EO Entity Employees work the following:

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

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

All time frames start from local received date unless otherwise specified. The turnover time frames are as follows:

Basic sorting categories with the working time frames and batch sizes are as follows:

The campuses may expand the basic categories. In this case, base the batch size of each category on batch sizing theory.

If, in sorting the mail, an item belongs in another category, sort as appropriate.

The sorter must have a better than average knowledge of Taxpayer Advocate cases. If the item meets prescribed Taxpayer Advocate criteria, don’t sort as previously instructed. Refer these items to the Manager or designee for expedite handling. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for TAS case criteria.

Base batch sizes on a theory of volume. All entity cases are to be worked within a time frame based on IRS received date, batch all work by the end of each day or whatever time the campus designates as end of day. Therefore, work batched late in the day most likely will not meet maximum batch size. In addition, other circumstances may dictate batch sizes be smaller than prescribed.

Although not required, combine partially worked batches of like cases and same date in order to keep the work flowing and reduce inventories.

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

There are certain types of cases which are generally not delivered to EO Entity by mail. Instead, they are hand-carried to the Manager or a designee. It is the Manager's responsibility to batch these cases with the appropriate working time frames.

The point of count is a step in the process when work is counted, released, completed and/or resolved. A document, module, transcript etc., is counted as one. Refer to IRM 3.30.20, Organization, Function, and Program (OFP) Codes.

The format of this IRM includes:

Account: One taxpayer identified by a Social Security number or employer identification number. Each account is a record of the type of returns filed and the related tax periods.

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

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

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

Asset Code: Used to identify end of year total assets.

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

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

Blocking Series: A special identification within a Document Locator Number (DLN) that requires or identifies special action.

Business Master File - (BMF): A magnetic tape file containing information about organization filing business returns and related documents.

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

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

Command Code (CC): Five-character code used to input data on the Integrated Data Retrieval System (IDRS).

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

Consolidate: The moving of data when one organization has erroneously been given more than one Taxpayer Identification Number (TIN).

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

Cross Reference (X-Ref): Identifies related Taxpayer Identification Numbers (TINs) and sort names (DBA).

Cycle: One week's processing at the campuses and Martinsburg Computing Center. The cycle is expressed by a 6 digit code. The first four digits represent the processing year and the last two digits represent the processing week in the year.

Document Locator Number (DLN): A controlled fourteen digit number assigned to every return or document input through the Automatic Data Processing (ADP) system. The last digit is the year of processing and is assigned by the Campus Computer Program at the time of the original input. The DLN is used to control, identify, and locate documents processing in the ADP system.

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

Employer Identification Number (EIN): An assigned 9-digit number that identifies a business tax account.

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

Entity: The portion of the Master File record that identifies the organization. The entity contains:

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

Exempt Organization (EO): Generally organizations exempt from federal income tax under IRC 501(a) of 1986. IRC 501(c)(3), IRC 501(c)(9), IRC 501(c)(17) and IRC 501(c)(29) organizations are required to notify the Service they are seeking tax-exempt status and must file a Form 1023-EZ, Form 1023 or Form 1024 as applicable. IRC 501(c) organizations other than IRC 501(c)(3), IRC 501(c)(9), IRC 501(c)(17) and IRC 501(c)(29) are not required to file an application for exemption, though they may do so. They are considered exempt even though they don’t apply for exemption. Organizations that are recognized as tax-exempt and their actual activities are not what they described in their application or are not appropriate for their subsection code, can have their tax-exempt status revoked retroactively. Organizations described in IRC 501(c)(4) must notify the IRS of their intent to operate, no later than 60 days after the organization is established, by electronically submitting a Form 8976. Organizations seeking recognition of exemption under IRC 501(c)(4) are required to file Form 1024-A.

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

Filing Requirement Code (FRC): Identifies the type of return an organization must file.

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

Group Exemption Number (GEN): A four-digit number issued to a parent organization and its subordinate chapters covered under a group ruling.

Group Exemption Roster (GER): GER (Document 6023) is an alphabetic and numeric listing of parent organizations that were issued Group Exemption Numbers. CC EOGEN allows online research of the GER using the GEN number of the group.

Group Return: Form 990 marked "Group Return" or "Consolidated" is a return filed by the Parent Organization for all subordinates electing to be covered under the group return. This return is in addition to the Parent's own return.

Income Code: Used to identify yearly receipts for Exempt Organization (EO) Business Master File (BMF) returns.

Integrated Data Retrieval System (IDRS): A computer system with the capability to instantaneously retrieve or update stored information. IDRS works with the Master File or organization accounts. The purpose of the system is quick resolution of problems and inquires concerning current and prior taxpayer accounts.

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

Master File (MF): A magnetic tape record containing information about business and individual returns and related documents. The Business Master File (BMF) contains records on each entity, divided into two sections, entity section and returns section.

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

Merger: A combination of two or more corporations. One is the successor corporation and the other corporation finals out their return. Don’t confuse merger with consolidate (TC 011).

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

Name Control (NC): In the case of individuals and most trusts, NC is the first four letters of the taxpayer's last name; in the case of corporations, the first four letters of the business name. The name control is used to check the Master File and ensure the Taxpayer Identification Number (TIN) corresponds with the proper organization.

National Account Profile (NAP): A national Taxpayer Identification Number (TIN) file of entities on the Individual Master File (IMF), Business Master File (BMF), and Employee Plans Master File (EPMF). It is used to validate the Taxpayer Identification Number (TIN) or TIN/Name Control for the Integrated Data Retrieval System (IDRS) input command codes (CCs) and for researching with CC INOLE.

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

Pilot Voucher: An Exempt Organization and Business Master File (BMF) Entity Voucher prepared for processing group exemptions. This information can be accessed via the shared drive only.

Pilot Voucher File (PVF): A file of all pilot vouchers kept in Group Exemption Number (GEN) order. The pilot vouchers are used in establishing new subordinates of a group ruling.

Prior Year: A tax period that precedes the processing year.

Re-input: Reprocessing of a return.

Refile: Sending a return or document back to files to be filed in its original position in the block.

Reject: A return or document not acceptable by the campus computer because of incorrect or incomplete information.

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

Revocation:

Subordinate: Members of a group of exempt organizations controlled by a parent organization.

Subsection Code (SS): A code designating the type of exemption an organization has received.

Supplemental Group Ruling Information (SGRI): A letter submitted to IRS each year by the Parent Organization of a Group Ruling detailing any changes to its subordinates.

Tax Module: The part of an organization's account that reflects tax data for each type of tax and tax period.

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

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

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

Taxpayer Identification Number (TIN): Either an Employer Identification Number (EIN) or a Social Security Number (SSN).

Transaction Code (TC): A three digit code used to identify transactions being taken and to maintain a history of actions posted to taxpayer accounts on the Master File.

Transcript: A copy of entity and tax data from the Master File concerning a taxpayer’s account.

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

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

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

The BMF, EO and EPMF campus cycles are:

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

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

The following is a list of transaction codes (TCs) used by the Entity Control Function:

The following is a list of letters that can be used:

The following is a list of CP notices that are sent to the taxpayer:

The following list of CP notices are for internal use:

National Service Level Agreements (SLAs) were established between Operating Divisions. IRM 3.13.12 contains specifics regarding SLAs that pertain to activities performed by use of this IRM. For additional information, refer to the Taxpayer Bill of Rights available at https://www.taxpayeradvocate.irs.gov/get-help/taxpayer-rights/.

Background of Section 3705(a):

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

Customer Service Representative employees may also provide their location for identification purposes. E-mail and faxes to taxpayers on general tax information, are considered manually-generated correspondence and must include the required information.

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

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

Correspondence letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information. Otherwise, if the taxpayer doesn't need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

It isn't necessary to repeat the ID card (badge) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) their ID card (badge) number on the first contact.

Before disclosing any tax information in all types of taxpayer contact, you must be sure you are speaking with an authorized representative of the organization.

The EO Entity Manager, Lead or tax examiner should monitor recurring problems in processing areas. The EO Entity manager will initiate a Quality Analysis (appraisal) when appropriate. The Ogden TE/GE Processing Center Program Staff, at Mail Stop 1110, must be notified of all quality analysis reviews. The Quality Analysis should include examples and figures showing volumes and percentages. Any information will be forwarded to the Chief, Planning and Analysis Staff.

The Quality Review tax examiner is assigned the following:

All EO entity work needs to be submitted timely to Quality Review to ensure the Quality Review tax examiner can review the work in a timely manner. See IRM 21.3.8, Tax Exempt/Government Entities (TE/GE) Customer Account Services (CAS) Telephone Operations, for further information.

Any instructions written at the service center (e.g., desk procedures) to clarify IRM 3.13.12, EO Account Numbers, may be implemented once the instructions are approved by the Document Perfection Section Chief and the Ogden TE/GE Processing Center Program Staff at Mail Stop 1110.

This listing is numeric by GEN (Group Exemption Number) showing EIN and parent name. It also has an alpha listing with the following information:

The data for this listing is extracted twice a year and is printed as Document 6023.

CC EOGEN can do the following:

CC EOGEN cannot do the following:

CC EOGEN with definer code "P" will generate CC BMFOLO for the parent's EIN.

CC EOGEN with definer code "S" will generate a list of the subordinates for the GEN.

For further information on the proper format and use of CC EOGEN, see IRM 2.3, IDRS Terminal Responses.

The Name Search Facility (NSF) provides national centralized name search capability which replaces the Key Index File (KIF).

Access NSF using CC NAMES for Social Security Number (SSN) searches and CC NAMEE/NAMEB for EIN searches. CCs NAMES and NAMEB allow you to query a national file of name and address data at the Martinsburg Computing Center (MCC), using a taxpayer name and address to locate a SSN or EIN.

The NSF will match the data you entered to data in the files and will return the SSNs or EINs of possible matches. The more information you enter, the narrower the search and the better the possibility for a match.

You can query using either the primary filer name or a secondary filer name. For an EIN, both primary name and "Doing-Business-As" (DBA) name will be searched. The NAMES and NAMEE CCs will adjust for some spelling errors and will perform phonetic matches.

Two CCs, FINDS (SSN/IRSN/ITIN) and FINDE (EIN), were added to the NSF. They use the input TIN to access the NSF data base, and return the name(s), address(es), etc. for the TIN. Users are required to enter the CC name, the definer, and the 9-digit TIN (with no hyphens), including leading zeros, if present. The domestic search requires the definer D and the international search requires the definer I. If users don’t enter a definer, they receive an error message. The FINDS/FINDE results are sorted first by primary TIN (when the search was for the secondary TIN), then by activity cycle, and then by name. The activity cycle is displayed in descending order, with the most current data first.

Refer to IRM 2.3, IDRS Terminal Responses, for more information.

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

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

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

Use the EDS Instructional Job Aid to operate the menu-driven system.

The following is a list of the Open Status Codes:

The following is a list of Closed Status Codes:

The following is a list of Type of Request Codes:

The BMF portion of the EO/BMF entity module is created by a TC 000, Doc. Code 04, 63, 80 or 81. It may contain the following information:

The BMF entity module, with its fields defined below, can be changed by IDRS CCs ENREQ/BNCHG or EOREQ/EOCHG.

The Entity Identifying Data are defined below:

Create the EO section of the EO/BMF entity module for a new entity with a TC 000, Document Code 80 or 81. If the entity is already on the BMF, create the EO section with a TC 016, Document Code 80 or 81.

The EO section information can only be changed by CC EOREQ/EOCHG. The EO section contains the following information:

EO Transaction Codes include TC 000, 012, 013, 014, 016, 020, and 022.

The following format fields appear on the CC EOCHG screen:

The information for some of the fields will be taken from the pilot voucher, EDS, correspondence or the returns.

The following tables show a quick reference to the valid fields with Document and Transaction Codes.

Transaction Code 000 establishes an account on the BMF.

Before establishing an account, research CCs NAMEE and NAMEB for an EIN that may have been removed from Master File. If able to locate an EIN, input TC 000 to re-establish the account with the current name, address and filing requirements..

CC ENREQ is used to request a CC BNCHG format for input of TC 000. It must be preceded by CC ENMOD. See IRM 3.13.2.7.3.2, CC ENREQ/BNCHG for additional information.

The following fields must be input:

Establish an EO section once the EIN is established.

Any transaction that needs to be cycled or held for later input can be cycled up to 6 cycles using a posting delay code. See IRM 2.4, IDRS Terminal Input.

For 016, a definer code will always be necessary if a filing requirement for Forms 990, 990-PF, 990-T, 5227 or Not Required (NR) is input.

Definer Codes A, B, C, D, and F may be input in any position.

The EO entity portion on the BMF consists of the following 35 character fields:

Primary name and continuation of primary name must not be longer than a total of 70 characters or 35 characters each line. Don’t split a word between lines.

Use only the following characters for the legal name:

A period (.) isn't an accepted character. If the organization's name has a period within the name, substitute a space for the period.

An apostrophe (') isn't an accepted character. If the organization's name contains an apostrophe, omit it.

CC ENREQ/BNCHG is used to change entity fields.

The entity fields can be input independently, with the exception of the continuation of the primary name that requires the input of the primary name field.

Mail going to a domestic organization may carry two name lines. The priority of these name lines is as follows:

Input the primary name, care of name and sort name accurately to ensure outgoing mail can be properly delivered.

For accurate identification of an organization, input the following information as a sort name with the number first (don’t duplicate the primary name on the sort name line):

For accurate identification of a trust, input the following information at the end of the primary name line:

Suffixes such as P.A. for Professional Association, P.C. for Professional Corporation, and INC. for Incorporated indicate a corporate entity. To input a corporate entity:

The true trust name must appear on the primary name line. If the true trust name isn't present or can’t be determined from the primary name line, contact the organization by phone, fax or letter.

If a parent primary name has the word "Grand" or "Supreme" in it, don’t use the word "Grand" or "Supreme" in a subordinate’s primary name.

If the parent or subordinate insists the subordinate’s primary name is other than the parent’s primary name, honor the organization’s request and change the name.

If an invalid character is used in the name line, drop the special character from the taxpayer's name.

Use the first four characters of an individual's first name to identify political organizations.

When using CC ENREQ/BNCHG, Document Code 63 to input the Primary Name Line:

The sort name is another way to locate the organization. BMF uses the sort name to locate the organization on the National Account Index using CC NAMEE/NAMEB.

If the sort name is an individual name (e.g., a trustee) enter the name as indicated by the filer followed by their title.

Delete the word "The" from the sort name, unless it is followed by only one word.

The sort name can be a:

The sort name can't be a:

When using CC EOREQ/EOCHG, Document Code 80 to input the sort name:

When using CC ENREQ/BNCHG, Document Code 63, to input the In Care of Name (CO):

To input the name control:

Use the following to input a corporation name, sort name and name control:

Use the following to input a trust name, sort name and name control:

Keep the primary name to no more than 70 characters. Abbreviate the following words or phrases, if necessary:

Always input an individual trustee in the sort name line. If the trustee is a bank, mortgage company or corporation input in the in care of (%) name line.

Use the following example for inputting a trust name:

Return or form shows:
Turtle Memorial Cemetery Perpetual Trust Fund
William C Bear Trustee

Primary Name: TURTLE MEMORIAL CEMETERY PERPETUAL
[Continuation of Primary Name]: TRUST FUND
Sort Name: WILLIAM C BEAR TTEE

An Individual Retirement Account (IRA) should follow Trust name rules by inputting the first name, last name, IRA and the account number (if available). The name control will be the first four characters of the last name.

Use the following to input non-profit organization names:

The following sections provide instructions on domestic, domestic foreign, and foreign addresses.

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

When inputting the Subsection Code (SS) with CC EOREQ/EOCHG and either Document Code 80 or 81:

If the Doc. Code is 81, input the following items:

If the Document Code is 80, perform the following validity and consistency checks:

Subsection validity checks are also dependent on filing requirements and status codes. See IRM 3.13.12.6.33 and IRM 3.13.12.6.18 for status codes.

If an erroneous subsection is on the BMF, delete with TC 022.

When inputting the Foundation Code (TF) with CC EOREQ/EOCHG and either Document Code 80 or 81:

The following table is a list of foundation codes and descriptions:

When inputting the Classification Code (CL) with CC EOREQ/EOCHG and either Document Code 80 or 81:

These instructions for inputting the Affiliation Code (AF) with CC EOREQ/EOCHG apply to either Document Code 80 or 81.

Required fields for TC 016 - Document Code 80 - AF 1, 2, or 3:

TC 016 - Document Code 80 - AF 6, 7, 8, or 9

TC 016 - Document Code 81 - AF 7 or 9

The table below shows a list of affiliation codes and descriptions:

These instructions for inputting the Type of Organization Code (TO) with CC EOREQ/EOCHG apply to either Document Code 80 or 81.

If the Document Code is 81, TC must be 016 and the following items must be present:

The table below shows the Type of Organization and the descriptions:

This section covers EO Status Codes 01, 06, 07, 10-12, 18-36, 40-42, 70-72, and 97-99.

The instructions for inputting the Status Code and Year (ST) with CC EOREQ/EOCHG apply to Document Codes 80 and 81 and must be input with TC 016.

If the Document Code is 81, input the following items:

The following validity and consistency checks are performed:

If inputting TC 012 and the Document Code is 80, the following validity and consistency checks are performed:

For Document Code 80, the ST may be 01, 06, 07, 10-12, 18-20, 22-26, 27, 28, 30-34, 40-42, or 70-72, and the following validity and consistency checks are performed:

If Status is 27, the following validity and consistency checks are performed:

If Status is 28, the following validity and consistency checks are performed: