3.45.1 Processing Employee Plan and Exempt Organization Determination Applications and User Fees

Manual Transmittal

December 18, 2018

Purpose

(1) This transmits revised IRM 3.45.1, TE/GE Processing, Processing Employee Plan and Exempt Organization Determination Applications and User Fees.

Material Changes

(1) Editorial changes have been made throughout, including for plain language.

(2) IRM 3.45.1.2.3 - Added new user fee information.

(3) IRM 3.45.1.13 - Added note regarding VCP to Pay.gov.

Effect on Other Documents

This supersedes IRM 3.45.1 dated January 1, 2018. This IRM also incorporates the following IRM Procedural Updates (IPU)-18U0806, 18U0110, 18U0151, 18U0617, 18U1070, 18U0162, 18U1366, 18U1346

Audience

Wage and Investment (W&I) and Small Business/Self-Employed (SB/SE)
Submission Processing Employees

Effective Date

(01-01-2019)

Jennifer A. Jett
Acting Director, Business Systems Planning
Government Entities and Shared Services
Tax Exempt and Government Entities

Scope and Purpose

  1. This manual gives instructions for processing determination letter applications and user fees.

  2. Audience - Receipt and Control employees at Cincinnati Submission Processing Center (CSPC) who process determination applications and associated user fees.

  3. Policy Owner - Business Systems Planning (BSP) Director

  4. Project Owner - Submission Processing Programs

  5. Stakeholders - Wage and Investment (W&I), Tax Exempt/Government Entities (TEGE)

Responsibilities

  1. CSPC initially processes the determination letter request submitted by the taxpayer

    1. Receipt and Handling, a part of the Processing Division, performs the initial stages of the processing

    2. The unit then ships the TEDS cases to Florence Files and the non-TEDS cases to EP/EO Determination Processing Section in Cincinnati.

  2. This IRM:

    • Establishes minimum security requirements

    • Provides instructions for processing applications and fees

    • Explains how to maintain records of remitted user fees

  3. If you follow this manual, you shouldn’t need separate desk instructions

  4. If you create any written instructions (i.e., desk procedures, alerts) to clarify this IRM, work with, and obtain the overseeing TE/GE Processing Center Program Staff analyst’s approval.

    1. Clear the instructions (using Form 2061) and give the documentation to the analyst before using the instructions.

    2. Using deviations to the procedures without the okay of the overseeing TE/GE analyst could result in transferring of resources/funds back to TE/GE. Any deviations to the procedures without the okay of the overseeing TE/GE analyst could result in transferring of resources/funds back to TE/GE.

  5. Form 8717, User Fee for Employee Plan Determination Letter Request, Form 8718,User Fee for Exempt Organization Determination Letter Request.

    1. Document payments made in determination case files

    2. Help taxpayers understand the user fee program

    3. Identify the correct fee

  6. User fees are payable with most determination letter applications. Fees are non-refundable except as provided in Rev. Proc. 2019–4 and Rev. Proc. 2019-5.

  7. Taxpayers must make remittances out to United States Treasury.

    1. Over stamp checks made out to IRS, U.S. Government, etc. with United States Treasury

    2. Return to the taxpayer remittances made out to another company to the filer

    3. Process the application accompanying the returned check as a Non-Remit document

  8. The EP/EO Determination Letter Application User Fee Manual Deposit Unit assigns the Document Locator Number (DLN) on all applications, non-remit and remit.

  9. User fees will be available to be paid through www.pay.gov as of January 2, 2019 using Forms 8717 and 8718. Pay.gov user fees will be imported to LINUS the business day following the payment input date.

  10. The unit:

    1. Stamps the DLN on the first page of the package

    2. Assembles the package per the required assembly order

  11. Identify all Deposit Tickets created within the IRS and updated to IRACS with a 14 character Trace ID Number.

  12. For the EP/EO packages, stamp the Trace ID Number on the bottom of the page bearing the DLN stamped.

  13. Establish all applications, non-remit and remit, on the Letter Information Network User Fee System (LINUS), with the exception of the Form 5310-A.

  14. LINUS is the official financial database for all EP/EO Determination user fees.

  15. Process the applications through the Modified Exempt Determination System (MEDS, also known as TEDS), which captures additional data.

  16. LINUS generates the acknowledgment notices for applications that

    1. Aren’t processed through TEDS.

    2. Require an acknowledgment notice

  17. Applications processed through TEDS require a folder label generated from TEDS.

  18. Send the Master & Prototype (M&P) Mass Submitters and Volume Submitter (VS) Programs to Cincinnati to the attention of the Pre-Approved Plans Coordinator Room 5106. Route the user fee and first page of the application to CSPC for processing. See IRM 3.45.1.12. Pre-approved plans consisting M&P plans and VS plans undergo processing via the TE/GE Rulings and Agreement Control System (TRAC). CSPC receives a Form 3210, check and a copy of the TRAC User Fee Screen from Cincinnati.

General Guidelines

  1. User fee processing units are "controlled areas." See IRM 1.4.6, Manager's Security Handbook.

  2. In the controlled area:

    1. Control access to the area from other areas by using partitions, screen, walls, cabinets or other such devices.

    2. Post the area as a "controlled area."

    3. Maintain a list containing names of those employees allowed regular access prominently at the entrance of the area. The unit manager revises the list as necessary.

    4. Maintain a register containing the name of the visitor, date and time in and out, and the reason for the visit. All visitors (not on the access list) must complete the register, and have received permission to enter the area from the area's manager.

    5. The unit manager collects the register on a quarterly basis for audit trail purposes.

  3. Safeguard remittances during non-duty hours in appropriate containers, (see IRM 10.4.1). Coordinate with local security officers to maintain adequate security.

  4. Date stamp all applications and correspondence to reflect the IRS received date. Applications received at CSPC must indicate the postmark and received dates.

  5. Sort and batch all submissions per the IRS received date. If multiple IRS received dates are mixed within a batch, use the oldest IRS received date to determine the age of the batch.

  6. Make all edits to the application or edit sheet in "RED" .

  7. The application package is a legal document. Only approved edits may be done on the application. Don’t mark or edit the application package with info unless it’s an approved edit mark.

  8. If Schedule A is attached to Form 8940, scan it as part of the initial application package with the Form 8940. Don’t scan tax forms such as Form 990 or 990-PF if received with application packages. If attached, detach and send to: Manager of the EP/EO Determination Processing Section Adjustment Unit
    Mailstop 6403
    550 Main St.
    Cincinnati, OH 45202.

  9. These procedures are a subset of IRM procedures which impact the EP/EO Determination Application packages. Some other IRM sections include:

    • 21.3, Taxpayer Contacts, contains specific instructions for writing letters.

    • 21.1.3Operational Guidelines Overview, contains specific instructions for handling disclosure issues and third party requests.

    • 1.10.1, IRS Correspondence Manual.

    • 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates.

    • 3.10.72, Receiving, Extracting, and Sorting.

    • 3.8.44, Campus Deposit Activity.

    • 3.8.45, Manual Deposit Process.

    • 3.8.46, Discovered Remittance.

  10. IRM 1.10.1 is the central authority for handling taxpayer correspondence. IRM 1.10.1 takes precedence over all other IRMs on how to handle taxpayer correspondence.

  11. Correspondence can come via the U.S. Postal Service, private carrier or fax. We use "correspondence" for all means of delivery.

  12. Refer to Document 12990, Records and Information Management Records Control Schedules, for form retention.

  13. All the TE/GE "C" letters have the toll free number hard coded in the selective paragraphs.

    Caution:

    If issuing a letter for a TE/GE return and it doesn’t have the toll-free number present, type the correct number. The entire paragraph must read: if you have any questions, please call us toll free at 1-877-829-5500.

  14. Upon discovery, report problems encountered meeting established time frames and system problems to the overseeing TE/GE Submission Processing Programs analyst. (Make your report during the day of the discovery.) Examples of established time frames include:

    1. 72 hour deposit

    2. 6 workdays for applications

    3. 3 workdays for correspondence (additional document filing (ADF) packages, remit or non-remit)

    4. 15 workdays for employee plans closed cases (EPCC) and exempt organization closed cases (EOCC) packages

  15. W&I provides the overseeing TE/GE Submission Processing Programs analyst an action plan showing how they plan to resolve the problem and give a target date for when the campus expects to be in accordance with the required time frames.

  16. Ship EO and EP applications scanned into TEDS to:
    Florence Files
    7125 Industrial Rd
    Florence, KY 41042
    Attn: File Supervisor

  17. Ship to the Federal Record Center (FRC) EOCC packages that have completed the imaging process. An outside contractor picks up the EOCC shipment weekly and delivers it to FRC. Label the boxes "FRC" .

  18. If for any reason the weekly shipment stops and doesn’t go to the FRC, CSPC management must contact CSPC Support Services to alert them that there is no shipment. The contract with the outside vendor requires a 24 hour advance notice to the vendor for no pickup.

  19. For EOCC processed packages that go to the FRC, send the Box Transmittal and a copy of the TEDS Reconstitution Report to:

    Internal Revenue Service
    550 Main Street
    FOB Mailstop 6403
    Attn: Lead Record Unit Clerk
    Cincinnati, OH 45202

  20. Send EPCC processed packages to:
    EP/EO Centralized Determination Area Office
    Attn: Manager centralized files
    550 Main St.
    Room 4022
    Cincinnati, OH 45202

  21. Unless specifically identified and requested to be shipped to a different address, ship EP Applications to:

    Internal Revenue Service
    550 Main Street
    FOB Room 2405
    Attn: EP Lead Technical Screener
    Cincinnati, OH 45202

  22. Ship all EP duplicate cases processed through Legacy or TEDS via Form 3210 to:

    Internal Revenue Service
    550 Main Street
    Attn: Lead Screener / Duplicates
    FOB Room 2405
    Cincinnati, OH 45202

  23. Ship all EP Applications received with a Foreign check or a Foreign address via Form 3210 to:

    Internal Revenue Service
    550 Main Street
    Attn: EP Lead Technical Screener
    FOB Room 2405
    Cincinnati, OH 45202

  24. Ship all EO Applications received with a Foreign check or a Foreign address via Form 3210 to:

    Internal Revenue Service
    550 Main Street
    Attn: Supervisor of EO Adjustment Unit
    FOB Mailstop 6403
    Cincinnati, OH 45202

  25. Return EP ADF case transmittals to:

    Internal Revenue Service
    550 Main Street
    Attn: Lead Technical Screener
    FOB Room 2405
    Cincinnati, OH 45202

  26. Process all packages meeting TEDS criteria through TEDS.

    Exception:

    1. The system is down for a period of time and TE/GE requests packages be processed through Legacy.

    Exception:

    2. Management from R & A and BSP:SPP approves a specific case for processing outside the required procedures. The approval must be in writing.

  27. When having Kodak scanner issues, call IT, and list the issue as a P2 ticket. As a business justification for the P2 scanner ticket, give: "This impacts work flow assignments to multiple TE/GE and W&I employees as well as the timely processing of determination requests from taxpayers, for which they have paid a user fee."

  28. Function and Program Codes used for EP/EO Determination process are:

    OFP Codes for Exempt Organization Packages
    OFP Activity Program
    150 All Data transcription from EO applications relating to the user fee for Legacy cases established in LINUS and applications processed through TEDS. 13150
    150 All Data transcription from EO Additional Payments in LINUS for applications processed through TEDS and Legacy. Additional Payments for a TEDS case is often referred to as a remit ADF package. 13510
    360 Data Transcription (manual or OCR) for EO additional payments through TEDS. EO additional documents and ADF non-remit through TEDS using an AIS document. Process Additional Payments for TEDS case with an AIS document using the ADF process flow.

    Note:

    Hours and volume for Completion, Verification, Manual ID and Rescan

    13510
    360 Data Transcription (manual or OCR) for EO Closed Cases through TEDS.

    Note:

    Hours and volume for Completion, Verification, Manual ID and Rescan.

    13530
    360 Data Transcription (manual or OCR) for EO applications through TEDS

    Note:

    Hours and volume for Completion, Verification, Manual ID and Rescan.

    13150
    550 Clerical support includes batching of the receipts, controlling EP work on BBTS, balancing and preparing deposit package, sorting work, cleaning of the scanner and boxing work for shipment. Operates scanner, loading and unloading documents. Remedies jam conditions, makes adjustments to the scanner, performs operator level maintenance.

    Note:

    Hours Only

    13150
    720 Doc Prep for all EO packages processed through TEDS. Checks documents for tears and folds. Makes minor repairs to documents for EO applications, EO additional payments, EO additional documents, EO Closed Cases and ADF non-remit through TEDS using an AIS document.

    Note:

    Hours only

    13150
    880 Quality review conducted for all EO packages. Hours reported only. 13150
    OFP Codes for Employee Plan Packages
    OFP Activity Program
    150 All Data transcription from EP applications relating to the user fee for Legacy cases established in LINUS and applications processed through TEDS. 72870
    150 All Data transcription relating to the user fee for 403(b) pre-approved prototype (M&P & VS),VC Submissions or EP technical cases established in TRAC. 72874
    150 All Data transcription from EP Additional Payments in LINUS for applications processed through TEDS and Legacy. Process Additional Payments for TEDS cases with an AIS document through the ADF process flow. 72810
    360 Data Transcription (manual or OCR) for EP additional payments, EP additional documents, ADF non-remit through TEDS using an AIS document. Process Additional Payments for TEDS case with an AIS document using the ADF process flow.

    Note:

    Hours and volume for Completion, Verification, Manual ID and Rescan

    72810
    360 Data Transcription (manual or OCR) for EP Closed Cases through TEDS.

    Note:

    Hours and volume for Completion, Verification, Manual ID and Rescan.

    72830
    360 Data Transcription (manual or OCR) for EP applications through TEDS

    Note:

    Hours and volume for Completion, Verification, Manual ID and Rescan.

    72870
    550 Clerical support includes batching of the receipts, controlling EP work on BBTS, balancing and preparing deposit package, sorting work, cleaning of the scanner and boxing work for shipment. Operates scanner, loading and unloading documents. Remedies jam conditions, makes adjustments to the scanner, performs operator level maintenance.

    Note:

    Hours only

    72870
    720 Doc Prep for all EP packages processed through TEDS. Checks documents for tears and folds. Makes minor repairs to documents for EP additional payments, EP additional documents, EP applications, EP Closed Cases, ADF non-remit through TEDS using an AIS document.

    Note:

    Hours only

    72870
    880 Quality review conducted for all EP packages. Hours reported only. 72870

EP & EO Determination Letter Application Forms

  1. The table below provides a list of the determination letter/ruling applications processed at CSPC through the Legacy system or TEDS.

    Application Form Number Description Processing System
    Form 1023 Application for Recognition of Exemption LINUS - TEDS
    Form 1023-EZ Streamlined Application for Recognition of Exemption Under IRC 501(c)(3) of the Internal Revenue Code LINUS-TEDS (via Pay.gov website only)
    Form 1024 Application for Recognition of Exemption Under IRC 501(a) LINUS - TEDS
    Form 1024-A Application for Recognition of Exemption Under section 501(c)4 of the Internal Revenue Code LINUS - TEDS
    Form 1025 Dummy Application for IRC 501(c)(1),(11), (14), (16), (18), (21), (22), (23), AND (26), (27), (28), and 501(d). LINUS
    Form 1026 Dummy Group Ruling Application LINUS - TEDS
    Form 1028 Application for Recognition of Exemption LINUS - TEDS
    Form 1128 Application to Adopt, Change or Retain a Tax Year LINUS
    Form 3115 Application for Change in Accounting Method LINUS
    Form 8940 Request for Miscellaneous Determination LINUS - TEDS
    Form 5300 Application for Determination for Employee Benefit Plan LINUS - TEDS
    Form 5307 Application for Determination for Adopters of Modified Volume Submitter Plans LINUS - TEDS
    Form 5310 Application for Determination for Terminating Plan LINUS - TEDS
    Form 5310-A Notice of Plan Merger of Consolidation, Spin-off, or Transfer of Plan Assets or Liabilities: Notice of Qualified Separate Lines of Business TEDS
    Form 6406 (obsolete as of 7-9-2007) Short Form Application for Determination for Minor Amendment of Employee Benefit Plan LINUS
    Form 5316 (AKA- Form 9999) Used to identify requests for the qualified status of a group trust LINUS - TEDS
    Form 4461 Application for Approval of Master or Prototype Defined Contribution Plan TRAC
    Form 8950 Application for Voluntary Correction Program TRAC

Receipt of Work – Time Frames

  1. Unless otherwise stated, follow IRM 3.8.45, 3.10.72, IRM 3.30.123 and IRM 3.45.1 for security, time frames and other required procedures.

  2. Batch EP and EO applications into batches of approximately five (5) applications. Five applications per batch is NOT a required number, it’s only a recommended/suggested number. Prepare the applications for processing through TEDS where the package is imaged, data captured, verified and available to the end user through the repository. Transship all applications to the EP/EO Processing Section, Cincinnati or Florence Files for TEDS cases within 6 workdays of receipt at CSPC.

  3. For a Non-TEDS application package the six (6) workday time frame includes:

    • Depositing the money.

    • Establishing a record in LINUS.

    • Shipping the hard copy to EP/EO Processing.

  4. For a TEDS application package the six (6) workday time frame includes:

    • Depositing the money.

    • Establishing a record in LINUS.

    • Scanning, Data Completion, and Verification.

    • Exporting the package to the repository.

    Note:

    Ship the hard copy of all package types within two workdays of the images first availability within the repository.

  5. EP/EO correspondence/additional documents (ADF packages) have a required three workday turn around time frame. The three workdays include batching, processing through TEDS and making the image available to view in the repository. It doesn’t include shipping the hard copy.

  6. Ship the hard copy of all package types to EP/EO Processing in Cincinnati within two workdays after the images are first available within the repository.

  7. Deposit User Fees according to required time frames. Refer to IRM 3.8.45, and IRM 3.30.123.

  8. Batch additional payments and control them on BBTS within one day of receipt within EP/EO Determination Deposit Unit (CSPC). Deposit additional payments within two workdays of receipt. See IRM 3.45.1.5.13

  9. Process the earliest received date in inventory first, with exceptions to the expedite cases. Expedite cases take priority.

  10. Work all expedite packages within two days of IRS receipt.

  11. Batch and process EP/EO Closed Cases as multiple batches per box. Control the work on BBTS within one (1) workday of receipt at the campus. Split the box into multiple batches to assist with processing through the imaging system. No set number of packages is required per batch; however, we recommend splitting the box in half to create two batches. Image, data capture, verify, and make EP/EO Closed Cases available within Documentum within 15 workdays. Additional time is allowed during peak time frames, but must be coordinated with and agreed to by the overseeing TE/GE program analyst.

  12. Additional time to process any package type " must" be coordinated with and approved by the overseeing TE/GE Submission Processing Programs analyst.

  13. No process flow (example - closed cases) is to be turned off without approval by the overseeing TE/GE Submission Processing Programs analyst. If approved, the volumes that were held will need to be completed by the end of the fiscal year in which they were held.

Control and Routing of EP/EO Determination User Fee Unit Inventory
  1. Batch and control all work on the Batch/Block Tracking System (BBTS) under the appropriate program code. Release the work after each function before working the package at the next function:

    Type of Work Program Code
    EO Applications - Legacy/TEDS 13150
    EP Application - Legacy/TEDS 72870
    EO Closed Cases 13530
    EP Closed Cases 72830
    EO Additional Payments 13510
    EP Additional Payments 72810
    EO Additional Document Filing (ADF) - Non-remit 13510
    EP Additional Document Filing (ADF) - Non-remit 72810
    EP 403(b) pre-approved prototype (M&P & VS),VC Submissions or EP technical cases established in TRAC. 72874
  2. Use the following routes within BBTS:

    Type of Work BBTS Routing Program Code
    EO Applications - Legacy 110, 140, 180, 150, 610 13150
    EP Application - Legacy 110, 140, 180, 150, 610 72870
    EO Closed Cases 110, 180, 450, 360, 610 13530
    EP Closed Cases 110, 180, 450, 360, 610 72830
    EO Applications - TEDS 110, 140, 180, 150, 450, 360, 610 13150
    EP Applications - TEDS 110, 140, 180, 150, 450, 360, 610 72870
    EO Additional Payments 110, 140, 180, 450, 360, 610 13510
    EP Additional Payments 110, 140, 180, 450, 360, 610 72810
    EO Additional Document Filing (ADF) - Non-remit 110, 180, 450, 360, 610 13510
    EP Additional Document Filing (ADF) - Non-remit 110, 180, 450, 360, 610 72810
  3. Route each batch of work Processed through TEDS through:

    • Sorting

    • Batching/numbering

    • Payment processing

      Note:

      Not applicable to EOCC, EPCC, or EP/EO Non-Remit ADF packages

    • Document Preparation (Doc Prep)

      Note:

      Not applicable to EOCC or EPCC

    • Batch Scanning Module

    • Form Identification Module (identify forms auto)

    • Package Integrity Verification Module (verifies required documents)

    • Manual Form identification (step of fix-up)

    • Rescan (step of fix-up)

    • Package Completion Module

    • Package Verification Module

    • Printing labels

      Note:

      Applicable to Application packages only

    • Electronic Stored to Documentum Module

    • Reconstitute Package Module

  4. Complete the Doc Prep for all EP/EO Closed Cases before sending to CSPC for imaging, with the exception on inserting the "Package" and "Batch " control sheets.

  5. The table below provides info for the TEDS unique Batch Control Number format per package type.

    Package Type Batch Control Number Format Format Description 1, 2, 3
    EO New Application NBBBBYYJJJ N designates that the batch is an EO application package
    EP New Application ABBBBYYJJJ A designates that the batch is an EP application package
    EP Additional Document Filing FBBBBYYJJJ F designates that the batch is an EP Additional Document Filing package
    EO Additional Document Filing DBBBBYYJJJ D designates that the batch is an EO Additional Document Filing package
    EP Closed Cases PBBBBYYJJJ P designates that the batch is an EP Closed Case package
    EO Closed Cases EBBBBYYJJJ E designates that the batch is an EO Closed Case package

    Note:

    1. BBBB is the four digit BBTS batch number entered by the scan operator.

    Note:

    2. YY is the last 2 digits of the year.

    Note:

    3. JJJ is the Julian date that the batch was scanned

User Fee Schedule for EP and EO Determination Applications

  1. The Table below lists old and new user fees for EP and EO determination letters.

    Form Pay Type Fee, January 4, 2010 Fee, January 3, 2011 Fee, February 1, 2016 Fee, July 1, 2016 Fee, January 2, 2018 Fee, July 1, 2019
    EO Application User Fees          
    1023 Initial Request - Gross Receipts less than $10,000 $400       $600  
    1023 Initial Request - Gross Receipts $10,000 or more $850       $600  
    1023-EZ Initial online request - Gross receipts $50,000 or less       $275    
    1024 Initial Request - Gross Receipts less than $10,000 $400       $600  
    1024 Initial Request - Gross Receipts $10,000 or more $850       $600  
    1024-A Initial request for 501(c)4 filers         $600  
    1025 Initial Request - Gross Receipts less than $10,000 $400       $600  
    1025 Initial Request - Gross Receipts $10,000 or more $850       $600  
    1026 Group Rulings $3,000       $2,000  
    1028 Initial Request - Gross Receipts less than $10,000 $400       $600  
    1028 Initial Request - Gross Receipts $10,000 or more $850       $600  
    1128 Part III Section A L14   $350

    Note:

    As of January 1, 2015, a user fee isn't needed.

           
    3115 Part III L 23a   $275        
    8940 a, b or c checked   $1,000       $2,000
    8940 d, e, f, g, h, I checked   $400        
    EP Application User Fees          
    Form Pay Type Fee February 1, 2011 Fee February 1, 2014 Fee February 1, 2016     Fee July 1, 2019
    5300 With Demo 5 and/or Demo 6 $4,500          
    5300 No Demo 5 or Demo 6 $2,500          
    5300 Multiple Emp. 2-10 With Demo 5 and/or Demo 6 $5,000          
    5300 Multiple Emp. 11–99 With Demo 5 and/or Demo 6 $5,000          
    5300 Multiple Emp. 100–499 With Demo 5 and/or Demo 6 $25,000          
    5300 Multiple Emp. over 499 With Demo 5 and/or Demo 6 $25,000          
    5300 Multiple Emp. 2-10 No Demo 5 and/or Demo 6 $3,000   $4,000      
    5300 Multiple Emp. 11–99 No Demo 5 and/or Demo 6 $3,000   $4,000      
    5300 Multiple Emp. 100–499 No Demo 5 and/or Demo 6 $15,000   $4,000      
    5300 Multiple Emp. over 499 No Demo 5 and/or Demo 6 $15,000   $4,000      
    5307 With Demo 5 and/or Demo 6 $1,800          
    5307 No Demo 5 or Demo 6 $300 $500 $800      
    5310 With Demo 5 and/or Demo 6 $4,000          
    5310 No Demo 5 or Demo 6 $2,000   $2,300     $3,000
    5310 Multiple Emp. 2–10 With Demo 5 and/or Demo 6 $5,000          
    5310 Multiple Emp. 11–99 With Demo 5 and/or Demo 6 $5,000          
    5310 Multiple Emp. 100–499 With Demo 5 and/or Demo 6 $25,000          
    5310 Multiple Emp. over 499 With Demo 5 and/or Demo 6 $25,000          
    5310 Multiple Emp. 2–10 No Demo 5 or Demo 6 $3,000   $4,000      
    5310 Multiple Emp. 11–99 No Demo 5 or Demo 6 $3,000   $4,000      
    5310 Multiple Emp. 100–499 No Demo 5 or Demo 6 $15,000   $4,000      
    5310 Multiple Emp. over 499 No Demo 5 or Demo 6 $15,000   $4,000      
    5316 Group Trust $1,000          
    6406 Minor Amendment No Demo 5 or Demo 6

    Note:

    Obsolete as of 7-9-2007, Rev Proc 2007-44

    Form 6406 was obsolete as of 7–9–2007, Rev Proc 2007–44          
  2. In accordance with the income tax treaty between the United States and Canada, Canadian registered charities are automatically recognized as exempt under 501(c)(3) without filing an application for exemption. Therefore, no user fee is required when a Canadian registered charity submits all or part of a Form 1023. If a valid or invalid user fee is submitted with the application, treat and process the application as a valid user fee package. A Canadian registered charity application is only treated as invalid if filed on an obsolete application revision.

Frivolous Argument

  1. Taxpayers use frivolous arguments to express dissatisfaction with the substance, form, or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. For examples of recognized frivolous arguments made by businesses see IRM exhibit 25.25.10-1, Frivolous Return Program.

  2. We don’t image or establish frivolous returns in LINUS. Continue to process per instructions below.

  3. Route documents on a Form 3210 to:

    Compliance Services, Ogden Campus
    Frivolous Filer (FRP)
    1973 N. Rulon White Blvd, Mail Stop 4450
    Ogden, UT 84404

Systems Used to Process the EP/EO Applications

  1. We use these systems to process EP/EO applications.

    IRS System Used to Process EP/EO Applications Function
    Letter Information Network User Fee System (LINUS)
    • Provides TE/GE a financial database for all Determination user fees and is an integral step in application processing.

    • Generates acknowledgment notices and EP/EO Determination Input Sheets.

    EP/EO Determination System (EDS)
    • An automated system for processing determination applications.

    • A menu-driven system with four available subsystems

    • Nearly all applications go through TEDS, no new applications go through EDS on the front-end.

    Modified Exempt Determination System (MEDS), also known as TEDS In MEDS, we scan all documentation in an application package and capture data as index fields. Images are available through Documentum.
    TE/GE Rulings and Agreements Control System (TRAC) Used to process the M&P and the VC application user fees and VCP fees through the Headquarters Employee Plans inventory control system (HQEP) within TRAC.
    Master and Prototype inventory control system (MAPICS) Provides an audit trail covering a daily schedule of user fee collections for specific dates and user fee receipts by fee type.

System Problems and Reporting

  1. If you encounter system, equipment or scanner problems:

    • Desktop Computer problems/issues: contact IT Desktop Support by submitting a KISAM Ticket via Get It Services on the Intranet.

    • Linus problems: contact IT Desktop Support by submitting an KISAM Ticket via Get It Services on the Intranet. For access issues such as TE Number or SEID number problems, ask to have the ticket assigned to BU-TEGE-TOPS.

    • Scanner problems: contact GTSI Corp at 703–502–2851. You will need the number from the label on the scanner.

  2. TEDS Support: submit a KISAM Ticket via Get It Services and:

    • When you open your ticket, ask the help desk to assign it to: EOPS-ECC-T2WB-TSS-CS2.

      Reminder:

      Please also request that the ticket be shared with: BSD-DIO-TEGE-TEDS. (This ensures that the SAIC team knows about the ticket and can follow up).

    • After opening the ticket, please email the SAIC team and the TEGE:BSP:SPP Program Analyst with the ticket number.

    • If the problem is on 3rd shift, please also call 267-767-3588, so they can start working your issue without waiting to receive notification via ITAMS.

Ordering Supplies

  1. TE/GE orders and pays for specific supplies. See the list below:

    • Control Sheets for EP packages processed through TEDS

    • Control Sheets for EO packages processed through TEDS

  2. On the first Monday of every month CSPC management provides a list of needed supplies and an estimated volume needed to the overseeing BSP:SPP analyst. CSPC must have 45 day supply on hand.

Sorting Applications Within the EP/EO Determination Letter Application Manual Deposit Unit - AKA Second Sort

  1. This section provides procedures for sorting the applications within the EP/EO Determination Letter Application Manual Deposit Unit.

    Note:

    For Extracting procedures refer to IRM 3.10.72, Extracting, Sorting and Numbering.

Received Date and Postmark Date

  1. The Extraction Unit should stamp the EP/EO determination applications with both the postmark and received date. During second sort, the EO/EP Determination Remittance Technician must verify the application was stamped correctly. This section provides procedures for the Postmark and Received Date.

  2. The EP/EO application packages are all dual stamped with the Postmark Date and the Received Date on the appropriate page of the package type. The table below provides examples of the documents that are dual stamped per the package type:

    Package Type: Form / Page:
    Form 5307 Form 5307 page 1
    Form 5300 Form 5300 page 1
    Form 5310 Form 5310 page 1
    Form 1023 Form 1023 page 1
    Form 1024 Form 1024 page 1
    Form 1024-A Form 1024-A page 1
    ADF packages - Remit & Non-remit AIS

    Note:

    Don’t place the stamp over the info which may be relevant to reaching a determination regarding the qualification of the plan or a bar code that is read by TEDS.

  3. The Received Date is stamped on the right.

    Note:

    The "Received Date" is the "first" IRS received date except for the ADF & EPCC/EOCC packages. Refer to paragraphs below for appropriate received dates.

  4. The Received Date for an ADF package is the date received within the CSPC EP/EO Determination User Fee Unit.

  5. The Received Date for an EOCC/EPCC package is the date received within the CSPC EP/EO Determination User Fee Unit.

  6. The Postmark Date is stamped on the left.

  7. For missing or illegible postmarks:

    If... Then...
    the postmark is missing or illegible use the date stamp on the envelope as the postmark date
    there is no date stamp on the envelope use the IRS received date as the postmark date
    Faxed ADF package Use the date it was faxed to CSPC EP/EO Determination User Fee Unit
  8. You must determine the correct postmark and received date. Take the control date for EP and EO applications from the postmark date.

    Note:

    If the postmark or received date is in the future, verify the date with the manager or lead for correction. Don’t use future dates.

  9. EP and EO determine the beginning of the declaratory judgment date by the control date and for EO the control date determines if the organization timely submitted the application.

  10. Sort and batch all submissions per the IRS received date. If multiple IRS received dates are mixed within a batch, use the oldest IRS received date to determine the age of the batch.

  11. The IRS received date is captured for all packages processed through TEDS. The IRS received date must be captured during the initial steps of scanning the batch.

EO Applications With Remit, (Form 1023, 1024, 1024-A, 1025, 1026, 1028, 3115 and Form 8940)

  1. Sort the work in numerical order:

    • Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

    • Form 1024, Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120

    • Form 1024-A, Application for Recognition of Exemption under Section 501(c)(4) of the Internal Revenue Code.

    • Form 1025, Exemption Application.

      Note:

      The application form is obsolete. Use a print of IDRS BMFOL in place of the application.

    • Form 1026, Exemption Application.

      Note:

      The application form for a request for group exemption is obsolete. Use a print of IDRS BMFOL in place of the application. Organizations will request recognition as central organization in their cover letter, providing a list of their related subordinate organizations.

    • Form 1028, Application for Recognition of Exemption(IRC 521 Farmer's Cooperatives

    • Form 3115, Application for Change in Accounting Method

    • Form 8940, Request for Miscellaneous Determination (IRC 507, 509(a), 4940, 4942, 4945 and 6033)

  2. Additional sort for the EO applications:

    • TEDS Process

    • Obsolete Version

    • Insufficient User Fees

    • Expedite Request

    • Follow up Applications

    • Failure to Establish (FTE)

    • Congressional Letters

    • VEBA applications

  3. Sort and associate the EO applications:

    1. Review submission for a Congressional letter.

    2. Scan for EXPEDITE criteria. If applicable, place application in a pink folder for identification by the EP/EO Determination Section in Cincinnati.

      Note:

      Expedite cases processed through TEDS must have the expedite editing completed during Doc Prep.

    3. Refer to IRM 3.45.1.4.2.6 to determine if you should process the EO Applications requesting expedite process as an expedite application.

    4. Keep all expedite applications separate from the other applications. Report them on the TE/GE Daily Release Report. Refer to Expedite procedures in IRM 3.45.1.8.

    5. Verify the Employer Identification Number (EIN) to ensure validity, (i.e. 9 digit).

    6. If the EIN isn't present, or valid, search through the remainder of the application for a valid EIN. If you find one, verify the EIN via IDRS research. If you find an EIN, write the EIN in "RED" on the application and the Form 8718.

    7. If unable to find a valid EIN, put the entire application package in the Entity basket for IDRS research.

      Note:

      If you find a Form SS-4 within the application package, place it on the top of the package before placing it in the Entity basket.

    8. A Form 8718 received with a revocation application doesn’t need Line 3 of the form marked. Only Lines 1 and 2 need to be completed.

    9. Thumb through the application package to check for other applications or remittances within the submission.

    10. Verify the check is payable to United States Treasury.

    11. Write the money amount in the top right corner of Form 8718.

    12. Occasionally you'll receive a "multi" (multiple remittances used for paying one fee) or a "split" (one remittance used for paying fees on multiple applications).

    13. If we receive a multi or split, make a notation in the upper left hand corner of the Form 8718, showing the number of checks received and the total fee received. M-N (M= multi, N= number of checks received),

      Note:

      Omit the dollar sign, decimal following zeros when writing dollar amounts, (e.g., write $250.00 as 250)

      Exception:

      Annotate cents when actual cent amount is received, (e.g., write $250.75 as 250.75)

    14. On Form 1026 write "Gr. Ruling" in the upper right corner.

    15. Remove the staples from the check and paper clip the check to the front of the Form 8718.

    16. Stagger the application package documents:
      Form 8718
      Application
      Form 8821 or Form 2848, if applicable
      Cover Letter

    17. Assemble the Form 1023:
      Form 1023 checklist
      Application - Form 1023 and Schedules A-H, as required
      Form 2848, Power of Attorney and Declaration of Representative (if filing)
      Form 8821, Tax Information Authorization (if filing)
      Expedite request (if requested)
      Form 5768 (if filing)
      All other documents as filed by the filer including explanations, financial data, and printed materials or publications.
      Form 8718

    18. Tear down the envelope, leaving only the front of the envelope attached to the application package.

      Note:

      The portion of the envelope remaining must show the postmark or other shipment date.

    19. Verify all necessary items were properly stamped.

    20. Bind applications together.

    21. Band applications in packs of 5, when possible.

      Note:

      DON’T mix form types

    22. Attach Pink Batch Ticket to front of pack

  4. The Batch Ticket contains:

    1. EO 1023, 1024, 1024-A, 1025, 1026 or 1028 W/R (use appropriate form number)

    2. Rec. Date

    3. Vol XX

    4. Employee Initial

  5. If EO Determination processing returns an EO application to the filer and we receive it again, process the application as a new application. Don’t process EO cases as a RESUB. Do:

    • Circle out all prior DLNs, postmark dates, and received dates.

      Note:

      Don’t cross them out. For audit purposes the prior DLN must be viewable.

    • Circle out all prior annotations of prior user fees.

    • Stamp and process the application with a new DLN.

  6. For additional info on procedures for perfecting the payment document, see IRM 3.8.45, Manual Deposit Process.

  7. Form 1025 must have an IDRS print of BMFOLO to verify the organization's address.

  8. Form 1026 must have an IDRS print of BMFOLO to verify the organization is in current status "01" and to obtain an address for the organization. If status isn't "01," see your work leader.

  9. Forms 1128 and 3115 don’t process through TEDS.

  10. If we receive a Non-IRS application from the filer, process as an IRS application if info is available to deposit money. If info is missing, refer to procedures for incomplete application and payment perfection process.

Interactive Form 1023
  1. An interactive version of Form 1023 was released to the public to assist filers with the completion of the application form. The form looks nearly identical to the current non-interactive form with one exception: at the end of the form's title at the top of page 1, a (99) appears on the interactive version of the Form 1023.

Form 1023-EZ (Pay.gov)
  1. Form 1023-EZ is available for use. It’s a streamlined version of the Form 1023 application form, filed electronically through the www.pay.gov website only. If received by mail, return it to the filer. This form processes electronically from Pay.gov to MEDS directly. No paper processing takes place for this version of the form.

  2. Filers pay the user fee through www.pay.gov, which downloads to LINUS as outlined in IRM 3.45.1.15.1. The user fee payments are identifiable in LINUS by a DLN beginning with 26.

VEBA Applications
  1. Sort Form 1024 applications received with "VEBA" written across the top of the application from the other applications.

  2. Process the application per the procedures for processing the Form 1024 applications.

  3. Transship the VEBA applications in a separate box to EO/EP Processing Unit.

  4. Provide the count of the VEBA applications on the TE/GE Release report with the other Form 1024 applications. Don’t break the count out separately.

Rejecting EO Applications
  1. Organizations submitting an incomplete request for a determination letter will have their form returned to them along with any user fee payment they submitted.

  2. Reject the application and/or user fee for the following reasons:

    1. obsolete, missing or substantially incomplete forms
      If an applicant submits an obsolete version of the form, if a required form is not submitted, or if a substantial number of pages are missing from the form, the application will be returned as incomplete. Example - if org only submits page 1, this will be returned. Current versions of the forms are listed in the following section entitled Obsolete EO Applications Revision Dates and http://publish.no.irs.gov/cat12.cgi?request=CAT1&catnum=17133.

    2. user fee
      If the application submits an incorrect User Fee, the application will be returned as incomplete. Reject application and return user fee check when:
      Form 1023, Form 1024, Form 1024-A or Form 1028 are submitted with a user fee other than $600
      Form 8940 submitted with a user fee other than $400 or $1,000
      Group Exemption Letter Request (Form 1026) submitted with a user fee other than $2,000
      Determination Letter Application (ex: 501(c)(11), (14), (16), (18), (21), (22), (23), (26), (27), (28), or (29) application), Form 1025) with a user fee other than $600

      Note:

      The current revision of Form 8718 current revisishould be accepted as long as the user fee payment is for the correct amounts as listed above. Make sure to research LINUS for a fee from Pay.gov before rejecting for an insufficient user fee.

    3. signature
      If the application is not signed, the application will be returned as incomplete

    4. activities description
      If a Form 8940 application is submitted without an attached letter explaining the requested change, it will be returned as incomplete.

  3. Once all needed items have been identified, complete a correspondence action sheet (CAS) for Letter 5530C as follows:

    1. check only ONE box in the first section to indicate which form the organization submitted

    2. check box F if the form submitted is obsolete or no form was submitted

    3. Check box G if the user fee is incorrect

    4. Check box H if there is a missing signature

    5. Check box L if the Form 8940 is missing any attachments explaining the applicant’s request.

    Note:

    If there is more than one reason for rejection, you must check a box for each reason for rejection.

  4. Enter the information into LINUS as a non-remit application using the most appropriate "returned" indicator.

  5. Prepare the rejected package as follows:

    1. Staple the check to the front of the application package allowing the filer’s address to show.

    2. Staple the Correspondence Action sheet (CAS) to the front of the rejected package and place entire package in the correspondence bucket in Receipt & Control area at Mail stop 362 on a daily basis.

Obsolete EO Applications Revision Dates
  1. EO Division has approved returning EO applications if filed on an obsolete revision. The table below provides the valid version. Consider all other revisions as obsolete and process them as obsolete forms.

    Form Purpose of Form Valid Revision Date
    8718 User Fee Form

    Note:

    If we receive an application with invalid revision, CSPC prepares valid revision

    3/2018
    1023 Application for Recognition of Exemption under 501(c)(3) of IRC 12/2017
    1024 Application for Recognition of Exemption under section 501(a) 01/2018
    1024-A Application for Recognition of Exemption under section 501(c)(4) of the IRC 01/2018
    1028 Application for Exempt for Farmers' Co-ops (IRC 521) 9/2006
    8940 Request for Miscellaneous Determination 6/2011
  2. Obsolete applications and old revisions should be rejected and returned to the filers as incomplete.

Insufficient User Fee
  1. EO Division has approved returning EO applications to the filer if filed with an insufficient User Fee.

  2. EO Applications filed with an insufficient user fee will be returned to the filer.

  3. Sort EO applications with insufficient user fees from the other EO applications. All other sorting procedures apply.

  4. If filed on an obsolete application form revision and received with an insufficient user fee, sort and process the application as an obsolete application and return to the filer.

  5. If the filer is asking for expedite treatment and submitted an insufficient user fee, sort and process the application as an insufficient user fee application and return to the filer.

  6. Insufficient user fee applications must have a portion of the user fee submitted with the application. If the application is given a non-remit DLN, it’s not considered an insufficient user fee application. Process the application as a non-remit application.

  7. Refer to IRM 3.45.1.3.3 for valid user fee amounts.

  8. The only exception to the procedures above is if the application is from a Canadian registered charity. In accordance with the income tax treaty between the United States and Canada, Canadian registered charities are automatically recognized as exempt under IRC 501(c)(3) without filing an application for exemption. Therefore, no user fee is required when a Canadian registered charity submits all or part of a Form 1023. If a valid or invalid user fee is submitted with the application, treat and process the application as a valid package. Treat a Canadian registered charity application as invalid only if filed on an obsolete application revision.

Sorting Expedite Applications
  1. Process EP/EO applications that request expedited processing, and meet criteria within 2 workdays, forward them to EP/EO Determination Processing Section and separate them from the other applications. Process all special expedites, such as applications as a result of a disaster according to time frames given in specified disaster procedures.

  2. When processing an expedite application through TEDS:

    • Batch it separately from other applications.

    • Place a hard copy package in pink folder.

    • Place the expedite letter behind the "Other Document Control Sheet" as the first document during Doc Prep.

    • Make an annotation during Doc Prep to identify to process the application as an expedite. Refer to expedite indicators for TEDS.

    • Set priority at the time of scanning at "1" .

    • Capture the expedite indicator during Data Completion and verify it during Data Verification.

  3. Requests for expedited treatment of an application must be in writing and provide a compelling reason why the case should be worked ahead of other applications. Generally, we’ll grant expedited treatment if the application has a grant pending and the failure to secure the grant may have an adverse impact on the organization's ability to continue operations.

  4. EO applications requesting expedite processing won’t qualify as an expedite if:

    • Filed on an invalid version

    • Submitted as a non-remit application

    • Received with an insufficient user fee

  5. Treat as an expedite application if the application states the newly created organization’s purpose is to provide disaster relief to victims of emergencies such as flood and hurricanes.

Applications Received For State of California Wildfire Disaster
  1. Treat as expedited applications all Form 1023 applications and/or cover letters that have Disaster Relief: "State of California Wildfire" written at the top of the application or some statement referring to the disaster relief indicated on the application or within the cover letter. Refer to IRM 3.45.1.8 for expedite procedures.

  2. If processing the application through TEDS, select the "001-Proposed Expedites" for the expedite indicator.

  3. If form is an obsolete form, process the request as an obsolete application.

  4. If received with an insufficient user fee, process the request as an insufficient application.

  5. If received as a non-remit application, process the request as a non-remit.

Sorting EP Applications with Remit (Form 4461, 5300, 5307, 5310, 5310-A, 5316 and Form 6406)

  1. Sort the work in numerical order, Form 4461 through Form 9999.

  2. The following are applications filed for EP:

    Form # Description
    4461 Application for Approval of Master or Prototype or Volume Submitter Defined Contribution Plans
    4461-A Application for Approval of Master or Prototype or Volume Submitter Defined Benefit Plan
    4461-B Application for Approval of Master or Prototype or Volume Submitter Plans; Mass Submitter Adopting Sponsor or Practitioner
    5300 Application for Determination for Employee Benefit Plan
    5307 Application for Determination for Adopters of Modified Volume Submitter Plans
    5310 Application for Determination for Terminating Plan
    5310–A Notice of Plan Merger or Consolidation, Spin-off, or Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Line of Business
    5316 Application for Group or Pooled Trust Ruling
  3. Make sure that all applications received in the same envelope or identified in the mail room as applications that came in together stay together. These applications must stay together.

  4. For the Form 8717, we need:

    • Line 1 - Name of plan sponsor

      Note:

      If two entity names are listed on the "Sponsors' Name Line" , research IDRS to find the correct sponsor's name.

    • Line 2 - Sponsor's employer identification number (EIN)

    • Line 3 - Plan Number

    • Line 4 - Plan Name

    • Line 5a thru 5h - appropriate indicator box

  5. If missing any of the info, the employee sorting fills in the missing info.

    Note:

    Make ALL approved edits in "RED" . Make no other edits on the document.

  6. When the required info is missing:

    Required Field If missing If found If not on application or within package
    Name of plan sponsor research application for name of plan sponsor write the info in "RED" on the Form 8717. research IDRS to find the correct sponsor's name
    Sponsor's employer identification number (EIN) search through the remainder of the application for a valid EIN. verify the EIN via IDRS and write the EIN in "RED" on the application and the Form 8717. put the entire application package in the Entity basket for IDRS research.
    Plan Name search on the application for the plan name write the info in "RED" on the Form 8717. edit the info in red on the application and the Form 8717 as "PLAN"
    Plan Number search on the application for the plan number write the info in "RED" on the Form 8717. edit the info in red on the application and the Form 8717 as "999"
  7. Verify the employer identification number (EIN) is present and valid, (i.e. 9 digit number).

    • Verify the EIN is the same as on the application. If not, place application in the Entity Basket for additional research.

    • If you find Form SS-4 within the application package, place it on the top of the package before placing it in the Entity basket.

    • Thumb through the application package. Check for other applications or remittances.

  8. Verify the check is payable to United States Treasury.

  9. Write the money amount in the top right corner of the Form 8717.

    Note:

    We may receive a "multi" (multiple remittances used for paying one fee) or a "split" (one remittance used for paying fees on multiple applications).

  10. If we receive a multi or split, make a notation in the upper left hand corner of the 8717, showing the number of checks and the total fee received.

    Note:

    M-N (M= multi, N= number of checks received).

    Note:

    Omit the dollar sign, decimal following zeros when writing dollar amounts, (e.g., write $250.00 as 250).

    Exception:

    Annotate cents when actual cent amount is received, (e.g., write $250.75 as 250.75).

  11. See table below for additional required editing on the Form 8717:

    If Transaction Type... Then notate as... Description
    Multi M-nn When more than one payment submission is attached
    Split S-nn When payment submission is split between applications
    Memo Entry ME When payment submissions are processed at another campus and application is processed at CSPC
  12. If EP Determination processing returns an EP application to the filer and we receive it from the filer again, process the application as a new application. Don’t process the cases as a RESUB. Do:

    • Circle out all prior DLNs, postmark dates, and received dates.

      Note:

      Don't cross them out; for audit purposes the prior DLN must be available to view.

    • Circle out all prior annotations of prior user fees.

    • Stamp and process the application with a new DLN.

  13. Organize the application package documents:
    Form 8717
    Application
    Form 8821 or Form 2848, if applicable
    Cover Letter

  14. Tear down the envelope, leaving only the front of the envelope attached to the application package.

    Note:

    The portion of the envelope remaining must show the postmark or other shipment date.

  15. Verify all necessary items were properly stamped.

  16. Band application in packs of five (5). The count of 5 is just a general rule. More or less can be a batch with no impact to the filer.

    Note:

    DON’T mix form types unless they came in together.

  17. Attach Orange Batch Ticket to front of pack.

  18. The Batch Ticket contains:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting Form 4461 - Volume Submitter (VS) Specimen Plans
  1. The Volume Submitter Coordinator in Cincinnati, OH receives and processes Form 4461, Application for Approval of Master or Prototype or Volume Submitter Defined Contribution Plans. The user fee check and MAPICS control sheet showing the control number for TRAC are then sent to Covington, KY for deposit. The check information is added to MAPICS by the TEGE deposit team member and is deposited with the daily user fee deposit package. Form 3210 is returned to the sender.

Sorting Form 5300, 5307, 5310, 5316 and Form 6406
  1. Verify the check is payable to United States Treasury.

  2. Write money amount in the top right corner of Form 8717.

  3. Paper clip check to the front of the Form 8717.

  4. Verify proper date stamping of all documents.

  5. Check that the submission has no other applications.

  6. If we receive a Form 5300 with a Letter 1012 attached (letter number is in the bottom right hand corner of each page of the letter), process the Form 5300 as a new submission and don’t associate with the previously filed Form 5300 or pull an Additional Information Sheet (AIS) from MEDS.

  7. Band together all of the items above in packs of five (5).

  8. Attach Orange Batch Ticket to front of pack, except for the Form 5307, which has a Blue Batch Ticket.

  9. The Batch Ticket contains:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

  10. When Form 6406 completes processing through LINUS, transship it directly to:

    Note:

    Don’t establish the form in EDS or TEDS.

    Internal Revenue Service
    550 Main St.
    FOB Room 2405
    Attn: EP Lead Technical Screener
    Cincinnati, OH 45201

Unprocessable EP Applications
  1. EP application packages are unprocessable if missing any of the following:

    • Page 1 of the application

    • Form 8717

    • Name- Block 1a

    • Address - Block 1a

    • Employer Identification Number (EIN) - Block 1b

    • Plan Number - block 4b

    • Postmark date

    • Received date

  2. Forward the package to the "Exception Sub-Process" to research for missing items. Make all edits in RED.

Sorting Form 5300 — Remit Multiple Employer Plans
  1. A Multiple-employer plan is a plan maintained by more than one employer and may file for a separate determination letter using Form 5300.

Form 5300 - Multiple-Employer Remit Lead Plan
  1. Verify the check is payable to United States Treasury.

  2. Write money amount in the top right corner of Form 8717.

  3. Paper clip check to the front of the Form 8717.

  4. Flag the application with the exact same EIN in item 1b (Rev 9-2001)/item 1h (Rev 4-2011)/item 1f (Rev 12-2013) and the exact same plan name in item 4a of Forms 5300 as in item (2) and (4) of Form 8717, respectively.

  5. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  6. Verify proper date stamping of all documents.

  7. Check that the submission has no unrelated applications.

  8. Copy the first page of the Form 5300 Lead Plan application.

  9. Attach Batch Ticket to front of pack.

  10. The Batch Ticket contains:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting Form 5310 - Application for Determination for Terminating Plan
  1. Plan sponsors or administrators of pension, profit-sharing, or other deferred compensation plans use Form 5310 to ask IRS to make a determination on the plan's qualification status at the time of the plan's termination.

  2. The lead plan must pay the required user fee.

    Note:

    Per Rev. Proc. 2018-4, only the Lead plan may file an application.

Form 5310 - Application for Determination for Terminating Plan - Remit Multiple Employer (Lead) Plan
  1. Verify the check is payable to United States Treasury.

  2. Write money amount in the top right corner of Form 8717.

  3. Paper clip check to the front of the Form 8717.

  4. Flag the application with the exact same EIN in item 1f and the exact same plan name in item 4a of Forms 5310 as in item (2) and (4) of Form 8717, respectively.

  5. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  6. Verify proper date stamping of all documents.

  7. Check that the submission has no unrelated applications.

  8. Copy the first page of the Form 5310 Lead Plan application. Attach the copy to the top batch of the Form 5310 applications filed for the participating employers.

  9. Attach Batch Ticket to front of pack.

  10. The Batch Ticket contains:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting Form 5316 AKA Form 9999- Remit
  1. Form 9999 was created because there was no designated application form for a Group Trust. Form 5316 must now be used to apply for a Group Trust.

  2. To prepare the package for processing:

    1. Print IDRS INOLES using the definer code "P" .

    2. Print IDRS INOLES without the P if receiving IDRS message "Record not found. "

    3. Attach the INOLES research to the front of Form 8717.

    4. Write "Money amount" in the top right corner of Form 8717.

    5. Flag the cover letter (this acts as the application).

    6. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    7. Verify proper date stamping of all documents.

    8. Band together all of the above documents.

    9. Band together in packs of five (5) when possible

    10. Attach blue batch ticket to front of pack.

  3. The batch ticket contains:

    1. Form 9999 W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting Applications that are Non-Remit

  1. This section provides procedures for sorting applications received and processed as non-remit.

Canadian organizations submitting Non-remit EO Application
  1. All non-remit EO applications should be rejected with the exception of applications from Canadian organizations.

  2. If the Form 1023 non-remit application has a Canadian address, the filer doesn't need to submit a user fee. The income tax treaty between the United States and Canada recognizes a Canadian registered charity exempt under IRC 501(c)(3). No user fee is required when a Canadian registered charity submits all or part of a Form 1023.

  3. The Form 1023 for the Canadian organization receives a Non-Remit DLN.

  4. Sort and associate:

    1. Verify an indicator is marked on the Form 8718.

    2. Complete Form 8718, if needed.

    3. Write "O" in the upper right corner of the Form 8718.

    4. Flag the application if showing a different address than on EDS.

    5. Flag the POA, if present.

    6. Verify proper date stamping of all necessary items.

    7. Circle out all previous DLNS and date stamps.

    8. Bind the submission together.

    9. Batch submissions in packs of five (5), when possible.

    10. Attach a yellow Batch Ticket to front of pack.

  5. The ticket contains:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting EO FTE
  1. EO Determinations sends an FTE letter to an organization when they don’t receive a response to an additional info request. EO Determinations closes the case on EDS when sending an FTE letter. FTE letters begin "Our letter dated ddmmyyyy asked you to send us additional info."

  2. All Non-Remit submissions should be rejected.

  3. Sort and associate the submission:

    1. Research EDS to determine that the case is in status 11 or 12.

    2. If case shows status 11 or 12, process application as an "I" case.

    3. Batch Form 1023, 1024-A and Form 1024 FTE separate.

    4. Complete Form 8718, if needed, and flag behind the EDS sheet.

    5. Circle out any previous received dates and DLNs.

    6. Paper clip the check to the front of the Form 8718.

    7. Flag the POA, if present.

    8. Verify proper date stamping of all necessary items.

    9. Bind the submission together.

    10. Band submissions in packs of five (5), when possible.

    11. Attach yellow batch ticket to front of pack.

  4. If the application shows a different address than EDS, use the most current info.

    Note:

    To determine which is current, compare the signature date on the application and the last status date on EDS.

  5. The batch ticket contains:

    1. 1023 FTE N/R (use appropriate form number)

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting Form 8734 - Support Schedule For Advance Ruling Period
  1. The Form 8734 was filed at the end of an advance ruling period. Although the advance ruling process was made obsolete by amendments to Treas. Reg. § 1.170A-9 and § 1.509(a)-3 (as of 9/9/2008), some organizations whose advance ruling periods ended before that date may still submit a Form 8734. A user fee may be required for Form 8734. If a fee is received with Form 8734, process the fee through LINUS as Form 8940. If Form 8940 is not received, reject as incomplete.

  2. The Form 8734 isn't processed through TEDS.

  3. The Form 8734 must have a BMFOL print pulled and attached to all Form 8734s. The entity info is to be captured from the Form 8734, unless it's missing from the Form 8734; then the data is captured from the BMFOL print.

  4. If an organization provides a copy of the Form 990 Schedule A, it may be used in lieu of a completed Form 8734 if it contains sufficient entity info.

  5. Process as follows:

    1. Place Form 8734 on top of the submission.

    2. Flag the Power of Attorney (if submitted).

    3. Flag any notice of a change of an address.

    4. Print IDRS BMFOLO.

    5. Attach BMFOLO print, page 1 & 2, to the front of all Form 8734.

    6. Verify Form 8734 has been properly date stamped.

    7. Band together all of the above documents.

    8. Batch in packs of 10 when possible.

    9. Attach a yellow batch ticket to front of pack.

  6. The batch ticket contains:

    1. ADV Ruling Form 1023 N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting EP Applications Non-Remit
  1. EP application form numbers are 5300, 5307, 5310, 6406, 4461, and 5316.

  2. All applications received together must stay together, with the exception of the cases processed through TEDS.

  3. For "Non-Remit Correspondence" :

    1. Prepare Form 8717, if necessary

    2. Verify the Employer Identification Number (EIN) to ensure validity. If you can’t find an EIN, place the case in the Entity basket with a Form SS-4, if available, with the Form SS-4 on top of the application

    3. Cut down envelope to ensure removal of all checks.

Sorting Form 5300, 5307, 5310, 5316, 4461, or 6406
  1. Process as follows:

    1. Write "0" in the top right corner of Form 8717

    2. Flag the application form

    3. Flag the Power of Attorney (if submitted)

    4. Verify all required documents have been properly date stamped

    5. Ensure the submission has no other applications

    6. Band together all of the items above.

    7. Batch applications in packs of five (5) when possible

    8. Attach white batch ticket to front of pack

  2. The batch ticket contains

    1. Form 5300, 5307, 5310, 5316, 4461, or 6406, (use appropriate form)

    2. Rec date

    3. Vol XX

    4. Employee Initial

Sorting Form 5300 — Multiple Employer Plans Non-Remit Lead Plan
  1. A Multiple-employer plan is a plan maintained by more than one employer and may file for a separate determination letter using Form 5300.

  2. The lead plan must pay the required user fee. All other concurrently filed Forms 5300 don't need to pay a user fee.

Form 5300 - Multiple-Employer Lead Plan
  1. Write "0" money amount in the top right corner of Form 8717.

  2. Flag the application with the exact same EIN in item 1b and the exact same plan name in item 4a of Forms 5300 as in item (2) and (3) of Form 8717, respectively.

    Note:

    Per Rev. Proc. 2018-4, only the Lead plan may file an application.

  3. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  4. Verify proper date stamping of all documents.

  5. Ensure the submission has no unrelated applications.

  6. Keep the Non-remit lead plan and the non-remit participating employer's plans together.

  7. Attach Batch Ticket to front of pack.

  8. The Batch Ticket contains:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting Form 5310-A if processed through Legacy
  1. This form notifies the IRS of plans involved in mergers, consolidations, transferring of assets, or acting as Qualified Separate Lines of Businesses (QSLB). They usually submit more than 1 Form 5310–A. Float forms to the top for processing and the other form to the back of the first. Form 8717 is "not" applicable for a Form 5310-A because there is no user fee involved.

    Note:

    If remittance is received with Form 5310-A, it may be a penalty payment. The check should be sent to Manual Deposit for processing to NMF. Form 3244-A and 5734 must accompany the check and Form 5310-A. Contact EP R&A for completion of the forms.

    1. Determine the surviving plan by reviewing all of the attachments and the cover letter.

    2. Place the Form 5310-A with the surviving plan on line 3a on top.

    3. Highlight the surviving plan (if unable to determine, highlight the plan on line 3a).

    4. Staple Form 5310-A showing the reversal of the consolidation or merger (surviving plan on line 5c) to the back of the Form 5310-A containing the surviving plan on line 3a.

    5. Flag the Power of Attorney Form 2848 or 8821 (if the sponsor's name is the same as the Form 5310-A on the top and plan number is the same as the surviving plan).

    6. Verify proper date stamping of all documents.

    7. Band together all of the above documents.

      Note:

      For QSLB omit b,c,d, and e procedures.

Sorting Form 5316 AKA Form 9999- Non-Remit
  1. Form 9999 was created because there was no designated application form for a Group Trust. Form 5316 is now used to apply for a Group Trust.

  2. To prepare the package for processing:

    1. Print IDRS INOLES using the definer code "P" .

    2. Print IDRS INOLES without the P if IDRS message is received "Record not found. "

    3. Attach the INOLES research to the front of Form 8717.

    4. Write "0" in the top right corner of Form 8717.

    5. Flag the Form 5316.

    6. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    7. Verify proper date stamping of all documents.

    8. Band together all of the above documents.

    9. Band together in packs of five (5) when possible

    10. Attach white batch ticket to front of pack.

  3. The batch ticket contains:

    1. Form 9999 NR

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Sorting Miscellaneous Correspondence Non-Remit
  1. Miscellaneous "Non-Remit" correspondence includes:

    • Memo entry applications with accompanying Form 2221.

      Note:

      Memo Entries will always be processed as "with remit"

    • An EP or EO application without page 1 included.

    • An EO Group Exemption Request, processed as described in Sorting Form 1026.

    • An EP Group Trust Request, processed as described in Sorting Form 9999.

    • A Volume Submitter Specimen Plan.

    • Correspondence required to be routed to Tax Payer Assistance (TPA).

    • An interested party letter.

    • Correspondence required to be routed to the Volume Submitter Coordinator.

    • An answer to IRS TE/GE request for additional info addressed to a specific revenue agent.

    • Form 5768, Election/Revocation of Election - route to EO Entity, M/S 6052, Ogden, Utah if received separate from an application.

    • Correspondence requesting those items listed on Form 8940 such as Advance approval of certain set-asides described in IRC 4942(g)(2), Reclassification of foundation status or Termination of private foundation status.

    • Form 2424, Account Adjustment Voucher.

    • Misrouted correspondence not pertaining to TE/GE.

  2. Stamp all correspondence with the R&C EP/EO Determination User Fee Units date stamp.

    Note:

    This provides the date of correspondence receipt within the unit.

Incomplete EO & EP Applications - Non-Remit
  1. EP and EO applications are processable when required pages are missing as long as you can determine the application form number by reviewing the pages received in the application package. Form numbers are usually found in the top left corner of each page of the application. Refer to Doc Preparation for procedures when required pages are missing.

  2. If page 1 is missing:

    1. Research LINUS to verify there isn't an existing open case

    2. Research IDRS using INOLES, with a "P" for EP and BMFOLO for EO.

    3. Attach the INOLES or BMFOLO prints in lieu of the first page of the application. However, the lack of a signature will invalidate the application for many EO applications. See Rejecting EO applications for more information.

    4. Flag the Power of Attorney, if submitted.

    5. Verify all required documents have been properly date stamped

    6. Band together all of the above documents.

    7. Band together in pack of five (5) when possible

    8. Attach white batch ticket to front of pack for EP and yellow batch ticket to front of pack for EO

  3. If required pages are missing from Form 5307 version March 2008 or June 2014:

    1. If page one and three are missing, use an INOLE IDRS screen print in place of page one. INOLE print provides data needed for page one and page three.

    2. If page three is missing, a page three is prepared by IRS and inserted as part of the package. The plan number is edited as 999, the plan name is captured as Plan.

  4. The batch ticket contains:

    1. Indicated appropriate N/R Form

    2. Rec Date

    3. Vol XX

    4. Employee Initial

  5. If additional research doesn't provide entity info to process the application:

    • Route incomplete application to EP/EO Determination Processing Section. Identify as an incomplete non-remit application.

    • Transship incomplete applications separate from all other applications. Don't include them on the TE/GE daily release report.

Processing TE/GE Misdirected Correspondence

  1. Route this correspondence in an interagency envelope to

    TE/GE Division
    Correspondence Unit
    J. W. Peck FOB
    Mailstop 6403

  2. The table below lists the types of loose correspondence to route.

    Request for:
    Status
    Expedite (no application enclosed)
    Amendments
    Terminations
    Name and address changes
    Copies of determination letters
    Termination of private foundation status
    Form 8718 with no check or application
    POA forms with no application
    Schedule A with no check
    Undeliverable Acknowledgment Letters
    Advance rulings with no financial info
  3. Stamp all correspondence with the R&C EO/EP Determination User Fee Unit's date stamp.

    Note:

    This provides the date of correspondence receipt within the unit.

Correspondence regarding IRC 501(c)(29)

  1. When we receive correspondence regarding IRC 501(c)(29), send to the Correspondence team at FOB, Mailstop 6403.

  2. When a user fee accompanies the correspondence, process the fee through LINUS Legacy using a BMFOL print.

Processing Interested Party Letters

  1. When a member of a pension plan writes to the IRS to voice concerns regarding the plan, we call it an"An Interested Party Letter. "

  2. Forward all Interested Party Letters to:

    EP/EO Determination Processing Section
    FOB
    Mailstop 6403

Correspondence Received From Area Office — Interoffice correspondence

  1. Interoffice correspondence comes via Forms 3210. Complete the Form 3210 "Acknowledgment" receipt and return copy to originator, if two copies are provided, Acknowledgment and File copies. See IRM 3.45.1.10.12

  2. Stamp all correspondence with the R&C EO/EP Determination User Fee Unit's date stamp.

    Note:

    This provides the date of correspondence receipt within the unit.

  3. The received date entered in the TEDS system for remit/non-remit interoffice correspondence that is processed as an ADF package is the date of package receipt within the EP/EO Determination User Fee Unit.

  4. The received date entered in LINUS for remit interoffice correspondence is the first IRS received date. The IRS received date is provided on the Form 3210.

Case Assembly of EP/EO Determination Letter Applications

  1. This section provides case assembly procedures for all determination letter applications. These occur as part of the second sort function.

Application With Remit (W/R) & Non-Remit (N/R)

  1. Application with Form 8717 or 8718:

    Note:

    Form 8718 isn’t required with Forms 1128, 3115 or 8940.

  2. Ensure the check is payable to United States Treasury. Stamp checks payable to IRS with United States Treasury.

  3. Associate the EP applications for Legacy:

    • Form 8717

    • Application form

    • Power of Attorney authorization(s)

    • Cover Letter or taxpayer correspondence

    • All remaining contents at the back of the package

    • Bind application together

    • Sort the applications by the form number, with remit or non-remit

    • Route applications to the TE/GE Deposit Unit daily.

  4. Associate the EO Application:

    1. Form 8718

    2. Application form

    3. Power of Attorney authorization

    4. Cover Letter or taxpayer correspondence

    5. All remaining contents at the back of the package

    6. Bind application together

    7. Sort the applications by the form number, with remit or non-remit

    8. Route applications to the TE/GE Deposit Unit daily.

    Note:

    If we receive Form 5768 or any tax returns with the application, leave attached. No data must be captured.

  5. Associate the Form 1023:

    Note:

    All documents may not be filed with every application package.

    1. Form 1023 checklist

    2. Application - Form 1023 and Schedules A-H, as required

    3. Form 2848, Power of Attorney and Declaration of Representative (if filing)

    4. Form 8821, Tax Information Authorization (if filing)

    5. Expedite request (if requested)

    6. Form 5768 (if filing)

    7. All other attachments, including explanations, financial data, and printed materials or publications.

    8. Form 8718

EP Applications without a Form 8717

  1. If the Form 8717 isn't attached, prepare the form and attach the payment when applicable.

  2. Form 8717 is required for these EP Applications:

    • Form 5300, Application for Determination for Employer Benefit Plan

    • Form 5307, Application for Determination for Adopters of Modified Volume Submitter Plans

      Note:

      Process Forms 5307 using TEDS

    • Form 5310, Application for Determination Upon Termination

    • Form 5316, Application for group or Pooled Trust Ruling

    • Form 6406, Short Form Application for Determination for Amendment of Employee Benefit Plan,

      Note:

      Obsolete as of 7-9-2007, Rev Proc 2007-44

    • Form 5310-A, Notice of Plan Merger or Consolidation, Spin-off, or Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Lines of Business, doesn't require a Form 8717

  3. See IRM 3.45.1.3.3. For the Form 8717, we need:

    • Line 1 - Sponsor's name (employer if single-employer plan)

    • Line 2 - Employer identification number (EIN)

    • Line 3 - Plan Number

    • Line 4 - Plan Name

      Note:

      If we (IRS) prepared Form 8717, stamp the Form 8717 with "Prepared by IRS" .

EO Applications Without a Form 8718

  1. If the Form 8718 isn't attached, prepare the form and attach the payment when applicable.

    Note:

    Updates to the user fee amount will be delayed for Form 8718. However, the latest revision is valid and should be used with the newest revisions of Forms 1023, 1024 and 1024-A.

  2. Form 8718 is required for these EO Applications:

    • Form 1023, Application for Recognition of Exemption under IRC 501(c)(3) of the Internal Revenue Code

    • Form 1024, Application for Recognition of Exemption Under IRC 501(a) or for Determination Under IRC 120

    • Form 1024-A Application for Recognition of Exemption Under IRC 501(c)(4) of the Internal Revenue Code

    • Form 1028, Application for Recognition of Exemption Under IRC 521 of the Internal Revenue Code

  3. When preparing the Form 8718, we need:

    • Line 1 - Name of the organization, "1a" of the application

    • Line 2 - Organization's employer identification number (EIN), line "2" of the application.

      Note:

      If we (IRS) prepared Form 8718, stamp the Form 8718 with "Prepared by IRS" .

Form 5316 Group Trust

  1. Applicants request a ruling on the qualified status of a Group Trust through Form 5316.

  2. Sort and associate the application:

    1. Print IDRS INOLES using the definer code "P" .

    2. Print IDRS INOLES without the P if receiving IDRS message "Record not found. "

    3. Attach the INOLES research to the front of Form 8717.

    4. Write "Money amount" in the top right corner of Form 8717.

    5. Flag the cover letter (this acts as the application).

    6. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    7. Verify proper date stamping of all documents.

  3. Band together all of the items above.

  4. Band together in packs of five (5).

  5. Attach Orange Batch Ticket to front of pack.

  6. The Batch Ticket contains:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

Identifying The Organizing Document For An Exempt Organization

  1. A corporation, trust,or association, can apply to become an Exempt Organization. Each organization must submit a copy of their organizational document. Documents must meet the minimum criteria.

  2. Use the organizing document to determine the organization name "ONLY" when we receive an application without a name entered on Line 1a, or Line 1 of Form 1023.

Organizing Document For A Corporation
  1. Corporations must submit Articles of Incorporation. The application states whether or not the organization is a corporation.

  2. The Articles of Incorporation must show proof of filing with the state. These are "conformed" organizing documents.

  3. To determine the proper name to input on LINUS, you need the full legal name and the state's stamp showing proof of filing.

  4. If we receive an application with Line 1A or Line 1 of Form 1023 complete, take the name "as is" from Line 1A and Line 1 of Form 1023.

  5. If the info on Line 1A or Line 1 of Form 1023 is missing:

    If you receive: Then take the name from:
    Only the certificate The certificate
    The certificate and articles with no proof of filing The certificate
    Articles with proof of filing The articles
    Original articles with no proof of filing and amended articles with proof of filing The amended articles
    Original articles with proof of filing and amended articles with no proof of filing The original articles
    Original articles with proof of filing and certificate of amendment The amended certificate
    Original articles with no proof of filing and certificate of amendment The amended certificate
Organizing Document for a Trust
  1. If the applicant marked the type of organization as a trust, take the organization’s name from line 1a of the application. If line 1a is missing take the name from the Trust document.

  2. If the Trust document is missing, pull BMFOLO for the organization's name and attach the print to the application.

Organizing Document for an Association
  1. Take the "Name" from Line 1A of the application when available.

  2. Associations may title their organizing document a number of ways. Some of the most common titles are:

    • Articles of Association

    • Constitution

    • Articles of Organization

  3. How an organization chooses to title their document has no bearing on the acceptability of the document. The criteria for acceptability are:

    • True legal name

    • Purpose of the organization clearly stated

    • Date the document was adopted

    • Signatures of at least two officers

  4. Bylaws aren't usually organizing documents. However, if there is no other document in the file that can serve as the organizing document, the bylaws are acceptable if they meet all of the above requirements.

Payment Processing - EP/EO Determination User Fees

  1. This section contains procedures for perfecting documents and processing various types of payments received within the EP/EO Determination User Fee Unit. For additional info see IRM 3.8.45, Manual Deposit Process.

  2. Process through LINUS all EP/EO Determination user fees with the exception of those received for the M&P, VS and VCP applications.

  3. The postmark date of the original application determines the user fee split and the amount of valid user fee.

  4. Daily reconcile and deposit user fees for timely processing.

  5. Deposit EP/EO user fees in:

    • 20-2411 - Treasury Account

    • 5432.5 - IRS Account

Payment Perfection

  1. The Payment Perfection function within the Deposit Activity performs analysis and research on remittances and returns/documents requiring additional preparation before depositing money. They also code or edit for other functional areas to ensure all taxpayer info is available to credit taxpayer's accounts.

  2. Before sending payments/documents to Payment Perfect, do "complete" research to confirm a lack of info available to establish an account or apply the monies to LINUS.

  3. Review each source document to verify:

    1. Unavailable info for application to process remittance,

    2. Inability to call.

      Note:

      Call the applicant only with management approval.

  4. Research using the following IDRS command codes to apply the payment accurately. For additional codes and info refer to IRM 3.8.45, and to the Document 6209, and ADP/IDRS handbook.

    • NAME, "B- for a BMF EIN"

    • ENMOD

    • INOLE - various definers available

    • BMFOL - various definers available

  5. Return the incomplete application to the filer using the instructions for Rejecting EO applications. Do not include payments sent to Payment Perfection on the TE/GE daily release report.

  6. If we receive a 4663 letter with remittance, send to the payment perfection function for processing as an EP delinquency penalty MFT 74 TC 160.

Remittance Perfection

  1. Types of possible remittances the IRS may receive include:

    1. Personal Check

    2. Money Order

    3. Cashier Check

    4. Business Check

    5. Certified Check

    6. Voucher Check

    7. Treasury Check

    8. Draft/Postcard Type Check

    9. Irregular Checks

  2. Over stamp all Payee lines with "United States Treasury" on payee line for:

    PAYEE: ACCEPT/REJECT: OVERSTAMP/ENDORSE:
    Internal Revenue Service Accept No
    United States Treasury Accept No
    U.S. Treasury Accept No
    Department of the Treasury Accept No
    IRS Accept Over stamp
    Director (or Commissioner) of Internal Revenue Accept Over stamp
    Department of Treasury Accept Over stamp
    Estimated Tax Accept Over stamp
    Federal Tax Deposit Note: FTD payments not accepted since 2010. (REG-153340-09)  
    Social Security Administration (or SSA) Accept only if received with SSA Form 4511 Over stamp
    FICA Accept Over stamp
    Blank Accept Over stamp
    Other U.S. Government Agency Accept Over stamp
    Federal Reserve Bank (or other bank) Accept if clearly intended for tax payment Over stamp
    Taxpayer (personal check or money order) Accept if taxpayer has endorsed. Reject if taxpayer has not endorsed. Over stamp and Endorse "For Deposit Only-United States Treasury" below the last endorsement
    Taxpayer—IRS Refund Check Depository: Don’t process returned refund checks. Treat the refund check, document(s) and any additional remittances as unprocessable.  
    Third Party Reject unless third party has endorsed. If third party has endorsed the check over to the taxpayer, the taxpayer must also have endorsed. Endorse "For Deposit Only-United States Treasury" below last endorsement.
    Variations of any agency or department of the United States Government should be construed to be a payment to the United States Government. Accept Over stamp
    State Agency or Franchise Tax Board Accept if the money amount matches the federal document. Over stamp

    .

Remittance Not Payable to United States Treasury

  1. If not payable to the United States Treasury or one of the acceptable payees, return the remittance to the taxpayer with an explanation of an unacceptable payment.

  2. If not intended as payment for accompanying return/document, process return/document as "non-remittance." Return remittance to taxpayer with an explanation of unacceptable payment.

  3. If neither remittance nor return/document are for IRS, return to sender using PLS letter 1370, Return of Document to Taxpayer.

  4. To process the application:

    1. Write "0" in the money amount field in the upper right corner of the Form 8717/8718

    2. Flag the POA and application

      Note:

      Don't flag the Form 5307 application or POA attached.

    3. Give application a Non-Remit DLN and return to technician

    4. Make a copy of the Form 8717/8718, check and the first page of the application, mark all documents with "COPY"

    5. File copy of check, Form 8717/8718, first page of application and a copy of the letter sent to the filer in the appropriate file within the Determination Deposit Unit.

      Note:

      This provides backup that we returned the check to the filer.

    6. Input the application on LINUS as a Non-Remit

Cash Remittances via OTCnet

  1. Occasionally, taxpayers send cash through the mail for payment of user fees.

  2. If the cash is U.S. currency less than $5000, deposit on Thursdays using OTCnet. If more than $5000, include with the next scheduled daily deposit.

  3. Use BBTS to manually generate the Trace ID number for cash remittances, using the Offline Trace ID Generation window in the Manual Deposit Screen and input to OTCnet.

  4. Follow normal "sorting" procedures

    • Input the money amount field on Form 8717/8718. Notate "Cash" to the left of the money amount.

    • Have case numbered, a Trace ID assigned and then returned to you.

    • Input as a remittance document.

    • Notate on the numbering sheet that the payment is cash.

    • Follow procedures per form for data input to LINUS.

    • Check the" Foreign" box in LINUS.

  5. Prepare the deposit ticket.

  6. For the Financial Institution:

    • Select Agency - TE/GE

    • Trace ID#

    • List the money amount accounting symbols

    • Save for approval and give to management

    • Management submits a deposit ticket through OTCnet and gives a copy to the tech.

  7. Complete Form 784, Recapitulation of Remittances, with:

    • Service Center - CSPC

    • Name of Director - Current director's name

    • For deposit with the current day

    • Deposit date – Current date

    • List money amount and notate as "Cash payment"

    • Fill in bottom of form with correct money amount

    • Initial Form 784

  8. Complete Form 1963, Collection Register, with:

    • District Office/Service Center - CSPC

    • Area Office - Leave blank

    • Certificate of Deposit (CD) number

    • Schedule number - Schedule number signed out for the deposit

    • Date prepared – Current date

    • List DLN of the document associated with the remittance

    • List the money amount and the accounting symbol

  9. Complete Form 2221, Schedule of Collections with:

    • Depositor's Office and location: Cincinnati Service Center, Covington, KY 41012

    • Name and location of Depository: Bank of America

    • Agency Station Code: 20-09-1700-3

    • Deposit Ticket Number:

    • Date of Deposit Ticket: Current date (Thursday)

    • Postmark of source document:

    • DLN

    • Name of Remitter : Taxpayer’s Name

    • Purpose for which collection was received: user fee

    • Cash amount:

    • Accounting Symbol of fund to be credited: Split money between Treasury account and IRS account.

    • Cash total

    • Employee signature and title

  10. After completing all paperwork, separate into two packages. Deliver one package to Accounting. The second package is a file copy held in the TE/GE unit.

  11. Take the OTCnet approval sheet, deposit ticket, first copy of Form 784 along with the cash deposit to Manual Deposit by daily deadline for Thursday’s deposit. Prepare a Form 3210 listing the info transmitted and have Manual Deposit initial the Form 3210 Acknowledgment copy.

Unacceptable Payments

  1. Unacceptable Payments are items that the Federal Reserve Bank won't accept as payment. Return the check to the taxpayer: stamp the check non-negotiable and return to the filer using letter 2689.

  2. If you identify Unacceptable Payments, refer to IRM 3.8.45 for additional info.

Foreign Check Remittances OTCnet

  1. Remittances drawn on foreign banks payable in U.S. dollars through U.S. banks must have U.S bank's routing symbol printed in MICR ink in the lower left corner of the check and have a nine digit routing number for processing with the regular deposits. If the routing symbol is missing, process manually per IRM 3.8.45.1.10

    Note:

    If the Bank routing symbol and the nine digit routing number are missing from the check, but the routing symbol and routing number are written on the check or provided, the MICR routing information can be printed on the check and processed with the regular deposit.

    Note:

    Postal money orders received from the following countries can be processed domestically through the regular deposit with a routing number of 000008002.

    Antigua and Barbuda Japan
    Bahamas Montserrat
    Barbados Peru
    Belize St. Kitts
    British Virgin Islands St. Lucia
    Dominica (Windward Islands) “Advice and Pay to” Copies St. Vincent
  2. All remittance drawn on foreign banks with no United States bank routing symbols payable in foreign currency or United States Dollars (USD) should be deposited through Bank of America. These remittances are classified as either supported or unsupported by Bank of America.
    Supported- Any remittance listed as one of the 25 countries/currencies in the OTCnet "Country of Deposit" drop down menu and also as listed in IRM Exhibit 3.8.45-10.
    Unsupported - Any remittance not listed as one of the 25 countries/currencies in the OTCnet "Country of Deposit" drop down menu and should be considered "Other" in the OTCnet Country of Deposit drop down menu.
    When selecting the appropriate country of deposit in OTCnet for “supported” foreign remittances not in USD, the current exchange rate will systemically be displayed in Box 4 of the deposit ticket. These remittances are considered “Cash Letter” items by Bank of America and the IRS should receive a provisional credit from Bank of America.
    “Cash Letter” items should be confirmed within one week. Follow up with Bank of America must be performed if the deposit has not been confirmed in OTCnet within one week of the deposit date. When selecting “Other” for unsupported foreign remittances or supported foreign remittances in USD, these remittances are considered “Collection” items by Bank of America (exception Canadian checks in USD and certain Great Britain checks in USD, they are considered “Cash Letter” items).
    “Collection” items do not receive a provisional credit and will not be confirmed in OTCnet until funds have been collected from the taxpayer's bank. This process may take from 6 to 8 weeks. Follow up on these items should be performed if they are not confirmed within six weeks.
    Contact Karen Dolores, Bank of America Customer Service at 888-715-1000 Ext. 21600 for follow up inquiries.

  3. Use BBTS to manually generate the Trace ID number for foreign remittances drawn on foreign banks, using the Offline Trace ID Generation window in the Manual Deposit Screen and input to OTCnet.

  4. Process remittances payable in U.S. Dollars, drawn on foreign banks, and received with tax returns or documents:

    1. Follow normal "sorting" procedures.

      Note:

      Foreign checks are not processed on Friday by Manual deposit.

    2. Put "0" in the money field on Form 8717/8718

    3. Place cover note behind the Other separator sheet and notate Foreign Check - DO NOT CLOSE until money verified. Fill out batch card and place on front of folder.

    4. Have case numbered, a Trace ID assigned and then returned to you.

    5. Scan as a MEDS non-remit document

    6. Notate on the numbering sheet the check is foreign

    7. Follow procedures per form for data input to LINUS

    8. DO NOT mark the "Foreign Check" box on the LINUS transaction screen.

  5. After input to LINUS, make 2 copies of the Form 8717/8718, the 1st page of the application, and the check. Flag the copy of the 1st page of the application with the copy of the check to the back.

  6. After completing all paperwork, separate into two accounting packages. Clip the two packages and the two sets of copies (application and check), copy of on line submission obtained through OTCnet together and hold in suspense file until receipt of confirmed deposit ticket with money conversion report through OTCnet. Scan non-remit document and continue processing.

  7. To complete processing:

    1. Encode the check

    2. A Bank of America deposit ticket must be used.

    3. Write on top of the encoding tape, "EO or EP foreign check "

  8. Through OTCnet, prepare the CD:

    1. Select Foreign Currency Check

    2. Date

    3. Cincinnati Service Ctr

    4. U.S. Dollar (The current exchange rate will systemically be displayed in Box 4 of the deposit ticket)

    5. Amount

  9. For the Financial Institute - Select "Bank of America-XXXXXXXX-XXXXXXX465"

    1. Select Agency - TE/GE

    2. Trace ID#

    3. List the money amount accounting symbols

    4. Save for approval and give to management

    5. Management submits a deposit ticket through OTCnet and gives a copy to the tech.

  10. Assign a schedule number and CD number from the schedule book and complete Form 2221 with:

    1. Block 1 - Schedule number

    2. Block 2 - Cincinnati Center, Covington, KY 41012

    3. Block 3 - Bank of America

    4. Block 4 - 20–09–1700–3

    5. Block 9 - Leave blank

    6. Column a - Use the received date on application

    7. Column b - Leave blank

    8. Column c - Applicant's name from pg 1 of application

    9. Column d - User Fee

    10. Column e - Money amount - split EO user fee accordingly

    11. Column f - Appropriate accounting symbol

    12. Block 7 - Total money amount from column e

    13. Block 8 - Signature

  11. Complete Form 784, Recapitulation of Remittances, with:

    1. Service Center - CSPC

    2. Name of Director - Current director's name

    3. For deposit with - Bank of America

    4. Deposit date - Current date

    5. List check amount and notate as "EO or EP Foreign Check "

    6. Fill in bottom of form with correct money amount

    7. Initial Form 784

  12. Complete Form 1963, Collection Register, with:

    1. District Office/Service Center - CSPC

    2. Area Office - Leave blank

    3. CD Number

    4. Schedule number - Schedule number assigned for the deposit

    5. Date prepared

    6. List DLN of the document associated with the foreign remittance

    7. Below DLN notate the number of foreign checks (e.g., 1- EO, 1-EP)

    8. List the money amount and the accounting symbol. If EO, show money separated into correct accounting symbol

  13. Prepare a Form 3210 listing the check info and have Manual Deposit initial the Form 3210 Acknowledgment copy.

  14. Take the check, deposit ticket and the 1st copy of the Form 784 to Manual Deposit. Don't put a copy of the encoding tape with the check.

  15. Receive confirmation through OTCnet.

  16. When we receive the OTCnet from accounting:

    1. Remove case from the suspense file

    2. Print confirmation through OTCnet

    3. Cross out the "0" on the money line of the Form 8717/8718 and write the correct money amount

    4. To the left of the money notate "Foreign Check"

    5. Circle out the N/R DLN and have a W/R DLN assigned from the Julian date of the traceID.

    6. Notate on the numbering sheet "Foreign Check"

    7. Input into LINUS as ADF.

    8. The DLN, deposit date and the Trace ID must match.

    9. Check "Foreign Check" box on the transaction screen

      Note:

      If box isn't checked, the reconciliation for the day's deposit won't balance.

    10. Alert party responsible for reconciliation that you're processing a foreign check and that they need to deliver the extra accounting package.

Form 2424 - Account Adjustment Voucher

  1. Forms 2424, Account Adjustment Vouchers come from the RACS Unit. These are user fees misapplied to the filer's IMF or BMF account that should have been applied to their EP/EO exempt letter application. Accounting delivers the complete package, Form 2424 and supporting documentation as soon as they list them on a control document. Retain the copy of the Form 2424 and supporting documentation in the EP/EO Determination User Fee Manual Deposit Unit for one year.

  2. Credit Form 2424, Account Adjustment Voucher to the correct account in LINUS within 2 days of receipt within the unit and process as an "Additional Payment - Memo Entry" ; the payment won't generate out on the Form 2221.

  3. There is no check received with a Form 2424. We deposited the money during processing and applied to the incorrect account. Always process Forms 2424 as a "With Remit" Additional Payment- Memo Entry document.

  4. There is a two day turnaround for processing the Form 2424 from the time of receipt within the EP/EO Determination User Fee unit from Accounting.

  5. To process the Form 2424 Entry:

    Action If... Then...
    Research LINUS Research shows application established Process as an additional payment - Memo Entry
    Research LINUS Research shows application not established Contact TE/GE Submission Processing Programs Program Analyst
  6. The transaction date on the Form 2424 is the date used for the Postmark and Received dates unless the original submission postmark date is before July 1, 2006 and the transaction date is after July 1, 2006. Then the Postmark date must be the postmark date of the original submission and the Received date is the transaction date.

    Note:

    The fee split is based on the postmark date of the original submission.

  7. The dollar amount provided as the debit amount on the Form 2424 is the dollar amount captured in LINUS as the user fee.

  8. If the user fee split is showing different in LINUS than on the Form 2424:

    • Enter the correct amount in LINUS

    • In Red ink, annotate the correct split on the Form 2424

    • Return a corrected copy to the originator via Form 3210

    • On the Form 3210 indicate that the split was incorrect and to contact Accounting to correct their records.

    • Keep copy of the corrected Form 2424 and Form 3210 as indicated above within paragraph number one.

Form 4830 IDRS Multi-purpose Posting Document

  1. Forms 4830, IDRS Multi-purpose Posting Documents come from the RACS Unit. These are user fees applied to the unidentified file due to improper identification and should have been applied to their EP/EO Determination letter application. Accounting delivers the complete package, Form 4830, LINUS screen print and supporting documentation as soon as they list them on a control document. Retain the copy of the Form 4830 and supporting documentation in the EP/EO Determination User Fee Manual Deposit Unit for one year.

  2. Credit Forms 4830, IDRS Multi-purpose Posting Documents to the correct account in LINUS within 2 days of receipt within the unit and process as an "Additional Payment - Memo Entry" ; the payment won't generate out on the Form 2221.

  3. There is no check received with a Form 4830; we deposited the money during processing and applied to the incorrect account. Always process Forms 4830 as a "With Remit" Additional Payment- Memo Entry document.

  4. There is a two day turnaround for processing the Form 4830 from the time of receipt within the EP/EO Determination User Fee unit from Accounting.

  5. To process the Form 4830 Entry:

    Action If... Then...
    Research LINUS Research shows application established Process as an additional payment - Memo Entry
    Research LINUS Research shows application not established Contact TE/GE Submission Processing Programs Program Analyst
  6. The transaction date on the Form 4830 is the date that is used for the Postmark and the Received date unless the original submission postmark date is before July 1, 2006 and the transaction date is after July 1, 2006. Then the Postmark date must be the postmark date of the original submission and the Received date is the transaction date.

    Note:

    The fee split is based on the postmark date of the original submission.

  7. The dollar amount provided as the debit amount on the Form 4830 is the dollar amount captured in LINUS as the user fee.

  8. If the user fee split is showing different in LINUS than on the Form 4830:

    • Enter the correct amount in LINUS

    • In Red ink, annotate the correct split on the Form 4830

    • Return a corrected copy to the originator via Form 3210

    • On the Form 3210 indicate that the split was incorrect and to contact Accounting to correct their records.

    • Keep copy of the corrected Form 4830 and Form 3210 as indicated above within paragraph number one.

Memo Entries

  1. Memo Entry Applications come from the RACS Unit. These User Fees were misrouted/mailed to another center. The center deposited the user fee payment per IRM 3.8.45 and IRM 3.30.123. Accounting delivers the complete package to the Determination Letter Application Deposit Unit as soon as they list them on a control document. The package includes an original control document and one copy. Retain a copy within the unit and return the original.

  2. Credit Memo Entries to the correct account in LINUS.

  3. There is no check received with a Memo Entry when received at CSPC. Always process Memo Entries as a "With Remit" document.

  4. There is a 12 day turnaround for Accounting. Return the financial info to Accounting as soon as possible to avoid potential backlogs. Journalize the money within the same month of receipt.

  5. To process the Memo Entries with an application:

    1. Copy Form 2221 and attach it to the case copy retained within the Determination Deposit Unit. Return the original Form 2221 to Accounting.

      Note:

      Don't attach a copy of Form 2221 to the application.

    2. Copy Form 2158, Credit Transfer Voucher and retain the copy within the Determination Deposit Unit

  6. To process the Memo Entry:

    Action: If: Then:
    Research LINUS Research shows application established Process as an additional payment
    Research LINUS Research shows application not established Process as initial application
  7. After numbering the applications:

    1. On the original and the extra copy of the Form 2221 write the DLN assigned to the case in "red" along side of the name of the organization.

    2. Run an adding machine tape to show the breakdown of money between 20-2411 and 5432.5 accounting symbols.

    3. Attach the adding machine tape to the original Form 2221.

    4. Attach a copy of the adding machine tape to the extra copy of the Form 2221.

    5. Return the original Form 2221, 2158, and control sheet to the point of contact in Accounting.

  8. Batch each form type separately. Annotate on BBTS Transmittal that the applications are "MEMO ENTRIES" .

  9. If you receive an EO Memo Entry without an application and you find no LINUS record, process as a Form 1023, additional payment Memo Entry.

  10. Send a secured email listing the EINs for each memo entry processed to the overseeing TE/GE analyst.

  11. Forward documentation, via Form 3210 for all additional payment Memo Entries to:

    Manager of the EP/EO Determination Processing Section Adjustment Unit
    Cincinnati Office
    P.O. Box 2508
    Mailstop 6403
    Cincinnati, OH 45201

    Manager of the EP/EO Determination Processing Section Adjustment Unit
    Cincinnati Office
    Mailstop 6403
    550 Main St.
    Cincinnati, OH 45202

Money Amounts

  1. Normally, use the numeric amount on the remittance for processing. There may still be times when the money amount to use is questionable. Use the following table to determine how to process the payment. For additional info refer to IRM 3.8.45.

    Note:

    Return checks for EO/EP Determination User Fee only if completely blank.

    If: Then:
    the numeric amount is legible and matches the written amount process the payment using the numeric amount.
    the numeric and written amounts don't match and the numeric amount matches the source document process the payment using the numeric amount.
    the numeric and written amounts don't match, and the written amount matches the source document process the payment using the written amount from the remittance, annotating, in pencil the amount used above the remittance date line.
    the numeric and written amounts don't match, and neither one matches the source document process the payment using the written amount from the remittance, annotating in pencil, the amount used above the remittance date line.
    the numeric amount is illegible or blank process the payment using the written amount. Annotate, in pencil, the amount used above the remittance date line.
    the written amount is illegible or blank process the payment using the numeric amount.
    the numeric and written amounts are blank stamp the check non-negotiable and return to the filer using Letter 2689. Process the accompanying form or document as no-remittance.
    the numeric and written amounts are illegible OR if a determination can't be made call taxpayer to determine the remittance amount. Annotate, in pencil, above the remittance date line the amount provided by the taxpayer. If unable to reach the taxpayer by phone, stamp the check non-negotiable and return to taxpayer using Letter 2689. Process the accompanying form or document as no-remittance.

EO and EP Multiple Payments

  1. A multiple payment is two or more checks submitted for one application.

  2. If we receive two or more checks for one application, each check carries its own DLN. Treat the first check (larger amount) as the original user fee and all additional checks as additional payments.

  3. Do not process the EO application as an insufficient user fee application if the total amount received equals a valid user fee.

  4. To process the additional checks (multis):

    1. Annotate in red ink the letter "M" and the total number of checks involved on the top left corner of the Forms 8717, Form 8718

    2. Annotate total fee received on the top left corner of the Form 8717, 8718.

    3. Copy the Form 8717, Form 8718, 1st page of the application and attach copies to each additional check.

    4. Stamp the DLN on the check and the 1st page of the application

  5. Do not select the multi indicator in LINUS.

  6. EO applications with Multi payments filed on a valid form version and if all checks add up to a valid user fee are processed through TEDS.

  7. For EO applications with Multi payments filed on a valid form version and one check equals a valid user fee, process through TEDS and process the second check as an additional payment (AKA Remit-ADF Package).

  8. For EO applications with Multi payments filed on a valid form version and neither check is a valid user fee and/or checks added together aren't valid user fees, don't process application through TEDS. Application is processed as an insufficient user fee.

  9. EP applications with Multi payments filed on a forms processed through TEDS go through TEDS. Process the additional checks received through TEDS as an additional payment (AKA - Remit ADF Package).

Split Payments

  1. A split payment is one check submitted for numerous application forms.

  2. Splits or split payments are identified by writing in red ink the letter "S" along with the number of applications submitted on the top left corner of the check, and on the Forms 8717, Forms 8718 involved in the submission.

  3. Form 1023 write the number of applications submitted on the top left corner of the check, and on Part XI, User Fee Information involved in the submission.

Additional Payments

  1. "Additional Payments" are user fees received " after the original application" was received and record shows established in LINUS.

  2. Additional payments can't be recorded in LINUS as an additional payment if no record established prior.

  3. If you receive a user fee from the EO Determinations Processing Section and no record is in LINUS:

    • Annotate on the Additional Payment transmittal that no application was received, no record in LINUS and the money was sent to Remittance Perfection for additional research.

    • Return the Additional Payment transmittal to the originator.

    • Route the money to Remittance Perfection for additional research.

  4. If we receive money from the filer indicating that the money is an additional payment, follow table below for account action.

    If and LINUS research shows then
    money received with correspondence indicating the money is for an additional payment account established in LINUS as a Legacy case process payment through legacy as an additional payment
    money received with correspondence indicating the money is for an additional payment (user fee) account established in LINUS as a TEDS case process payment through TEDS as an additional payment - AKA Remit ADF package.
    money received with only a Form 8717/8718 account established in LINUS as a Legacy case process payment through legacy as an additional payment
    money received with correspondence indicating the money is for an additional payment (user fee) account "not" established in LINUS route submission to Remittance Perfection
    money received with only a Form 8717/8718 account established in LINUS as a TEDS case process payment through TEDS as an additional payment - AKA- Remit ADF package.
    money received with only a Form 8718 account not established in LINUS process as an obsolete application. Refer to procedures for processing obsolete applications.
    money received with only a Form 8717 account not established in LINUS process as an EP application. Refer to procedures for processing money received with only a Form 8717.
  5. Additional payments may come with correspondence, an AIS, or just a check. The payments can come directly from the filer or from another IRS office.

  6. If we receive a check and application through interoffice mail from EO R&A at the FOB and LINUS research shows the account was established in LINUS as a Legacy or TEDS case, process as directed on accompanying Form 3210 or user fee transmittal.

    Note:

    Don't delete any entity info already in LINUS when entering additional payment info.

  7. Additional payments processed through Legacy don't roll to EDS and they don't receive an acknowledgment notice.

  8. Additional payments processed through TEDS are uploaded and processed through TEDS as a Remit ADF package using the AIS document. They don't receive an acknowledgment notice.

  9. All additional payments must be researched on LINUS for the original application postmark date. The application's original postmark determines the split of the additional payment.

  10. The IRS received date captured in LINUS must be the date the first IRS office/personal received the payment.

  11. If no IRS received date is stamped/identified, use the date the payment was received in R&C EO/EP Determination User Fee Units.

  12. Additional payments are to be deposited within the following time frames

    If Then
    we receive payment before daily deposit deposit payment within the same day's deposit.
    we receive payment after the daily deposit is complete deposit payment the next business day.
  13. Circle out all invalid received date stamps and DLNs; date stamp with current date.

  14. Verify the check is payable to United States Treasury.

  15. Write the money amount received in the top right corner of Form 8717/8718 if the case is processed through Legacy.

  16. If we receive the remit directly from the filer and a Form 8717/8718 isn't provided, prepare one unless the AIS is attached. Refer to procedures for preparing a Form 8717/8718.

  17. If LINUS screen shot isn't attached, DO NOT print one.

  18. Follow the table below for EO additional payments:

    If and and then to
    LINUS research shows the original application postmark date was before July 1, 2006 research shows the user fee required a split between IRS and Treasury the required fee (split) was never deposited in the IRS account add the additional payment and the original payment together determine the required split.

    Note:

    Split is a manual process. $35.00 for specific EO applications.

    LINUS research shows the original application postmark date was July 1, 2006 or later     process per procedures for additional payment.

    Note:

    Split is determined by the LINUS programming.

     
Additional Payments (AKA Remit ADF Packages) Processed Through TEDS Using An AIS
  1. Additional payments may arrive as correspondence directly from the filer or from EO/EP Processing Section. The additional payment is processed using the AIS as the payment voucher or posting voucher. The Form 8717, 8718 isn't needed when an AIS document is provided. If the AIS isn't immediately available, the user fee must be deposited as a TEDS additional payment and not held until the AIS is available. Hold the correspondence until the AIS is available and can be scanned into TEDS.

  2. The data fields captured in LINUS for additional payments processed with an AIS are:

    • EIN

    • DLN

    • Postmark Date/Received Date

    • Form Type

    • Fee Indicator

    • Money amount

  3. The Data Field Recognition module in TEDS provides automated recognition and manual entry for the specified fields listed below from the AIS.

    • TEDS case number, captured from the bar code unless the bar code fails and then it must be captured manually from the Image.

    • DLN

    • Fee Submitted checkbox

    • Postmark Date

    • Received Date

  4. The following table provides required fields for Verification for additional payments processed with an AIS. Verify data either visually or via double blind entry.

    AIS - Additional Payment
    Data Field Verified by
    TEDS Case Number VC
    DLN DC
    Fee Submitted - Checkbox VC
    Postmark Date VC
    Received Date VC
Acknowledgment of Additional Payments
  1. All transhipped additional payments arrive on a Form 3210 or a User Fee Transmittal and must be acknowledged if an acknowledgment copy is provided by the originator. Sign and date the Form 3210 acknowledging that the payment(s) were received.

  2. Annotate all corrections to the Form 3210 or a User Fee Transmittal if original info is incorrect.

  3. Route the Form 3210 or a User Fee Transmittal acknowledgment copy and the Form 8717/8718 stamped with the DLN back to originator within 10 business days of receipt.

  4. If we receive only one copy of the Form 3210 or a User Fee Transmittal, this is CSPC's file copy. Don’t send an acknowledgment copy to the originator.

Processing Miscellaneous EO & EP Correspondence With Remit

  1. Correspondence comes from the Correspondence Unit that was mis-routed or improperly addressed. The mailing envelope may or may not be attached.

  2. Correspondence comes from Extracting as correspondence, application isn't attached.

  3. Use the date stamped from the Correspondence Unit as the "Received Date." If no date stamp use the current date.

  4. All correspondence should be stamped with the R&C EO/EP Determination User Fee Unit's date stamp.

    Note:

    This provides the date of correspondence receipt within the unit.

  5. Miscellaneous correspondence with remit can be any of the items listed below:

    • EP or EO application without page 1 included.

    • EO group exemption request, refer to sorting Form 1026.

    • EP group trust request, refer to sorting Form 9999.

    • An answer to IRS EP/EO request for payment of user fee.

    • A volume submitter specimen plan.

    • A payment that is " Not" for the EP/EO exempt application

    • Memo entry applications with accompanying Form 2221.

Incomplete Application - EP/EO Applications W/Remit

  1. EP and EO applications with "Missing Pages" can be processed if additional research provides entity info to process the remittance. Additional research is only needed if the entity info is missing.

  2. Research LINUS and EDS to ensure there is no existing case established.

  3. For EP applications, an INOLES print must accompany the package if page one is missing. INOLES provides the required entity info to establish a case. A BMFOL print must accompany the package if page four of Form 5300 Rev 4/2011 is missing.

  4. For EO applications, See Rejecting EO Applications for processing procedures.

  5. If additional research doesn't provide entity info to process the remittance, route the monies to Payment Perfection for processing.

Form 8717 or Form 8718 Received With Remittance/Without Remit and No Application

  1. Research LINUS if existing case is established; process payment as additional payment.

  2. If LINUS research shows no record, the following sections provide the procedures for EP filers and EO filers.

Form 8718 Received With Remit and No Applications
  1. If we receive only a Form 8718 with remit, research LINUS to determine if the submission is processed as an additional payment or an obsolete application.

  2. The following table provides the procedures to process the submission based on the LINUS research outcome.

    If if LINUS research shows then
    money received with only a Form 8718 account established in LINUS as a Legacy case process payment through legacy as an additional payment
    money received with only a Form 8718 account established in LINUS as a TEDS case process payment through TEDS as an additional payment - ADF package.
    money received with only a Form 8718 account not established in LINUS process as an incomplete application and reject the fee back to the filer
Form 8717 Received With Remit and No Applications
  1. If we receive only a Form 8717 with remit, research LINUS to determine if the submission is processed as an additional payment or an initial application.

  2. The following table provides the procedures to process the submission based on the LINUS research outcome.

    If if LINUS research shows then
    money received with only a Form 8717 account established in LINUS as a Legacy case process payment through legacy as an additional payment
    money received with only a Form 8717 account established in LINUS as a TEDS case process payment through TEDS as an additional payment - ADF package.
    money received with only a Form 8717 account not established in LINUS process as an original application and route the submission to the address below.

    Internal Revenue Service
    550 Main Street
    FOB Room 2405
    Attn: EP Lead Technical Screener
    Cincinnati, OH 45202

Form 8717 Received With No Application and No check
  1. Route submissions to the following addresses via Form 3210, annotating form was received with no application and no user fee.

  2. Form 8717 route to:

    Internal Revenue Service
    550 Main Street
    FOB Room 2405
    Attn: EP Lead Technical Screener
    Cincinnati, OH 45202

Processing Congressional Letters

  1. If the letter is in reference to EP or EO, the Taxpayer Advocate Office processes it at:

    Taxpayer Advocate Office
    Federal Office Building
    550 Main St.
    Room 3530
    Cincinnati, OH 45202

  2. If the letter is not in reference to EP or EO, it's processed at the Taxpayer Advocate Office in the Gateway Center. Route to Taxpayer Advocate Officer, GWC, Stop 11G.

  3. When we receive a cover letter from a Congressman or Senator with an EP or EO application:

    1. Make copy of the congressional letter, and a copy of page 1 of the application.

    2. Mark both copies with COPY.

    3. Place the "copy" of the congressional letter with the case.

    4. Sort the application per sorting procedures.

    5. Place Pink folder around the application.

    6. Batch the application as an expedite.

      Note:

      Treat all congressional letters as " expedite" requests.

  4. Send the original congressional letter and the copy of the first page of the application to:

    Taxpayer Advocate Office
    Federal Office Building
    550 Main St.
    Room 3530
    Cincinnati, OH 45202

  5. Send the application and a copy of the congressional letter to EP/EO Determination Processing Section, Records Unit Room 4010. The folder must be clearly marked as a congressional letter. Don't mix the application with the other applications. The congressional letter application must be kept separate.

Numbering Applications and Preparing Folders

  1. The number assigned to each application is unique to the document and the location processing the application. The application is stamped with a Document Locator Number (DLN). The DLN, a fourteen-digit number, is used to track and retrieve the document.

  2. Brown gusset folders are used for all applications. DO NOT substitute the folders with another colored folder unless approved by the Determination process overseeing TE/GE analyst.

Document Locator Number (DLN)

  1. The DLN is a controlled number assigned to every return or document per location. The fourteenth digit is the year of processing.

  2. The DLN is used to control, identify, and locate documents processed.

  3. The DLN should not be confused with the tax account number, which consists of nine digits, for example:

    • Social Security Number

    • IRS Individual Taxpayer Identification Number

    • Employer Identification Number

  4. Returns and documents are blocked and filed by DLN.

  5. The format for a DLN is:

    • The first two digits of the DLN are the File Location Code. (17)

    • The third digit is the tax class. This identifies the type of tax each transaction involves. (0)

    • The fourth and fifth digit are doc code. Certain document codes can be applicable to more than one type form or tax. (53= EO, 07=EP)

    • The sixth, seventh, and eighth digits represent the control (Julian) date. (various)

    • The ninth, tenth, and eleventh digits represent the block number. (700-999 = Non-remit and 000-699 = W/remit)

    • The twelfth and thirteenth digits are the serial numbers.

    • The fourteenth digit is the last year digit of the year the DLN was assigned.

  6. Blocking series differ based on " Non Remit" and " Remit" applications.

    • Non-Remit begins with 850 block number and With-Remit begins with 050 for applications processed through TEDS.

  7. Manually stamp the assigned DLN on required forms within an application package:

    • First page of application package, see table below:

      Package Type DLN stamped on
      Form 5300 Form 5300
      Form 5307 Form 5307
      Form 5316 Form 5316
      Form 5310 Form 5310
      Form 6406 Form 6406
      Form 8950 Form 8950
      Form 1023 1st page of Form 1023

      Note:

      All versions

      Form 1024 Form 1024
      Form 1024-A Form 1024-A
      Form 1025 Form 1025
      Form 1026 Form 1026
      Form 1028 Form 1028
      Form 1128 Form 1128
      Form 3115 Form 3115
      Form 8734 Form 8734
      Form 8940 Form 8940
      IDRS Print - INOLE or BMFOL Page one
      Remit ADF package (Additional Payment for a TEDS Case) AIS

Preparing Form 3539

  1. The check, Form 8717/8718, and the application are stamped with the same DLN. We use Form 3539 to complete the deposit process so the form must be accurate. Prepare a separate Form 3539 for each type of application/process:

    • EO Applications with remit (EO W/R)

    • EP Applications with remit (EP W/R)

    • EO Applications no remit (EO N/R)

    • EP Applications no remit (EP N/R)

    • EP TEDS Applications with remit (EP TEDS W/R)

    • EP TEDS Applications no remit (EP TEDS N/R)

    • EP Additional Payments

    • EO Additional Payments

  2. Follow the steps below to complete the Form 3539:

    1. Write the first two numbers of the DLN in the "File Location Code" box.

    2. Enter the third number of the DLN in the "Tax Class" box.

    3. Write the fourth and fifth numbers of the DLN in the "Document Code" box.

    4. Write the type of application, EO W/R, EP W/R, EO N/R, or EP N/R, EP TEDS W/R, EP TEDS N/R in the "Form number and title" box.

    5. Write the current Julian date for with remit applications and previous Saturday's Julian date for no remit in the "Program Number" box.

    6. Enter the current date in the "Date" column.

    7. Enter the total number of documents in the series of batches in the "Item Count" box.

Numbering Remit Work

  1. Work in numerical order with the oldest received dates first, beginning with EO Form 3244 working to Form 1028 followed by EP Form 3244 working to Form 9999.

  2. Generally a batch consists of 25 or less Forms 3244.

Numbering Additional Payments
  1. Number each batch of additional payments as one DLN with consecutive serial numbers. EP and EO must be batched separately.

  2. Stamp the DLN on the:

    1. Beginning field of Form 3539.

    2. Top right hand corner of the check.

      Note:

      If the top right hand corner isn't clear, stamp the DLN in a clear area, but not in the lower right hand corner.

    3. Top right hand corner of the 1st page of the application. (e.g., 8717, 8718, EDS Case Control Sheet)

    4. If received with an AIS, stamp the DLN within the Box for IRS use only.

  3. Change the DLN serial number with each additional payment that you stamp.

  4. Stamp the last DLN number assigned for each batch in the "Ending field" of the Form 3539.

  5. Enter the number of additional payments numbered in the "Item Count field" .

  6. Write Additional Payments in the "Remarks field" .

Numbering Split Payments
  1. A Split payment is one check sent in to pay for more than one application. In a split case, each application must be numbered using the same file location code, tax class, document code, Julian Date, and blocking series. Only the serial number is changed.

    1. Stamp the DLN in the "Beginning Field" of Form 3539.

    2. The same DLN is stamped on the check and the first page of the application package received with the split. To stamp the DLN requires the serial number be manually changed before each package is stamped.

    3. When all related applications and forms are stamped, mark a dash at the end of the DLN stamped on the check and write the serial number of the last application package involved in the split payment next to the DLN. The first eleven digits of the DLN are the same for all of the documents received in this package.

    4. Stamp the last DLN assigned in the "Ending Field" on the Form 3539. Write "S" and the number of applications involved in the "Remarks field" .

Numbering Multi Payments
  1. A Multi payment is more than one check submitted for one application. To process a Multi payment:

  2. Stamp the same DLN on:

    1. The beginning field of Form 3539.

    2. The 1st page of the package.

    3. The ending field of Form 3539.

  3. Multi checks received for one application will contain their own DLN. Stamp the first check with the same DLN as the 1st page of the package. Process all other checks as additional payments and have their own DLN.

  4. Write "M" and the number of checks involved in the "Remarks field" .

    Note:

    It is extremely important to mark split and multi payments in order to leave an audit trail.

Numbering Memo Entries
  1. When numbering memo entries the DLN assigned is identified by stating memo entry in the "Remarks field" on the Form 3539.

Numbering Form 2424
  1. When numbering Form 2424 - Account Adjustment Voucher, the DLN assigned is the Julian Date that the payment was originally received. You can find the payment date on the Form 2424 within the box "Transaction Date."

Numbering Non-Remit Forms

  1. Number each batch as one DLN with consecutive serial numbers.

    1. Stamp the DLN in the "Beginning" field of Form 3539, the top right-hand corner of the 1st page of the application.

    2. Change the DLN serial number with each request that you stamp, within each batch.

    3. Stamp the last DLN assigned in the "Ending" field of Form 3539.

    4. Enter the number of forms numbered in the "Item Count" field.

Processing Expedite Applications

  1. Expedite Letter Applications are processed within 2 days of receipt and transhipped inside a pink folder and boxed separately from all other applications. The expedite applications are reported separately on the TE/GE Daily Release Report.

  2. Special requests such as special disaster applications, are separate from the expedite applications and reported separately on the TE/GE Daily Release Report per request of the overseeing TE/GE Submission Processing Programs program analyst.

  3. All congressional letters are treated as an expedite. Send the original congressional letter and the copy of the first page of the application to the address below; for additional info refer to See IRM 3.45.1.6

    Taxpayer Advocate Office
    Federal Office Building
    550 Main St.
    Room 3530
    Cincinnati, OH 45202

  4. The priority must be set at "1" when scanning an expedite application through TEDS.

  5. Annotation of the expedite indicator is required on the application during Doc Prep. Refer to procedures for Doc Prep of a TEDS application.

Letter Information Network User Fee System (LINUS).

  1. LINUS is the official financial record for all of the EP/EO Determination application user fees.

  2. Acknowledgment Notices and EP/EO Determination Input Sheets are generated from this System.

  3. The only valid characters are alphas A-Z, numeric 0-9, hyphen (-), ampersand (&) and within the address the slash (/).

  4. Specific data per form type must be entered and captured within the LINUS database.

Obsolete EO Applications

  1. EO Division has approved returning the applications if filed on an obsolete revision. EO applications filed on an obsolete form revision will be returned to the filer.

  2. The table below provides the valid EO version; all other versions are obsolete and processed as obsolete forms. If we receive mixed version dates within the package, use page one of the application to determine if the application is valid.

    Form Purpose of Form Valid Revision Date
    8718 User Fee Form

    Note:

    If application received with invalid revision, CSPC will prepare valid revision

    9/2015
    1023 Application for Exemption for 501(c)(3) 12/2017
    1024 Application for non 501(c)(3) subsections 1/2018
    1024-A Application for 501(c)(4) subsections 1/2018
    1028 Application for Exemption for Farmers' Co-ops (IRC 521) 9/2006
    8940 Request for Miscellaneous Determination 6/2011
Processing Follow-up Applications to an Obsolete Application
  1. Research LINUS to determine the correct procedures to process a follow-up application. The follow-up application must be filed on a valid version; if not, process as an obsolete application. Follow the table below:

    If LINUS shows and and then
    Original submission received and processed as an obsolete submission application received with no user fee on a valid version   process as a non-remit application.
    Original submission received as an obsolete submission application received with a valid user fee and on a valid version   Process as a valid application
    Original submission received as an obsolete submission new application received with an invalid user fee   process following procedures for an insufficient application
    Original submission received as an obsolete submission application received with no user fee and a request for Expedite processing Don't flag as an expedite request process as a non-remit application
    Original submission received as an obsolete submission application received with a valid user fee and a request for Expedite processing   process as a valid Expedite application
    Original submission received as an obsolete submission application received with an invalid user fee and a request for Expedite processing don't flag as an expedite request process following procedures for an insufficient application

EO Remit - Correct User Fee

  1. To enter an EO remit if application is processed through Legacy:

    1. Select "ENTRY EO REMIT"

    2. Enter the EIN twice at the EIN prompts, once from the Form 8718 and once from the application. If these numbers don't match, IDRS research must be performed to determine the correct EIN.

      If the EIN Then
      Exists on the system Research on EDS and LINUS for Status and continue to step 3
      Does not exist on the system refer to "Building a Record. refer to 3.45.1.19.5" .
    3. verify the info on the document and that on the system are the same

    4. If the entity info in the system isn't the same, make the necessary changes by overlaying and manually correcting, and save record.

    5. View POA info and make necessary changes and save.

    6. If the info is the same, add transaction.

    7. Enter the Blocking Series in the "BS" field.

    8. Enter the Serial Number in the "SN" field.

    9. Enter the Post Mark date in the " POSTMARK DATE" field.

    10. Verify the Received Date in the " RECEIVED DATE" field. If the date is different from that on the document, manually overlay the correct date.

    11. Select the form in the "EO Form" box.

    12. Select the appropriate indicator.

    13. Verify you have selected the correct user fee. July 1st postmark dates require a different indicator than the applications received with postmark dates before July 1st.

    14. If the fee is different from the amount paid, overlay the amount in the field with the amount paid.

    15. If any of the conditions listed " MEMO, FOREIGN, " exist, select the appropriate condition.

    16. Save.

    17. Select RETURN TO DEFAULTS.

    18. Exit.

    19. Annotate your initials at the top right hand corner of the Form 8718.

EO - Non-Remit

  1. All original filed EO applications received with no user fees will need to have LINUS pre-research conducted on all applications.

  2. CSPC will process the application as a Non-Remit unless LINUS research shows prior application and processed as an obsolete application:

    If and LINUS shows then
    Non-remit application is a valid version correct user fee was paid process application as a Non-Remit application.
    Non-remit application is an invalid version correct user fee was paid process application as an obsolete application
    Non-remit application is an invalid version insufficient user fee was paid process application as an obsolete application.
    Non-remit application is a valid version sufficient user fee was paid Process as a non-remit application.
    Non-remit application is a valid version   if valid version, process as a non-remit application.
  3. Follow the steps to enter an EO non-remit in LINUS if processed through Legacy:

    1. Select "ENTRY EO NON REMIT"

    2. Enter the EIN twice at the EIN prompts, once from the Form 8718 and once from the application. If these numbers don't match, IDRS research must be performed to determine the correct EIN.

      If the EIN Then
      Exists on the system Research on EDS and LINUS for status. Proceed to step #3.
      Does not exist on the system refer to "Building a Record" .
    3. Verify the entity info on the document and that on the system are the same.

    4. If the record in LINUS shows a valid user fee received and the money not refunded and the form version is valid, process as a non-remit application.

    5. If the entity info isn't the same, research IDRS updated Entity info. Make the necessary changes by overlaying and manually correcting, save record, and add transaction.

    6. View POA info, make necessary changes and save record.

    7. If the info is the same, add transaction.

    8. Enter the Blocking Series in the "BS" field.

    9. Enter the Serial Number in the "SN" field.

    10. Enter the Post Mark date in the " POSTMARK DATE" field.

    11. Verify the Received Date in the " RECEIVED DATE" field. If the date is different from that on the document, manually overlay the correct date.

    12. Select the form in the "EO Form" box

    13. Select the "non-remit" indicator

    14. Save

    15. Select "RETURN TO DEFAULTS"

    16. Exit

    17. Annotate your initials at the top right hand corner of the Form 8718

Processing Follow-up Applications for a Non-Remit Application
  1. EO Division has approved holding the EO applications if the filer doesn't submit the appropriate user fee. Hold the application in suspense for 90 days. This is for all applications with the postmark date of July 1, 2006 or later.

    Note:

    A follow-up application must be filed on a valid version. If filed on an obsolete version the application is always processed as an obsolete application.

  2. Research LINUS to determine the appropriate process for the non-remit application. Follow the table below:

    If research shows date of and then and
    Original submission less than 100 days research shows the correct user fee was paid and no refund is showing process application, if on valid version as a non-remit Don't establish case in EDS
    Original submission less than 100 days research shows the correct user fee not paid process application as a non-remit Do Not establish case in EDS
    Original submission greater than 100 days research shows the correct user fee was paid and LINUS doesn't show a refund process application as a non-remit Do Not establish case in EDS
    Original submission greater than 100 days research shows the correct user fee was paid and LINUS shows a refund process application as a non-remit Do Not establish case in EDS
    Original submission greater than 100 days research shows the user fee hasn't been paid. process application as a non-remit submission Don't establish case in EDS

EO Remit Application(s) LINUS Data Elements if processed through TEDS

  1. EO applications are processed through TEDS utilizing the Captiva software. Minimal data is manually captured in LINUS to establish the account; all other required data is captured through TEDS and uploaded electronically to LINUS within 48 hours of account establishment.

  2. The following elements are the minimal data captured in LINUS for the EO applications processed through TEDS:

    • Name

    • Fee/Form Indicator (indicated required fee amount)

      Note:

      Verify Money Received Field, if necessary, over ride the amount to reflect the correct amount received.

    • Payment Amount Received

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  3. The following elements are captured in LINUS for the EO applications processed through TEDS with a foreign address:

    • Name

    • Address

      Note:

      On applications with a Foreign address, the entire entity must be captured.

    • Fee/Form Indicator (indicated required fee amount)

      Note:

      Verify Money Received Field; if necessary, over ride the amount to reflect the correct amount received.

    • Payment Amount Received

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  4. The table below lists the captured Fee/Form indictors:

    If : Then mark:
    Memo Entry Memo Entry Indicator
    Foreign Check Foreign Check Indicator
    Form Type Indicator isn't marked Select Indicator closest to the fee paid
    Obsolete Form Version Obsolete Indicator
    Insufficient Fee Insufficient Indicator
  5. Cases processed through TEDS won't generate a Code & Edit Check Sheet. A TEDS folder label must be generated and affixed to the case folder. Affix the label to the front of the gusset folders on the upper right hand side.

  6. LINUS records for applications processed through TEDS won't contain POA info.

EO Non-Remit Application(s) LINUS Data Elements if processed through TEDS
  1. EO applications are processed through TEDS utilizing the Captiva software. Minimal data is manually captured in LINUS to establish the account; all other required data is captured through TEDS and uploaded electronically to LINUS within 48 hours of account establishment.

  2. The following elements are the minimal data that is captured in LINUS for the EO non-remit applications processed through TEDS:

    • Name

    • Fee/Form Indicator (indicated required fee amount)

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  3. The following elements are captured in LINUS for the EO applications processed through TEDS with a foreign address:

    • Name

    • Address

    • Fee/Form Indicator (indicated required fee amount)

    • EIN

    • DLN

    • Postmark Date

    • Received Date

    • Non-Remit Fee/Form Indicator

  4. On applications with a Foreign address, the entire entity must be captured.

  5. Cases processed through TEDS won't generate a Code & Edit Check Sheet. A TEDS folder label must be generated and affixed to the case folder. Affix the label to the front of the gusset folders on the upper right hand side.

  6. LINUS records for applications processed through TEDS won't contain POA info.

EP Remit Applications

  1. EP applications are processed through TEDS utilizing the Captiva software. Minimal data is manually captured in LINUS to establish the account; all other required data is captured through TEDS and uploaded electronically to LINUS within 48 hours of account establishment.

  2. All EP Applications that are processed through Legacy System require the employee to capture all elements to deposit the user fee and establish the account in LINUS.

EP Application Indicators
  1. Select the indicator with the fee closest to the fee received for EP applications. IRM 3.45.1.2.3

LINUS Data Elements for EP Applications if processed through TEDS
  1. The following elements are the minimal data that is captured in LINUS for EP applications processed through TEDS:

    • Name

    • Plan Number

    • Fee/Form Indicator (indicates required fee amount)

      Note:

      Verify Money Received Field; if necessary, over ride the amount to reflect the correct amount received.

    • Payment Amount Received

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  2. The following elements are captured in LINUS for the EP applications processed through TEDS with a foreign address:

    • Name

    • Address

    • Plan Number

    • Fee/Form Indicator (indicated required fee amount)

      Note:

      Verify Money Received Field; if necessary, over ride the amount to reflect the correct amount received.

    • Payment Amount Received

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  3. On applications with a Foreign address, the entire entity must be captured.

  4. The table below lists the captured Fee/Form indicators:

    If: Then mark:
    Memo Entry Memo Entry Indicator
    Foreign Check Foreign Check Indicator
    Form Type Indicator isn't marked Select Indicator closest to the fee paid
  5. Cases processed through TEDS won't generate a Code & Edit Check Sheet, but TEDS generates a folder label.

  6. LINUS records for applications processed through TEDS won't contain POA info.

EP Applications Processed Through Legacy
  1. The steps below are required for all EP remit applications that aren't processed through TEDS.

    1. Select "ENTRY EP REMIT"

    2. Enter the EIN twice at the EIN prompts, once from the Form 8717 and once from the application. If these numbers don't match, IDRS research must be performed to determine the correct EIN

      If the EIN Then
      Exists on the system the info appears in the entity fields and you proceed to step 3.
      Does not exist on the system refer to "Building a Record" .
    3. Verify the info contained on the document and on the system are the same

    4. If the info isn't the same, make the necessary changes by overlaying and manually correcting, and save record.

    5. Add POA info if present and save changes.

    6. Select the plan from the Plan/POA box to which you need to add a transaction

      Note:

      A plan should not be added if the plan number already exists in LINUS.

    7. Add Transaction

    8. Enter the Blocking Series in the "BS" field

    9. Enter the Serial Number in the "SN" field

    10. Enter the Post Mark date in the " POSTMARK DATE" field

    11. Verify the Received Date in the " RECEIVED DATE" field. If the date is different from that on the document, overlay the correct date.

    12. Select the form in the "EP Form" box

    13. Select the appropriate indicator

    14. If the fee is different from the amount paid, overlay with the correct amount.

    15. If any of the conditions listed " MEMO, FOREIGN, " exist, select the appropriate condition.

    16. Save

    17. Select "RETURN TO DEFAULTS"

    18. Exit

    19. Annotate your initials at the top right hand corner of the Form 8717

EP Non Remit Applications

  1. All EP Applications are entered through the Legacy System. Establishment in LINUS will require employee to capture all elements.

  2. EP applications are processed through TEDS utilizing the Captiva software. Minimal data is manually captured in LINUS to establish the account; all other data is captured through TEDS and uploaded electronically to LINUS within 48 hours of account establishment.

  3. The following elements are captured in LINUS for the EP applications processed through TEDS:

    • Name

    • Fee/Form Indicator (indicated required fee amount)

    • EIN

    • DLN

    • Postmark Date

    • Received Date

  4. Follow the steps to enter an EP non-remit on LINUS:

    1. Select "ENTRY EP NON REMIT"

    2. Enter the EIN twice at the EIN prompts, once from the Form 8717 and once from the application. If these numbers don't match, IDRS research must be performed to determine the correct EIN

    If the EIN... Then...
    Exists on the system the info appears in the entity fields
    Does not exist on the system refer to "Building a Record" .
  5. verify the info on the document and that on the system are the same.

  6. If the info isn't the same:

    1. Make the necessary changes by overlaying and manually correcting

    2. Save Record

  7. Proceed as follows:

    1. Enter POA info if provided and save.

    2. Select the plan from the Plan/POA box to which you need to add a transaction

    3. Add Transaction

    4. Enter the Blocking Series in the "BS" field

    5. Enter the Serial Number in the "SN" field

    6. Enter the Post Mark date in the "POSTMARK DATE" field

    7. Verify the Received Date in the "RECEIVED DATE" field. If the date is different from that on the document, correct the date.

    8. Select the form in the "EP Form" box

    9. Select the appropriate indicator

    10. Save

    11. Select "RETURN TO DEFAULTS"

    12. Exit

    13. Annotate your initials at the top right hand corner of the Form 8717

Building a Record For Legacy Cases

  1. Follow the steps below to create a new record if no EIN is on file.

  2. Select OK

    Note:

    The POA Entry screen opens for EO; the Plan/POA Screen opens for EP

  3. If the application is EO:

    1. Verify the info on the Form 2848 or 8821

    2. Verify the corresponding EIN is on the form

    3. The name of the company or organization appears to be the same on the application and the POA.

    4. Verify there are two signatures on the Form 2848, one from an officer of the organization or company and one from the person listed as the POA.

    5. Verify the signature of the Form 8821 is from an officer of the organization or company

      Note:

      If there is no way to verify signature, accept if there is a signature present

    6. Enter all fields on the POA Entry Screen except the CAF

  4. If the application is EP:

    1. Input the plan number from the application.

    2. Input the name of the plan.

  5. If the POA isn't valid, select close.

  6. Enter all fields on the POA Entry Screen except the CAF.

  7. Select the "CLOSE" button.

  8. Enter the Plan Sponsor's name in the "NAME" field for an EP record.

  9. Enter the organization's name in the "NAME" field for an EO record.

  10. Enter the care of name in the " IN CARE OF" field.

  11. Enter the address in the "ADDRESS" field.

  12. Enter the city in the "CITY" field.

  13. Enter the ZIP+4 in the "ZIP" field.

  14. If the address is foreign, select the country.

    Note:

    Include the Mail Postal Codes if present on foreign addresses. The Postal Codes must be entered on the City Line

  15. Save record.

  16. Select "ADD TRANSACTION" .

Entering Names
  1. The following sections contain procedures for entering names from the applications into LINUS.

Plan Names
  1. The plan name and the sponsor's name are required on all EP applications

    Note:

    Sponsor's name is required if listed on the plan name line

  2. If the plan name is incomplete on the application, research for the plan's name. You can find the name of the plan in the cover letter, on the Form 8717, or in the plan document. If you can’t find the plan name, edit the plan name in red as "PLAN" .

  3. Do not eliminate words in the plan names line, only delete unnecessary words such as,the, for, & of, before using the standard IRS abbreviations. The word "PLAN" should be abbreviated only when all other options have been exhausted.

    Note:

    Only abbreviate or eliminate unnecessary words if the plan name won't fit. Don't delete DBA, AKA, etc. in the Plan Name Line.

    For... Abbreviate to...
    A Professional Corporation PC
    Agreement AGRMT
    Association ASSN
    Associates ASSOC
    Collectively Bargained COL BARG
    Company CO
    Compensation COMP
    Corporation CORP
    Defined Benefit DB
    Defined Contribution DC
    Deferred Compensation DEF COMP
    Employee Stock Ownership Plan ESOP
    Incorporated INC
    Money Purchase Pension Plan Money Purchase Plan
    Retirement RET
    Savings and Investment Sav & Inv
    Plan PL
EP Entity Name Lines
  1. Don't omit the word " The" on the Sponsor name line when followed by more than one word when entering the info in LINUS. For EP applications, don't abbreviate unless the name doesn't fit; abbreviations are only used on EP applications when necessary. Refer to the approved abbreviations when abbreviations are necessary.

  2. The Name Control MUST be identified during Data Completion function in TEDS.

  3. Take the EP Sponsor's name from the application when available; however, for 9999 and 4461 take the sponsor name from the Form 8717.

  4. Do not include dba, aka, or fbo as part of the name line. They stand for doing business as, also known as, and for benefit of.

    Note:

    If field is captured via OCR, don't remove data during data completion; if manually captured, don't include dba, aka, or fbo.

EO Name Lines and Additional Information Lines
  1. Never enter a pen and ink change from the conformed organizing document.

  2. No abbreviations are allowed on EO entry unless an organization has abbreviated on the application or if no entry is on the name line of the application and the abbreviation is listed on the conformed organizing document.

  3. If the name of the organization and the address are both lengthy, enter what you can of the organization name on NL 1 and 2 without ending the name in the middle of a word.

  4. The table below assists you in entering additional Information lines from the organizing documents.

    If the organizing documents lists... Enter as...
    Napa-Page Counties Community Task Force (NPCCTF) Napa-Page Counties Community Task Force
    Na Po'e Hoa 'Aina Na Poe Hoa Aina
    Huliau O' Ka'u Inc. Huliau O Kau Inc
    Iron Mtn. Bible Conference Iron Mtn Bible Conference
    The Greatest Gift The]Greatest Gift
  5. Do not abbreviate unless the name doesn't fit; abbreviations are only used on EP applications when necessary. Refer to the approved abbreviations when abbreviations are necessary.

  6. The Name Control MUST be identified when establishing case in TEDS during Data Completion.

EP "In Care of" Names
  1. EP rarely has an "In Care of" name, but if one is provided you must enter it into LINUS. The application may provide an "attn." rather than an "In Care of" or both. See example below.

    Mower-Bremer Inc.
    c/o Jeffrey Rice J. Rice Pension Associates Inc.
    6 South 1st St.
    Enter as:
    c/o FIELD: J RICE PENSION ASSOC INC
    add Line: 6 S 1st St
    add line2: Attn Jeffrey Rice
  2. If multiple complete names are provided on the In Care of name line, only the first name is captured. See example below:

    Mower-Bremer Inc.
    c/o Jeffrey Rice J. Rice Pension Associates Inc. and Samual Brown
    6 South 1st St.
    Enter as:
    c/o FIELD: J RICE PENSION ASSOC INC
    add Line: 6 S 1st St
    add line2: Attn Jeffrey Rice
EO "In Care of" Names
  1. Data Capture suffix (e.g., "Jr. " , "Sr." , "III" , etc.) is present in the name line or Additional Information Line. Don't move the suffix if it follows the first name rather than the last name.

  2. Delete all prefixes (e.g., "Mr." , "Rev." , "Capt." , "Sgt." , etc.) from the name line or Additional Information Line.

    Note:

    Delete "Mrs." only if an obviously female first name is present.

  3. Delete titles such as "surviving spouse" , "widow" , "POA" , "M.D." , "Ph.D." , etc.

  4. The organization name takes priority over a lengthy "In Care Of" name. Allow only one line for "In Care Of" info.

  5. When processing Form 8734, sometimes the "In Care Of" name is listed on the Sort name line of the IDRS research. If a person's name is listed on the Sort Name line, enter it as the "In Care Of" . If a change of address is showing on Form 8734 and the "In Care Of" wasn't carried over, don't input the "In Care Of" name.

  6. If multiple complete names are provided on the In Care of name line, only the first name is captured. See example below:

    Mower-Bremer Inc.
    c/o Jeffrey Rice J. Rice Pension Associates Inc. and Samual Brown
    6 South 1st St.
    Enter as:
    c/o FIELD: J RICE PENSION ASSOC INC
    add Line: 6 S 1st St
    add line2: Attn Jeffrey Rice
Addresses
  1. Refer to guidelines located in IRM 3.13.12 Exempt Organization Account Numbers, and IRM 3.13.2 BMF Account Numbers.

  2. The address on the application should be captured as submitted on the application. The following table provides a guideline for standard abbreviations when entering an address. Errors should not be given if employee doesn't abbreviate unless they abbreviate and don't use the standard abbreviations.

    If the application shows... Enter as...
    1451 N 22 Street 1451 N 22ND ST
    1 South Polk Lane 1 S POLK LN
    U.S. 380 US 380
    520 Taft St (P.O. Box 10) PO Box 10
    520 Taft St
    1250 Johnson Rd. N.E. 1250 Johnson RD NE
    500 Adams Circle SE 500 Adams CIR SE
    14 Old Monroe Circle Road 14 Old Monroe Circle RD
    156 Circle Drive 156 Circle DR
  3. When abbreviating the address line, only the standard abbreviations should be used when entering the address lines.

    STANDARD ADDRESS ABBREVIATIONS
    Air Force Base AFB
    Apartment APT
    Avenue AVE
    Boulevard BLVD
    Building BLDG
    Center CTR
    Circle CIR
    Court CT
    Department DEPT
    Drive DR
    East E
    Floor FLR
    General Delivery GEN DEL
    Heights HTS
    Highway HWY
    Highway Contract HC
    Lane LN
    North N
    Northeast, N.E. NE
    Northwest, N.W. NW
    One-half (all fractions space before and after the number) 1/2
    Parkway PKY
    Place PL
    Plaza PLZ
    Post Office Box, P.O. Box PO BOX
    Route, Rte RT
    Road RD
    Room RM
    R.D., RFD., R.F.D., R.R., Rural Delivery, Rural Route RR
    South S
    Southeast, S.E SE
    Southwest, S.W SW
    Street ST
    Suite STE
    Square SQ
    Terrace TER
    West W
  4. For 9999 and 4461 take the address from the INOLE" S" printout.

Correcting Data Through Review

  1. When needing a "User Fee" correction:

    1. Select Form

    2. Select Form Indicator

    3. Enter fee received

    4. Press "Split"

      Note:

      If one fee is entered, all fees must be entered

  2. If user fee is corrected after the deposit is complete, contact Accounting to correct the adjustment to the two user fee accounts. Verify the split fee between the Treasury and IRS accounts is identical on LINUS and with account's records.

Tax Exempt Determination System (TEDS) Front-End Process

  1. Tax Exempt and Government Entities (TE/GE) Business Operating Division (BOD) of the Internal Revenue Service (IRS) streamlined and redesigned its system for processing applications for Employee Plan/Exempt Organization (EP/EO) tax exempt status from IRS customers. Modified Exempt Determination System(TEDS), is envisioned as one with a centralized Organization and a user-friendly technology infrastructure. The end-state vision for TEDS consists of the database that stores all scanned images of all application packages, correspondence, and their associated data.

  2. All Images are stored and available to view through Documentum. When submitting an OL-5081 to access Documentum, CSPC employees must request the following within the "Additional Information:"

    • TEDS Role - EP Researcher II, EO Research II

    • email Address

      Note:

      If employee doesn't have access to email, indicate N/A

    • Organization - W&I

  3. This section of the IRM 3.45.1, Processing Employee Plan and Exempt Organization Determination Application Guidelines, provides instructions for processing the following packages through the Modified Exempt Determination System(TEDS) using the Captiva Software:

    • Form 5300, Application for Determination for Employee Benefit Plan

    • Form 5307, Application for Determination for Adopters of Modified Volume Submitter Plans

    • Form 5310, Application for Determination for Terminating Plan

    • Form 5310-A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Lines of Business

    • Form 5316, Application for Group or Pooled Trust Ruling, AKA Form 9999

    • ADF EP, Additional Document Filing

    • ADF EO, Additional Document Filing

    • EPCC - EP Closed Cases

    • EOCC - EO Closed Cases

    • Form 1023 - Application for Recognition of Exemption

    • Form 1024 - Application for Recognition of Exemption Under IRC 501(a)

    • Form 1024-A - Application for Recognition of Exemption Under IRC 501c(4)

    • Form 1026 - Dummy Group Ruling Application

    • Form 1028 - Application for Recognition of Exemption

  4. The role of the Cincinnati Submission Processing Center (CSPC) is;

    • Receive the package,

    • control the work on BBTS,

    • ensure appropriate payment processing steps have occurred within LINUS,

    • scan documents received within the package,

    • capture required data fields,

    • complete data verification, and

    • forward the hard copy cases to the EP/EO Determination Processing Section in Cincinnati when the imaging process is complete.

      Note:

      Data is captured through Optical Character Recognition (OCR) and manual transcription.

  5. The Remittance Perfection Technician assembles the application packages into batches, assigns a DLN, establishes case on BBTS and establishes the account on LINUS. The package separator sheets (Document 12302) are inserted during LINUS input. After the account is established in LINUS, the application is then forwarded to the scanning operation, where the documents are imaged. The application is then processed through the Data Completion function where data is captured via OCR and manual transcription. Specific elements is verified through Data Verification and the hard copy package is routed to the Reconstitution function for reassembly and transferred to the EP/EO Determinations Processing Section. All functions must be completed within 6 business days of receipt at CSPC. The 6 days includes mailing of the hard copy application to Florence Files and generating of the acknowledgment notices.

  6. All submissions must be sorted and batched per the IRS received date. If multiple IRS received dates are mixed within a batch the oldest IRS received date is used to determine the age of the batch.

  7. TEDS requires that the received date is captured for all batches. See IRM 3.45.1.3.1 for procedures to determine the appropriate IRS received date and postmark date.

  8. The following subprocesses are part of the TEDS front-end process; further details are available under the individual function.

    • Sorting

    • Batching

    • Payment processing

    • Document Preparation (Doc Prep)

    • Batch Scanning Module

    • Form Identification Module (identify forms auto)

    • Package integrity Verification Module (verifies required documents)

    • Manual Form identification- only if form identification fails

    • Rescan- document is manually sent to rescan.

    • Package Completion Module

    • Package Verification Module

    • Printing labels

    • Generating/ Printing Acknowledgment Notice

    • Electronic Stored Determination Package Module

    • Reconstitute Package Module

    • Quality review

      Note:

      TEDS will automatically release each batch to the next step.

  9. The Imaging System is a system using Windows XP, set up for user/operators to perform various processing steps through a series of templates and dialog boxes.

  10. The Captiva software is used for Scanning, Quality Control, Forms Processing, Indexing (Completion), Verification, and Release (export of images and data to long-term storage).

  11. The user/operator works with the paper submissions for establishing the user fees in LINUS, Document Preparation, Scanning, and Reconstitution. The remainder of the work steps are completed using the image.

  12. Standard defaults per EO form type are identified in table below:

    Package Type Code Section Request Type Form Number
    EOCC No default No default No default
    1023 03 I 1023
    1024 No default I 1024
    1024-A No default I 1024
    1026 No default A 1026
    1028 80 I 1028
    8734 03 F 8734
  13. Enter addresses for U.S. Territories and for Armed Forces as a domestic address. The operator receives a warning message asking if the data entered is correct. Choose to accept the entry as a domestic address. All zip codes for the U.S. territories and Armed Forces are in the database.

  14. In accordance with the Paper Reduction Act of 1995 and Procurement and Waste Reduction goals required by the Energy Policy Act of 2005, reuse the Package and Batch Separator Sheets multiple times.

  15. Pull Package and Batch Separator Sheets from all Application, EOCC, and EPCC packages after scanning the package and place them in their individual folders.

  16. EPCC packages received together must be returned together.

    Example:

    We receive 1-7 packages in one folder, keep the same 1–7 packages together and return in a folder together.

  17. Don’t pull the Package Separator Sheet from the ADF packages. ADF packages aren't placed in individual folders.

Tax Exempt Determination System (TEDS) front-end process downtime

  1. Occasionally, the system must be updated causing the back-end process to be unavailable. However, the front-end process is available through the package verification module.

  2. Follow the procedures outlined below when TE/GE declares "System Downtime Process" is to be followed.

    1. Original applications: Complete front-end process (example: Scanning, Data Completion, & Verification). Hold applications until export is completed and labels can be printed.

    2. ADF packages: Process as normal if AIS is part of the package. See IRM 3.45.1.10.3.4. If AIS isn't part of the package, process as a Non-TEDS package. See IRM 3.45.1.2.2(3).

    3. EOCC/EPCC: Process as normal. Hold until export is complete. See IRM 3.45.1.2.2(5).

    4. Expedites: These applications cannot be held. They must be identified and shipped within the required IRM timeframe. See IRM 3.45.1.4.2.4, Sorting Expedite Applications.

      Note:

      If shipping cases directly to FOB due to TEDS downtime, ensure they haven't been entered into LINUS using a TEDS indicator as this will cause the cases to be added to the LINUS-TEDS mis-match report. The legacy indicator should be used in LINUS along with the required fields needed for creating a Legacy record.

      See IRM 3.45.1.10.8, Building a Record for Legacy cases.

Valid Data Entry Characters

  1. The following table provides allowable data entry characters.

    Field Character
    Alphabetic A B C D E F G H I J K L M N O P Q R S T U V W X Y Z (all upper case letters)
    Alphanumeric 0 1 2 3 4 5 6 7 8 9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z hyphen (-) ampersand (&) period (.) single quote (‘) percent sign (%)
    Numeric 0 1 2 3 4 5 6 7 8 9
    Money . 0 1 2 3 4 5 6 7 8 9
    Other/General
    • For all name fields: the only special characters allowed are hyphen (-) and ampersand (&)

    • For all street address fields: the only special characters allowed are hyphen (-) and slash (/)

    • For all "In Care Of" fields: the only special characters allowed are hyphen (-), ampersand (&), percent sign (%), and slash (/)

    • URL’s: Alphabetic, Numerics, and the following characters: dollar sign ($), hyphen (-), underscore (_), period (.), exclamation mark (!), asterisk (*), single quote ('), open parenthesis ((), close parenthesis()), comma (,), semicolon (;), slash (/), question mark (?), colon (:), at sign (@), equal sign (=), ampersand (&), and tilde (~)

    • Email Addresses: @ ! # $ % & ' * + - / = ? ^ _ ` { | } ~ period (".") (or any other ASCII character if immediately preceded by a backslash (\))

      Note:

      email addresses won't be captured until further notice.

Imaging of EO Closed Cases
  1. These are paper case forms and documents that typically would have been transferred to microfiche; imaging of the EOCC will replace the microfiche.

  2. CSPC’s role is to:

    1. Control the batches in their inventory to ensure that the 15 day required time frame to process the EOCC package is met

    2. Image the EO Closed cases

    3. Capture the eight required data fields

    4. Verify the two data fields

    5. Return the hard copy closed cases to the appropriate agreed location.

    ,

    Note:

    If tax returns such as Form 990 or 990–PF are included in the EOCC package, they should be scanned into the non-disclosable file in TEDS.

  3. EOCC batches contain the EDS Case Transmittal, used as the Form 3210.

  4. EO Closed Cases arrive through Interoffice Mail, routed directly to EP/EO Determination User Fee Unit for processing, Team 31404, Stop 31. For additional info on transhipping EOCC See IRM 3.45.1.10.12

Imaging of EP Closed Cases
  1. These are paper case forms and documents that had the application imaged when originally filed. The EP Closed Cases are additional documents that were received from the filer, filer's representative or EP work papers that are required to complete the application package. The EPCC documents haven't been imaged through any other workflow, such as the application or ADF workflow.

  2. CSPC’s role is to control the work within BBTS within one day of receipt to ensure that the 15 workday required time frame to process the EPCC packaged is met. The process includes:

    1. Image the EP Closed case documents

    2. Capture the required data field

    3. Verify the data fields

    4. Return the hard copy closed cases to the agreed location.

  3. EPCC batches contain the EDS Case Transmittal, used as the Form 3210.

  4. EP Closed Cases arrive through Interoffice Mail and routed directly to EP/EO Determination User Fee Unit for processing,Team 31404, Stop 31. For additional info on transhipping EPCC See IRM 3.45.1.10.12

ADF workpapers cases
  1. To quickly process the determination applications, R & A sends the case workpapers for scanning into MEDS as Additional Document Filings (ADF) while the case is open instead of as EO closed cases (EOCC) once the case has been closed as currently processed.

  2. CSPC’s role is to:

    1. Control the batches in their inventory to ensure that a 10 day required time frame to process these packages is met

    2. Image the ADF workpaper cases.

    3. Capture the required data fields.

    4. Verify the data fields.

    5. Return the hard copy ADF workpaper cases to:

      Florence Files
      7125 Industrial Rd.
      Florence, KY 41042
      Attn: File Supervisor

    , image the ADF workpaper cases, capture the required data fields,

  3. The number of EOCC cases shipped to the campus are reduced by the same number of ADF workpapers packages sent to the campus each week. These ADF packages are sent on the same scheduled day as the EOCC each week.

Document Preparation - Case Assembly Procedures for Determination Letter Applications and Packages Processed Through TEDS.

  1. The primary purpose of the Document Preparation (Doc Prep) subprocess is to prepare all packages for electronic scanning into TEDS.

  2. The following sections provide procedures for case assembly for all applications and packages processed through TEDS.

  3. Preparing the documents for scanning is an important operation. Properly performed, this step can ensure efficiency through the remaining processes.

  4. All EO/EP Closed cases will have the Doc Prep completed with the appropriate control sheets inserted, with the exception of the "Package" control sheet before receipt at CSPC.

  5. The Document Preparation Clerks will perform the following tasks:

    1. Receive application packages from Payment Processing or Second Sort.

      Example:

      Form 5310A will come directly from Second Sort. The Form 5310A isn't established in LINUS.

    2. Verify all required fields are present and legible.

    3. Make sure all packages are in page order; pages can be missing, but pages available must be in page order for the application.

    4. Verify the EIN is the same on all forms; if not, notify management immediately. Depending on research, account in LINUS may need to be corrected.

    5. Prepare documents for scanning (e.g., removal of staples, paper clips, rubber bands, copying required documentation, and inserting control sheets, etc.)

    6. Ensure package is in proper order

    7. Annotate all required editing on the documents within the package; example, "X" for a valid POA

    8. Identify non-scannable materials and complete the non-scannable control sheet to reflect the type of material and the application package to which it belongs. Any items such as the envelope that aren't scanned should be placed at the back of the case folder.

  6. If a filer submits a complete copy of his application package with the original submission, process the original package per the package separation procedures and file the complete copy behind the "Other Documents" control sheet.

  7. If we receive a Form 2848 or 8821 with "See Attachment" for additional appointees or representative, but contains an appointee/representative on the form, then place attachment behind the Other Document control sheet.

  8. If we receive a Form 2848 or 8821 with "See Attachment" for the appointees or representative and the form doesn't contain an appointee or representative on the form, then place the form and the attachment behind the Other Document control sheet.

  9. If only the firm name is present and the form says "See Attachment," place Form 2848/8821 and the attachment behind the Other Document control sheet.

  10. If only the firm/representative name is present and no address is provided, annotate a red line through the firm/representative name and leave the Form 2848 in the required form type order. Don't place the Form 2848 behind the Other Document control sheet.

  11. For a valid package both pages aren't required for the Form 2848. There is no need to insert a blank page for the page missing if not provided by the filer. The system is designed to accept the package if pages are missing.

    Note:

    You must put the pages provided in order. Page one of the Form 2848 must come before page two if both pages are provided, or the system flags the representatives as invalid.

  12. Ensure anything not required to be scanned is attached to the envelope for re-association later. "Don't" prepare a non-scannable control sheet for these items.

    Example:

    business cards, acknowledgment of receipt, sticky notes, and checklists for EP applications.

  13. If an item is determined non-scannable, the non-scannable control must be prepared. A second copy of the non-scannable control sheet is required when the item is too large to be kept with the case folder; otherwise only one non-scannable control sheet is needed. The "Non-scannable" control sheet provides identifying info that identifies the non-scannable item and the application package that it was received with.

  14. Forward all large non-scannable materials with a copy of the non-scannable control sheet to the Reconstitution Area for the subsequent reassembly of all application package materials if the item is too large to keep with the folder.

  15. When we receive two or more checks to pay the user fee for one application, change the priority of the package to "1" to ensure the application and multiple checks are processed within the 6 workday time frame. The second check is processed as an additional payment and needs the AIS to complete processing through TEDS.

  16. Do not hold the check for the AIS. The check must be deposited timely per the 72 hour required time frame.

  17. If Form 2848/8821 is incomplete, the following actions are required. See table below:

    If then and Comments
    only the Name is provided on the form and the address is completely missing edit the Form 2848 with one single line through the representative info code the representative as invalid The representative data won't be captured or Verified
    the name and part of the address is provided research the various tools provided to complete the address info. All approved editing must be done in red ink. code the representative as valid if it meets the required valid criteria The system requires the Name, address, city, state and zip be entered.
Expedite Annotation for Applications
  1. If we receive an application requesting expedite treatment, annotation of the request must be edited on the first page of the application. The annotation is be located in the top center portion of page one of the application.

  2. The request for expedite treatment may be contained within a cover letter from the filer or written across the top of the application.

  3. The following is a list of approved "Expedite Reasons" that are to be annotated during Doc Prep and captured within the system during Data Completion.

    EO Reason Code Reason Description
    N/A 000 Not expedited (System Default)
    EO 001 Proposed Expedites
    EO 001 Congressional
    EO 001 Tax Payer Advocate
  4. Expedite reasons are captured at CSPC for EO applications only.

  5. The Expedite Indicator 001 - Proposed Expedites is to be used for "all" EO applications requesting expedite treatment.

  6. Form 5310 applications are considered an expedite application but won't be processed as an "Expedite" .

  7. The Expedite reasons for EP is captured during Case Processing by the EP reviewer/agent, not during processing at CSPC.

General Guidelines for EO Packages
  1. When BMFOL IDRS screen print is used in the package for a substitute of page one, the following order is required:

    1. Page one of two - this is the page showing the account info.

    2. Page two of two - this is the page that contains the Entity info.

  2. The DLN and the postmark/received date must be on the first page. When using BMFOL page one of two, account info, is the page that must contain the DLN and postmark/received date.

  3. A "New Package" control sheet is only placed before the second and all subsequent packages within a batch. The first package in a batch doesn't need a "New Package" control sheet.

  4. The "Batch" control sheet is only needed if multiple batches are scanned at the same time.

  5. If an item is determined non-scannable, the "Non-scannable" control sheet provides identifying info that will enable these items to be re-associated with the appropriate application package during reconstitution.

  6. Forward all non-scannable materials to the Reconstitution Area for the subsequent reassembly of all application package materials.

  7. A "New Package" control sheet is only placed before the second and all subsequent packages within a batch. The first package in a batch doesn't need a "New Package" control sheet.

  8. When the package contains a cover letter or is marked as Expedite and meets the requirements of an expedite application, the expedite application annotation must be done. See IRM 3.45.1.10.3.1

  9. Annotate X on the Form 2848 and Form 8821 if the POA or consent form is valid. Refer to procedures for Form 2848 and Form 8821.

  10. Verify the Postmark Date is prior or equal to the Received Date. Edit the dates if necessary.

    Note:

    If Postmark or Received date is changed, notify management. The account in LINUS will need to reflect the change.

  11. If an item is determined non-scannable, the "Non-scannable" control sheet provides identifying info that will enable these items to be re-associated with the appropriate application package during reconstitution.

  12. Prepare documents for scanning:

    • Remove staples, rubber bands, clips, etc.

    • Straighten wrinkled edges and tape any torn documents

    • Trim ragged edges, if needed.

    • Copy the original documents from the application package that are unscannable, (e.g., torn documents, and/or odd sized sheets)

  13. When we receive two or more checks to pay the user fee for one application, change the priority of the package to "1" to ensure the application and multiple checks are processed within the 6 workday time frame. The second check is processed as an additional payment and needs the AIS to complete processing through TEDS.

General Guidelines for Identifying Documents Received with EO Packages
  1. This section contains general guidelines to help determine the appropriate control sheet to use with additional documents received with the EO packages that are processed through TEDS.

  2. The table below provides "examples" of which control sheet should be used for an EO Application Package. Refer to specific guidelines for specific application; the table below only provides examples for general guidelines:

      Form 1023, 1024, 1024-A1026, 1028, 8940 packages
    Trust Other Documents
    Trust/Charter Other Documents
    Trust Agreement Other Documents
    Articles of Agreement Other Documents
    Articles of Association Other Documents
    Certificate of Formation Other Documents
    Certificate of Incorporation Other Documents
    Constitution Other Documents
    Constitution & Bylaws Other Documents
    Statutes Other Documents
    Last Will and Testament Other Documents
    Charter Other Documents
    Code of Regulations Other Documents
    Cover letter requesting Form 1026 or 8940 application Letter Establishing Case control sheet

    Note:

    Only applies to a Form 1026 or 8940 application

    Form 1023 Errata sheet NA

    Note:

    If one is attached to the package it would be placed behind the Other Document control sheet.

    Cover Letter - Request for Expedite 1st document behind the Other Document Control Sheet
    Bylaws & Constitution Other Documents
    Books, posters, etc. Items that can't be scanned. Non-Scannable Control Sheet
  3. For Form 1023, 1024, 1024-A, 1026, 1028 packages, documents, other than Form - Forms, place behind the Other Document control sheet in the order submitted by the filer, with the exception of:

    • Cover Letter requesting expedite consideration; place this document 1st behind the Other Document Control Sheet.

    • Form 1026 and Form 8940 package - Package must contain a Letter Establishing Case control sheet. Any attachment to Form 8940 may be used.

  4. The table below provides examples of which control sheet should be used for an EO ADF package:

    Document Received Titled Control Sheet Check Box
    Additional Documents Add'l Documents
Document Preparation for EO Closed Cases or Additional Documents using 8670
  1. Assemble EO Closed Cases (EOCC) as follows:

    1. Form 8670

      Note:

      One or more Forms 8670 could be in the package; data is only captured from the 1st Form 8670.

    2. Final Letter Control Sheet

    3. Final Letter - Required in each package.

      Note:

      A Final Letter control sheet is needed for each Final Letter within the case. The 872-C or page 11 of the Form 1023 could be found after the final letter. (multiples are allowed)

    4. Disclosable Document Control Sheet

    5. Disclosable Documents

      Note:

      There must be at least one page behind the Disclosable Document control sheet. If not, the case goes to Manual Form Identification Module and will need to import a filler page.

    6. Non-Disclosable Document Control Sheet

    7. Non-Disclosable Documents

      Note:

      There must be at least one page behind the Non-Disclosable Document control sheet. If not, the case goes to Manual Form Identification Module and will need to import a filler page.

    8. A "New Package" control sheet is only placed before the second and all subsequent packages within a batch. The first package in a batch doesn't need a "New Package" control sheet.

Problem Applications - EOCC Doc Prep Errors
  1. EOCC applications pulled and corrected by EO Determination Processing Section are:

    • Required documents missing, and

    • Documents that are bound or can't be scanned

      Example:

      Newspapers that have not been copied, photographs that haven't been copied, unbound documents that don't have frayed edges removed.

      Note:

      Small simple doc prep errors correctable by the scan operator should be fixed and not pulled from the batch. Provide feedback to EO Determination Processing Section through the overseeing BSP:SPP analyst.

  2. See table below to correct the error without pulling the EOCC.

    Missing Document If Then
    Final Letter Control Sheet final letter in EOCC insert Final Letter Control Sheet from electronic library, and continue processing
    Disclosable Control Sheet Disclosable Control sheet is missing and there is a Form 872-C following a Final Letter insert the Disclosable Control Sheet from the electronic library after the Form 872-C and continue processing.
    Disclosable Control Sheet Disclosable Control sheet is missing and there is no Form 872-C following a Final Letter insert the Disclosable Control Sheet from the electronic library after the last page of the final letter and continue processing.
    Disclosable control sheet indicating there are no disclosable documents no disclosable document sheet in package, but info annotated on Disclosable Control Sheet insert page indicating no disclosable documents from the electronic library, and continue processing.
    Non-disclosable sheet indicating there are no non-disclosable documents no Non-disclosable documents sheet in package, but info annotated on Non-Disclosable Control Sheet insert page indicating no non-disclosable documents from the electronic library, and continue processing.
  3. Another correction that can be made by the re-scan or manual ID operator at CSPC is:

    If package then then
    has multiple disclosable control sheets delete all disclosable control sheets after the first one continue processing
  4. When deleting an image because of a duplicate page getting imaged, you must pull the hard copy to confirm that it's a true duplicate image and not a second copy provided by the filer.

  5. Cases should not be pulled, other than those indicated in table above, and should be corrected by CSPC employees. Provide feedback to EO Determination Processing Section via EOCC Error Log Sheet.

    Note:

    Small simple doc prep errors correctable by the scan operator should be fixed and not pulled from the batch.

    • Orange editing marks or other colored ink editing marks that don't image. If CSPC notices the orange edit marks they will over write the editing in "RED" ink. CSPC doesn't need to review the package for edit marks.

    • sticky on documents,

    • staples left in documents, and

    • torn pages that would need to be copied.

  6. Cases pulled for Doc Prep errors are corrected by EO Processing employees. CSPC management will alert EO Processing management when there are 28 or more applications needing correction. Or if less than 28 packages, then contact EO Processing if packages are older than 90 days old.

  7. Pull EOCC packages that contain a package separator sheet in error. Don't image/process as an EOCC package. Next:

    1. Pull the package from the batch and don't process the package as an EOCC package.

    2. Annotate on the box transmittal that the package was pulled and not processed - Package Separator Sheet.

    3. Return the package with the other EOCC packages that were processed and received in the box.

  8. All EOCC applications must be processed within 15 days of receipt at CSPC, with the exception of the cases pulled because of EO Processing errors.

Reprint Form 8670
  1. Reprint the Form 8670 from EDS if:

    • the Form 8670 is unscannable

    • poor quality of print, or

    • data is cut off of original document.

  2. Sign on to EDS and select option 2) - EO EDS

  3. Select option (3) - Inventory Control System (ICS)

  4. Select option (07) - Print Closing Forms

  5. Enter the EDS case numbers for the case(s) you need to reprint the Form 8670 for.

  6. Click on F5 to print.

  7. Enter the letter "t" in the Print Mode and the number "10" in the Device mode.

  8. Select option 0 to exit.

Document Preparation for Form 1023 Application Processed Through TEDS.
  1. For TEDS processing, the Form 1023 application package MUST contain:

    1. Form 1023 page 1, or BMFOL in place of page 1

    2. Page 12

      Note:

      Page 12 must be completed and stamped with "Prepared By IRS" if one wasn't submitted with the application.

  2. For unprocessable application packages, route to the Exception sub-process to research for missing items.

  3. Verify the EIN is the same on the Form 1023, Form 2848 and the Form 8821. If the EIN is different on the Form 2848/8821, the representative/appointee is invalid.

  4. Document preparation employee: assemble the Form 1023 application package:

    1. Form 1023 checklist

      Note:

      If the 2 page check sheet is missing one doesn't need to be inserted. The checklist isn't a required document.

    2. 1023 Application with attachments (explanations required by 1023 itself) including schedules A-K

    3. BMFOL IDRS Screen Print substitute for page 1 of 1023 (if needed),

    4. 1024 - if submitted for (c)(4) exemption before 501 (c)(3) effective date

      Note:

      If more than the 1st page is received, place the other pages behind the other doc control sheet unless it's a complete Form 1024 application; then process as a Form 1024 application.

    5. Form 2848 (POA)

    6. Form 8821 (Tax Information Authorization)

    7. Control sheet for Other Documents

    8. Place all documents other than those listed separately in order submitted by filer behind Other Document Control Sheet.

      Note:

      Correspondence requesting expedite treatment must be the first document behind the Other Document control sheet.

    9. Non-Scannable bar coded control sheet, completed with all applicable info

    10. The envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

  5. When the package contains a cover letter or is marked as Expedite and meets the requirements of an expedite application, the expedite application annotation must be done. See IRM 3.45.1.10.3.1

  6. Verify the Postmark Date is before or equal to the Receive Date. Edit the dates if necessary.

    Note:

    If Postmark or Received date is changed, notify management. The account in LINUS will need to reflect the change.

  7. Annotate X on the Form 2848 and Form 8821 if the POA or consent form is valid. Refer to procedures for Form 2848 and Form 8821.

  8. Annotate your initials at the bottom right hand corner of the Form 1023.

  9. If the application package doesn't meet TEDS criteria, route application to the legacy system for processing.

Document Preparation for Form 1024 Application - Case Assembly Procedures for the Form 1024 Determination Letter Applications Processed Through TEDS.
  1. For TEDS processing, the Form 1024 application package MUST contain:

    1. Form 1024

      Note:

      Only page one must be a valid package, or a print of BMFOL as a replacement for page 1.

    2. Form 8718

      Note:

      Form 8718 are completed by the Second Sort Sub-Process if one wasn't submitted with the application.

  2. For unprocessable application packages, route to the Exception sub-process to research missing items.

  3. Verify the EIN is the same on the Form 1024, Form 2848 and the Form 8821. If not, the Form 2848/8821 is invalid.

  4. The Document Preparation sub-process assembles the Form 1024 application package in proper pre-scanning order:

    1. New Batch control sheet

      Note:

      Required only when there are multiple batches loaded for scanning.

    2. New Package control sheet, placed between packages.

    3. Form 8718

    4. 1024 Application including schedules A-H

    5. Form 1024 Checklist must be placed behind other documents

    6. BMFOL IDRS Screen Print substitute for page 1 of 1024 (if needed)

    7. Form 2848 (POA)

    8. Form 8821 (Tax Information Authorization)

    9. Control sheet for Other Documents

    10. Place all documents other than those listed separately in order submitted by filer behind Other Document Control Sheet.

      Note:

      Correspondence requesting expedite treatment must be the first document behind the Other Document control sheet.

    11. Bar coded Non-scannable Form completed with all applicable info - if applicable

    12. The envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

  5. Verify the Postmark Date is prior or equal to the Received Date. Edit the dates if necessary.

    Note:

    If Postmark or Received date is changed, notify management. The account in LINUS will need to reflect the change.

  6. Annotate your initials at the bottom right hand corner of the Form 8718.

  7. If the application package doesn't meet TEDS criteria, route application to the legacy system for processing.

Document Preparation for Form 1024-A Application - Case Assembly Procedures for the Form 1024-A Determination Letter Applications Processed Through TEDS
  1. For TEDS processing, the Form 1024-A application package MUST contain:

    1. Form 1024-A

      Note:

      Only page one must be a valid package, or a print of BMFOL as a replacement for page 1.

    2. Form 8718

      Note:

      Form 8718 are completed by the Second Sort Sub-Process if one wasn't submitted with the application.

  2. For unprocessable application packages, route to the Exception sub-process to research missing items.

  3. Verify the EIN is the same on the Form 1024-A, Form 2848 and the Form 8821. If not, the Form 2848/8821 is invalid.

  4. The Document Preparation sub-process assembles the Form 1024-A application package in proper pre-scanning order:

    1. New Batch control sheet

      Note:

      Required only when there are multiple batches loaded for scanning.

    2. New Package control sheet, placed between packages.

    3. Form 8718

    4. 1024-A Application

    5. Form 1024-A Checklist must be placed behind other documents

    6. BMFOL IDRS Screen Print substitute for page 1 of 1024-A (if needed)

    7. Form 2848 (POA)

    8. Form 8821 (Tax Information Authorization)

    9. Control sheet for Other Documents

    10. Place all documents other than those listed separately in order submitted by filer behind Other Document Control Sheet.

      Note:

      Correspondence requesting expedite treatment must be the first document behind the Other Document control sheet.

    11. Bar coded Non-scannable Form completed with all applicable info - if applicable

    12. The envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

  5. Verify the Postmark Date is prior or equal to the Received Date. Edit the dates if necessary.

    Note:

    If Postmark or Received date is changed, notify management. The account in LINUS will need to reflect the change.

  6. Annotate your initials at the bottom right hand corner of the Form 8718.

  7. If the application package doesn't meet TEDS criteria, route application to the legacy system for processing.

Document Preparation for Form 1026 Application - Case Assembly Procedures for the Form 1026 (using BMFOL Screen Prints as a substitute for the application) Determination Letter Applications Processed Through TEDS.
  1. For TEDS processing, the Form 1026 application package MUST contain:

    1. Form 8718

      Note:

      Form 8718 is completed by the Second Sort Sub-Process if one wasn't submitted with the application.

    2. Form 1026 - ( BMFOL Screen Print)

    3. Control Sheet with letter case establishment checkbox marked

    4. Letter asking for exempt letter, cover letter. This is placed directly behind the Control sheet with the letter case establishment checkbox marked.

  2. For unprocessable application packages, route to the Exception sub-process to research missing items.

  3. Verify the EIN is the same on the Form 1026, Form 2848 and the Form 8821. If not, the Form 2848/8821 is invalid.

  4. The Document Preparation sub-process assembles the Form 1026 application package in proper pre-scanning order:

    1. New Batch control sheet

      Note:

      Required only when there are multiple batches loaded for scanning.

    2. New Package control sheet, placed between packages.

    3. Form 8718

    4. 1026 - BMFOL Screen Print

    5. Form 2848 (POA)

    6. Form 8821 (Tax Information Authorization)

    7. Control sheet for Letter Case Establishment

    8. Cover letter - letter asking for exempt letter

    9. Control sheet for Other Documents

    10. Place all documents other than those listed separately in order submitted by filer behind Other Document Control Sheet.

      Note:

      Correspondence requesting expedite treatment must be the first document behind the Other Document control sheet.

    11. Non-scannable bar coded document for non-scannable items

    12. The envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

  5. Verify the Postmark Date is prior or equal to the Received Date. Edit the dates if necessary.

    Note:

    If Postmark or Received date is changed, notify management. The account in LINUS will need to reflect the change.

  6. Annotate your initials at the bottom right hand corner of the Form 8718.

  7. If the application package doesn't meet TEDS criteria, route application to the legacy system for processing.

Document Preparation for Form 1028 Application Package - Case Assembly Procedures for the Form 1028 Determination Letter Applications Processed Through TEDS
  1. For TEDS processing, the Form 1028 application package MUST contain:

    1. Form 1028

    2. Form 8718

      Note:

      Form 8718 is completed by the Second Sort Sub-Process if one wasn't submitted with the application.

  2. For unprocessable application packages, route to the Exception sub-process to research missing items.

  3. Verify the EIN is the same on the Form 1028, Form 2848 and the Form 8821. If not, the Form 2848/8821 is invalid.

  4. The Document Preparation sub-process assembles the Form 1028 application package in proper pre-scanning order:

    1. New Batch control sheet

      Note:

      Required only when there are multiple batches loaded for scanning.

    2. New Package control sheet placed between packages.

    3. Form 8718

    4. 1028 Application

    5. BMFOL IDRS Screen Print substitute for page 1 of 1028 (if needed)

    6. Form 2848 (POA)

    7. Form 8821 (Tax Information Authorization)

    8. Control sheet for Other Documents

    9. Place all documents other than those listed separately in order submitted by filer behind Other Document Control Sheet.

      Note:

      Correspondence requesting expedite treatment must be the first document behind the Other Document control sheet.

    10. Non-scannable bar coded document for non-scannable

    11. The envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

  5. Verify the Postmark Date is prior or equal to the Received Date. Edit the dates if necessary.

    Note:

    If Postmark or Received date is changed, notify management. The account in LINUS will need to reflect the change.

  6. Annotate your initials at the bottom right hand corner of the Form 8718.

  7. If the application package doesn't meet TEDS criteria, route application to the legacy system for processing.

General Guidelines for EP Packages
  1. If using an INOLE Plan print for an EP package you will need to annotate the plan and plan number from the Form 8717 on the INOLE print if one is provided on the Form 8717.

    Note:

    If the user fee was paid through Pay.gov, the filer is directed to include the receipt. A message should alert you to the presence of a fee made through Pay.gov for EP user fees. However, you must research LINUS to ensure the fee was paid.

  2. If no Plan Name and Plan Number is provided on the Form 8717 you will capture the first plan and plan number listed on the INOLE print.

  3. If no info is available on INOLE or the Form 8717 you will use Plan number 999 and the plan name as "PLAN"

  4. If Plan name is available on the Form 8717 but no Plan Number and the plan name doesn't match INOLE you will use the Plan name from the Form 8717 and the default Plan Number of 999.

  5. If Plan name is available on the Form 8717 but no Plan Number and the Plan name matches INOLE you will use the Plan Name and the Plan Number from the INOLE print.

  6. The DLN and the postmark/received date must be on the INOLE print.

  7. The "Batch" control sheet is only needed if multiple batches are scanned at the same time.

  8. For unprocessable application packages, route to the Exception sub-process to research missing items.

  9. If the application package doesn't meet TEDS criteria, route application to the legacy system for processing.

  10. If using an INOLE print containing plan info in the package and multiple plans are shown:

    1. If plan number is available on the Form 8717, annotate the plan number on the INOLE print.

    2. If plan number isn't available on the Form 8717, annotate plan number 999 on the INOLE print.

    3. If plan name is available on the Form 8717, annotate the plan name on the INOLE print.

    4. If plan name isn't available on the Form 8717, annotate plan name "PLAN" on the INOLE print.

  11. Prepare documents for scanning:

    • Remove staples, rubber bands, clips, etc.

    • Straighten wrinkled edges and tape any torn documents

    • Trim ragged edges, if needed.

    • Copy the original documents from the application package that are unscannable, (e.g., torn documents, and/or odd sized sheets)

  12. Verify the Postmark Date is prior or equal to the Received Date. Edit the dates if necessary.

    Note:

    If Postmark or Received date is changed, notify management. The account in LINUS will need to reflect the change.

  13. Annotate your initials at the bottom right hand corner of the Form 8717.

  14. When we receive two or more checks to pay the user fee for one application, change the priority of the package to "1" to ensure the application and multiple checks are processed within the 6 workday time frame. The second check is processed as an additional payment and needs the AIS to complete processing through TEDS.

  15. All Form 5310-A packages must have the priority changed to "25" during the initial scanning process.

General Guidelines to help identify the correct Control Sheets for EP packages
  1. Insert a control sheet for each occurrence of the document specified. Precede the document with an EP/EO Document Type control sheet with a check mark in the corresponding checkbox that identifies the document.

  2. The following can assist you in identifying EP Non-Form forms.

    Description Serial Letter Number Exhibit Number
    Demo NA See Exhibit 3.45.1-6.
    Cover Letter NA  
    Favorable Determination Letter   See Exhibit 3.45.1-1.
    Opinion Letter K373885a See Exhibit 3.45.1-3.
    Advisory Letter VS322532 See Exhibit 3.45.1-5.
    Amendments NA  
    Adoption Agreement NA See Exhibit 3.45.1-4.
    Plan Document NA See Exhibit 3.45.1-2.
    Trust Document NA  
    Certification of Intent to Adopt a Pre-approved Plan    
Document Preparation for EP Closed Cases or Additional Documents using 8671
  1. Assemble EP Closed Cases (EPCC):

    1. Form 8671

      Note:

      One or more Forms 8671 could be in the package; data is only captured from the 1st Form 8671

    2. Final Letter Control Sheet

    3. Final Letter - Required in each package.

      Note:

      A Final Letter control sheet is needed for each Final Letter within the case. Multiple Final Letters are allowed

    4. Disclosable Document Control Sheet

    5. Disclosable Documents

      Note:

      There must be at least one page behind the Disclosable Document control sheet. If not, the case goes to Manual Form Identification Module and will need to import a filler page.

    6. Non-Disclosable Document Control Sheet

    7. Non-Disclosable Documents

      Note:

      There must be at least one page behind the Non-Disclosable Document control sheet. If not the case goes to Manual Form Identification Module and will need to import a filler page.

    8. A "New Package" control sheet is only placed before the second and all subsequent packages within a batch. The first package in a batch doesn't need a "New Package" control sheet.

Problem Applications - EPCC Doc Prep Errors
  1. EPCC applications that are pulled and corrected by EP Processing Office are:

    • Required documents missing, and

    • documents that are bound or can't be scanned (e.g., newspapers that haven't been copied, photographs that haven't been copied, unbound documents that don't have frayed edges removed).

      Note:

      Small simple doc prep errors correctable by the scan operator should be fixed and not pulled from the batch. Provide feedback to EP Processing Office through the overseeing BSP:SPP analyst.

  2. See table below to correct the error without pulling the EPCC.

    Missing Document If Then
    Final Letter Control Sheet final letter in EPCC insert Final Letter Control Sheet from electronic library, and continue processing
    Disclosable Control Sheet Disclosable Control sheet is missing insert the Disclosable Control Sheet from the electronic library after the last page of the final letter and continue processing.
    Disclosable control sheet indicating there are no disclosable documents no disclosable document sheet in package, but info annotated on Disclosable Control Sheet insert page indicating no disclosable documents from the electronic library, and continue processing.
    Non-disclosable sheet indicating there are no non-disclosable documents no Non-disclosable documents sheet in package, but info annotated on Non-Disclosable Control Sheet insert page indicating no non-disclosable documents from the electronic library, and continue processing.
  3. Another correction that can be made by the re-scan or manual ID operator at CSPC is:

    If package then then
    has multiple disclosable control sheets delete all disclosable control sheets after the first one continue processing
  4. When deleting an image because of a duplicate page getting imaged, you must pull the hard copy to confirm that it's a true duplicate image and not a second copy provided by the filer.

  5. Cases should not be pulled, other than those indicated in table above, and should be corrected by CSPC employees. Provide feedback to EP Processing Office via EPCC Error Log Sheet.

    Note:

    Small simple doc prep errors correctable by the scan operator should be fixed and not pulled from the batch.

    • Orange editing marks or other colored ink editing marks that don't image. If CSPC notices the orange edit marks they will over write the editing in "RED" ink. CSPC doesn't need to review the package for edit marks.

    • sticky on documents,

    • staples left in documents, and

    • torn pages that would need to be copied.

  6. Cases pulled for Doc Prep errors are corrected by EP Processing employees. CSPC management will alert EP Processing management when there are 28 or more applications needing correction. Or if less than 28 packages then contact EP Processing if packages are older than 90 days old.

  7. Pull EPCC packages that contain a package separator sheet in error. Don't image/process as an EPCC package. Next:

    1. Pull the package from the batch and don't process the package as an EPCC package.

    2. Annotate on the box transmittal that the package was pulled and not processed - Package Separator Sheet.

    3. Return the package with the other EPCC packages that were processed and received in the box.

  8. All EPCC applications must be processed within 15 days of receipt at CSPC, with the exception of the cases pulled because of EP Processing errors.

Reprint Form 8671
  1. Reprint the Form 8671 from EDS if:

    • the Form 8671 is unscannable

    • poor quality of print, or

    • data is cut off of original document.

  2. Sign on to EDS and select option 2) - EP EDS

  3. Select option (3) - Inventory Control System (ICS)

  4. Select option (07) - Print Closing Forms

  5. Enter the EDS case numbers for the case(s) you need to reprint the Form 8671 for.

  6. Click on F5 to print.

  7. Enter the letter "t" in the Print Mode and the number "10" in the Device mode.

  8. Select option 0 to exit.

Document Preparation for Form 8717 - User Fee for Employee Plan Determination Letter Request
  1. Multiple Form 8717 are allowed, but data is only captured from the first occurrence.

  2. If Form 8717 consists of additional pages, place additional pages behind the Other Doc control sheet.

  3. Form 8717 must be completed if one wasn't submitted with the application.

  4. If the Form 8717 is prepared by IRS it must be stamped "Prepared by IRS."

Document Preparation for Form 5307 Application
  1. Form 5307 revision 6–2014 contains six pages. The 2008 and 2014 revisions are formatted for OCR functionality utilized through TEDS. All six pages don't need to be part of the package to make the package valid. Both revisions are a valid package type and are processed through TEDS.

  2. If an application package comes in with pages from mixed versions, use an IDRS print to obtain the required application elements listed in paragraph three below. See table below for guidelines of the situation.

    Documents received in package then and capture
    Page one of version 2014, all other pages are from an older version use IDRS print (INOLE) as a substitute of page one the required fields from the IDRS print (INOLE).
    Page one of older version, all other pages are from 2014 version   the required fields from the page one of the older version
  3. For TEDS processing, the Form 5307 application package "MUST " contain:

    1. Form 8717

    2. Form 5307, page one is needed to make a valid package for versions older than 2008.

    3. Form 5307 version 2008 and 2014, page one and page three are needed to make a valid package.

  4. If pages are missing from a Form 5307 version 2014 or 2008 package, refer to table below:

    If package is missing then and then or, if can't be found
    Page one Process the package as an INOLE package      
    Page one and page three Process the package as an INOLE package      
    Page three is missing insert a page three prepared by IRS employee if plan name and plan number are found through research the required fields (plan name and plan number) are annotated in red on the page three prepared by IRS the required fields are annotated in red on the page three prepared by IRS as follows:
    Plan Name - PLAN
    Plan Number - 999
  5. For TEDS processing, the Form 5307 "MUST" contain:

    1. Name of Plan sponsor (employer if single-employer plan) of Form 5307.

    2. Address

    3. Employer Identification Number (EIN).

    4. A three digit plan number.

      Note:

      Default to Plan Number 999 if no plan number is available.

    5. Postmark date

    6. IRS Received date

    Note:

    See IRM 3.45.1.3.3

  6. If any of the required blocks aren't completed or legible, research the application for the info. If the info is found, notate the info in "RED" in the appropriate box. If unable to find the info, route entire application to the Exception sub-process for additional research.

  7. Verify the EIN is the same on the Form 5307, Form 2848 and the Form 8821. If not, the Form 2848/8821 is invalid. Refer to Form 2848/8821 for complete procedures to determine if form is valid.

  8. Multiple Form 5307s are allowed; however, the data is only captured from the first occurrence.

  9. If page one of the application is missing, an IDRS print of INOLE is used as a substitute for page 1.

  10. The Document Preparation sub-process will ensure the documents are in the following sequence order before the Form 5307 application package is scanned:

    1. Form 8717

    2. Form 5307 (page sequential order)

    3. Form 8905

    4. Form 2848 or Form 8821 (page sequential order)

      Note:

      EP Document Control Sheet precedes each of the following

    5. Last Favorable Determination Letter

    6. Opinion Letter or Advisory Letter

    7. Certification of Intent to Adopt a Pre-approved Plan

    8. Demo

    9. Cover Letter

    10. Amendments

    11. Plan Documents

    12. Trust Documents

    13. Other Documents

      Note:

      Includes Board of Directors Resolution, Modification Statement of Changes to the Plan and Procedural Requirements Checklist.

    14. Adoption Agreement

    15. Non-Scannable bar coded control sheet, completed with all applicable info.

    16. The envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

Document Preparation for Form 5300 Application Package - Case Assembly Procedures for the Form 5300 Determination Letter Applications Processed Through TEDS
  1. For TEDS processing, the Form 5300 application package "MUST " contain:

    1. Form 8717

    2. Form 5300 application, page one

      Note:

      INOLE print is used if page one, page four (Rev 4–2011) or entity info is missing.

  2. The Document Prep sub-process ensures the document order for package scanning:

    1. Form 8717

    2. Form 5300

    3. Form 5309

    4. Form 8905

    5. Form 2848 or Form 8821 (page sequential order)

      Note:

      EP Document Control Sheet precedes each of the following

    6. Last Favorable Determination Letter

    7. Opinion Letter or Advisory Letter

    8. Certification of Intent to Adopt a Pre-approved Plan

    9. Demo

    10. Cover Letter

    11. Amendments

    12. Plan Documents

    13. Trust Documents

    14. Other Documents

      Note:

      Includes Board of Directors Resolution and Modification Statement of Changes to the Plan and Procedural Requirements Checklist.

    15. Adoption Agreement

    16. Non-Scannable bar coded control sheet, completed with all applicable info.

    17. Envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

Document Preparation for Form 5310 Application
  1. For TEDS processing, the Form 5310 application package "MUST " contain:

    1. Form 8717

    2. Form 5310 application

      Note:

      INOLE print is used if page one or entity info is missing.

  2. The Document Prep sub-process ensures the document order for package scanning:

    1. Form 8717

    2. Form 5310

    3. Form 6088

    4. Form 8905

    5. Form 2848 or Form 8821 (page sequential order)

      Note:

      EP Document Control Sheet precedes each of the following

    6. Last Favorable Determination Letter

    7. Opinion Letter or Advisory Letter

    8. Certification of Intent to Adopt a Pre-approved Plan

    9. Demo

    10. Cover Letter

    11. Amendments

    12. Plan Documents

    13. Trust Documents

    14. Other Documents

      Note:

      Includes Board of Directors Resolution, Modification Statement of Changes to the Plan and Procedural Requirements Checklist.

    15. Adoption Agreement

    16. Non-Scannable bar coded control sheet, completed with all applicable info.

    17. Envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

Document Preparation for Form 5310-A Application
  1. For TEDS processing, the Form 5310-A application package "MUST " contain:

    1. Multiple Form 5310-A application

      Note:

      INOLE print is used if page one or entity info is missing.

  2. The Document Prep sub-process ensures the document order for package scanning:

    1. Form 5310-A

    2. Form 2848 or Form 8821 (page sequential order)

      Note:

      EP Document Control Sheet precedes each of the following

    3. Cover Letter

    4. Amendments

    5. Other Documents

      Note:

      Includes Board of Directors Resolution and Modification Statement of Changes to the Plan.

    6. Non-Scannable bar coded control sheet, completed with all applicable info.

    7. Envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

Document Preparation for Form 5316 Application
  1. For TEDS processing, the Form 5316 application package "MUST " contain:

    1. Form 8717

    2. Form 5316 application - If page 3 checklist is included with Form 5316, place in folder and don't scan.

      Note:

      INOLE print is used if page one or entity info is missing.

  2. The Document Prep sub-process ensures the document order for package scanning:

    1. Form 8717

    2. Form 5316

    3. Form 2848 or Form 8821 (page sequential order)

      Note:

      EP Document Control Sheet precedes each of the following

    4. Last Favorable Determination Letter

    5. Opinion Letter or Advisory Letter

    6. Demo

    7. Cover Letter

    8. Amendments

    9. Plan Documents

    10. Trust Documents

    11. Other Documents

      Note:

      Includes Board of Directors Resolution and Modification Statement of Changes to the Plan.

    12. Adoption Agreement

    13. Non-Scannable bar coded control sheet, completed with all applicable info.

    14. Envelope

      Note:

      The envelope isn't scanned, but is associated back with the hard copy application as part of reconstitution process.

Document Preparation for Additional Documents Filing (ADF) using Application Identification Sheet (AIS) When Campus Receives the Package Directly from the Filer
  1. The Document Preparation sub-process assembles the ADF package in proper pre-scanning order:

    1. Application Identification Sheet (AIS)

    2. EO Attachments or EP Document Types Control Sheet with the appropriate check box marked

    3. Supporting documents

  2. The AIS must be stamped with the postmark date and the IRS received date. If the ADF package is faxed to CSPC the postmark date is the same as the IRS received date.

  3. For an ADF package the IRS received date is the date received at CSPC within the EP/EO Determination User Fee Unit.

  4. For Remit ADF packages received with no additional documents and only a payment, refer to Additional Payments Processed Through TEDS.

EO ADF - Non-Remit
  1. Document prep additional documents received for an EO TEDS case with an AIS:

    1. AIS

    2. EO Control Sheet with "Additional Document" checkbox marked

    3. Additional documents

      Note:

      At least one document must follow the control sheet.

  2. No DLN is required for a non-remit ADF package.

  3. Postmark and Received dates must be stamped on the AIS sheet.

EO ADF - Remit with or without additional documents
  1. Document prep additional documents and payment received for an EO TEDS case with an AIS:

    1. AIS

    2. EO Control Sheet with "Additional Documents" checkbox marked

    3. Additional documents received from the filer.

      Note:

      One document must follow the control sheet.

  2. DLN is required for a remit ADF package and the checkbox on the AIS needs to be marked indicating that the AIS is remit.

  3. The check should be removed before receiving the package in Doc Prep. The DLN should be stamped on the AIS before receiving the package in Doc Prep.

  4. Postmark and Received dates must be stamped on the AIS sheet.

  5. If ADF arrives with only a user fee and no additional documents, the Additional Document Control Sheet isn't needed. Treat the ADF package as an additional payment.

EP ADF - Non-Remit
  1. Document prep additional documents received for an EP TEDS case with an AIS:

    1. AIS

    2. EP Control Sheet with "Additional Document" checkbox marked

    3. Additional documents

      Note:

      At least one document must follow the control sheet.

  2. No DLN is required for a non-remit ADF package.

  3. Postmark and Received dates must be stamped on the AIS sheet.

EP ADF - Remit with or without additional documents
  1. Document prep additional documents and payment received for an EP TEDS case with an AIS:

    1. AIS

    2. EP Control Sheet with "Additional Documents" checkbox marked

    3. Additional documents received from the filer.

      Note:

      One document must follow the control sheet.

  2. DLN is required for a remit ADF package and the checkbox on the AIS needs to be marked indicating that the AIS is remit.

  3. The check should be removed before receiving the package in Doc Prep. The DLN should be stamped on the AIS before receiving the package in Doc Prep.

  4. Postmark and received dates must be stamped on the AIS sheet.

  5. If ADF arrives with only a user fee and no additional documents, the Additional Document Control Sheet isn't needed. Treat he ADF package as an additional payment.

Document Preparation for Additional Documents Filing (ADF) using Application Identification Sheet (AIS) When the Package arrives Directly from EP/EO Rulings & Agreement Office
  1. An ADF package received from EP/EO Rulings Agreement Office could have the Doc Prep completed before shipment to CSPC. If the Doc Prep is completed, CSPC:

    1. Stamps the AIS document with the postmark date and the IRS received date.

      Note:

      The same rules apply for the postmark/IRS received date as for any ADF package.

    2. Verifies package assembled as required.

      Note:

      Additional checkbox control sheets are acceptable in an ADF package when Doc Prep'd before routing to CSPC.

  2. If a large volume of ADF packages come from EP the following additional steps are taken:

    • Verify and acknowledge the Form 3210 following the Form 3210 IRM procedures.

    • Return hard copy packages back in the same container they were received in. Example, if they come in a box, send it back in that same box.

    • Packages don't need to be placed back in the folders they were received in, but the folders do need to be returned in the container with the hard copy documents.

  3. For Remit ADF packages received with no additional documents and only a payment, refer to Additional Payments Processed Through TEDS.

Document Preparation for Non-Scannable Materials
  1. Envelopes aren't scanned. A non-scannable control sheet isn't needed for envelopes.

  2. Information not scanned "MUST" be reassociated with corresponding scannable items.

  3. Complete the Non-Scannable control Sheet for items received with the application package. (e.g., bound documents that can't be torn apart, audio tapes).

  4. The following fields should be completed on the "Non-scannable Materials" control sheet:

    • EIN

    • EP Plan Number (EP applications only)

    • Form Type

    • Brief description

  5. Forward all Non-Scannable items to the Reconstitution Area. Place the Non-Scannable document in the sequence order per package type and attach a copy of the Non-scannable control sheet to the non-scannable item.

General Guidelines for Document Preparation on Forms Used By Both EP & EO
  1. Prepare documents for scanning:

    • Remove staples, rubber bands, clips, etc.

    • Straighten wrinkled edges and tape any torn documents

    • Trim ragged edges, if needed.

    • Copy the original documents from the application package that are unscannable, (e.g., torn documents, and/or odd sized sheets)

Document Preparation for Form 2848 - Power of Attorney and Declaration of Representative
  1. Taxpayers file Form 2848 to notify the IRS of their authorized representative. Process an original document, a photocopy, or a facsimile transmission (FAX).

  2. Verify the filer's EIN is the same as on the application and the Form 8717. If not, the Form 2848 is considered invalid.

  3. If the filer provides valid info for a representative and a volume submitter, don't capture the data for the volume submitter and indicate that the volume submitter is invalid.

  4. If Designation code under Part II is "H, - Unenrolled Return Preparer" , or left blank for the representative, the form is invalid.

  5. If multiple representatives are provided on Form 2848 and their corresponding designation code is H or blank;

    • Annotate the valid representatives with an "X" on page 2 in the right side margin of Part II after the date that corresponds to the representative. If the form is invalid, no annotation is needed.

    • Place form in appropriate order within the application package

  6. If any of the required blocks aren't completed or legible, research the application for the info. If the info is found, notate the info in "RED" in the appropriate box. If unable to find the info, route entire application to the Exception sub-process for additional research.

    Note:

    Example of required blocks to research if not "completed" are, Entity info, address, and ZIP.

  7. Required blocks to research if not complete are:

    • Representative's Address

    • Representative's Zip code

  8. If representative/appointee name isn't present on the form and it doesn't say "see attachment," mark the form as invalid. If form says "see attachment" place the form behind the Other Doc control sheet.

  9. The Zip Code is required if the representative's Entity info is present.

  10. To determine the validity of the Form 2848 See IRM 3.45.1.17.1

  11. A valid package doesn't require a Form 2848 or a complete Form 2848; both pages aren't required for the Form 2848. There is no need to insert a blank page for the page missing if not provided by the filer. The system is designed to accept the package if pages are missing.

    Note:

    You must put the pages provided in order. Page one of the Form 2848 must come before page two if both pages are provided or the system flags the representatives as invalid.

  12. Multiple Forms 2848 are allowed.

  13. If a Form 2848 and Form 8821 contain the same representative, both forms are imaged and processed per IRM procedures for the form type.

Non-IRS Form 2848
  1. If a filer submits a Form 2848 that isn't an IRS form, process the form through TEDS:

    • If only one page is submitted, then copy page one and treat it as page 2. You will have 2 pages with the same data.

    • Ensure the non-IRS power of attorney form satisfies the requirements under IRM 1.25.1.2.1(7) and (8)

    • Make all required edits of the standard Form 2848

  2. All Form 2848 procedures apply with the exception of making a photocopy of page one to provide two pages when the form is processed through TEDS.

Document Preparation for Form 8821 - Tax Information Authorization
  1. Taxpayers file Form 8821 to authorize the IRS to release confidential tax info to a designee. The designee may be an individual or entity (e.g., corporation, partnership, trust, or organization). Process an original document, a photocopy, or a facsimile transmission (FAX).

  2. Verify the EIN is the same as on the application and the Form 8821; if not, the form is considered invalid.

  3. If no appointee(s) name is available on the Form 8821, the form is considered invalid.

  4. The zip code is required if the representative's Entity info is present.

  5. Annotate the valid representatives with an "X" in the right side margin of line 7. If the form is invalid no annotation is needed.

  6. To determine the validity of the Form 8821 See IRM 3.45.1.17.2

  7. Multiple Forms 8821 are allowed.

  8. If a Form 2848 and Form 8821 contain the same representative, both forms are imaged and processed per IRM procedures for the form type.

Batch Scanning Module

  1. As the Scan operator double click on the SCAN ICON on your desktop to initiate the scanning process.

  2. Select "New Batch" icon to scan in a new batch.

    Note:

    If you need to add to a batch that has been scanned, you would select "open batch" to perform the function.

  3. The Scan operator will select the appropriate workflow Process Icon:

    ICON on Desk Top Drop Down Menu
    New Application - EO NEWAPP - Per Form Type
    New Application - EP NEWAPP - Per Form Type
    EP Closed Cases TEDS EPCC
    EO Closed Cases TEDSEOCC
    ADF ADF (Additional Document Filing)
  4. Enter the BBTS 4 digit number to initialize the scan batch

  5. The system won't allow the same BBTS number to be utilized within the same day. If additional documents need to be scanned or added to the BBTS number, the operator will need to select the Open Batch button.

  6. The same BBTS number can't be utilized in the last 7 days; if so, the system will detect the duplication and require the operator to confirm that the BBTS is to be reused as requested. A warning message is provided to the operator asking to verify if they want to use the same BBTS number.

  7. The Batch Scanning module will automatically assign a unique batch control number BBBBYYJJJ to initialize a scanning application for each batch using a workflow process.

    • BBBB = the four digit BBTS batch number that was entered by the Scan Operator

    • YY = the last 2 digits of the current year

    • JJJ= the Julian date that the batch was scanned

  8. Enter the IRS received date for the submissions within the batch. The IRS received date entered during scanning for the batch is:

    • New applications - date it was received at the first IRS Office

    • EOCC/EPCC - date package received at CSPC EP/EO Determination User Fee Unit(s).

    • ADF packages - date received at CSPC EP/EO Determination User Fee Unit(s).

    • Interoffice Mail - date received at CSPC EP/EO Determination User Fee Unit(s).

  9. The IRS received date is to be entered as DD/MM/YYYY.

  10. You must enter the date correctly in the system. Once the date is entered and the screen is released the date can't be changed. This date is provided on all managerial reports that are used to monitor the workflow and required time frames.

  11. For EOCC/EPCC process the Scan operator must annotate the unique scan batch control number created by the Batch Scanning Module on the box transmittal.

  12. Once scanning of the batch is complete, select Finish Scanning. When finish is selected, the system will automatically remove all blank pages from the batch. The computer will also automatically clean up and de-skew images.

  13. The "Batch Scanning Module" converts hard-copy documents to electronic versions that can be accessed through Documentum.

  14. A batch of documents that are fed into the scanner must have a common leading edge. Documents may be left, right, or center-aligned in the elevator tray.

  15. All pages in the batch must be top edge justified with all pages facing up.

  16. All pages are in the order top to bottom.

    Note:

    IMPORTANT: Proper alignment of documents is very important. Documents must be fed under both feed module tires.

  17. Refer to table below for the priority that is used per package type. The system has a default priority setting. The scan operator must adjust the default priority when needed.

    Note:

    W&I management can change priority for any package at their discretion when workflow requires the change.

    :

    Package Type Priority Default
    Application Packages
    Form 5307: New Application Package Scan/Data Capture/Export 25 X
    Form EP 5316 Group or Pooled Trust: New Application Package Scan/Data Capture/Export 25 X
    Form EP 5300: New Application Package Scan/Data Capture/Export 25 X
    Form EP 5310: New Application Package Scan/Data Capture/Export 25 X
    Form EP 5310A: New Application Package Scan/Data Capture/Export 25  
    Form EO 1023: New Application Package Scan/Data Capture/Export 25 X
    Form EO 1024: New Application Package Scan/Data Capture/Export 25 X
    Form EO 1024-A: New Application Package Scan/Data Capture/Export 25 X
    Form EO 1026 (BMFOF IDRS screen print): New Application Package Scan/Data Capture/Export 25 X
    Form EO 1028: New Application Package Scan/Data Capture/Export 25 X
    Form EO 8734: New Application Package Scan/Data Capture/Export 25 X
    Expedite Packages
    All application packages, EO & EP, where filers are requesting an expedite process of their applications 1  
    Additional Document Filing (ADF)
    EO Additional Document Filing – Remit - Scan/Data Capture/Export 15 X
    EO Additional Document Filing - Non-Remit - Scan/Data Capture/Export 15 X
    EP Additional Document Filing – Remit - Scan/Data Capture/Export 15 X
    EP Additional Document Filing – Non Remit - Scan/Data Capture/Export 15 X
    Closed Cases (EOCC & EPCC)
    EO Closed Case Scan/Data Capture/Export 50 X
    EP Closed Case Scan/Data Capture/Export 50 X
    Correspondence Packages (Note: not yet in production)
    Correspondence Case Package Scan/Data Capture/Export 30 X
    Misc Packages
    Applications received with multi checks. Priority must be changed to process both user fee checks within the required 6 workday time frame. 5  
  18. All Form 5310-A packages must have the priority changed to 25.

  19. All control sheets remain within the application package.

  20. When feeding batched documents, the maximum height of the batched documents is 10.2 cm (4 in.), approximately 1000 sheets of paper.

  21. Refer to the Kodak i810 Operation Guide for step by step instructions for performing maintenance and operation of the equipment.

Interruption of Scanning
  1. Scanning process is stopped for various reasons, ( e.g., paper jam, staple, paper clip, etc.); the cursor must be at the bottom of the last page scanned (Thumb nail) before scanning is continued. Incorrect placement will place images in the incorrect package or order.

  2. Verify the last page in the exit hopper was imaged.

  3. Verify the cursor is behind the last page scanned.

Manual Form Identification (Manual ID)

  1. TEDS should identify all forms; however, some forms may need to be identified manually where the TEDS system is unable to identify pages or when unexpected pages are detected by the system.

  2. Manual Form Identification is the first step to "fix-up" . The system automatically cleans-up the pages, eliminating blank pages, correcting any skewed images and removing small extraneous markings on the pages.

  3. The system will Identify documents in error. A box with red highlights identifies the documents with errors. The document can be enlarged by clicking the full screen icon on the icon bar. However, the document must be minimized (by clicking the same icon) before the form name can be assigned.

  4. Determine what form name should have been associated with the form in error. To assign the form name from the Assign Form pop-up window, select the appropriate form name.

  5. If the form can't be identified or isn't listed in the F11 menu, click on F6 to open the Reject Package pop-up window.

  6. When sending the package manually to Manual ID or Rescan you must put your SEID after the remarks in the remarks field.

  7. Follow the table below to determine appropriate reason to select:

    EO Closed Cases (EOCC) or EP Closed Cases (EPCC)
    Reason Selected If Then and
    Document Missing Required Page missing page is other than Form 8670/Form 8671 or Final Letter send to rescan module insert missing page
    Reprint Case Closing Sheet NOT Applicable for CSPC      
    Package Missing Required Document(s) missing document other than Form 8670/Form 8671 or Final Letter send to rescan module insert missing document
    Delete Package missing document is the Form 8670/Form 8671 or Final Letter Indicate reason in the dialogue box why package was deleted and pull package from batch annotate on box transmittal that package was closed and returned to EO/EP Determination Processing Office in Cincinnati. Route package with a copy of box transmittal showing case that was pulled
    Package Missing Control Sheet(s)   send to rescan module insert missing control sheet
    Rescan Page poor image send to rescan module rescan/insert page to correct poor image
    Other no other reason fits provide reason in the dialogue box.  
    New Application Packages
    Reason Selected If Then and
    Document Missing Required Page missing page send to rescan module insert missing page
    Package Missing Required Document(s) missing document send to rescan module insert missing document
    Delete Package missing document or required data Indicate reason in the dialogue box why package was deleted and pull package from batch  
    Package Missing Control Sheet(s)   send to rescan module insert missing control sheet
    Rescan Page poor image send to rescan module rescan/insert page to correct poor image
    Other no other reason fits provide reason in the dialogue box.  
  8. Non-Standard forms will need to be identified through Manual ID. Non-Standard forms such as, but aren't limited to:

    • One Page Form 2848 that will have the first page copied and used as a second page.

    • Form revisions that TEDS doesn't support.

Two or More Initial Application Packages Scanned Together
  1. To prevent two or more initial application packages from being scanned in together, the system will send the package(s) to manual ID alerting the employees of the situation.

  2. An EO initial package is never to contain more than one EO Checkbox with the following multiple documents; send the package to Manual ID for correction:

    • Organizational Docs

    • Bylaws

    • Other Documents

    • Correspondence

  3. An EP initial package is never to contain more than one EP Checkbox with the following multiple documents; send the package to Manual ID for correction:

    • Demos

    • Cover Letters

    • Last Favorable Det Ltr

    • Opinion/Advisory Letter

    • Amendments

    • Adoption Agreement

    • Plan Document

    • Trust Document

    • Other Documents

    • Cert of Intent to Adopt

Correction to Multiple Checkboxes Control Sheets are in Package
  1. The table below provides procedures to take when multiple checkbox control sheets are scanned in one package.

    Situation then and and
    Multiple checkbox control sheet in one initial application Delete multiple checkbox control sheet and move documents under appropriate checkbox control sheet.  
    Multiple initial applications scanned together Pull hard copy for all applications involved Delete package from the system other than the first initial application in package process all other initial applications involved. Ensure that package separator sheet is inserted between every initial application.

Rescan

  1. Problem pages within a package can be sent automatically by the computer or manually during Manual Form Identification, Data Completion and Verification.

  2. When deleting an image because of a duplicate page getting imaged, you must pull the hard copy to confirm that it's a true duplicate image and not a second copy provided by the filer.

Data Completion

  1. TEDS will read and automatically capture data fields on designated and trained forms. This process is referred to as Optical Character Recognition (OCR). Where the automatic OCR process fails, such that the program is unable to read the character or has a low confidence in a character, the questionable data is presented to the user for manual transcription or correction as necessary.

  2. Data Entry requires Double-Blind key entry of the fields such as;

    • Money Amount

    • DLN

    • EIN

    • Plan Number (EP only)

    Note:

    For specific verification fields per form, refer to Data Verification section.

  3. Employee performing "Data Entry" must identify and input the four character Name Control. The Name Control is identified and established in compliance with the Name Control Job Aid Document 7071.

  4. Depending on package type and form, OCR could be turned off requiring manual data entry for specified data elements. Additional forms are OCR'd when the forms are redesigned for an imaging system.

  5. A blue highlighted outline square over the section on the screen draws the user’s eye to the area of data to be captured.

  6. Data Completion operator will enter the correct character in the corresponding highlighted Data Entry Field.

  7. If the filer provides info on the application that is longer than the field accepts, enter as much info as allowed.

    Example:

    The CAF number allows 10 characters. If the filer provides a number with 12 characters, you’ll capture the first 10 characters. This doesn't apply to the Entity fields. You must follow the procedures for capturing Entity info.

  8. Sections below provide specific procedure for the required data elements per form/process.

EO Closed Cases (EOCC)
  1. The following table provide the fields that are required to be captured during Data Completion for EOCC package.

    EO CLOSED CASES (EOCC)
    Captured from the Form 8670 Require Data Completion
    Case Number X
    EIN X
    Control Date (MMDDYYYY) X
    Name Control X
    Form Number X
    Type Request X
    Closing Code X
  2. Compare the highlighted character on Ticker tape to the highlighted character on the EDS Closing Sheet (Form 8670). The ticker tape will include highlighted alpha-numeric characters where the system had low confidence in its recognition of that character or red arrows where the character could not be recognized at all. A blue highlighted square over the section of the Form 8670 on the screen draws the user’s eye to the area of data to be checked.

  3. Enter the correct character in the corresponding highlighted Data Entry Field.

EP Closed Cases (EPCC)
  1. The following table provides the fields that are required to be captured during Data Completion.

    Form 8671
    Captured from the Form 8671 Require Data Completion
    EDS Case Number X
    EIN X
    Control Date (MMDDYYYY) X
    Name Control X
    Plan Number X
  2. Compare the highlighted character on Ticker tape to the highlighted character on the EDS Closing Sheet (Form 8671). The ticker tape will include highlighted alpha-numeric characters where the system had low confidence in its recognition of that character or red arrows where the character could not be recognized at all. A blue highlighted square over the section of the Form 8671 on the screen draws the user’s eye to the area of data to be checked.

  3. Enter the correct character in the corresponding highlighted Data Entry Field.

Additional Document Filing (ADF)
  1. Invoke ADF module when CSPC receives additional documents for a package/application already processed through the system. The ADF package could come directly from the filer via fax, mail or from EP/EO Determination Processing Section.

  2. If the ADF package arrives from EP/EO Determination Processing Section, the packages will come with the Doc Prep completed.

  3. Remit ADF packages will need to be stamped with a DLN and the check box marked indicating that there is a payment.

  4. Remit ADF packages must be processed through LINUS.

  5. Non-remit ADF packages won't be stamped with a DLN.

  6. Non-remit ADF packages aren't processed through LINUS.

  7. All ADF packages must be stamped with the Postmark and CSPC Received date. See IRM 3.45.1.10.3.4

ADF Non-Remit EP/EO Package for Additional Documents
  1. The following table provides the fields that are required to be captured during Data Completion.

    EP/EO AIS
    Captured from AIS If 2 D-Bar code is read Require Manual Data Completion
    TEDS Case Number No data capturing required X
    Postmark Date (MMDDYYYY) NA X
    Received Date (MMDDYYYY) NA X
ADF Remit EP/EO Package for Additional Documents
  1. The following table provides the fields that are required to be captured during Data Completion.

    EP/EO AIS
    Captured from AIS If 2 D-Bar code is read Require Manual Data Completion
    TEDS Case Number No data capturing required X
    DLN NA X
    Check Box indicating money was received NA X
    Postmark Date (MMDDYYYY) NA X
    Received Date (MMDDYYYY) NA X
ADF - Form 8671
  1. The following table provides the fields that are required to be captured during Data Completion.

    Form 8671
    Captured from the Form 8671 Require Data Completion
    EDS Case Number X
    EIN X
    Control Date (MMDDYYYY) X
    Name Control X
    Plan Number X
Forms Filed With Only the Employee Plan Application Package
  1. The following sub-section provides procedures for data completion fields captured on the Employee Plan applications.

  2. If a form is shared by both Employee Plan and Exempt Organization, such as the Form 2848, refer to the section for shared forms.

Form 8717 - User Fee for Employee Plan Determination Letter Request
  1. A user fee is required with an application for a determination letter. The exemption from the user fee (section 620 of the Economic Growth and Tax Relief Reconciliation Act of 2001) applies to all eligible employers who request a determination letter within the first five plan years or, if later, the end of the remedial amendment period that begins within the first five plan years with respect to a plan. The user fees are submitted with the determination letter application and the Form 8717.

  2. The following table provides the fields captured from the Form 8717.

    Employee Plan - Form 8717 (V. 9/2017)
    Element Page / Line on Form Data Captured if Present If not Present on Form OCR / Manual Captured
    Form Revision Top Left Corner Field is pre-populated to the most current form revision.   must be manually changed if wrong version is populated
    Certification Signature   "X " in block if box is checked   Manual
    Fee Schedule   "X" in block if box is checked   manual
  3. The table below provides procedures for capturing fee schedule:

    If Form 8717 shows then
    multiple fee schedules are checked capture the fee schedule for the form type you're processing
    no fee schedule is marked field release, don't capture a fee schedule
EP INOLE - No Plan Section
  1. Use an INOLE print when:

    • Page one is missing from the application or

    • In place of an application such as the Form 9999.

  2. An INOLE with the plan info is preferred over an INOLE without plan info, which is still acceptable.

  3. The following table provides the fields captured from the INOLE print.

    EP INOLE - No Plan Section
    Element Max Size / Format Data Captured if Present Additional Info
    EIN 9/ ######### EIN - Required Field
    DLN 14 / ############## DLN Required Field
    Postmark Date 8 / MMDDYYYY Postmark date Required Field
    Received Date 8 / MMDDYYYY Received Date Required Field
    Name of Plan Sponsor 35 characters Plan Sponsor Name Required Field
    Name of Plan Sponsor (Continuation Line) 35 characters   used if needed
    Name Control 4 characters Name Control Must comply with Name Control Rules Required Field
    Address 35 characters Address  
    City 20 characters City Required if state is provided
    State 2 characters State Required if Zip is provided
    Zip 5 characters Zip Required if State and City is provided
    Zip Plus 4 characters Zip Plus If provided on form
    Taxpayer Foreign Indicator Checkbox X Only if address is Foreign
    Taxpayer Foreign City 20 characters City Required if Foreign Indicator is selected
    Taxpayer Foreign Country 2 characters Country Required if Foreign Indicator is selected
    Plan Number 3 characters Plan Number Default 999
    Plan Name 32 characters Plan Name Default PLAN
EP INOLE - With Plan Section
  1. Use an INOLES with the "P" after the EIN when page one is missing from the application.

  2. An INOLE with the plan info is preferred over an INOLE without plan info, which is still acceptable. The following table provides the fields captured from the INOLES print.

    EP INOLE - With Plan Section
    Element Max Size / Format Data Captured if Present Additional Info
    EIN 9/ ######### EIN - Required Field
    DLN 14 / ############## DLN Required Field
    Postmark Date 8 / MMDDYYYY Postmark date Required Field
    Received Date 8 / MMDDYYYY Received Date Required Field
    Name of Plan Sponsor 35 characters Plan Sponsor Name Required Field
    Name of Plan Sponsor (Continuation Line) 35 characters   used if needed
    Name Control 4 characters Name Control Must comply with Name Control Rules Required Field
    Address 35 characters Address  
    City 20 characters City Required if state is provided
    State 2 characters State Required if Zip is provided
    Zip 5 characters Zip Required if State and City is provided
    Zip Plus 4 characters Zip Plus If provided on form
    Taxpayer Foreign Indicator Checkbox X Only if address is Foreign
    Taxpayer Foreign City 20 characters City Required if Foreign Indicator is selected
    Taxpayer Foreign Country 2 characters Country Required if Foreign Indicator is selected
    Plan Number 3 characters Plan Number  
    Plan Name 32 characters Plan Name  
  3. Doc Prep will circle the plan number on the INOLE print if the plan number is provided on the Form 8717.

  4. If the plan number isn't available on the Form 8717, capture the first plan number listed on the INOLE print.

Form 5300 - Application for Determination For Employee Benefit Plan
  1. Employers who adopted an individually designed plan use Form 5300 to request a determination letter from the IRS for the initial qualification of a defined benefit or a defined contribution plan and the exempt status of any related trust.

  2. Multiple Forms 5300 are allowed, but data is only captured from the first occurrence.

  3. The following table provides the fields captured from the Form 5300.

    Form 5300 - Version 1-2017
    Prompt on screen Page / Line on Form Data captured if present If not present on form
    Form Revision Top left corner Field is pre-populated to the most current form revision. Required

    Note:

    Pre-populated but not OCR'd

    Green Number Annotated on top of page one Capture Hand written one digit IRS Location followed by hyphen (-) and a three digit sequential number (9-999). Field Release Number is unique to location and POA. If the Green number is written as 1–5 it's a valid green number and is to be captured. If it's written as 001–2121, don't capture as a green number.
    Name Control First four characters of name Name Control

    4 character name control (NC).
    The NC is established in compliance with the Name Control Job Aid Document 7071.
    Required Field
    Required Field
    DLN Stamped on the top right corner of page one DLN Required Field
    Postmark Date Stamped on first page MMDDYYYY Required Field
    Received Date Stamped on first page MMDDYYYY Required Field
    Name of Plan Sponsor 1a Name of plan sponsor Route to Exception Clerk -
    Address 1b Entity info Route to Exception Clerk - Required Field
    City 1c Entity info Route to Exception Clerk - Required Field
    State 1d Entity info Route to Exception Clerk - Required Field
    ZIP CODE 1e Zip code + additional four digits The 5 digit Zip Code is Required, but
    Field release for the additional four digits if not available
    EIN 1f Employer identification number (EIN) Route to Exception Clerk - Required Field
    Telephone number 1g Telephone number Field Release if blank
    Fax number 1h Fax number Field Release if blank
    Employer tax year ends (month) 1i Valid characters: Numeric (0-9) MM. If entered, MM must be between 01 and 12. A leading zero is added if only one digit is entered. NN. This field may be left blank  
    Foreign City or town 1j Foreign city Field Release if blank
    Country name 1k Country name Field Release if blank
    Province 1l Foreign province Field Release if blank
    Foreign postal code 1m Foreign postal code Field Release if blank
    Person to contact 2a   Field Release if blank
    Contact person’s address 2b   Field Release if blank
    City 2c   Field Release if blank
    State 2d   Field Release if blank
    Zip code 2e Zip code + additional four digits The 5 digit Zip Code is Required, but
    Field release for the additional four digits if not available
    Telephone number 2f   Field Release if blank
    Fax number 2g   Field Release if blank
    Foreign City 2h   Field Release if blank
    Country name 2i   Field Release if blank
    Province or Country 2j   Field Release if blank
    Foreign Postal code 2k   Field Release if blank
    Signature Present 2 "X" if there is a signature unmark if signature isn't present
    Signature Date Present 2 "X" if there is a signature unmark if signature isn't present
    Name of plan 3a Name of plan Field release
    3-digit plan number 3b 3-digit plan number

    001 - 999 valid
    Required Field
    Route to Exception Clerk Required Field
    Defaults to 999 when left blank
    Month plan year ends 3c MM Field release
    Plan's original effective date 3d MMDDYYYY Field release
    Number of participants 3e Number of participants
    ######
    Field release
    Determination requested 4a Enter applicable number from box  
    Date plan was originally adopted 4b   Field release
    Plan type 5 Capture numeral provided in box Field release. Only valid characters are 1,2,3,4,5,6,7,8,9
    Government Plan 6 Capture boxes that are marked Field release
    Non-electing church plan 7 Capture boxes that are marked Field release
    Collectively bargained plan 8 Capture boxes that are marked Field release
    Insurance contract plan under Section 412(e)(3) 9 Capture boxes that are marked Field release
    Multiple employee plan under 414(f) 10 Capture boxes that are marked Field release
    Multi employer plan under 413(c) 11 Capture boxes that are marked Field release
    Interested parties notified 12 Capture boxes that are marked Field release
    Safe harbor 13 Capture boxes that are marked Field release
    Disparity rules 14 Capture boxes that are marked Field release
    Offset arrangement 15 Capture boxes that are marked Field release
    Combined plan under section 414(x) 16 Capture boxes that are marked Field release
    Merger 17 Capture boxes that are marked Field release
    Amended 18 Capture boxes that are marked Field release
    Pending issues 19 Capture boxes that are marked Field release
Form 5307 - Application for Determination for Adopters of Modified Volume Submitter Plans
  1. Adopters of Modified volume submitter plans file Form 5307 to request a determination letter from the IRS for the qualification of a defined benefit or a defined contribution plan and the exempt status of any related trust.

  2. Multiple Form 5307s are allowed, but data is only captured from the first occurrence.

  3. The following table provides the fields captured from the Form 5307. The data is only captured manually if the data isn't captured via OCR.

    Form 5307 - Version 6–2014
    Prompt on screen Page / Line on Form Data captured if present If not present on form
    Form Revision Top left corner Field is pre-populated to the most current form revision. Required Pre-populated but not OCR'd
    Green Number Annotated on top of page one Capture Hand written one digit IRS Location followed by hyphen (-) and a three digit sequential number (9-999). Field Release Number is unique to location and POA. If the Green number is written as 1–5 it's a valid green number and is to be captured. If it's written as 001–2121, don't capture as a green number.
    Name Control First four characters of name Name Control

    4 character name control (NC).
    The NC is established in compliance with the Name Control Job Aid Document 7071.
    Required Field
    Required Required Field Field isn't an OCR field
    DLN Stamped on the top right corner of page one DLN Required Field Field isn't an OCR field
    Postmark Date Stamped on first page MMDDYYYY Required Field Field isn't an OCR field
    Received Date Stamped on first page MMDDYYYY Required Field Field isn't an OCR field
    Name of Plan Sponsor 1a Name of plan sponsor Route to Exception Clerk - Required Field
    ADDRESS 1b,c,d Entity info Route to Exception Clerk - Required Field
    ZIP CODE 1e Zip code + additional four digits The 5 digit Zip Code is Required, but
    Field release for the additional four digits if not available. Additional four digits are entered if available. Don't research for the additional four digits if not provided
    EIN 1f Employer identification number (EIN) Route to Exception Clerk - Required Field
    Telephone number 1g   Field release
    Fax number 1h   Field release
    Employer Tax Year End Month (MM) 1i The month tax year ends (mm) Month the employer's tax year ends (MM)
    Foreign City 1j Foreign city Required if foreign address flag is checked
    Foreign Country 1k Foreign Country Required if foreign address flag is checked. Refer to Foreign Country table
    Province 1l   Field Release
    Postal code 1m   Field Release
    Person to contact 2a   Field Release
    Contact’s address 2b, c,d & e   Field Release
    Contact Telephone number 2f   Field Release
    Contact Fax number 2g   Field Release
    Contact’s Foreign address 2h, i, j & k   Field Release
    Signature Bottom of page "X" if there is a signature unmark if signature isn't present
    Date signed Bottom of page Input X if date included Bottom of page
    Determination requested 3a Enter number from box Field release
    Date Plan was adopted 3b MMDDYYYY Field Release
    Authority to admend 3c checkbox 2 check boxes - Yes & No
    Field Release
    Received Determination Letter 3d checkbox 2 check boxes - Yes & No
    Field Release
    Date the letter was issued 3d(i) MMDDYYYY Field Release
    Year of the Cumulative List considered in the letter 3d(ii) YYYY Field Release
    Name of sponsor or practitioner 3e(i)   Field Release
    Date of opinion/advisory letter 3e(ii) MMDDYYYY Field Release
    Serial # of opinion/advisory letter 3e(iii)   Field Release
    Discretionary provisions 3f   Field Release
    Additional Amendment information 3g 1-10   Field Release
    Total amendments 3h   Field Release
    Federal Income tax return 3i   Field Release
    Name of Plan 4a 70 characters Route to Exception Clerk - Required Field If one isn't found through research PLAN is captured
    3-digit plan number 4b 3-digit plan number

    001 - 999 valid
    Required Field
    Route to Exception Clerk. Required Field If one isn't found through research 999 is captured
    Month plan year ends 4c MM Field release
    Plan's original effective date 4d MMDDYYYY Field release
    Number of participants 4e Number of participants Field release