number 001–500), each participating employer must file a Form 5500–C/R using his own EIN and complete only certain line items. Very few plans are organized in this manner. Instead, each employer generally earmark his/her contributions for only his/her participants so each participating employer must file a separate return as a single employer plan (not commingled funds). This is similar to the controlled group filing.

Multiple-Employer Plan (EFAST)

  1. This plan is maintained by more than one employer and isn't one of the plans already described. Participating employers don't file individually for these plans. Only one Form 5500 should be filed and if the assets are in separate trusts, the information combined for reporting purposes on Form 5500, Schedule H. If the filer files a Form 5500 for each participating employer, inform the filer that an amended return needs to be filed with the assets combined on the Form 5500 and attach a Schedule H. To report coverage information of participating employers additional Schedule R’s may be required to be attached to the return.

Direct Filing Entity Plans (DFE) Filing Requirements

  1. Some plans participate in certain trusts, accounts, and other investment arrangements that file the Form 5500 as a DFE. A Form 5500 must be filed for a master trust investment account (MTIA). A Form 5500 isn't required but may be filed for a common/collective trust (CCT), pooled separate account (PSA), 103–12 investment entity (103–12 IE), or group insurance arrangement (GIA). However, plans that participate in CCTs, PSAs, 103–12 IEs, or GIAs that file as DFEs generally are eligible for certain annual reporting relief. For reporting purposes, a CCT, PSA, 103–12 IE, or GIA is considered a DFE only when a Form 5500 and all required attachments are filed for it in accordance with the following instructions.

  2. Only one Form 5500 should be filed for each DFE for all plans participating in the DFE. However, the Form 5500 filed for the DFE, including all required schedules and attachments, must report information for the DFE year (not to exceed 12 months in length) that ends with or within the participating plan's year.

  3. Any Form 5500 filed for a DFE is an integral part of the annual report of each participating plan and the plan administrator may be subject to penalties for failing to file a complete annual report unless both the DFE Form 5500 and the plan's Form 5500 are properly filed. The information required for a Form 5500 filed for a DFE varies according to the type of DFE. The following paragraphs provide specific guidance for the reporting requirements for each type of DFE.

    1. Group Insurance Arrangement (GIA) – This is an arrangement whereby the plan provides benefits to the employees of two or more unrelated employers. The plan is fully insured and uses a trust to hold the assets. The administrator of the arrangement must file only one annual return/report annually. If such a consolidated report isn't filed, then each participating employer must file.

    2. Master Trust Investment Account (MTIA) – The administrator filing a Form 5500 for an employee benefit plan required to file or have a designee file a Form 5500 for each MTIA in which the plan participated at any time during the plan year. For reporting purposes, a "master trust" is a trust for which a regulated financial institution serves as trustee or custodian (regardless of whether such institution exercises discretionary authority or control with respect to the management of assets held in the trust), and holds assets of more than one plan sponsored by a single employer or by a group of employers under common control.

    3. Common/Collective Trust (CCT) and Pooled Separate Account (PSA) – The Form 5500 isn't required to be filed for a CCT or PSA. However, the administrator of a large plan or DFE that participated in a CCT or PSA that files is entitled to reporting relief that isn't available to plans or DFEs participating in a CCT or PSA for which a Form 5500 isn't filed.

    4. 103–12 Investment Entity (103-12 IE) – This is DOL Regulation 2520.103–12 that provides an alternative method of reporting for plans that invest in an entity (other that a MTIA, CCT, or PSA), whose underlying assets include "plan assets" within the meaning of 29 CFR 2510.3–101 of two or more plans that aren't members of a "related group" of employee benefit plans.

Processing Delinquency Notice Responses—Initial Actions

  1. Review the filer's response. When processing Delinquency Notices responses, research IDRS, and EFAST2 Website.

  2. If the response includes an attached return, ensure that the return's EIN, Sponsor name, plan number, and plan period ending agrees with the information on the notice. If it does, process as a sufficient response. Follow instructions beginning with IRM 3.13.36.33.1.

  3. If the EIN, Sponsor name, plan number, or plan period on the attached return doesn't agree with the notice, determine if an Entity problem exists:

    IF: THEN:
    The filer filed under another EIN which is the same entity, Merge the two accounts, suppress the CP 212 notice and send a 1072 C letter notifying the filer of the correct EIN to use when filing his/her return.
    The filer filed under another plan number which is the same plan, Merge the two plan numbers and send a 1072 C letter notifying the filer of the correct plan number to use when filing his/her return. See IRM 3.13.36.22.4 (5)e.
    There was a sponsor or plan name change, Process as a sufficient response.
    The plan period on the return is within the same year as the plan year on the notice, Process as a sufficient response.
    The return is an amended return for a previous plan period that indicates that the plan terminated, Process as a sufficient response.
    The return is a copy of a return for a previous plan period that indicates that the plan terminated, Process as a sufficient response.
    A personal representative on a deceased filer's plan files the return, Write to the personal representative instructing them to terminate the plan, amend and final the return and roll the assets over into a new plan. The filer needs to create a new plan with a new plan name.

    Note:

    To verify the receipt of Form 5500 series returns by EFAST2, research IDRS, and the EFAST2 Website.

  4. If the filer appears to have attached a return or reply that has no connection to the return requested on the notice, process as an insufficient response. See IRM 3.13.36.33.10.

    Note:

    Research IDRS, and the EFAST2 Website. Determine whether to process the attached return. If so, forward the return to EP Classification using the instructions in IRM 3.13.36.33.2 (6).

  5. Process complete responses per instructions beginning in IRM 3.13.36.33.1.

  6. An insufficient response is one requiring more information than supplied by the filer for the Entity function to determine whether the delinquency has been satisfied. Process insufficient responses per instructions. See IRM 3.13.36.33.10.

  7. If you can't complete case action before issuance of the next notice or Form TYD–14 (TC 142), input a 15–week delay using CC ASGNB.

  8. Establish IDRS controls if needed.

  9. When we receive a response that doesn't satisfy the delinquency, and a phone number is present on the response portion of the notice, input the phone number on IDRS via CC TELEA.

    Note:

    Input the phone number only if it is shown on the response portion of the notice or you are sure the taxpayer provided it.

Processing Delinquency Notice Responses

  1. When processing Delinquency Notice responses, research IDRS and the EFAST2 Website.

  2. When research shows a TC 150 already posted for the plan and period of the delinquency notice, carefully examine any correspondence or returns attached to the response to determine if they should be processed. If the return needs to be processed, forward the return to EP Classification using the instructions in IRM 3.13.36.33.2 (6).

    Note:

    Remove CP 403 or CP 406 before forwarding the return.

  3. If no return is attached, or the return shouldn't be processed, take the following action:

    1. "X" the notice and response. If the response from the filer contains information or questions to be handled by another area, route a copy of the response to the appropriate area.

    2. Indicate research performed on the case.

      Example:

      TC 150 posted.

      Note:

      The case must be available for Quality Review.

  4. When research shows we received a return for the delinquency notice "in-house" but hasn't posted, input TC 594 CC 097 to prevent any future notice to the filer.

    1. If research indicates a TC 594 CC 097 is present and a TC 150 isn't present, input a TC 590 CC 097 to resolve the account.

    Note:

    " In-house" returns may show as an Unpostable, TC 155, or TC 156.

  5. If we receive a return in response to a notice, and the plan filing requirements are "8" (inactive status), no transaction other than a TC 012 will post to the account. However, filing requirement "8" doesn't update the module status or prevent subsequent notices to the filer. Determine if the return should be processed.

    1. If yes, or needing a satisfying transaction code, reactivate the account (TC 012) to allow the return to post.

    2. Once the return posts (TC 150) or a satisfying transaction code posts, input a TC 591 CC 097 to delete the plan filing requirements again if needed.

  6. When we receive a notice response, and research confirms that we already took appropriate action (perhaps in response to a previous notice), determine if the response contains information or questions that to be handled by another area. If so, route the response to the appropriate area. Otherwise, "X" the notice and the response.

  7. When the notice response indicates the plan held less than $250,000 in total assets , determine if the response is sufficient.

    IF: THEN:
    The filer's response indicates "not required to file a Form 5500–EZ because their total assets for the plan were less than $250,000" Input TC 016 to change to change plan filing requirements to "N" . The filer only needs to file if the plans End of Year assets exceed $250,000, as a result, the filing requirement may change every year.

    Note:

    DON'T input TC 59X unless working a delinquency notice.

    The filer's response indicates "not required to file a Form 5500–EZ because their total End of Year assets for the plan were less than $250, 000 and the filer has two or more one-participant plans"
    1. Research IDRS to determine if the plan assets for two or more one-participant plans with a combined total plan assets exceed $250,000 at the end of any plan year beginning on or after January 1, 2007. The filer must file a separate Form 5500–EZ for each plan.

    2. Correspond using the 1074C for the Form 5500–EZ.

    3. If the plans total End of Year assets are $250,000 or less see IRM 3.13.36.33.5 (3)m to resolve the TDI.

      Note:

      For 200612 and prior responses for filers with Form 5500–EZ filing requirements with one-participant plan that had total assets of $100,000 or less at the end of every plan year beginning on or after January 1, 1994, OR the filers have two or more one-participant plans that together had total assets of $100,000 or less at the end of every plan year beginning on or after January 1, 1994. Input TC 016 to change plan filing requirements to "N" . DON'T input TC 59X unless working a delinquency notice.

  8. When the notice response states that the organization is in bankruptcy, take the following action:

    1. The designated EPMF employee reviews bankruptcy issues, instructs the entity function to close the control base and leave the module open and coordinates with Cincinnati for referral or reassignment of bankruptcy cases.

    2. If Cincinnati indicates the filer must still file a return, input the appropriate letter explaining that the authorized party is still responsible for filing a return each year until the plan terminates, the administrator distributes the assets, and there are no longer any participants in the plan. Annotate on the Form 2747 "appropriate letter sent taxpayer in bankruptcy."

    3. If Cincinnati indicates the filer is no longer liable, input a TC 591 CC 097.

  9. When the response includes a copy of a return indicating a change in sponsorship on Line 4 of the 5500 Series return or the filer provides the new information via correspondence:

    1. Verify that the return posted under the new sponsor's EIN.

    2. If research shows no record of a final return posted for the account on the notice (old sponsor's account), input TC 591 CC 097 to the account on the notice.

      Note:

      No correspondence is needed to obtain a final return when a new EIN is established. The filer completes line 4 when an EIN change occurs. A filer may obtain a new EIN when there are changes to their entity or a business transaction occurs that results in the adoption of the seller's plan by the buyer.

    3. Contact the taxpayer to determine if a buy out, merge, or takeover, etc. occurred if the situation is unclear. See IRM 3.13.36.33.7 for further information on change of sponsorship.

  10. If the filer responds with a request for more time to research the problem, input a 15–week delay using CC ASGNB.

  11. If you input a TC 59X transaction to a tax module with an unreversed TC 150 posted in that module or a subsequent module, the TC 59X transaction won't update the module status.

    1. Input a TC 591 CC 097 on the generated TDI notice and all subsequent modules for the same MFT that are already delinquent. This removes the filing requirement for that plan period and for subsequent plan periods.

      Example:

      If we receive a return for Plan 001 for plan period 200412 and a TC 591 CC 097 is input to close the filing requirements and the filer files next year on plan 001 for plan period 200512, the return re-opens the filing requirements.

      Note:

      For any subsequent modules not satisfied for that plan number, the filer continues to receive delinquency notices.

    2. Input the TC 591 CC 097 to the period where the latest unreversed return posted and all subsequent modules for the same plan. This will usually be the delinquent module.

  12. See the following Closing Transaction Chart for the appropriate 59X transactions. A TC 592 reverses any TC 59X posted in the same cycle or a previous cycle.

    Closing Transaction Chart

    CLOSING TRANSACTIONS
    TRANS
    CODES
    CLOSING
    CODES
    EXPLANATION FORMAT EXAMPLES
    590 097 Not required to file for a specific tax period. FRM49
    XX-XXXXXXXP LEAP 001201012 590097
    591 097 No longer liable, assets and participants are zero or plan terminated. FRM49
    XX-XXXXXXXP LEAP 001201012 591097
    593 097 Unable to locate, notice or correspondence went undeliverable and current address not found. FRM49
    XX-XXXXXXXP LEAP 001201012 593097
    594 074 Copy of return secured, received during TDI process. Forwarded return to EP Classification. FRM49
    XX-XXXXXXXP LEAP 001201012 594074
    594 097 Return in-house (Form 5500–EZ only). Entity received the return and forwarded it to numbering for processing. Also used if taxpayer indicates they are filing under the DFVC program. FRM49
    XX-XXXXXXXP LEAP 001201012 594097
    599 097 Original return secured by Exam. FRM49
    XX-XXXXXXXP LEAP 001201012 599097
    592 - - Will Reverse any prior posted TC 59X. FRM49
    XX-XXXXXXXP LEAP 001201012 592
    no closing code needed

     

  13. For Form 5500 return information posted by DOL, research the EFAST2 Website. If the Form 5500 information is on the EFAST2 Website, verify the beginning assets to the ending assets of the prior year return information on master file using CC ERTVU. If the beginning and ending assets match, input a TC 590 to satisfy the module.

    Note:

    Compare the beginning and ending assets before inputting a TC 590 for a return found on the EFAST2 Website.

  14. If the filer indicates that he/she is participating in the DOL Delinquent Filer Voluntary Compliance (DFVC) program for Form 5500 filers only, input a TC 594 CC 097 to prevent any future notice to the filer.

  15. If one or more returns posted to the incorrect account, the Entity function inputs a TC 151 and reprocesses the return to the correct account. See IRM 3.13.36.24 for TC 151 instructions.

  16. If a deleted account reactivated in error when a return posted incorrectly, the Entity function inputs a TC 591 CC 097 after input of the TC 151.

    Note:

    EFAST returns can't be reversed.

  17. If the filer states that he/she made prior contact with the Collection function in the district office, input TDI Notice Delay Code D15 and forward to Cincinnati with all notice information.

Responses with Returns Attached—General Instructions

  1. If we receive a response with a return attached, and there is no TC 150 posted and research doesn't indicate the return is "in-house" ,

    1. If the filer indicates he/she already filed the return, and furnishes a copy of the filed return, input a TC 594 CC 074 to the period where the return will post.

    2. If we receive an amended final Form 5500/5500–SF amending a return posted to a period earlier than the delinquent module and no TC 977 posted, input a TC 594 CC 074. If you determine the assets were distributed, input a TC 591 CC 097 to the period on the notice to close the open module.

  2. If we receive a response with a return attached, and there is no TC 150 posted, and we originally processed the return, process as follows:

    1. If the filer indicates he/she already filed the return, and furnishes a copy of the return, research EFAST2 Website to determine if the return posted. If the return hasn't posted, forward the return to EP Classification using the instructions in IRM 3.13.36.33.2 (6) and input a TC 594 CC 074 to the period where the return will post.

    2. If we receive an amended final Form 5500/5500–SF amending a return posted to a period earlier than the delinquent module and no TC 977 has posted, input a TC 594 CC 074, forward the return to EP Classification using the instructions in IRM 3.13.36.33.2 (6). If your research determines the assets were distributed, input a TC 591 CC 097 to the period on the notice to close the open module.

  3. If the response received is a final Form 5500/5500-SF and research determines the assets were distributed, input a TC 591 CC 097. If research shows an open module for the following year, input a TC 591 CC 097 to close the module.

  4. In the case when we can receive tax returns via fax as part of return perfection where we contacted the taxpayer and documented our contact, faxed signatures are legally sufficient.

  5. Return preparer may sign original returns, amended returns, or requests for filing extensions using a signature stamp. Taxpayers, however, must continue to sign their returns with an original signature.

  6. If research shows we need to process the Form 5500:

    1. Ensure that we edited the return to show the correct EIN, Plan name, Plan number, and Plan year, if needed.

    2. Ensure that the correct actions have been input to the account (e.g. reasonable cause and return received).

      Caution:

      If the return is for a module other than that on the notice (e.g. different EIN, different plan number) ensure that reasonable cause is entered on the EIN, plan number and plan period where the return will post.

    3. Remove all attached IRS Correspondence, Notices and taxpayer correspondence.

    4. Remove attached envelopes.

    5. Remove any attached Forms 5558. If already processed, prepare for destruction using local procedures.

    6. Remove all Forms 8955-SSA and forward to Receipt and Control, M/S 6054

      Note:

      Treat Schedule SSA as a Form 8955-SSA.

    7. Forward returns to EP Classification on a weekly basis. Send one shipment per week using Form 3210. Each shipment has 12 EIN's on each Form 3210 and includes up to eight separate Form 3210's, for a total up to 96 documents per shipment. If there are fewer than 96 documents produced in a week, send the entire week's inventory, even if it is less than 96.

    8. Ship returns via UPS to:

      Internal Revenue Service
      EP Classification (IFILE)
      9350 Flair Drive, 4th Floor
      El Monte, CA 91731

    9. Once input is complete, EP Classification returns the Form 3210 for verification. Keep these for 1 year so that they may be used for research purposes when working TDI-RES Transcripts.

Return Previously Filed or Will be Filed

  1. If the filer states that he/she filed the return and there is no indication the return will post to an EPMF account other than the account the notice was generated from, proceed as follows:

    1. If the filer doesn't give the return filing date, and doesn't attach a copy, treat as an insufficient response per IRM 3.13.36.33.10.

    2. If the filer responds with a copy of the return attached and he/she filed the return less than ten weeks before the notice date, input TC 594 CC 097.

    3. If the filer states he/she filed the return ten weeks or more before the notice date, control the case on IDRS, research to determine if the return posted under different EIN and/or plan number. If the return posted to a different EIN and/or plan number, input a TC 151 to move the return to the correct EIN and/or plan number.

    4. If the filer doesn't give the return filing date, but attaches a copy of the return, and indicates that he/she previously filed the return timely, process as in IRM 3.13.36.33.2.

  2. If there is an indication the return will post to another EPMF account, treat as an entity problem and work per IRM 3.13.36.33.11.

  3. If the filer indicates that he/she filed the return, and includes a copy of the acknowledgment report showing acceptance code "A" and the return filing date, check the date on the acknowledgment report. This date must be the correct year for the plan year ending on the delinquency notice. If all of the conditions are present, input a TC 590 CC 097. If the date on the acknowledgment report doesn't agree with the date on the notice, follow instructions in IRM 3.13.36.33.11.

    Example:

    If the plan year ending on the delinquency notice is 12–31–2009(200912) or 09–30–2009 (200909), the date on the acknowledgment report should be for the year 2010.

  4. If the filer indicates that he/she will file the return, take the following action:

    1. Input TDI delay notice code D15 on IDRS using CC ASGNB.

    2. If the sponsor's phone number is provided, input the phone number on IDRS via CC TELEA. "X" the notice response.

      Note:

      Don't input the phone number for a POA or CPA.

    3. If we issued the Final notice, take no action and dispose of the case in accordance with campus procedures.

  5. If the filer requests forms:

    1. Response to first notice—Send a 1072 C letter instructing the filer where to request forms and instructions, and input TDI delay notice code D15 on IDRS using CC ASGNB

    2. Final notice—send a 1072 C letter instructing the filer where to request forms and dispose of the notice in accordance with campus procedures. Don't take any IDRS action.

Not Required to File

  1. If we receive a notice response stating that the plan is excluded from filing:

    1. See IRM 3.13.36.33.5 for a list of situations when a return isn't required and instructions for working these cases.

  2. If the response is unclear or you need more information, call the filer or write using Letter 1074C.

  3. If the notice response indicates that the plan never went into operation, take the following action:

    1. Research the plan on master file (use CC EMFOL definer I and/or T).

    2. If no returns (TC 150 or TC 154) ever posted to the plan, input a TC 591 CC 097 to the delinquent module.

    3. If research shows that returns posted to the plan, contact the filer for clarification. The returns may have posted incorrectly, or some other entity problem may exist.

Not Liable to File

  1. Not Liable to File Transcripts generate when a filer indicates either by correspondence attached to the return or on the return they're no longer liable to file. The vendor sets the program's not liable indicator which generates a not liable transcript 20 weeks later. To determine if the filer is or isn't liable to file to file or the filer filed a return anyway:

    1. Research the EFAST2 Website and examine the correspondence and the return for the not liable statement.

    2. Research to determine if the filer has active filing requirements (use CC INOLE and/or EMFOL definer L). If the filer still has assets or participants, cross through the transcript; no further action is needed.

    3. If the filer isn't liable and the filing requirements are present, input a TC 59X to remove the filing requirements.

    4. If the plan filing requirements are blank or 8, no action is required.

  2. If the filer indicates he/she isn't liable to file, but plan filing requirements indicate that a return is required, determine if the following situations apply. Someone may have erroneously established the plan according to one of the situations below. This isn't an all inclusive list.

    1. Plan wasn't funded when the filer submitted the application to the EACS system.

    2. The plan is a Section 6039D Fringe Benefit plan IRC Section 79, 105, 106, 120 (starting 6/30/92), or 129.

    3. The plan is a common/collective trust (CCT), a Form 5500 isn't required but may be filed.

    4. The filer submitted the application (TC 121 or TC 123) for the wrong plan number. The filer must verify this.

    5. In all the above situations, input a TC 591 CC 097 to the period where the return would post.

  3. Some plans are excluded from filing:

    1. Church plans (other than fringe benefit plans) not electing coverage under IRC 410(d). Input a TC 591 CC 097.

    2. Government plans (other than fringe benefit plans). Input a TC 591 CC 097.

    3. Welfare plans with fewer than 100 participants if the plan is unfunded (benefits are paid from the general assets of the employer), fully insured (benefits paid by an insurance company), or a combination of unfunded/fully insured. Input a TC 591 CC 097 unless you can determine that the plan will have more than 100 participants at some later date. If this is the case, input a TC 590 CC 097. If over 100 participants, rules are the same as unfunded welfare plans.

    4. If we receive correspondence stating the plan is no longer required to file a Form 5500 pursuant to 29 CFR 2520.104–20, input a TC 591 CC 097 to close the filing requirements.

    5. Plans maintained only to comply with worker compensation, unemployment compensation or disability insurance laws. Input a TC 591 CC 097.

    6. Unfunded excess benefit plans. Input a TC 591 CC 097.

    7. Welfare plan outside the U.S. for nonresident aliens. Input a TC 591 CC 097.

    8. Qualified foreign plan IRC 404A(e) that doesn't qualify for treatment under IRC 402(c). Input a TC 591 CC 097.

    9. Annuity arrangement under IRC 403(b)(1) with no employer participation. Input a TC 591 CC 097.

    10. Simplified Employee Pension (SEP) described in IRC 408(k). Input a TC 591 CC 097.

    11. A Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) that involves SIMPLE IRAs under IRC 408(p). Input a TC 591 CC 097.

    12. An apprenticeship or training plan meeting the requirements of Dept. of Labor regulation 29 CFR 2520.104–22. Input a TC 591 CC 097.

    13. Form 5500/5500–EZ filers with one-participant plan ( see IRM 3.13.36.26.6 ) that had total assets of $250,000 or less at the end of every plan year beginning on or after January 1, 2007, OR the filers have two or more one-participant plans that together had total assets of $250,000 or less at the end of every plan year beginning on or after January 1, 2007. Input TC 016 to change plan filing requirements to "N" . DON'T input TC 59X unless working a delinquency notice. In that case, see IRM 3.13.36.33.1 (11)OR filers with Form 5500–EZ filing requirements with one-participant plan that had total assets of $100,000 or less at the end of every plan year beginning on or after January 1, 1994, OR the filers have two or more one-participant plans that together had total assets of $100,000 or less at the end of every plan year beginning on or after January 1, 1994. Input TC 016 to change plan filing requirements to "N" . DON'T input TC 59X unless working a delinquency notice.

    14. If the filer states the plan terminated in the prior year, he/she distributed all of the assets or rolled them over into an IRA and there is no indication that there is more than one participant, input TC 591 CC 097 to the period after the last return posted.

    15. If the filer provides a different EIN and research shows he/she hasn't submitted a final return for the EIN on the notice. Don't write to request a final return. Research the most recent posted return line 4. The filer completes line 4 when an EIN change occurs. A filer may obtain a new EIN when there are changes to their entity or a business transaction occurred that results in the adoption of the seller's plan by the buyer. Input a TC 591 CC 097 to the EIN on the notice.

  4. Plan terminated with all assets distributed or when a final return (a return with CCC "F" ) posts, or when a TC 020 (Doc Code 64) is input to delete the plan. This happens when the plan either distributes all the plan assets to participants or it merges into another plan and the original plan no longer has assets or participants.

    1. The original plan will no longer have a requirement to file a return.

    2. The return (except Form 5500–EZ) must meet all plan termination criteria before it will post as a final return.

    3. Total end-of-year assets must be zero, and

    4. Total participants end-of-year must be zero (this wasn't part of the criteria before July 1990).

  5. IRC 6039D – If we receive a 5500 series return in Entity referencing section 6039D and the filer states not liable for this return, research to determine if we established the plan erroneously. If the Plan was established in error, input a TC 020 (Doc Code 64) (with managerial approval) and dispose of the document according to campus procedures.

  6. For requirements for filing Final Returns, see IRM 3.13.36.12.

  7. The filer may think he/she filed a final return, but if the return didn't meet all termination criteria, the filer still has a requirement to file a return.

  8. A complete return is required from every sponsor/employer each year until the plan distributes all assets to participants or it merges/consolidates with another plan and participants and assets at the end of the year are zero.

  9. The plan year of final distribution or merger/consolidation is the last year a return must be filed.

  10. A return has a letter or statement stating that this is a "Final" return because it is a multiple-employer plan which is no longer going to file as a multi-employer.

  11. A return has a letter or statement stating that this is a "Final" return because they were a member of an affiliated service group or a control group and aren't filing a consolidated return.

  12. If the filer indicates that the plan terminated, take the following action:

    1. Research IDRS (including CC TDINQ) and the master file.

    2. If the return module is in notice status (status 02), transfer the case to the appropriate individuals working the Delinquency Program.

    3. If the plan should be terminated, input a TC 591 CC 097.

  13. If the filer indicates the plan terminated in a prior year:

    1. Request the prior year return to determine why the plan wasn't terminated.

    2. If the return entries indicate the plan should have terminated (termination criteria were met), input a TC 591 CC 097 to the period where the return would have posted.

  14. If a filer with 5500-EZ filing requirements indicates that he/she filed a final Form 5500-EZ previously, and indicates that there are no assets in the plan, input a TC 591 CC 097.

Sponsor of and Participating Employer in a Multiple-Employer Plan (Other)

  1. A multiple-employer plan (other) involves more than one employer and includes only those plans in which contributions from individual employers are pooled and are available to pay benefits to all participants.

Plan Terminated, Merged or Consolidated

  1. Research the master file (CC INOLE and/or CC EMFOL definer L/R/T) and IDRS to determine if a plan terminated, or merged or consolidated with another plan. The valid termination indicator codes are:

    1. 1 = Yes

    2. 2 = No

    3. 3 = Missing information (Unknown)

  2. For conditions which will terminate a plan, see IRM 3.13.36.11.

  3. At times you may need to view a posted return (use the EFAST 2 website or research CC ERTVU) if the filer states the plan was terminated, merged or consolidated in a prior year.

    1. If unable to review the posted return, request a copy from the filer of the return the filer considers the final return for the plan. Input a TDI notice delay code D15.

  4. When the filer submits a copy of the final return along with the notice or correspondence stating that the plan terminated and is no longer liable, research to determine if the return posted. Compare the information on master file to the copy of the final return.

    1. If the return posted but the filing requirements weren't deleted and return entries indicate that the plan terminated, with the assets distributed, and end-of-year assets and participants at zero, input a TC 591 CC 097 to the period following the period the "final" return posted.

    2. If the return hasn't posted, process according to IRM 3.13.36.33.2.

    3. If the return posted, but the entries on the return didn't meet the termination criteria, correspond with the filer using letter 1072 C and inform the filer that according to the entries on the return, the plan isn't terminated because … and state the reason(s).

      Example:

      There were still participants or assets in the plan.

    4. If research shows the plan terminated in a prior filing and the filer continues to use the plan number, establish a new plan number and notify the filer of the new plan number using Letter 1072 C.

  5. If the return entries don't meet termination criteria, but the filer indicates that there were erroneous entries on the return and the correction of these entries meet termination criteria:

    1. If the filer has participants only, and no other information on the return, and the return meets all other criteria of a final, you can accept a confirmation call from the sponsor that the plan terminated and not showing zero participants is a clerical error, rather than obtaining an amended return. Input a TC 591 CC 097.

    2. Input a TDI delay notice code D15 using CC ASGNB.

  6. If the filer states that it (any type of plan other than Fringe Benefit plan) terminated in a prior year, with all assets distributed or rolled over into an IRA, and there is no indication that there is more than one participant, input TC 591 CC 097 to the period after the last return posted.

  7. If the filer states the PBGC took over the plan, they must either electronically file a final return for the plan, or provide documentation from PBGC with the date of plan termination. If the filer doesn't provide documentation:

    1. Research the PBGC website for proper documentation. If found, attach a copy to the correspondence and input a TC 591 CC 097 to the period after the date of plan termination.

    2. If you can't find the information on the PBGC website, correspond using letter 1072C for the missing information. If the filer provides documentation, input a TC 591 CC 097 to the period after the date of plan termination.

Plan Not Yet Funded

  1. An employer may adopt a plan and get a favorable determination letter from the IRS on the qualification of the plan (which establishes a filing requirement) but not make a contribution to the plan (trust) to fund the plan.

  2. IRC 6058(a) states that funded plans of deferred compensation must file.

  3. If the filer states that the plan hasn't been funded, research the plan on the master file (use CC EMFOL definer I). If no TC 150 posted to the plan, or TC 150 posted and shows zero assets, take the following action:

    1. Input a TC 590 CC 097 when the taxpayer indicates the plan will be funded in subsequent years.

    2. Input TC 591 CC 097 if the filer indicates the plan has no participants, no assets, and terminated.

    3. Input TC 591 CC 097 if the filer indicates he has no intention of funding his plan.

  4. If TCs 150 posted with assets, contact the filer for clarification.

Third Party Responses

  1. We don't provide Information concerning taxpayers to third parties without authorization from the taxpayer, consistent with the requirements in 26 CFR 301.6103(c)-1. See IRM 11.3.3. Although you can explain to the third party the meaning of a notice they may have in hand, you can't provide additional information from a source such as IDRS.

    Note:

    If a participant requests information, certain plan documents are available to the participant for disclosure under IRC 6104. See IRM 11.3.10.

  2. One of two forms is generally used to authorize a third party:

    • The taxpayer may use Form 2848, Power of Attorney and Declaration of Representative, to authorize an attorney, certified public accountant (CPA), enrolled agent, or enrolled actuary to receive confidential tax information and to act on behalf of the taxpayer. This form conveys representational rights to the designated individual.

    • A taxpayer may use Form 8821, Tax Information Authorization, to authorize any individual, corporation, firm, trust, partnership, or organization to receive specific confidential tax return information. The Form 8821 doesn't convey the right to represent (stand in the place of) the taxpayer. Form 8821 doesn't authorize the person to respond to the Service on behalf of the taxpayer if the response constitutes practice before the Service.

      Note:

      We may accept information from a third party, even if we've received no authorization or none is on file. Exercise care to ensure that you don't give out confidential tax information if you've not received an authorization or none is on file.

  3. The forms are made available as a convenience to the taxpayer. A document/letter may be used in lieu of Form 2848 or 8821, provided it contains the same information and the taxpayer signed it.

  4. When responding to phone inquiries about a tax account, obtain the taxpayer's name, address and employer identification number. Ask enough questions to satisfy yourself that you're speaking to the authorized party.

  5. If a caller is unable to furnish enough information to establish that he/she actually is the authorized party, request that the caller find out the information and call back. If the caller states he/she doesn't have the information and can't obtain it, advise the caller that we'll mail a written reply to the taxpayer's address of record.

  6. If a third party indicates that the taxpayer moved and gives a good mailing address, send a Letter 2475C with the documents and a Form 8822–B.

  7. If a third party indicates a change in the person (or persons) handling the account, treat as an insufficient response and correspond for complete information.

Insufficient Responses

  1. If the taxpayer's response is insufficient, research IDRS for a satisfying transaction. If found, "X" the notice and response; no further action is needed.

  2. If you don't find a satisfying transaction, call the filer using the phone number provided on the delinquency notice response and/or return. Call the filer on three different occasions (three sequential days at three different times). Explain to the filer what additional information is needed to resolve the case.

    1. If make contract and the filer provides additional information needed to resolve the case, update the EPMF and "X" the notice.

    2. If you can't reach the filer by phone after three attempts, close the control base, "X" the notice and response, and leave the module open.

    3. When corresponding, input D15 using CC ASGNB and initiate correspondence using 1072 C letter to inform the filer of his/her obligation to file a return and explain what additional information is needed to resolve the case.

    4. If no satisfying transaction is present, and this is a reply to a first notice, allow the final notice to generate. "X" the notice response.

    Note:

    You can call or write to the filer. If you try calling, try on three different occasions (three sequential days at three different times) or write using a "C" letter.

  3. If you find a satisfying transaction, close the control base and "X" the notice and response.

  4. When the taxpayer responds with a schedule or the front page of the required return, correspond with the filer using a 1074C letter informing the filer that a complete return is required. This includes all applicable schedules and Form 5558, if extension was requested.

  5. If the taxpayer sends an unsigned copy of a Form 5500, correspond with the filer for a signed declaration.

    1. When corresponding, input D15 using CC ASGNB and initiate correspondence using 2696C letter to inform the filer that their return must be signed. Suspense, control the case on IDRS, and maintain a file in TIN sequence by cycle in which the correspondence was initiated.

    2. After forty-five (45) calendar days, purge the suspended reply to the first notice (CP 403) by researching IDRS for a satisfying transaction.

  6. If you find a satisfying transaction, close the control base and "X" the notice.

  7. If you don't find a satisfying transaction, send the return back to the filer using Notice 1393 using the instructions in IRM 3.13.36.34.

  8. When the taxpayer returns the signed declaration, associate the declaration with the return and forward to EP Classification using the instructions in IRM 3.13.36.33.2 (6).

  9. If the insufficient response contains a return with more than one EIN or plan number, process as an entity problem. See IRM 3.13.36.33.11.

  10. If the response includes a return that doesn't resolve the delinquency and is for a tax period earlier than 200912, but we should process the return received, forward the return to EP Classification using the instructions in IRM 3.13.36.33.2 (6). If the return is for tax period 200912 or later, send the return back to the filer using Notice 1393 using the instructions in IRM 3.13.36.34.

Entity Problems

  1. Research the Notice EIN and other names and EINs furnished by the taxpayer (also search for other EIN(s) for the taxpayer).

  2. If research indicates that there is more than one EIN or plan number for the same account, take steps to consolidate the accounts. See IRM 3.13.36.25.

  3. EPMF changes to the Employer/Sponsor name line, Administrator entity data, address data, or plan name line come from the posting of the EFAST return or the filing of a Form 5500-EZ.

  4. EPMF filing requirements update by the posting of returns or by input of a TC 016. They can be deleted by posting of a final return and by the input of transaction codes 591 or 593. In addition the plan deactivates by TC 020 Doc Code 64. TC 020 changes plan filing requirements to 8.

  5. If needing additional information, call the filer. If you can't reach the filer by phone, take the following action:

    1. Input D15 and initiate correspondence using the appropriate letter to inform the filer of his/her obligation to file a return and explain the needed additional information.

    2. Control the case on IDRS and maintain a file in TIN sequence by the correspondence initiation cycle.

    3. Purge the file after forty five (45) calendar days and research for a satisfying transaction.

    4. If no satisfying transaction is present, and this is a reply to a first notice, allow the final notice to generate.

  6. If research indicates that the EIN provided on the CP Notice is an SSN.

    1. Research for an EIN.

    2. If you don't find an EIN, ESIGN an EIN, and establish the plan using the information the filer provided on the CP Notice.

    3. Input a TC 151 to correct the account.

    4. Correspond with the filer using a 1072 C letter notifying the filer they used their SSN and inform them of their correct EIN and/or Plan Number to use when filing a Form 5500 series return.

    5. If you find an EIN, input a TC 151 to correct the account and correspond with the filer using a 1072 C letter notifying the filer they used their SSN and inform them of their correct EIN and/or Plan Number to be used when filing a Form 5500 series return.

Reasonable Cause Criteria

  1. Acceptable explanations for reasonable cause aren't limited to the examples below. Accept as reasonable cause any reason, which establishes that the taxpayer exercised ordinary business care and prudence, but was unable to comply.

    1. Death or serious illness of the taxpayer or a death or serious illness in his or her immediate family.

    2. Unavoidable absence of the taxpayer.

    3. Destruction by fire, other casualty or civil disturbance of the taxpayer’s residence, place of business, or business records.

    4. The taxpayer, for reasons beyond his or her control, was unable to obtain the necessary records to file a timely return.

    5. The taxpayer mailed the return in time to reach our office within the prescribed time period with the normal handling of the mail, but through no fault of the taxpayer, the return wasn't delivered timely.

    6. The taxpayer didn't file the return after receiving erroneous information from one of us, or the taxpayer timely requested necessary tax forms and instructions, and we didn't provide them timely.

    7. A taxpayer contacts a tax advisor who is competent on specific tax matters, furnishes necessary and relevant information, and then receives incorrect advise that the filing of a return isn't required. If the taxpayer exercises normal care and prudence based on his or her own information and knowledge in determining whether to secure further advice, then the taxpayer may have reasonable cause.

    8. Carefully analyze any sound reason given as the cause for delay to determine if the taxpayer established reasonable cause.

      Note:

      If there is any doubt as to whether or not reasonable cause exists, refer to IRM 20.1, Penalty Handbook, and IRM 20.1.1, Introduction and Penalty Relief.

  2. If reasonable cause is met, code the return with an "R" above the Entity section, indicating the filer met reasonable cause criteria. Leave the reasonable cause statement/correspondence attached to the Form 5500-EZ and route to Numbering.

  3. If we receive reasonable cause attached to a copy of a Form 5500, research IDRS for a TC 150. If a TC 150 posted, forward the return to EP Accounts at Mail Stop 6552. If the TC 150 hasn't posted, input a TC 971 with Activity Code (AC) 632 under "Other." Forward the return to EP Classification using the instructions in IRM 3.13.36.33.2 (6).

    Caution:

    If the return is for a module other than that on the notice (e.g. different EIN, different plan number) ensure that you enter reasonable cause on the EIN, plan number and plan period where the return will post.

Undeliverable EPMF Delinquency Notices

  1. Mail we sent to the taxpayer and returned to us by the Postal Service because the taxpayer is no longer at the address or the address doesn't exist are called "Undeliverables" . This includes notices addressed to the IRS.

  2. If an EPMF notice comes back to the IRS as undeliverable, forward it to the EPMF Entity Function for research and correction of the address.

  3. If a Form TYD-14 was already issued (indicated by a posted TC 142), "X" the notice.

  4. If a TC 142 hasn't posted, use CC ERTVU to view the last posted return. If the last return was marked final, and there are no assets and no participants, input a TC 591 AC 097 and "X" the notice. If the last return wasn't marked final, research for a different address. Check EMFOLC to determine if the EIN/Sponsor changed. If you find a different address, send Letter 2475C returning the notice to the taxpayer. Input TDI notice delay code D15 using CC ASGNB.

  5. If we previously sent a 2475 C letter and:

    1. The undeliverable CP 403 or CP 406 doesn't have a 2475C letter attached, send a 2475C letter.

    2. A 2475C letter is attached to the CP 403 or CP 406, input a TC 593 CC 097 using FRM49, input TC971 Action Code 661 which generates the Undeliverable (UD) indicator, and "X" the notice.

      Note:

      If the returned 2475C letter now has a "yellow label address change sticker" provided by the USPS, follow the instructions in (8) below.

  6. If BMF has a different address, re-mail the notice to the address on BMF.

  7. Update the EPMF address when the U.S. Postal Service and/or a third party supplies a new address.

    1. Change the address on EPMF.

    2. The next notice automatically generates with the new address. Research EMFOLT to determine if the CP 406 already generated by verifying the number of TC 141's. If three TC 141's appear, the CP 406 generated and you need to send a 2475C letter. If only two TC 141's are present, the next notice automatically generates and you won't need to send a 2475C.

    3. If the undeliverable is for a CP 406, send 2475C Letter to the updated address.

  8. When you receive undelivered IRS-initiated correspondence with a "yellow label address change sticker" provided by USPS on the original envelope, research EPMF/BMF for a better address (CCs ENMOD, EMFOLE, FINDS and FINDE, etc.).

    1. Compare the yellow label address change sticker to the posted/pending name and address information to verify it is an address change for the same taxpayer.

    2. If you don't find a better address, use yellow address provided by USPS to update the taxpayer's last known address.

      Example:

      If the yellow label shows Allison M. Profit Sharing Plan with a newer address and ENMOD/ EMFOLE shows Allison M. Profit Sharing Plan and the old address matches the taxpayer's last known address and the address update cycle is before the address on the USPS yellow label use the yellow sticker address information to update the taxpayer's address.

    3. Input TC014 and re-send the Entity generated CP/Correspondence letter to the taxpayer's new address.

  9. If the U.S. Postal Service, or other third party, provides a different address, mail the notice to the new address and take the following action:

    1. Input TDI Notice Delay Code D15 using CC ASGNB.

    2. Initiate correspondence (using the new address) requesting that the organization provide us with their current address, using Letter 2475C with the undeliverable documents.

    3. Purge the file after 45 calendar days and research to determine if the address recently updated. If the address recently updated or a satisfying transaction posted, close the control base. Otherwise, input a TC 593 CC 097 using CC FRM49 and close the control base.

  10. If research of CC EMFOL definer D shows that the administrator has a different address, re-mail the notice.

  11. If through additional IDRS research a different address on a different plan is found and it matches the sponsor's name on the notice, re-mail the notice.

  12. If CC IRPTR has a different address and the name matches the sponsor's name on the notice, re-mail the notice.

  13. If there is a return posted for the tax module after the one in the notice, e.g. CP 403 if for 200909, and we have the 201009 return, research CC ERTVU for updated information.

  14. If you find no other address, try calling the filer to secure a new address. If you don't obtain another address, input TC 593 CC 097 using CC FRM49, input TC971 Action Code 661 which generates the Undeliverable (UD) indicator, close the control base, and "X" the notice.

  15. If the undeliverable mail is a letter and there is an "E" in the top right hand corner with the tax examiner's identification number, give the undeliverable to the tax examiner who initially sent the letter. The "E" means the case is in suspense and the tax examiner who sent the letter is waiting for a reply. See IRM 3.13.36.28 (9) for additional information.

TDI–Research Unreversed TC 594 and TC 599 Transcripts

  1. After 30 cycles if a TC 150, 590, 591, 593, 595, 597 or 977 hasn't posted to a module with a posted TC 594 or 599, a transcript generates.

  2. Entity Control performs all TDI–RESEARCH TC 594 with closing code (CC) 074 (document present) and 097, and also TC 599 with CC 097.

  3. Research using CC EMFOL definer T and L, ENMOD, TDINQ, UPTIN, NAMEB, and the EFAST2 Website.

    1. If a return posted for the plan within the same 12 month period as the plan period on the transcript, input a TC 590 CC 097.

    2. If the return posted to the wrong plan period, input a TC 151 to move the return to the correct plan period.

    3. If the return posted to the wrong plan number, input a TC 151 to move the return to the correct plan number.

    4. If you find another EIN for the filer, follow the appropriate instructions for consolidating accounts. See IRM 3.13.36.25 for additional information.

    5. Review the plan filing requirements.

  4. If filing requirements are blank, input TC 590 CC 097.

  5. If there is no record of the return, and none of the issues in IRM 3.13.36.33.14 (3), notify the TEGE Headquarters Analyst by providing the EIN, Plan Number and Plan Period for further investigation. Submit the EIN, Plan Number and Plan Period via secure email.

    Note:

    Closely monitor the volume of these transcripts. A large volume may indicate problems in processing. If you identify a processing problem, contact the Ogden TE/GE campus Program Staff at Mail Stop 1110.

Processing Entity Diag Q Transcripts

  1. Diag Q transcripts generate weekly to identify problems on IDRS entity or tax modules which may indicate systemic, programming, computer, or processing problems.

  2. Entity works transcripts only when there is an entity issue. (The Tax Examiner that originally worked the case should still be responsible for that case).

  3. Separate the Diag Q transcripts by type and reason code. Control the transcript if you can't resolve it within 14 days of the computer notice date.

  4. If a freeze condition exists in the module that another functional area is responsible for releasing, route the Diag Q transcript to the responsible area for resolution.

  5. You can route a Diag Q transcript to Entity simply because an Entity Tax Examiner failed to close their base on IDRS. If there is an open control base to another functional area, route the transcript to the individual controlling the module.

  6. Sometimes the Diag Q transcripts generate because a satisfying transaction was input too late to prevent the next TC 141 from generating. Input appropriate TC 59X CC 097 to the module.

  7. Type 1–9 transcripts generate for modules kept on the Taxpayer Information File (TIF) for one or more years.

    1. Use CC RECON to force the module off of the TIF.

    2. For information on CC RECON see IRM 3.13.36.19.2.12

Plan Merge Transcript

  1. When a successful plan number consolidation doesn't resolve all delinquent modules, a PLAN-MERGE transcript generates.

  2. This is a notification that there are still open delinquent modules on the account to resolve.

  3. Research to determine if satisfying transactions posted since the transcript generated.

  4. If all delinquent modules on TXMOD are closed, destroy the transcript.

  5. If there are still open modules, take the following action:

    1. If the second notice was issued before the consolidation was done, contact the filer by letter to request those returns if they are still missing.

    2. If only one notice was issued, allow the second notice to generate, if still needing the. Destroy the transcript.

    3. If an open module still exists after the merge completes, input a TC 590 CC 097 on the open module plan number.

Returning Paper Filed Form 5500 and Form 5500–SF

  1. When we receive a paper filed Form 5500 or Form 5500–SF and research shows that we should return it to the filer, research IDRS to verify the following before sending the return:

    1. Research the EIN, Name and Address on the return to verify the address is correct before mailing to avoid undeliverable mail.

      Note:

      If the address on IDRS doesn't match the address on the return, print the IDRS screen, attach the print to the return, edit a purple check mark by the correct address and paper clip the two (2) items together. Clerical sends the return to the correct address.

    2. Research IDRS for a posted return. If posted and the return isn't an amended return, send the return back to the filer using the instructions in IRM 3.13.36.34 (2) below.

    3. Research IDRS for an open control. If an open control is present, contact the employee with the open control for resolution.

      Example:

      Route to the employee or send the return back to the filer.

    4. Research CC EMFOLT for a CP 283 notice indicator or open control. If a notice indicator or open control is present, contact EP Accounts, route the return and all attachments to Mail Stop 6552. For additional information see IRM 3.13.36.28 (12), IRM 3.13.36.28 (13), and IRM 3.13.36.28 (14).

    5. If reasonable cause is attached to the return and IDRS research shows a TC 150 posted, route the return and reasonable cause to EP Accounts.

    6. Research CC EMFOLT for a CP 403/406 notice indicator. If a notice indicator is present, and the return is in response to the notice, batch as CP 403/406.

  2. If research shows you should send the return back to the filer:

    1. Enclose a pre-printed Notice 1393, Return of Form 5500 Series, with the paper return.

    2. Label or address a large white envelope E-44.

    3. Mail the return and notice to the filer.

    4. Input a TDI Notice Delay Code D15 using CC ASGNB.

  3. If the Return and Notice 1393 comes back as undeliverable:

    1. Don't send a 2475 C letter.

    2. Research IDRS for a better address.

    3. If found, print the IDRS screen with the correct address.

    4. Put the documents in an orange or yellow folder to send to the filer.

    5. If you don't find a better address, "X" the return and prepare for destruction per local procedures.

Miscellaneous Forms

  1. Form 3210, Document Transmittal—Used to transmit actual returns or documents to another function within or out of the campus. This is an important document because it provides documentation that the information was sent.

  2. Form 3499, Information Transmittal—Used to transfer material out of the campus to the National Office, Regional Office, or another campus.

  3. Form 4442, Inquiry Referral—Received in the EPMF Entity unit from the District Office or some other area due to phone calls or walk-in taxpayers.

EPMF Abbreviations and Acronyms

  1. The section lists and defines some of the acronyms and terms used in this manual:

    Abbreviation Acronyms Explanation Abbreviation Acronyms Explanation
    AC Action Code ICP Integrated Case Processing
    AD Administrator IDRS Integrated Data Retrieval System
    ADJ Adjustment IRC Internal Revenue Code
    ADP Automated Data Processing IRM Internal Revenue Manual
    AMT Amount ISRP Integrated Submission and Remittance Processing
    ANF Account Number File ITIN Individual Taxpayer Identification Number
    AO Area Office KIF Key Index File
    BMF Business Master File MCC Martinsburg Computing Center
    BO Business Operational Data MFT Master File Tax Code
    BOB Block Out of Balance NC Name Control
    CAF Centralized Authorization File ANMF Automated Non– Master File
    CCC Computer Condition Code. NR No Reply
    CP Computer Paragraph PBGC Pension Benefit Guaranty Corporation
    CY Calendar Year PCF Plan Characteristic File
    DIS Distributed Input System PCCF Plan Case Control File
    DLN Document Locator Number PDM Plan Data Module
    DOC Document PIA Principle Industry Activity Code
    DOL Department of Labor POA Power of Attorney
    DST Display Station Terminal POIF Plan/organization Index File
    DT Data Transcriber PY Plan Year
    EACF EIN Assignment Control File PYE Prior Year Ending
    EACS EP/EO Application Control System PYM Prior Year Month
    EBSA Employee Benefits Security Administration RCC Return Condition Code
    EC Error Code RCD Received Date
    EDS EP/EO Determination System RDD Return Due Date
    EFAST (ERISA) Filing Acceptance System RPC Return Processing Code
    EIF Entity Index File SC Service Campus
    EIN Employer Identification Number CCF Campus Control File
    EKIF EIN Key Index File CRS Campus Replacement System
    ELF Electronic Filing SD Source Document
    EM Employer/Sponsor SFR Substitute for Return
    EPMF Employee Plans Master File TAS Taxpayer Advocate Service
    ERAS EIN Research and Assignment System TC Transaction Code
    ERC Error Reason Code TE/GE Tax Exempt and Government Entities
    ERISA Employee Retirement Income Security Act TDA Taxpayer Delinquent Account
    FLC File Location Code (First two numbers of the DLN) TDI Taxpayer Delinquency Investigation
    FOF Fact of Filing. Fact of Filing on an EFAST return reflects limited data on the module. The return is usually a prior plan year or was filed on a non-standard form that couldn't be scanned by the vendor. TE Tax Examiner
    FY Fiscal Year TIF Taxpayer Information File
    FYE Fiscal Year Ending TIN Taxpayer Identification Number
    FYM Fiscal Year Month TP Taxpayer
    GMF Generalized Mainline Framework TRS Transcript Research System
    GPP General Purpose Program TXP Tax Period
    GUF Generalized Unpostable Framework URC Unpostable Resolution code
    IC Input Cycle    

Area Office (AO)

Area Office Code States of Jurisdiction
Northeast 01 Brooklyn (EP Area Manager)
Brooklyn (EO Area Manager)
Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, Vermont
Mid-Atlantic 02 Philadelphia (EP Area Manager)
Baltimore (EO Area Manager)
Pennsylvania, New Jersey, Maryland, Delaware, Virginia, North Carolina, South Carolina, District of Columbia
Great Lakes 03 Chicago (EP Area Manager)
Chicago (EO Area Manager)
Ohio, Indiana, West Virginia, Kentucky, Illinois, Michigan, Wisconsin
Gulf Coast 04 New Orleans (EP Area Manager)
Atlanta (EO Area Manager)
Florida, Georgia, Alabama, Mississippi, Tennessee, Arkansas, Louisiana, Texas, Oklahoma
Pacific Coast 06 Denver (EP Area Manager)
Phoenix (EO Area Manager)
Washington, Oregon, Idaho, California, Alaska, Hawaii