3.13.2 BMF Account Numbers

Manual Transmittal

November 06, 2023

Purpose

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

Material Changes

(1) IRM 3.13.2.1(7) - Added paragraph indicating: This IRM includes information and instructions to work BMF entity cases and can't cover all situations, so judgment is needed to work the case. Contact your Manager or Lead tax examiner to determine if your decision is valid. You should request an IRM change to add instructions if you encounter repeated problems or issues which are not currently in the IRM. IPU 23U0008 issued 01-03-2023.

(2) IRM 3.13.2.1.1(4) - Removed reference to Austin SP Center closing. IPU 23U0008 issued 01-03-2023.

(3) IRM 3.13.2.1.5(60) - Corrected Subordinate to Subsidiary.

(4) IRM 3.13.2.1.5(74) - Added acronym for Correspondence Imaging Inventory (CII). IPU 23U0008 issued 01-03-2023.

(5) IRM 3.13.2.1.5(74) - Added acronym for Document Upload Tool (DUT).

(6) IRM 3.13.2.1.6 - Add IRM 11.3.2, Disclosure to Persons with a Material Interest. IPU 23U0008 issued 01-03-2023.

(7) IRM 3.13.2.1.6(1) - Removed Publication 51 as it is discontinued after 2023.

(8) IRM 3.13.2.1.6(1) - Added IRM 3.12.217, Error Resolution Instructions for Form 1120-S as a reference.

(9) IRM 3.13.2.2(2)(b) - Added exception for Form 2553 for fax confirmation. IPU 23U0764 issued 06-22-2023.

(10) IRM 3.13.2.2(13) - Added instruction when assisting taxpayers by phone. IPU 23U0008 issued 01-03-2023.

(11) IRM 3.13.2.2(16) - Corrected CIS (Correspondence Imaging System) to CII (Correspondence Imaging System (CII), here and throughout the IRM. IPU 23U0008 issued 01-03-2023.

(12) IRM 3.13.2.2(22) - Added 93 to the list of Mod IEIN prefixes. IPU 23U0764 issued 06-22-2023.

(13) IRM 3.13.2.2(28) - Exception - Restrict phone number for Entity and added EP cases for address changes. IPU 23U0008 issued 01-03-2023.

(14) IRM 3.13.2.2(28) - Clarified EP routing to OSPC.

(15) IRM 3.13.2.2(34) - Added instruction to allow three days for a call back from the Lg. Corp. representative. IPU 23U0580 issued 05-03-2023.

(16) IRM 3.13.2.2.7(3) - Added instruction to allow three days for a call back from the Lg. Corp. representative. IPU 23U0580 issued 05-03-2023.

(17) IRM 3.13.2.2.10(1) - Add Category Code (TPRQ) to instruction for REQ54/ADJ54. IPU 23U0580 issued 05-03-2023.

(18) IRM 3.13.2.2.10(2) - Add Category Code (TPRQ) to instruction for REQ54/ADJ54. IPU 23U0580 issued 05-03-2023.

(19) IRM 3.13.2.3 - Corrected subsection title to Responsible Representatives, here and throughout this subsection. IPU 23U0008 issued 01-03-2023.

(20) IRM 3.13.2.3.1(20) - Added instruction to allow three days for a call back from the Lg. Corp. representative. IPU 23U0580 issued 05-03-2023.

(21) IRM 3.13.2.3.2(5) - Corrected verbiage for spouses.

(22) IRM 3.13.2.3.2(10) - Added 93 to the list of Mod IEIN prefixes. IPU 23U0764 issued 06-22-2023.

(23) IRM 3.13.2.3.3(8) - Corrected the format of the Sort name line for spouses in a community property state. IPU 23U0364 issued 03-08-2023.

(24) IRM 3.13.2.3.4 (3 & 4) - Added 93 to the list of Mod IEIN prefixes. IPU 23U0764 issued 06-22-2023.

(25) IRM 3.13.2.3.6(1) - Clarified the definition of Sole Proprietor. IPU 23U0580 issued 05-03-2023.

(26) IRM 3.13.2.3.6(6) - Added Note stating the Responsible Party cannot be changed on a sole proprietor EIN. A new EIN must be obtained by the new owner. IPU 23U0580 issued 05-03-2023.

(27) IRM 3.13.2.4 - Updated street address abbreviations. IPU 23U0580 issued 05-03-2023.

(28) IRM 3.13.2.4(16) - Added abbreviation for County Road.

(29) IRM 3.13.2.4(8) - Corrected paragraph reference in bullet 2 to (16). IPU 23U0008 issued 01-03-2023.

(30) IRM 3.13.2.4.3(4) - Corrected acronym for RIVO - Return Integrity & Verification Operation. IPU 23U0764 issued 06-22-2023.

(31) IRM 3.13.2.4.4(3) - Corrected incorrect abbreviations for U.S. Territories. Added missing territories.

(32) IRM 3.13.2.4.8(5) - Clarified Form 8822-B will be returned if missing information cannot be found through research. IPU 23U0364 issued 03-08-2023.

(33) IRM 3.13.2.4.8.1(5) - Added Note for clarification on inputting to the “P” tape.

(34) IRM 3.13.2.4.8.2(3) - Added Note stating the Responsible Party cannot be changed on a sole proprietor EIN. A new EIN must be obtained by the new owner. IPU 23U0580 issued 05-03-2023.

(35) IRM 3.13.2.4.8.2(6)(D) & (E) - Clarified Grantor Trust. IPU 23U0364 issued 03-08-2023.

(36) IRM 3.13.2.4.9(7) - Added Note that Spanish versions of notices are to be worked in the same manner as the English versions.

(37) IRM 3.13.2.5 - Replaced yellow sticker with USPS sticker. IPU 23U0580 issued 05-03-2023.

(38) IRM 3.13.2.5.2(4) - Corrected cross reference IRM. IPU 23U0364 issued 03-08-2023.

(39) IRM 3.13.2.6(5) - Corrected FSLG to FSL/ET, here and throughout the IRM. The business unit changed their name.

(40) IRM 3.13.2.7(10) - Corrected mailbox address to *W&I HP Account. IPU 23U0008 issued 01-03-2023.

(41) IRM 3.13.2.7.1.4(6) - Added instruction to allow three days for a call back from the Lg. Corp. representative. IPU 23U0580 issued 05-03-2023.

(42) IRM 3.13.2.7.1.6(4) - Added instruction to allow three days for a call back from the Lg. Corp. representative. IPU 23U0580 issued 05-03-2023.

(43) IRM 3.13.2.7.1.7(7) - Added instruction to allow three days for a call back from the Lg. Corp. representative. IPU 23U0580 issued 05-03-2023.

(44) IRM 3.13.2.7.1.13(4) - Restrict phone numbers for Entity Unpostables. IPU 23U0008 issued 01-03-2023.

(45) IRM 3.13.2.7.2(5) - Added 93 to the list of Mod IEIN prefixes. IPU 23U0764 issued 06-22-2023.

(46) IRM 3.13.2.7.3.2(24) NOTE - Removed FRAUD from instruction per RICS as FRAUD will never be in the Sort name line. IPU 23U0764 issued 06-22-2023.

(47) IRM 3.13.2.7.3.2(28) - Removed FRAUD and added POTENTIAL FAB EIN for things to look for when deleting an account. IPU 23U0764 issued 06-22-2023.

(48) IRM 3.13.2.8(16) - Added instruction for time sensitive processing.

(49) IRM 3.13.2.8(3) - Added 93 to the list of Mod IEIN prefixes. IPU 23U0764 issued 06-22-2023.

(50) IRM 3.13.2.8(7) - Added instruction to allow three days for a call back from the Lg. Corp. representative. IPU 23U0580 issued 05-03-2023.

(51) IRM 3.13.2.8.2(5) - Updated Form information for payments. IPU 23U0008 issued 01-03-2023.

(52) IRM 3.13.2.8.4(1)(c) - Revised verbiage about tip income for clarity.

(53) IRM 3.13.2.8.4(2) - Replaced Publication 51 with Publication 15 as Publication 51 is discontinued after 2023.

(54) IRM 3.13.2.8.4(2)(e) - Changed paragraph (e) to note since it not part of the definition of a farm worker.

(55) IRM 3.13.2.8.5(2) - Corrected and identified U.S. Territories.

(56) IRM 3.13.2.8.5(11) - Clarified filing period for foreign corporations, here and throughout the IRM.

(57) IRM 3.13.2.8.5.1(1) - Clarified what Rev. Proc. 2013-30 is for.

(58) IRM 3.13.2.8.5.1(4)(A)(1) - Updated instructions for LLCs audit trail. IPU 23U0764 issued 06-22-2023.

(59) IRM 3.13.2.8.5.1(4)(M)(a)(3) & (b)(3) - Remove instruction to edit Form 2553 with Let Unpost - Convert to 1120. IPU 23U0364 issued 03-08-2023.

(60) IRM 3.13.2.8.5.1(4)(M)(b)(4) - Removed last sentence as it was repetitive and added appropriate information in (3). IPU 23U0364 issued 03-08-2023.

(61) IRM 3.13.2.8.16(1) - Corrected reason for filing Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return.

(62) IRM 3.13.2.8.18(3) - Added (3) with instruction if an EIN is found and removed previous (4). Renumbered remaining paragraphs. IPU 23U0364 issued 03-08-2023.

(63) IRM 3.13.2.8.18(4) - Clarified instruction in new (4) for naming convention and sort name line information. IPU 23U0364 issued 03-08-2023.

(64) IRM 3.13.2.8.21(8) - Corrected paragraph reference. IPU 23U0764 issued 06-22-2023.

(65) IRM 3.13.2.8.22(6) - Updated instruction for Form 2363 to indicate OFP used to work cases and to respond to requestor when action has been completed. IPU 23U0580 issued 05-03-2023.

(66) IRM 3.13.2.8.22(6) - Added instruction for Form 941/944 FRC requests after the deadline. IPU 23U0764 issued 06-22-2023.

(67) IRM 3.13.2.9.1(2) - Removed (c) as it is no longer applicable. Renumbered remaining paragraphs.

(68) IRM 3.13.2.9.5(1) - Corrected reason return is filed.

(69) IRM 3.13.2.9.8 - Updated subsection to correct name of forms and add Form 8288-C. IPU 23U0364 issued 03-08-2023.

(70) IRM 3.13.2.9.8(1) - Corrected reason Form 8288 series are filed, here and throughout the IRM.

(71) IRM 3.13.2.10(13) - Removed last sentence and note as there is no legal basis for this. IPU 23U0008 issued 01-03-2023.

(72) IRM 3.13.2.10(20) - Corrected the NMF toll-free number. IPU 23U0764 issued 06-22-2023.

(73) IRM 3.13.2.10.4(1) - Added 93 to the list of Mod IEIN prefixes. IPU 23U0764 issued 06-22-2023.

(74) IRM 3.13.2.10.7 - Examples provided for Final return indication. IPU 23U0764 issued 06-22-2023.

(75) IRM 3.13.2.10.7(7) - Corrected BOD information.

(76) IRM 3.13.2.10.11 - Added paragraph (1) to state mergers involve two different entities. Renumbered remaining paragraphs. IPU 23U0580 issued 05-03-2023.

(77) IRM 3.13.2.10.11 - Updated title of section to include LLCs.

(78) IRM 3.13.2.10.11(5) - Added cross reference for E-Filed returns. IPU 23U0580 issued 05-03-2023.

(79) IRM 3.13.2.10.25(3) - Updated (3) to indicate prisoner number will be input on the second name line.

(80) IRM 3.13.2.11.1(4) - Add Form 941 FRC to instructions. IPU 23U0008 issued 01-03-2023.

(81) IRM 3.13.2.11.1(4)(a & c) - Updated input procedures for RRB cases. IPU 23U0764 issued 06-22-2023.

(82) IRM 3.13.2.13 - Updated the Identity Theft information for clarification. IPU 23U0764 issued 06-22-2023.

(83) IRM 3.13.2.13(3) - Restricted analyst name for consistency.

(84) IRM 3.13.2.13.1 - Added subsection for Forms 14039 & 14039-B instruction. IPU 23U0764 issued 06-22-2023.

(85) IRM 3.13.2.13.2 - Added subsection for Form 14566 instruction. IPU 23U0764 issued 06-22-2023.

(86) IRM 3.13.2.14 - Added (2) stating a consolidation involves one company or entity that has two or more EINs. Renumbered remaining paragraphs. IPU 23U0580 issued 05-03-2023.

(87) IRM 3.13.2.14.1(6) - Removed Form 941-SS and Form 941-PR, here and throughout the IRM, as they are discontinued forms after 2023.

(88) IRM 3.13.2.14.1.1 - Added instructions for zapping an account. IPU 23U0008 issued 01-03-2023.

(89) IRM 3.13.2.17.3(8)(A, B, C, D & E) - Removed Form 941-SS, Form 941-PR, Form 943-PR, Form 944-PR, and Form 944-SS, here and throughout the IRM, as they are discontinued forms after 2023. Added Form 941 (SP) and 943(SP).

(90) IRM 3.13.2.17.4(3) Note - Clarified misleading direction when no TC 971 is on the account. IPU 23U0364 issued 03-08-2023.

(91) IRM 3.13.2.17.4(3)(C) - Corrected direction to correspond to the agent for clarification. SERP Feedback 10077. IPU 23U0580 issued 05-03-2023.

(92) IRM 3.13.2.18 - Added subsection 4 for Form 2032 disposition and removed partial instruction from other subsections.

(93) IRM 3.13.2.19(19) - Added Form 8822.

(94) IRM 3.13.2.21(3) - Corrected verbiage for who needs to file Form 1128.

(95) IRM 3.13.2.21(5) - Clarified who files under each subsection of Form 1128, Part II.

(96) IRM 3.13.2.21(9) - Added missing requirements.

(97) IRM 3.13.2.21(10) - Added missing requirements

(98) IRM 3.13.2.21.5(3)(B) - Clarified what to highlight on Form 1128.

(99) IRM 3.13.2.21.6(1) 2nd bullet - Updated what TC 053 shows on BMFOLE.

(100) IRM 3.13.2.22.1(5)(c) - Clarified when a Section 444 election can be made, here and throughout the IRM.

(101) IRM 3.13.2.22.2(1) - Added letters to use for approval or denial of Form 8716.

(102) IRM 3.13.2.23(6) - Added the definition for a Qsub.

(103) IRM 3.13.2.23.1(8) bullet 4 - Added TC 076 to clarify the information in the paragraph. IPU 23U0364 issued 03-08-2023.

(104) IRM 3.13.2.23.1(8) table - Clarified information above the table and corrected information in the table to determine correct effective date. IPU 23U0364 issued 03-08-2023.

(105) IRM 3.13.2.23.1(14) - Added Note about subsequent shareholder consent for new or additional shareholder. IPU 23U0364 issued 03-08-2023.

(106) IRM 3.13.2.23.2(3) - Added note and cross reference for exception to 5-year rule.

(107) IRM 3.13.2.23.3(2) - Added paragraph to address fax confirmation for proof of timely submission. IPU 23U0764 issued 06-22-2023.

(108) IRM 3.13.2.23.7(14) - Added instruction to send letter of confirmation for new or additional shareholder. IPU 23U0364 issued 03-08-2023.

(109) IRM 3.13.2.23.15(11) - Corrected TC 095 to TC 092 for incomplete requests if a TC 095 has previously been input. IPU 23U0364 issued 03-08-2023.

(110) IRM 3.13.2.23.17(6) - Corrected TC 095 to TC 092 for incomplete requests if a TC 095 has previously been input. IPU 23U0364 issued 03-08-2023.

(111) IRM 3.13.2.23.20(10) - Added cross reference for accidental terminations.

(112) IRM 3.13.2.23.22(8) - Added cross reference for accidental terminations.

(113) IRM 3.13.2.24(14) first bullet - Correct instruction to send Form 3465, Adjustment Request, to BMF AM to move any credits. IPU 23U0764 issued 06-22-2023.

(114) IRM 3.13.2.24(21) 4th bullet - Removed Closing Code from TC 592 as it is unnecessary.

(115) IRM 3.13.2.26(I)(b & c) - Corrected direction for partnership reducing to one member. IPU 23U0364 issued 03-08-2023.

(116) IRM 3.13.2.27.1(4) - Added (4) containing information about Limited Cooperative Associations (LCA). IPU 23U0580 issued 05-03-2023.

(117) IRM 3.13.2.27.1(5) - Added Note to reference scenarios for LLC Entity Classification changes to LLC IRM 3.13.2.26(12).

(118) IRM 3.13.2.27.3(1)(a) - Added timeliness reminder for returned incomplete Forms 8832.

(119) IRM 3.13.2.27.5(2) - Add blocking series 95 for TC 076 input. IPU 23U0580 issued 05-03-2023.

(120) IRM 3.13.2.27.5(2) - Correct blocking series 95 instruction for TC 076 input to if applicable. IPU 23U0764 issued 06-22-2023.

(121) IRM 3.13.2.27.5(2) - Added cross reference for BK 95 to IRM 3.13.2.23.5 for clarification.

(122) IRM 3.13.2.27.7(1) - Clarified “Per se” corporations.

(123) IRM 3.13.2.27.8(1)(e) - Added 93 to the list of Mod IEIN prefixes. IPU 23U0764 issued 06-22-2023.

(124) IRM 3.13.2.27.10(6)(B)(b) - Added Note about deemed elections.

(125) IRM 3.13.2.28 - Included C corporations in instruction. IPU 23U0008 issued 01-03-2023.

(126) IRM 3.13.2.28(3) - Added Revenue Ruling 2008-18 information to (3). Renumbered remaining paragraphs.

(127) IRM 3.13.2.29(5) - Added 93 to the list of Mod IEIN prefixes. IPU 23U0764 issued 06-22-202.

(128) IRM 3.13.2.30(11) - Clarified that an address will not be changed based on a Form 8973. IPU 23U0580 issued 05-03-2023.

(129) IRM 3.13.2.30(18) - Removed OFP for database input as it is no longer used. IPU 23U0828 issued 07-17-2023.

(130) IRM 3.13.2.30.1(1) - Add (J) providing instruction if all boxes are checked. IPU 23U0764 issued 06-22-2023.

(131) IRM 3.13.2.30.1(1)(B) - Corrected link to new 8973 Sharepoint here and throughout the IRM. IPU 23U0946 issued 09-11-2023.

(132) IRM 3.13.2.30.1(7)(B) - Added Note concerning years listed. IPU 23U0364 issued 03-08-2023.

(133) IRM 3.13.2.30.1(12) - Added cross reference to Revocation instructions. IPU 23U0764 issued 06-22-2023.

(134) IRM 3.13.2.30.2(2) - Clarified that only the CPEO contract information will be compared. IPU 23U0580 issued 05-03-2023.

(135) IRM 3.13.2.30.3(3) - Corrected IRM references for TC 971 AC 731 and TC 972 AC 732 input. IPU 23U0364 issued 03-08-2023.

(136) IRM 3.13.2.30.4(3) - Added Note to verify the CPEO is still authorized. IPU 23U0364 issued 03-08-2023.

(137) IRM 3.13.2.30.5 - Added (3) explaining how to request access to the 8973 Sharepoint database. Renumbered remaining paragraphs. IPU 23U0364 issued 03-08-2023.

(138) IRM 3.13.2.30.5 - Added (2) indicating separate batching (OFP 390-10022) is no longer being done and Tax Examiners will input to the database. Renumbered remaining paragraphs. IPU 23U0828 issued 07-17-2023.

(139) IRM 3.13.2.30.5(5) - Removed information pertaining to the Job Aid for the 8973 Database as it is outdated. Renumbered remaining paragraphs. IPU 23U0946 issued 09-11-2023.

(140) Exhibit 3.13.2-2 - Perfected Letter titles. IPU 23U0764 issued 06-22-2023.

(141) Exhibit 3.13.2-3 - Added CP 848A & CP 848B - Spanish notices for BMF Change of Address.

(142) Exhibit 3.13.2-6(1)(d) - Clarified definition of stock ownership of Affiliated Corporation.

(143) Exhibit 3.13.2-7 - Removed obsolete notices.

(144) Minor editorial changes have been made throughout this IRM (e.g., line number updates, spelling, punctuation, links, formatting, dates, etc.). Other significant changes to this IRM are shown above.

Effect on Other Documents

This material supersedes IRM 3.13.2, BMF Account Numbers, dated November 07, 2022 (effective January 1, 2023). The following IRM Procedural Updates (IPUs) have been incorporated into this IRM: IPU 23U0008 issued January 3, 2023, IPU 23U0364 issued March 8, 2023, IPU 23U0580 issued May 3, 2023, IPU 23U0764 issued June 22, 2023, IPU 23U0828 issued July 17,2023, and IPU 23U046 issued September 11, 2023.

Audience

Wage and Investment Division/Submission Processing BMF Entity Employees

Effective Date

(01-01-2024)

James L. Fish
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

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

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

  3. Policy Owner: The director of Submission Processing.

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

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

  6. Program Goals: To timely process all incoming payments, returns, forms, and correspondence with the highest rate of accuracy possible.

  7. This IRM includes information and instructions to work BMF entity cases and can't cover all situations, so judgment is needed to work the case. Contact your Manager or Lead tax examiner to determine if your decision is valid. You should request an IRM change to add instructions if you encounter repeated problems or issues which are not currently in the IRM.

Background

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

  2. In 1999, IRS announced a plan to consolidate Submission Processing Centers. By 2003, Andover, Atlanta, Brookhaven, Memphis, and Philadelphia submission processing sites were shut down and the five remaining sites became specialized. Austin, Fresno, and Kansas City sites were assigned IMF work. Cincinnati and Ogden sites became sole BMF sites.

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

  4. In 2016, IRS announced a plan to further consolidate Submission Processing Centers. The Cincinnati Center was the first to close in September 2019, with Fresno following in 2021.

Authority

  1. Authority for the use of taxpayer identification numbers is found in Section 6109 of the Internal Revenue Code and the corresponding Treasury regulations. Additional authority for the procedures in the IRM provisions below is found in the following sections of the Internal Revenue Code and their corresponding Treasury regulations:

    • IRC 444 - Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, see IRM 3.13.2.22, .

    • IRC 501(c)(3), 501(e), 501(f), 501(k) - Employment Code W, see IRM 3.13.2.6.10.

    • IRC 645 - Trust as part of an Estate, see IRM 3.13.2.8.7.

    • IRC 1362(a) - Form 2553, Election by a Small Business Corporation, see IRM 3.13.2.23.

    • IRC 3504 - Form 2678, Employer/Payer Appointment of Agent, see IRM 3.13.2.17.

    • IRC 7508 and 7508A - Disaster Relief

    • IRC 7519 - Form 8752, Required Payments or Refund Under Section 7519, see IRM 3.13.2.8.20.

    • IRC 7701 - Form 8832, Entity Classification Election, see IRM 3.13.2.27.

    Note:

    The above list does not include all relevant legal authorities.

Responsibilities

  1. The Campus Director is responsible for monitoring operational performance for the Submission Processing campus.

  2. The Operations Manager is responsible for monitoring operational performance for their operation.

  3. The Team Manager/Lead is responsible for the performance monitoring and ensuring employees have the tools to perform their duties.

  4. The Team Employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

Program Management and Review

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

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

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

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

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

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

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

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

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

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

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

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

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

Terms/Definitions/Acronyms

  1. The terms below are used in BMF Entity.

  2. Account - A record of the returns filed and other activity for the relevant tax period(s) with respect to a specific type of tax and related to a specific taxpayer identified by a Social Security Number (SSN), Individual Tax Identification Number (ITIN), or an Employer Identification Number (EIN).

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

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

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

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

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

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

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

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

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

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

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

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

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

  16. Controlled Foreign Corporation (CFC) - Generally, a controlled foreign corporation is any foreign corporation in which more than 50 percent of the voting power of all classes of stock entitled to vote or more than 50 percent of the corporation’s value is owned directly, indirectly, or constructively by U.S. shareholders (who are U.S. persons that directly, indirectly, or constructively own at least 10 percent by vote or value) on any day during the taxable year of such foreign corporation.

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

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

  19. Cross Reference (X–REF) - Identifies Related TINs.

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

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

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

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

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

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

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

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

  28. Employee User Portal (EUP) - System used to access images of electronically filed returns (Modernized e-File (MeF)).

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

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

  31. Electing Small Business Trust (ESBT) - An Electing Small Business Trust as defined in IRC 1361(e)(1).

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

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

  34. Fiduciary - A person or institution entrusted to act on behalf of a taxpayer.

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

    Blank-valid SSN or EIN P - valid IRA SSN
    * - invalid SSN on IMF X - invalid IRA SSN
    V - valid SSN on BMF P - valid EPMF EIN
    W - invalid SSN on BMF X - invalid EPMF EIN
    D - Temporary TIN  

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

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

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

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

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

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

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

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

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

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

  46. Modernized e-FILE (MeF) - A web-based system that allows electronic filing of Individual, Corporate, Partnership, Exempt Organizations, Excise, Estate and Trusts, and Employment Tax Returns through the Internet.

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

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

  49. National Account Profile (NAP) - A new national TIN file of entities on the IMF, BMF, EPMF and IRAF. It is used to validate the TIN or TIN/Name Control for IDRS input CCs and for researching with CC INOLE.

  50. Parent - A corporation that owns subsidiary corporations.

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

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

  53. Re-Input - Reprocessing the return.

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

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

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

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

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

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

  60. Subsidiary - Subsidiary of a Parent organization.

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

  62. Tax Period - The period of time for which a return is filed. The IRS uses a six-digit code to indicate the end of the tax period for a given return. (The first two digits represent the century, the second two represent the year and the last two digits represent the month.)

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

  64. 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.

  65. Taxpayer Identification Number (TIN) - An EIN, SSN, ATIN or IRS Individual Taxpayer Identification Number (ITIN).

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

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

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

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

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

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

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

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

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

    • ACS- Automated Collection System

    • ASED- Assessment Statute Expiration Date

    • ATIN- Adoption Taxpayer Identification Number

    • BMF- Business Master File

    • BMFOL- Business Master File On Line

    • CAWR- Combined Annual Wage Reporting

    • CC- Command Code

    • CFC- Controlled Foreign Corporation

    • CII- Correspondence Imaging Inventory

    • CP- Computer Paragraph

    • CPEO- Certified Professional Employer Organization

    • DCC- Detroit Computing Center

    • DLN- Document Locator Number

    • DUT - Document Upload Tool

    • EIN- Employer Identification Number

    • EPMF- Employee Plans Master File

    • EFTPS- Electronic Federal Tax Payment System

    • ERAS- EIN Research and Assignment System

    • ECC-MTB- Enterprise Computing Center at Martinsburg

    • EO- Exempt Organization

    • ERS- Error Resolution System

    • FDIC- Federal Deposit Insurance Corporation

    • FICA- Federal Insurance Contributions Act

    • FSLG- Federal State Local Government

    • FRC- Filing Requirement Code

    • FUTA- Federal Unemployment Tax Act

    • FYM- Fiscal Year Month

    • GMF- Generalized Mainline Framework

    • GUF- Generalized Unpostable Framework

    • HSM- Hierarchical Storage Management

    • IMF- Individual Master File

    • IMFOL- Individual Master File On Line

    • ITG- Indian Tribal Government

    • ITIN- Individual Taxpayer Identification Number

    • IDRS- Integrated Data Retrieval System

    • IT- Information Technology

    • IRC- Internal Revenue Code

    • IRM- Internal Revenue Manual

    • IRS- Internal Revenue Service

    • IRSN- Internal Revenue Service Number

    • JPMR- Joint Program Management Review

    • KCSPC- Kansas City Submission Processing Center

    • LB&I- Large Business and International Division

    • LCI- Large Corporation Indicator

    • MF- Master File

    • MFT - Master File Tax Code

    • MRS- Microfilm Replacement System

    • NAP- National Account Profile

    • NC- Name Control

    • OMB- Office of Management and Budget

    • OSPC- Ogden Submission Processing Center

    • PLR- Private Letter Ruling

    • PMF- Payer Master File

    • POA- Power of Attorney

    • PRP- Programming Requirements Package

    • PSPC- Philadelphia Submission Processing Center

    • PSSN- Primary Social Security Number

    • QSST- Qualified Subchapter S Trust

    • RAF- Reporting Agent File

    • RAIVS- Return and Income Verification Services

    • RC- Reason Code

    • RIVO- Return Integrity & Verification Operation

    • RDD- Return Due Date

    • RTR- Remittance Transaction Research

    • SCRIPS- Service Center Recognition Image Processing System

    • SCUPMF- Service Center Unpostable Master File

    • SLA- Service Level Agreement

    • SSSN- Secondary Social Security Number

    • SGRI- Supplemental Group Ruling Information

    • TE- Tax Examiner

    • TEFRA- Tax Equity and Fiscal Responsibility Act

    • TIF- Taxpayer Information File

    • TIGTA- Treasury Inspector General for Tax Administration

    • TIN- Taxpayer Identification Number

    • TC- Transaction Code

    • T/P- Taxpayer

    • UPC- Unpostable Code

    • URC- Unpostable Resolution Code

    • VBDEA- Visual Basic Data Entry Application

    • VITA- Volunteer Income Tax Assistance

    • WIRS- Wage Information Retrieval System

    • XML- Extensible Markup Language

    • XSF- Excess Collection File

    • YTD- Year To Date

    • ZTIF - Z (Other) Taxpayer Information File

Related Resources

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

    • IRM 1.2.1, Servicewide Policy Statements

    • IRM 1.2.2, Servicewide Delegations of Authority

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

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

    • IRM 1.17.1, Overview of Publishing Authorities, Roles and Responsibilities, and Organizational Structure.

    • IRM 1.17.2, Publishing Systems and Programs

    • IRM 2.3, IDRS Terminal Responses

    • IRM 2.4, IDRS Terminal Input

    • IRM 3.0.275, Business Results Measures for Submission Processing Functions

    • IRM 3.5.10, Remittance Transaction Research (RTR) System

    • IRM 3.5.61, Files Management and Services

    • IRM 3.10.72, Receiving, Extracting, and Sorting

    • IRM 3.10.73, Batching and Numbering

    • IRM 3.11.15, Return of Partnership Income

    • IRM 3.11.16, Corporate Income Tax Returns

    • IRM 3.11.217, Form 1120-S Corporation Income Tax Returns

    • IRM 3.12.32, General Unpostables

    • IRM 3.12.37, IMF General Instructions

    • IRM 3.12.166, EPMF Unpostables

    • IRM 3.12.217, Error Resolution Instructions for Form 1120-S

    • IRM 3.12.278, Exempt Organization Unpostable Resolution

    • IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution

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

    • IRM 3.13.12, Exempt Organization Account Numbers

    • IRM 3.13.36, EPMF Account Numbers

    • IRM 3.13.62, Media Transport and Control

    • IRM 3.13.222, BMF Entity Unpostable Correction Procedures

    • IRM 3.14.2.7, Notice Review - BMF Tax Examiner Review Procedures

    • IRM 3.24.38, ISRP System - BMF General Instructions

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

    • IRM 3.42.7.14.2, Telephone Etiquette

    • IRM 10.5.1, Privacy and Information Protection - Privacy Policy

    • IRM 11.3.1, Introduction to Disclosure

    • IRM 11.3.2, Disclosure to Persons with a Material Interest

    • IRM 13.1.19, Advocating With Operations Assistance Requests (OARs)

    • IRM 20.1.2.4.3.1, Penalty Handbook, Revenue Procedure 84-35

    • IRM 21.1.3.2, General Disclosure Guidelines

    • IRM 21.5.1, Account Resolution; General Adjustments

    • IRM 21.5.1.4.10, Classified Waste

    • IRM 21.7.1.4.11.4, Business Tax Returns and Non-Master File Accounts; Campus Contacts for Large Corp Cases

    • IRM 21.7.13, Assigning Employer Identification Numbers (EINs)

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

    • IRM 25.25.1, Revenue Protection; Return Integrity and Verification Operation Business Master File Procedures

    • Publication 15 (Circular E), Employer's Tax Guide

    • Publication 555, Community Property

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

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

  4. Integrated Automation Technologies - IAT:

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

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

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

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

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

  5. See IRM 21.5.1.4.10, Classified Waste, for guidance on handling classified waste.

  6. For record control schedules, use Document 12990, IRS Records Control Schedules (RCS).

BMF Entity - General

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

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

    • Form/document - Refers to forms and documents used to make elective filings for various purposes: electing corporate status, FYM changes or elections, appointment of fiduciary or agent, etc.

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

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

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

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

      Exception:

      Form 2553, if the original submission is by fax, is an exception to this direction. Please see IRM 3.13.2.23.3 (2).

    3. It is not necessary for Entity clerical staff to date stamp returns (documents that post as a TC 150) as RCO will have already date stamped.

    4. A taxpayer may respond to an IRS inquiry via facsimile/fax. The following documents processed by BMF Entity are acceptable via fax: Form 2553, Election by a Small Business Corporation, Form 8869, Qualified Subchapter S Subsidiary Election, and Form SS-4, Application for Employer Identification Number.

    5. Perfect the following entity issue(s) for processing:

      • Correct and underline the name control
      • Correct the name (as needed, per research of the Secretary of State's office via the internet).
      • EIN
      • Address
      • Fiscal Year Month (FYM) or tax period
      • Filing Requirements Codes (FRCs)
      • XREF-TIN-ITIN, etc. if needed
      • Annotate your actions in the lower left corner of the document.

      All documents touched by Entity will bear the TE's IDRS number, date upon completion, and all actions taken. It is not necessary for Entity to correct existing address abbreviation errors on the Entity module unless accessing the EIN for other Entity corrections. When correcting any field on a document, BMF Entity TEs will circle out the "bad information" and enter the correct information as close as possible.

      Note:

      Never use other correction items, such as white-out.

    6. Documents that will be destroyed in the control team (correspondence, etc.) require a complete audit trail: TE IDRS number, EIN (if not on document), all TCs input, letter sent (if applicable) and date. Place a large blue (or orange or purple) "X" on the document that will be destroyed and return it to your pack of documents. The control team will destroy the document upon their breaking down of the employee folders.

      Reminder:

      The name control must be underlined on every document going to the Files Operation.

    7. When processing returns, it is not necessary to address minor name differences (for example, INC versus INCORPORATED or Co. versus Company) unless the name control is affected. Do not perfect the primary name line to include the word “The” at the beginning of the name unless the taxpayer specifically requests it.

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

    9. If a taxpayer submits an original document (birth certificate, marriage license, passport, etc.) with their correspondence or document, prepare a Form 14219, Return of Documentation to the taxpayer, and return the item to the taxpayer.

      Exception:

      Do NOT detach and/or return a death certificate.

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

    11. If a taxpayer submits a BMF Entity form with a Form 8821, that authorizes disclosure to a designee, or Form 2848, that authorizes the taxpayer’s representative to act on behalf of the taxpayer with respect to different types of tax returns (for example, Form 1120, Form 1065, etc.), photocopy the Form 8821 or Form 2848, write COPY in the center of the photocopy and forward the original 8821/2848 to the Centralized Authorization File (CAF) Team. The photocopy of Form 8821/2848 must remain attached to the Entity form. Also, if indicated on line 2 of Form 8821 or Form 2848, the designee or POA will receive a copy of any correspondence that is part of the case resolution, if included in the scope of the authorization. You achieve this by using the MFT and tax period in CC LPAGE, and by entering Y in the CAF> field of CC LPAGE.

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

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

    • IRM 3.14.2.7, Notice Review - BMF Tax Examiner Review Procedures, instructs Notice Review Tax Examiners (TEs) to send photocopies of returns and/or notices to Entity for review of any questionable names (and addresses) they discover. Entity TEs will research IDRS and make any necessary corrections to the taxpayer's account. The TE may take an In and Out count for each EIN touched. Once the correction is made, the photocopies will be prepared for destruction as classified waste and placed in the TEs Quality Review folder.


    See IRM 21.5.1, General Adjustments, for guidance on handling classified waste to prevent inadvertent/unlawful destruction of records.

    Note:

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

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

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

    Note:

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

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

    Reminder:

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

    Ink Color Purpose
    Purple Used by OSPC and KCSPC for all documents.
    Blue Used by all sites to mark out IRS received dates on documents being returned to the taxpayer.
    Blue, Orange, or Purple Used to place large "X" on documents to be destroyed in clerical team.
    Blue or black Used on any document to be faxed back to the customer. For example, Social Security Administration (SSA) requests.
    Red IMF Entity

  7. Throughout this IRM the words expeditious treatment/treated expeditiously are used. This means the case will be processed immediately upon assignment. You will put your other cases aside and give this case expeditious treatment. Batches labeled expedite are low in volume. Once finished with the expedite work, the cases that were put aside will be processed.

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

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

  10. Returns, forms, correspondence and direction from the taxpayer regarding their account will be accepted prima facie. Prima facie means upon first examination the matter appears to be self-evident. You will generally accept a taxpayer’s returns, forms, correspondence, and directions regarding their account, unless there is a reason that these documents and directions be rejected.

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

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

      Exception:

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

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

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

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

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

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

  12. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  13. Whenever feasible, Entity Tax Examiners will initiate telephone contact with the taxpayer before returning an incomplete document to them. While on the phone with the taxpayer, if the taxpayer requests additional corrections to their account within your scope and can provide back-up, then assist the taxpayer. When returning incomplete documents to the taxpayer, all internal documents must be removed from the enclosure and the IRS received dates will be X'd out in blue ink. Do not enter an audit trail prior to returning document to taxpayer. However, your TE number and the letter sent must be annotated in the bottom center margin of the document.

  14. If a request is received requesting copies of documents via correspondence, Form 4506, Form 4506-T, etc., Kansas City Entity Department will forward the request to the RAIVS Team mail stop 6705. Ogden Entity Department will forward the request to the Return and Income Verification Services (RAIVS) Team, mail stop 6734.

  15. If you are processing a case and the taxpayer requests a photocopy of his Entity related form (Form 2553, Form 8716, Form 1128, etc.), use CC ESTAB to retrieve the document from Files. Once received, make a photocopy and write the word "COPY" on the document. Include the photocopy in a Letter 1692C to the taxpayer. If you are not processing a case, correspond with the taxpayer informing them of Form 4506, Request for Copy of Tax Return. Inform the taxpayer that a fee is required.

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

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

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

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

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

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

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

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

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

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

    • If the return/document does not have an address change box and the address does not match Master File, use the address on Master File to correspond with the taxpayer regarding the address discrepancy.

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

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

    • Never address a letter to a deceased person. The letter will be addressed to the fiduciary/executor.

    Note:

    Disregard the address on unnumbered returns as Data Conversion will update as needed.

  20. If the Letter 6800sce/6801sce contains all the appropriate language for a scenario, they may be used in lieu of a letter specified in this IRM. However, these letters cannot be used for IMF or International taxpayers. Do not make additional edits or enter handwritten messages on the Letter 6800sce/6801sce.

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

  22. Trust and Partnership EINs beginning with prefixes 20, 26, 27,45, 46, 47, 81, 82, 83, 84, 85, 86, 87, 88, 92 and 93 will reflect the first four characters of the primary name as the name control. Entity TEs will not alter the name control of these EINs because employees in the pipeline understand the different name control procedures for Mod IEIN. Other EIN prefixes will be name controlled by the historical method: the first four characters of the first last name if the entity is owned by individuals, Corporate trusts are name controlled as corporations. For example, do not change the name control of an EIN beginning with 27 because it does not match historical Submission Processing name control procedures. However, if you identify an EIN with prefixes 20, 26, or 27 that has previously been changed to match SP historical procedures, input TC 013 to make the name control match the procedures for these prefixes.

  23. Entity TEs are not responsible for deleting duplicate entity information (primary name and sort name and/or mailing address and location address) or abbreviation errors unless they are going into the account to make another entity change. If both fields are duplicated on IDRS, Entity TEs will remove the duplicate information in both the name line and address fields.

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

  25. If the primary name line and the Care of Name line are identical, input of the care of name line is not required per IRM 3.13.2.3.8(4), "Care of Name" .

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

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

  28. Cases involving EO or EP taxpayers will only be processed at Ogden Submission Processing Center. An entity in status 01 or any status other than shown in (27), is considered EO and should be transshipped to Ogden Entity. EP cases involve MFTs 74 ( Form 5500 series) and 76 (Form 5330) and will also be transshipped to Ogden Entity.

    Exception:

    EO & EP CPs 148A and 148B and EO & EP Forms 8822-B will be processed within the Campus where they are received and will not be transshipped to Ogden.

    Any correspondence or inquiry related to an International, Employee Plan (MFT 74 or 76) or Exempt Organization issue will be processed in Ogden Entity. Coordinate transshipment with the Entity Clerical Team Lead, at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Phone number is for internal use only. Transshipment will occur weekly.

  29. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ of CC BNCHG/INCHG will contain a description of the type of case being processed. For example, if changing a name from a notice, enter the notice number and name of originator in the Remarks field.

  30. Preparer/taxpayer signatures stamps will not be permitted when signing other documents such as S-elections, applications for change in accounting method, powers-of-attorney, consent forms, revenue agent reports, and other case inquiry/resolution related documents requiring signature. A faxed signature is acceptable on Form 2553, Form 8869, and Form SS-4. Faxed signatures are acceptable when taxpayer is responding to an IRS inquiry. Faxed signatures include electronic images of scanned original signatures transmitted by Enterprise Electronic Facsimile (EEFax) or e-mail.

    Exception:

    Temporary guidance has been approved through October 31, 2023, for taxpayers and Representatives to use electronic or digital signatures on the following forms that are signed and postmarked on or after August 28, 2020. See Temporary Deviation from Handwritten Signature memo.
    • Form 11-C
    • Form 1042
    • Form 1066
    • Form 1120-C
    • Form 1120-FSC
    • Form 1120-H
    • Form 1120-IC DISC
    • Form 1120-L
    • Form 1120-ND
    • Form 1120-PC
    • Form 1120-REIT
    • Form 1120-RIC
    • Form 1120-SF
    • Form 1128
    • Form 2678
    • Form 3115
    • Form 3520
    • Form 3520-A
    • Form 4768
    • Form 706 series
    • Form 709
    • Form 730
    • Form 8832
    • Form 8973

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

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

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

    Exception:

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

  34. Always look for the Large Corporation Indicator (LCI). Do not take action on an EIN reflecting an LCI before contacting the specific representative for that Large Corporation. The LCI can be seen on CCs ENMOD (directly under ENMOD), BMFOL'I' (fourth line), TXMOD'A' (second line), and SUMRY (third line). See IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases. Please allow three days for a call back. If a call back has not been received within three days, contact the HQ AM Large Corporation analyst via email. Contact information can be found on SERP - Who/Where - Large Corporation Contacts .

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

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

  37. To ensure outgoing mail contains pertinent information, primary name, Care of Name, sort name and address must be properly input.

  38. If an EIN has the acronym DBA (Doing Business As) present, input necessary transaction to delete DBA.

  39. If while processing any document in Entity you discover a different form had not been detached in Receipt & Control Operation, you will detach the document and route to the appropriate area.

  40. BMF Entity observes a clean desk policy. When you leave your desk, you are required to turn documents face down to ensure the privacy of the taxpayer. You will also lock your computer screen by removing your Smart Card which you must display at the waist or above while in the building.

Identification Requirements for IRS Employees

  1. This subsection contains information on the Restructuring and Reform Act (RRA) of 1998, Section 3705(a) P.L. 105-206, 112 Stat. 685, 777 (July 22,1998), and provides identification requirements for all IRS employees working tax-related matters.

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

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

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

      Note:

      See IRM 3.42.7.14.2, Telephone Etiquette.

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

    1. With all telephone contacts, tax examiners must provide their title (e.g., Mr., Mrs., Ms., Miss), last name, and their unique identification number (IDRS number).

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

    3. Never leave any taxpayer information on the taxpayer's answering machine or voice mail per IRM 10.5.1, Privacy and Information Protection - Privacy Policy.

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

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

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

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

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

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

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

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

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

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

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

      6800SCE
      W2553

      or

      6801SCE
      W8832
       

      Reminder:

      The Letter 6800sce/6801sce cannot be used for international or IMF taxpayers. When using the Letter 6800sce/6801sce, highlight the area of the document/form that is missing information. This will allow the taxpayer to clearly see which items need completion. Do not make additional edits or enter handwritten messages on the Letter 6800sce/6801sce.

    7. The BMF toll-free Number (800-829-0115) may be provided in general BMF correspondence letters.

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

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

Taxpayer Advocate Service (TAS) Service Level Agreements

  1. The National Taxpayer Advocate reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business/Self Employed (SB/SE) Division, Tax Exempt Government Entities (TEGE), Criminal Investigation (CI), Appeals and Large Business and International (LB&I) that outline the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete a case transaction rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

  2. The SLAs can be found at TAS’ web site.

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

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

    • Securing all necessary supporting documentation,

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

    • Clearly identifying an OAR requiring expeditious treatment.

  4. W&I Division is responsible for:

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

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

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

      Note:

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

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

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

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

  5. BMF Entity TEs will be responsible for:

    • Researching prior modules for previous unpostable returns filed by the taxpayer, specifically TC 971 ACs 375, 376, and 377. CC TRDBV will be used to determine if the DLN of previous unpostables has been cancelled. The Employee User Portal (EUP) must also be researched if the return was filed electronically.

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

    • Considering completeness of previously submitted Forms 2553.

    • Research CC UPTIN to check for presence of an open unpostable.

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

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

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

  6. Additional information is in IRM 13.1.19, Advocating With Operations Assistance Requests (OARs).

Taxpayer Bill of Rights (TBOR)
  1. 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 Taxpayer Bill of Rights.

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

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

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

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

Disaster Relief

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

  2. The memo also lists the zip codes affected by the disaster. An "-S" freeze will automatically be applied to the Master File accounts of taxpayers located in the IRS Designated Disaster Area for automatic filing and payment relief with the posting of a TC 971 AC 688. The list of designated disaster areas identified for "-S" freeze action has been provided to IT and will be posted to IRS Disaster Relief Program.

  3. An "-O" freeze will be applied only in the most catastrophic disasters and, only to areas that suffered the most damage within the area designated by FEMA for Individual Assistance programs. A TC 971 AC 087 will appear on the account.

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

  5. Generally, the relief provided is available for all Returns/Forms due within the timeframe of the disaster.

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

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

Customer Account Data Engine (CADE) 2

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

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

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

    • Campus Cycle: Thursday - Wednesday

    • Master File Processing: Friday - Thursday

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

    • Unpostables: New UPCs available Tuesday; closing Tuesday

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

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

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

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

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

    • YYYY will indicate the year,

    • CC will indicate the posting cycle.


    For IMF transactions, the values for DD are as follows:
    • 01 - Friday

    • 02 - Monday

    • 03 - Tuesday

    • 04 - Wednesday

    • 05 - Thursday


    BMF posting cycles on CC BMFOL will continue to reflect YYYYCC.
    • YYYY will indicate the year.

    • CC will indicate the posting cycle.


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

Enterprise Electronic Fax (EEFax)

  1. IRS Received Date for faxes - Enterprise Electronic Fax (EEFax) is the fax system used by IRS employees to send and receive fax documents. When fax receipts are timely dated by the fax machine (e.g., RECEIVED BY IRS-EEFAX 03/04/202X), no further action is required to evidence receipt.

    Caution:

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

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

  3. For the standard operating procedures for EEFax, see EEFax SOP.

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

    Campus EEFax
    Austin 855-250-1731
    Kansas City 855-887-7734
    Ogden 855-214-7520

IRM Deviation Procedures

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.4, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through appropriate channels for executive approval.

  2. Local procedures are created or developed to provide specific instructions to local offices on particular programs. They supplement and support the IRM. Local procedures cannot deviate, contradict, or duplicate material in the IRM nor can they set policy or change National program guidance. It is the responsibility of each manager to ensure all employees are aware of and have access to local procedures.

  3. Provide a copy of all memorandums of understanding to the headquarters analyst.

Large Corporation Program - Large Corporation Indicator (LCI)

  1. The Internal Revenue Service offers large corporations the opportunity to join a program in which a specific employee is assigned to assist them with issues involving the IRS.

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

  3. Always look for the LCI. Do not take action on an EIN reflecting an LCI before contacting the specific representative for that Large Corporation. To contact an employee of the Large Corporation Team, see IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases. Please allow three days for a call back. If a call back has not been received within three days, contact the HQ AM Large Corporation analyst via email. Contact information can be found on SERP - Who/Where - Large Corporation Contacts .

Report Monitoring

  1. GUF reports 55-40 and 55-47 will be monitored for the erroneous creation of unpostables by BMF Entity Tax Examiners (TEs). The report contains the TE’s Integrated Data Retrieval System (IDRS) number and the EINs for which the TE created unpostables. This report will be processed weekly as there may be unpostable transactions awaiting an Entity correction. See IRM 3.12.32, Error Resolution - General Unpostables, and IRM 3.12.279, Error Resolution - BMF/CAWR/PMF Unpostable Resolution. These reports are available on Control D, 23000 folder. Kansas City is on SYSL of Control D and Ogden is on SYSM. The 55-40 has Report Name EMP ASSG AGED LIST and Job Name GUF55PP*. The 55-47 has Report Name NULL DIST LST-36 and Job Name GUF55PP*.

  2. The CCA-4243 report must be monitored for IDRS open control bases created by the auto closure of certain unpostables. When a TE erroneously creates an unpostable transaction, IDRS will open a control base in that TE’s IDRS number. This report is a list of all open control bases for a particular TE. The report is found on Control D, 23000 folder, under the job name CCA4243. This report must be processed weekly to ensure all accounts touched by Entity reflect correct information, including FRCs and FYMs. This report is available on Control D.
    The Tax Examiner will:

    • Research the oldest control bases first,

    • Research the reason their TC went unpostable,

    • Correct the Entity module as needed,

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

    • Close the control base.

    Figure 3.13.2-1

    This is an Image: 33746436.gif

    Please click here for the text description of the image.

  3. The WTU 6919, ERAS (EIN Research and Assignment System) Weekly Error Listing, will count and print the ERAS Taxpayer Information File (TIF) accounts which have not been established on the Master File (MF), BMF or EPMF at Martinsburg Computing Center (MCC). Each ERAS TIF account which falls under one of the following seven categories will be printed on the Error Listing with the appropriate Error Code. This report must be monitored/printed weekly for resolution. Entity will address EINs with Error Code 7-N only. The report is on Control D, folder 23000, report name WTU6919.

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

    Figure 3.13.2-2

    This is an Image: 33746437.gif

    Please click here for the text description of the image.

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

    If... And... Then...
    A) EIN is on CC ENMOD, EIN has not been updated with ESIGN’U’, Complete Letter 45C to T/P requesting a completed Form SS-4. Tell the T/P their EIN will be cancelled if Form SS-4 is not received. Annotate spreadsheet/report.
    B) SS-4 is not received within four months, The T/P has filed other returns, ESTAB one of the other returns to inspect for validity. If return appears fraudulent, route to CI. If return appears valid, verify responsible party from the return and update master file as needed and ESIGN ‘U.’
    C) SS-4 is not received within four months, The T/P has not filed other returns, Input ESIGN’U’ and TC 020. Complete the Remarks field of TC 020 with: NO REPLY TO CP 576 OR 45C.
    D) SS-4 is received, It is signed, Update EIN with all available information from Form SS-4. Input ESIGN’U’. See IRM 21.7.13.3.2.11 , Disposition of Form SS-4 and Supporting Documentation, for disposition of Form SS-4.
    E) SS-4 is received, It is not signed, Return for signature with Letter 45C.
    F) SS-4 is received , EIN is not on CC ENMOD, EIN is on BMFOL’E’, Annotate spreadsheet (in a way that reflects EIN has been updated with ESIGN ‘U’ and will not generate on next report).
    One cycle after ESIGN’U’ is input, the NIC-CD> field will fall off of CC ENMOD and the EIN will move to CC BMFOL’E.’

BMF Entity Turnaround Times

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

    Form/Document Turnaround Time
    Form 56 30 days
    Form 966 30 days
    Form 1128 30 days
    Form 2032 30 days
    Form 2363 30 days
    Form 2553, etc. 30 days
    Form 2678 30 days
    Form 4442 20 days
    Form 8274 30 days
    Form 8329 30 days
    Form 8330 30 days
    Form 8716 30 days
    Form 8822 30 days
    Form 8822-B 30 days
    Form 8842 30 days
    Form 8855 30 days
    Form 8869 30 days
    Form 8832 30 days
    Form 8973 30 days
    Form SS-4 7 days
    EFTPS 3 days
    ERS AC 347 - Form 1120S 20 days

  2. All BMF correspondence processed in BMF Entity has a 30-day turnaround.

Associating Documents to an E-Filed Return

  1. If a document needs to be associated with an e-filed return, a refile DLN needs to be created so documents can be attached to the electronically filed return's DLN. Attach IDRS document input tag (Form 12775, BMF ADJ54 Adjustment Format), to each E-file/MeF reply and complete with:

    • Employee IDRS number,

    • Input Date,

    • TC 290,

    • Amount ".00" ,

    • TIN,

    • Tax Period,

    • Blocking series, see (3) below,

    • CTRL - CAT> TPRQ,

    • Remarks: "Attachment only" , and,

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

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

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

    • Input the sequence number from the IDRS input tag.

    • BLK> See (3) below,

    • CASE-STS-CD>C,

    • IRS-RCVD-DT>Received Date of Case,

    • CTRL - CAT> TPRQ,

    • ACTIVITY>ATTCH-ONLY,

    • TC> 290,

    • AMT> .00,

    • Hold-CD> 3,

    • SOURCE-DOCUMENT-ATTACHED?>Y,

    • REMARKS> Attachment only.

  3. Use the following blocking series:

    If MFT is Then Blocking Series is
    01 15
    02 15
    05 17
    06 17
    10 15
    44 15
    67 10

  4. Complete routing form (for example, OSPC Form 12547) and send to Files within 5 days of input.
    Reminder: Form 6502 must have the IDRS input date and entire employee IDRS number.

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

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

Funny Box

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

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

  3. See below for specific attributes of a return:

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System for Award Management (SAM)

  1. In October 2005, IRS began a bulk name/TIN matching program with Central Contractor Registration (CCR). CCR was the central registration point for all federal government trading partners. In July 2012, CCR was consolidated into the System for Award Management (SAM).

  2. If a SAM registrant does not pass the name/TIN match, an e-mail is sent to the registrant by SAM advising them of the failure and providing phone numbers for the Social Security Administration, if the TIN is an SSN, or for the IRS e-Services help desk, if the TIN is an EIN.

  3. To pass a name/TIN match, the EIN must be posted to Master File. Therefore, a taxpayer who plans to become a government contractor or grant applicant and applied for an EIN via the online EIN application, Modernized Internet EIN, or fax must wait until the EIN posts to Master File, or the name/TIN match will fail.

  4. The ENTITY-ESTAB-DT> must also match the information input by the SAM user. Therefore, it may be necessary for BMF Entity TEs to update the ENTITY-ESTAB-DT>. This is done by entering the date in YYYYMM format in the EIN-EST-DT> field of CC BNCHG.

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

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

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

  3. IDRS requires:

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

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

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

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

      Note:

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

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

    • All other special characters will be omitted, and a blank space entered in its position in the name line.

  4. Omit the word The in the primary name line when it is followed by more than one word or abbreviation unless the taxpayer specifically requests it be included. Include the word The when it is followed by only one word.

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

  6. If the sort name is an individual name (Form 1065 and Form 1041 filers), complete the sort name line field with the taxpayer's name as indicated by the taxpayer followed by their title. Prior to 11-30-2008, Entity entered the Sort Name with the taxpayer's last name first, followed by their first name, middle initial and title. This was referred to as the "sort line format" .

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

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

    • Senor (Mr.), or

    • Senora (Mrs.), or

    • Hijos (Sons), or

    • Hermanos (Brothers), or

    • S. A. (INC).

  9. The document/return must be signed by the taxpayer or authorized representative for IRS to update any information (name, address, etc.). Returns, forms, correspondence and direction from the taxpayer regarding their account will be accepted prima facie, see IRM 3.13.2.2(10), BMF Entity - General.

  10. Exercise caution when changing the name on an EIN. Often taxpayers request a name change when the issue is really a change in organizational structure.
    For example, Maple Leaf LLC requesting a change to Maple Branch Inc. This is more than a name change; it is a change in structure that requires documentation. See IRM 3.13.2.10.9(1), Change in Ownership or Change in Officers, Partners, or Members, and IRM 3.13.2.10.18, State Reorganization/Conversion.

Corporations-Name Controls, FRCs, and Responsible Representatives

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

    • Date of incorporation,

    • Name changes,

    • Type of entity/annual filing requirement,

    • Any changes in structure/owners, or

    • Status with state.

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

    Note:

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

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

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

    Note:

    Omit the word The in the primary name line when it is followed by more than one word or abbreviation unless the taxpayer specifically requests it be included. Include the word The when it is followed by only one word.

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

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

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

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

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

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

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

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

    2. The changing of a name on a return.

    3. Requesting a name change through correspondence.

    4. Perfecting the entity.

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

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

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

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

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

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

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

  16. Corporations will file Form 1120 family returns. See IRM 3.13.2.8.5, Form 1120 Series - Corporation Returns.

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

  18. See chart in IRM 3.13.2.14.1(5), Consolidating Accounts, for filing requirements that are compatible with corporate filing requirements.

  19. The title(s) listed below are the most common for Corporations. If a different title is shown, a Form 2848 or Form 8821 may be needed:

    • President,

    • Vice President,

    • Secretary,

    • Treasurer,

    • Assistant Treasurer,

    • Chief Accounting Officer, or

    • Any Tax Officer, including Controller

    Note:

    This list is not all inclusive.

  20. Always look for the Large Corporation Indicator (LCI). Do not take action on an EIN reflecting an LCI before contacting the specific representative for that Large Corporation. The LCI can be seen on CCs ENMOD (directly under ENMOD), BMFOL'I' (fourth line), TXMOD'A' (second line), and SUMRY (third line). See IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases. Please allow three days for a call back. If a call back has not been received within three days, contact the HQ AM Large Corporation analyst via email. Contact information can be found on SERP - Who/Where - Large Corporation Contacts .

Partnerships - Name Controls, FRCs, and Responsible Representatives

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

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

  3. See chart in IRM 3.13.2.14.1(5), Consolidating Accounts, for filing requirements that are compatible with partnership filing requirements.

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

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

    • An unincorporated business jointly owned by a married couple is generally treated as a partnership. However, if it meets the requirements to be a qualified joint venture under Section 761(f) (whose only members are spouses filing a joint return and who both materially participate in the business), then the couple can elect not to be treated as a partnership for Federal tax purposes.

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

    • If a partnership name has not been provided, use the partner's name(s) followed with the abbreviation "PTR" . This acronym will always be used in the name lines.

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

      Note:

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

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

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

    If... Then...
    A) The partnership has a true name and a trade name, Enter the true name in the primary name line, trade name in the sort name line field and the general partner's name in the "Care of Name" field.
    B) The partnership has a trade name but does not supply their true name, Enter the trade name in the sort name line field and the partner's name with "ET AL PTR" in the primary name line.
    C) A business is the general partner, Enter the partner's name followed by GEN PTR in the "Care of Name" field.
    D) The partnership does not have a trade name, Enter the true name of the partnership in the primary name line and the general partner's name in the sort name line field.

  8. The name control for a partnership will be derived in the following order of selection:

    1. The first four characters of the first partner's last name.
      PELICAN, GULL & SEAGULL PTRS

    2. The first four characters of the business or trade name.
      PIGEONS RESTAURANT

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

    Note:

    Omit the word The in the primary name line when it is followed by more than one word or abbreviation unless the taxpayer specifically requests it be included. Include the word The when it is followed by only one word.

  10. Partnership EINs that begin with prefixes 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, 86, 87, 88, 92 or 93 will have the first four characters of the Primary Name as the name control. For example, the partnership name "John Willow and James Oak Partnership" will be name controlled John.

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

    1. The filing of a return without an EIN (Form 940, Form 941, Form 943, Form 944, Form 945, Form 720, Form 730, Form 11-C, Form 1065, or Form 2290).

    2. Perfecting the name on a return.

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

    • DBA or trade name, then

    • Legal name.

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

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

    • Legal partner(s) names.

  14. See IRM 3.13.2.10.24, Changes to Primary Name Line.

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

    • General Partner, or

    • Partner

  16. For tax years beginning after 12-31-2017, partnerships that experience a 50 percent or more change in partners do not require a new EIN. The Tax Cut Job Act (TCJA) made provisions for a partnership to remain the same business structure despite the change in partners.

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

  1. Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs) are defined as an unincorporated business entity created under state law and owned by one or more persons known as members. The LLC indicator will not be populated for LLPs. State law generally allows for a “person” to be:

    • An individual, or

    • A trust, or

    • An estate, or

    • A partnership, or

    • An association, or

    • A company, or

    • A corporation, or

    • An LLC.

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

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

    Note:

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

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

  5. There are two types of LLCs: Single member and Multi-member. Domestic Single Member LLCs default to disregarded as an entity separate from its owner for federal tax purposes but may elect to be taxed as an association for federal tax purposes.

  6. Single member LLCs generally do not have annual filing requirements, as their owner reports all income/losses. However, they may have Employment Tax filing requirements. They may also file an Entity Classification request to change to a Corporation.

  7. Multi-member LLCs default to a Form 1065 FRC. They may file Form 8832 which will allow them to be treated as an association taxed as a corporation.

  8. Spouses can be considered a disregarded entity if they live in a community property state: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin. See Publication 555, Community Property. Their names will be on the sort name line as follows:
    JOHN & MARY DOVE SOLE MBR

    Reminder:

    The acronym MBR will always be used on the name lines of an LLC. The acronym PTR will always be used on the name lines of an LLP.

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

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

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


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

  10. Domestic Multi-member LLCs default to the classification of a partnership.

  11. Either type of LLC can file Form 8832 to elect their Entity classification. See IRM 3.13.2.26, Domestic Limited Liability Company (LLC), and IRM 3.13.2.27, Form 8832, Entity Classification Election.

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

  13. The Primary Name Line will be the legal name of the LLC. Omit the word The in the primary name line when it is followed by more than one word or abbreviation unless the taxpayer specifically requests it be included. Include the word The when it is followed by only one word.

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

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

  16. The LLC's trade name will be entered in the Sort Name Line field. If there is not a DBA, a member's name and their designation will be entered in the sort line.

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

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

  19. The title(s) listed below are the most common for LLCs. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • Managing Member,

    • Sole Member, or

    • Member.

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

  21. Ensure the XREF-TIN-ITIN-IND and the XREF-TIN-ITIN fields are accurate. Update if necessary.

Trusts-Name Controls, FRCs, and Responsible Representatives

  1. Trust Names can be long and complicated. A trust name may be reduced or abbreviated to allow for the trust name to be entered on the first name line. The word the will never be included in the trust name.

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

  3. Trust EINs that begin with prefixes 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, 86, 87, 88, 92 and 93 will have the first four characters of the Primary Name as the name control.
    For example, the trust name "John Willow TR fbo James Oak" will be name controlled John.

  4. The name control of a trust with a prefix other than 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, 86, 87, 88, 92 or 93 will be derived by the following selection:

    1. The first four characters of an individual's last name.
      Name: Michael T. Bunting Revocable Trust
      Name Control: MICHAEL T]BUNTING]RVOC TR

    2. For corporate taxpayers, use the first four characters of the corporate name.
      Name: Eagle Company Employee Benefit Trust
      Name Control: EAGLE COMPANY EMPLOYEE BENEFIT TR

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

    • Name: 0001 GNMA Pool

    • Name Control: 1GNM

    • Name: FNMA Pool 0002

    • Name Control: 2FNM

    • Name: GNMA Pool 00100

    • Name Control: 100G

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

  7. If needed, contact the taxpayer via telephone for above information. If contact cannot be made, correspond via Letter 252C.

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

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

    2. Requesting a change through correspondence,

    3. Perfecting fiduciary from a Form 1041,

    4. Perfecting the entity, or

    5. Form 56.

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

    NAME /or PHRASE ABBREVIATION
    Administrator/Administratrix ADM
    Trust TR
    Under the will of, U/W, under will UW
    Under agreement, U/A, Under agreement with UA
    Dated Jan. 16, 2024 01162024 (do not enter "date" /"dated" or the alpha month).
    Irrevocable IRRV
    Revocable RVOC
    Trustee TTEE
    For the Benefit of, F/B/O, F B O FBO
    Gift, Giftrust GIFT
    Family FAM
    Marital MRTL
    Funeral FNRL
    Inter-Vivos INTRVS
    Non-exempt Charitable Trust NECT
    Testamentary TEST
    Under Trust Agreement UTA
    Trust Under Agreement TUA
    Voluntary Employee Benefit Association VEBA
    Insurance INS
    Living LIV
    Charitable Remainder Unitrust CRUT
    Charitable Remainder Annuity Trust CRAT

  10. Always make the individual trustee, personal representative, etc. a sort name.

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

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

  11. The following are examples of inputting trust names:

    Taxpayer shows: Input
    Sophie Sparrow Seagull Irrevocable Trust FBO Emil Sparrow Seagull under agreement dated Oct. 13, 2023 Viceroy Bank Trustee Primary Name:
    SOPHIE SPARROW]SEAGULL]IRRV TR FBO (Continuation of Primary Name)
    EMIL SPARROW SEAGULL UA 10132023
    Care of Name:
    % VICEROY BANK TTEE
    Irrevocable Trust F/B/O William Michael Nancy Heron Oriole National Bank Trustee under agreement with Howard Heron dated Jan. 15, 2023 Primary Name:
    HOWARD]HERON]IRRV TR FBO WILLIAM (Continuation of Primary Name)
    ]MICHAEL NANCY HERON
    UA 01152023
    Care of Name:
    % ORIOLE NATIONAL BANK TTEE
    Lark Trust & Savings Co TTEE for Harvey Heron Trust for the benefit of Molly Heron U/A dated Nov. 18, 2023 Primary Name:
    HARVEY]HERON]TR FBO MOLLY HERON
    Continuation of Primary Name:
    UA 11182023
    Care of Name:
    % LARK TRUST SAVINGS CO TTEE
    Turtle Memorial Cemetery Perpetual Trust Fund William C Bear Trustee Primary Name:
    TURTLE MEMORIAL CEMETERY TR
    Continuation of Primary Name:
    PERPETUAL FUND
    Sort Name:
    WILLIAM C BEAR TTEE

  12. Trust FYMs are governed by The Tax Reform Act of 1986 and are required to use a calendar year.

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

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

  15. The title(s) listed below are the most common for Trusts. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • Fiduciary,

    • Trustee,

    • Beneficiary, or

    • Grantor.

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

Estates-Name Controls, FRCs, and Responsible Representatives

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

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

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

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

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

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

    • Personal Representative to PER REP.

    • Fiduciary to FID.

    • Executor/Executrix to EX.

    • Administrator to ADM.

    • Successor to SUCC.

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

  6. Estates will file Form 1041.

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

  8. The title(s) listed below are the most common for Estates. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • Fiduciary,

    • Executor/Executrix,

    • Administrator, or

    • Personal Representative.

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

  1. A Sole Proprietor is an individual that owns/operates an unincorporated business by himself or herself and reports the income/loss from that business on the individual’s Form 1040, Schedule C.

  2. Sole Proprietors can file employment returns (Form 94X family) and/or excise returns (Form 2290, Form 720, etc.). Sole proprietors do not file annual returns (Form 1120, Form 1065, Form 1041). If a Form 1120, Form 1065, or Form 1041 is received with a sole proprietor EIN, a new EIN may need to be assigned.

  3. Individual/Sole Proprietor EIN and Social Security Numbers (SSN) Accounts—The primary name line will never contain numeric characters or the special character ampersand (&). Although a numeric character or ampersand (&) is a valid input for IDRS, an individual's name cannot contain a numeric character or ampersand.

    Example:

    A business name can be Swan & Dove. An individual's name cannot be Swan & Dove.

  4. All Sole Proprietor EINs will reflect a SOLE-PRP-SSN. This will be the SSN of the sole proprietor. BMF Entity will perfect this field as needed when processing any Entity documents.

  5. An SSN (IMF) account has only a Primary Name (35 characters). The Continuation of Primary name line is used for a "Care of Name."

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

    Note:

    The Responsible Party may not be changed on a Sole Proprietor account. A new EIN is required.
    EXAMPLE: If an existing Sole Proprietor business is inherited, a new EIN must be assigned to the new owner.

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

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

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

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

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

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

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

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

  13. When the taxpayer has a true name and a trade name, the name control is derived from the first four characters of the individual's last name.

    True Name: Arthur P. Aspen
    Trade Name: Quail Restaurant
    Name Control: Arthur P]Aspen

  14. When two last names are used, the name control is the first four letters of the second last name.

    Maiden Name: Daisy Oak
    Married Name: Daisy Oak Tree
    Name Control: Daisy Oak]Tree

  15. When two last names connected by a hyphen are shown for one individual, the name control is the first four letters of the first last name.

    Name: Jane Falcon-Dove
    Name Control: JANE]FALCON-DOVE

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

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

    • Name: Juan Garza Morales

    • Name Control: Juan]Garza]Morales

    • Name: Maria Lopez Moreno

    • Name Control: Maria]Lopez]Moreno

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

  19. Vietnamese names will often have a middle name of Van (male) or Thi (female).

    Name: Kim Van Nguyen
    Name Control: Kim Van]Nguyen

  20. In some cultures, the last name may appear first on the name line. On the signature line, the last name will usually appear first.

  21. PREFIX on Sole Proprietor Individual.

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

      Note:

      Do not delete "Mrs." when shown with the full name of the husband, (for example, Mrs. Richard Green) or a name of indeterminate gender (for example, Mrs. Chris Blue).

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

  22. SUFFIX on Sole Proprietor Individual.

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

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

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

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

    2. The changing of the name on a return,

    3. Requesting a change of name through correspondence, or

    4. Perfecting an entity.

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

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

    2. The sort name line will consist of a trade name. For example: Primary Name -James P. Pigeon; Sort Name -Bunting Restaurant.

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

      Example:

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

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

      Note:

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

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

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

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

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

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

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

    • Name: Elena de la Rosa

    • Name Control: Elena]dela]Rosa

  27. The title(s) listed below are valid for Sole Proprietors. If a different title is shown, a Form 2848 or Form 8821 is needed:

    • Owner, or

    • Sole Proprietor.

Sort Name Line

  1. The sort name allows us another way to locate the taxpayer on IDRS.

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

  3. If the "sort name" is an individual name, complete the sort name line field with the taxpayer’s name as indicated by the taxpayer followed by their title. Prior to November 30, 2008, Entity entered the Sort Name with the taxpayer’s last name first, followed by their first name, middle initial and title. This was referred to as the "sort line format."

  4. The special characters hyphen (-) and ampersand (&) can be in the sort name line. If the taxpayer uses any other special character, omit the character and leave a blank space. For example, "Taxpayer.com" will be entered as "TAXPAYER COM."

    Exception:

    If the taxpayer includes an apostrophe in their name, omit the apostrophe, but do not leave a blank space. For example, "Jane’s Store" will be input as "JANES STORE."

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

    • Corporations and Sole Proprietors will have their business/trade name (if different from true name) in the "sort name" line field.

    • Trustee of a trust, if the trustee is an individual, with title TTEE. If a financial institution is the TTEE, input on the "Care of Name" line.

    • Administrator/Executor/Personal Representative (or other title) of an estate if it’s an individual. If no title is indicated, use executor, input as EX. If a financial institution is EX, input on the "Care of Name" line.

    • Limited Liability Companies (LLCs) will have the managing member’s name followed by MBR. A single member LLC sort name line will contain the single member’s name in sort line format with the title SOLE MBR or SINGLE MBR. It is acceptable to use the term manager (MGR) if the taxpayer requests it.

    • "Account under TEFRA" if it is a pension trust. TEFRA is an acronym for Tax Equity and Fairness Recovery Act.

    • General Partner’s name and title or partnership’s trade name. Generally, partnerships will always have an entry in the sort name line field. See the table below for guidance in formatting a partnership’s name lines:

      If... Then...
      A) The partnership has a true name and a trade name, Enter the true name in the primary name line, trade name in the sort name line field and the general partner’s name in the "Care of Name" field.
      B) The partnership has a trade name but does not supply their true name, Enter the trade name in the sort name line field and the partner’s name with "ET AL PTR" in the primary name line.
      C) A business is the general partner, Enter the partner’s name followed by GEN PTR in the "Care Of Name" field.
      D) The partnership does not have a trade name, Enter the true name of the partnership in the primary name line and the general partner’s name in the "sort name" line field.

  6. Do not enter the following as a "sort name" :

    • A "Care of Name" .

    • A financial or banking institution.

    • A location address.

    • A corporation officer’s name (president, vice-president, etc.).

    • A corporation’s name.

  7. To delete the "sort name" input "$$" in the first two positions of the "sort name" line field.

  8. The "sort name" line field should only be updated or removed if there is a direct request from the taxpayer or the name is different and the document being processed is signed by someone with authorization. Do not add the "sort name" if it is the same as the primary name line.

"Care of Name"

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

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

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

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

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

  6. If an Entity has previously filed a Form 56 (posted TC 098), no changes can be made to the "Care of Name" without a new Form 56.

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

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

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

BMF Addresses

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

  2. IMF taxpayers have only a mailing address field.

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

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

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

    Note:

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

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

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

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

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

    • If present, always input the street suffix such as street, drive, lane, terrace, etc. See chart in (16) below for proper abbreviations.

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

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

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

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

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

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

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

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

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

    • If street name is also a street suffix, do not abbreviate the street name. For example, Parkway Boulevard will be entered as PARKWAY BLVD.

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

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

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

    1. Always the primary name (legal name).

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

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

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

  14. If there is any question regarding the correct mailing and/or location address (directional, building number range, ZIP code, spelling, etc.), access the USPS web site at http://www.usps.com. Adhere to the IRS address abbreviation rules. The words East, West, North, South will only be abbreviated when used as a directional for a street name. For example:
    Taxpayer enters: 1105 North Main Street
    Enter on IDRS: 1105 N MAIN ST.

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

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

    Note:

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

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

    Note:

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

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

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

ESIGNing a BMF Address

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

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

  3. The charts in IRM 3.13.2.4 , BMF Addresses, will be used when inputting an address through CC ESIGN and/or CC BNCHG.

FINALIST Program

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

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

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

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

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

Updating BMF Addresses

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

  2. The taxpayer must provide clear and concise notification of a change of address. A different address on a letterhead or return address on an envelope is not acceptable for updating Master File. Correspond with the taxpayer at the "better" address asking for a completed Form 8822-B.

  3. The charts in IRM 3.13.2.4, BMF Addresses, governing address field abbreviations will also be applied to this subsection of IRM.

  4. If an Identity Theft (IDT) indicator is present on the account, refer the address change request to Image Control Team (ICT):

    • Cincinnati - Stop 318A

    • Kansas City - Stop 6525 Bldg. C-1

    • Ogden - Stop 6552 ARKA


    The case will be routed to Return Integrity & Verification Operation (RIVO).

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

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

  7. If the Care of Name field is present on IDRS, and not on the requested address change, delete the Care of Name unless the taxpayer has clearly stated it is the same on the requested address change.

    Exception:

    Do not alter the "Care of Name" if the entity is a Partnership or LLC and the "Care of Name" field contains the name of a partner or member.

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

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

    • If during the processing of your assignments you discover an EIN with a Campus address, the following actions will be taken: Research CCs ENMOD, FINDE, and FINDS for a valid Last Known Address (LKA). If found, send Letter 104C requesting completion of Form 8822/Form 8822-B. If LKA is not found, input TC 593-082 with CC FRM49 on all open FRCs.

  9. When changing the mailing address from a street address to a Post Office (PO) Box number, do not revise the location address unless the taxpayer provides a new location address.

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

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

    • MFT of return, and

    • Tax Period of Return, and

    • Name and title of signature, and

    • Telephone number (if available).

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

  1. There are four types of mailing addresses treated as domestic:

    1. The 50 states and the District of Columbia,

    2. U.S. Territories and Possessions,

    3. APO, DPO and FPO mail, and

    4. Three small island nations whose mail is handled by USPS under the CFA Treaty.

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

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

    The following are examples of CC BNCHG input formats:
    PVT. Daisy Flower Jean Rose, PCC (SW), USN
    Company F, PSC Box 100 USS Oak
    167 Infantry Regt. FPO AP 96667
    APO AE 09801  

  3. The territories and freely associated states (*) listed below are not entered as international addresses and require a valid state code and ZIP code:

    Country State Code ZIP Code
    American Samoa AS 96799
    Federated States of Micronesia (*) FM 969nn
    Guam GU 969nn
    Marshall Islands (*) MH 969nn
    Northern Mariana Islands MP 969nn
    Palau (*) PW 96940
    Puerto Rico PR 006nn, 007nn, 009nn
    Virgin Islands VI 008nn

  4. If the name of the foreign country is not present and cannot be determined, research using a geographical dictionary.

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

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

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

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

    • Primary Name,

    • Continuation Primary Name,

    • Sort Name,

    • Care of Name,

    • Foreign Street Address,

    • Mailing Street or Foreign City/Postal Code,

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

    • Location Street Address, and

    • Location City/State/ZIP.

  2. DO NOT abbreviate the country. The country is input in the city field of the mailing city/state/ZIP line. See Exhibit 3.13.2-5, Foreign Country Codes.

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

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

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

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

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

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

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

    3. The foreign country must be input in the location state field and must be at least 3 alpha characters followed by a comma (,).

    4. The location street address must be present.

  8. To delete a foreign address as a location address, input "$$" in the first two positions of the location street address. The location city, state, and ZIP will not be input.

  9. If the name of the foreign country is not present and cannot be determined, research online or in a geographic dictionary.

  10. When updating the address to a foreign country and IDRS gives an error message that the foreign country code is invalid, enter a "1" in the Foreign Country Override Indicator (FCOI) field of CC BNCHG.

  11. The following is an example of a foreign address change:

    Figure 3.13.2-3

    This is an Image: 33746111.gif

    Please click here for the text description of the image.

  12. See IRM 3.13.5, Campus Document Services - Individual Master File (IMF) Account Numbers, for an example of an IMF foreign address change.

  13. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction. If the signature is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of the transaction.

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

Change of Address

  1. Correspondence indicating address changes may be directed to Entity for necessary action. The correspondence must be signed by the taxpayer or their authorized representative for us to update IRS records. However, if the correspondence involves an adjustment action, collection activity, or a TAS situation other than an entity issue, the address update will be acted upon by the function responding to the primary issue.

  2. A taxpayer's mailing address will not be updated unless clear and concise notification of a different address is given to the IRS from the taxpayer or his representative, as outlined in Rev. Proc. 2010-16. The exception would be when resolving undeliverables.

    • The taxpayer's address will be updated from every return listed in Rev. Proc. 2010-16. Ensure the return is not a copy of a previously filed/posted return.

    • If a return has not yet received a DLN, it is not necessary to update Master File with the address on the return as Data Conversion Operation will pick up the address from the return.

    • If a Reject or numbered return has an address different from what is on Master File, input a TC 014 to update the taxpayer’s address.

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

      Note:

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

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

  4. The National Change of Address (NCOA) program links with the United States Postal Service (USPS) change of address requests received from postal customers. The NCOA run updates Master File with the address provided by the postal customer/taxpayer. The DLNs from these changes will be:

    • BMF XX963-995-77766-Y

    • IMF XX263-995-99999-Y

  5. Never change the address if the acronym FDIC (Federal Deposit Insurance Corporation) is in any of the name lines. If no other action is needed, indicate "No Action" on document being processed.

  6. Signatures on Form 8822/ Form 8822-B and requests for address changes will be accepted prima facie. See IRM 3.13.2.2(10), BMF Entity - General. If there is no contradicting evidence to dispute the authority of that person, the signature must be accepted. This policy applies to signatures accompanied by titles such as owner, president, etc. This authority does not apply to third party requests. A Form 2848 is required for a third party not listed on CC CFINK.

  7. Beginning October 2017, Forms 8822 and Forms 8822-B that have been processed will no longer be destroyed as classified waste by the control team. These documents have a defined retention period and will be stored in the Files Operation in an Alpha File. Each form must be name controlled and contain an audit trail in the lower left margin of the document. Entity Clerical Team will forward all processed forms to Files Operation on a Form 3210 indicating "Alpha File." If no action was taken on Form 8822/Form 8822-B, the document can be destroyed as classified waste in the clerical team.

  8. Use the following table to process an address change:

    If... Then...
    A) The documentation is for an address change only (including Form 8822/Form 8822-B), Enter the entire taxpayer address into CC BNCHG. A TC 014 will generate from the input. Form 8822 and Form 8822-B will be retained in the Files Operation in an Alpha File. All other documentation will be X'd out and destroyed by the Entity Control Team.
    B) A domestic street address is input, The mailing city, state and ZIP must be input.
    C) A foreign street address is input, The foreign city and foreign country must be input in the mailing street address and mailing city, state and ZIP lines.
    D) A foreign postal code is present and space allows, It must be input.
    E) A foreign city or postal code is input, The foreign street address must be input.
    F) A domestic mailing city, state and ZIP or major city code and ZIP code are input, The mailing street address must also be input.
    G) A major city code is input, A mailing ZIP code must be input.
    H) It is determined that the correspondence has been initiated by a third party, Research the CAF using CC CFINK. If the representative is on CC CFINK for any MFT, proceed with the address change.
    I) A proper authorization is not found, Send Letter 104C (or Letter 6800sce) to the taxpayer's address on Master File requesting a completed Form 8822-B.
    J) A proper authorization is found, Update the address as requested.
    K) The address change is for an IMF (SSN) account, If the MFR is 08, do not make any changes as they will unpost. When making an IMF change, enter 8 in the Blocking Series field of CC INCHG unless using AMS. This denotes that Entity made the change. Do not transship IMF address changes.

    Note:

    Do not update the address if an address change has posted after the Form 8822-B or correspondence received date. Use CC ENMOD to verify cycle date. If the Form 8822-B or correspondence is received in the same cycle that an address change has posted then update the address to the address on the Form 8822-B or correspondence.

  9. General requirements for making address changes on all Entity programs:

    If... Then...
    A) We receive a letter signed by the taxpayer or an authorized representative, and the taxpayer's full name and correct EIN are present, Make the address change.
    B) A numbered return has a different address than what is on MF and the address change box is checked, Make the address change.
    C) Any of the required information is missing from the taxpayer's request for a change of address, Do not change the address. Correspond with the taxpayer via Letter 104C (or Letter 6800sce) at the address on Master File and advise the taxpayer of the information needed.
    D) Correspondence, notices, or C letters sent by the IRS that solicits or requires a response from the taxpayer is returned to the IRS by the taxpayer with corrections marked on the taxpayer's address information, the correspondence will constitute clear and concise written notification of a change of address. The taxpayer's signature is not required on the correspondence, notice, or C letter, Make the address change.
    E) The address has a typographical error, misspelling, or contains additional information (suite number, apartment number, etc.), Make the address change.
    F) The taxpayer requests a temporary address change,
    • DO NOT complete a temporary address change request. The IRS must retain the permanent address as the Last Known Address (LKA) whenever possible.

    • Correspond with the taxpayer to inform them their temporary address change will not be completed. Use the fill-in paragraph in the Letter 104C.

    • Use the following language for the fill-in paragraph. "We received your request for an address change but didn’t process it because you indicated this is a temporary address change. Please submit a Form 8822-B when you require a permanent address change. "

  10. If a taxpayer requests an address change during telephone contact regarding an Entity issue, you may accept oral authority for the address change. Follow the Oral Statement Documentation requirements in IRM 21.1.3.20, Oral Statement Authority. Rev. Proc. 2010–16 allows address changes over the phone effective June 1, 2010. It is no longer required that the taxpayer have "an open issue" to request an address change over the telephone. The caller must be authorized to request the address change. Put the name, title, and phone number of the caller in the Remarks field of the transaction.

  11. If communication is received from a third party (CPA, agent, payroll service provider, etc.) indicating the taxpayer is no longer a client and their address must be removed from the account, take the following actions:

    If... And... Then...
    A) Third party supplies a new address, Third party has been authorized by the taxpayer, Update Master File with the address provided.
    B) Third Party does not supply a new address, A new address cannot be found, Input TC 593-82 on all open FRCs or MFT that was filed by the third party.
    C) Third party does not supply a new address, The LKA cannot be found, Input TC 593-82 on all open FRCs or MFT that was filed by the third party.
    D) Third party does not supply a new address, The LKA is found and is accurate, Send Letter 104C (or 6800sce) to the taxpayer at their LKA requesting completion of Form 8822-B.

  12. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction. If the name is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of transaction.

Form 8822, Change of Address (For Individual, Gift, Estate, or Generation-Skipping Transfer Tax Returns)

  1. Form 8822, Change of Address, is filed by Individual Master File (IMF) and Estate and Gift (E&G) taxpayers to furnish written notification of a change of address to the IRS.

    1. When Form 8822 is received with an Entity case or as a stand-alone document, the change of address will be entered with any other required data.

    2. Before updating an address, the Taxpayer Identification Number (TIN) entered on Form 8822 will be verified as the only TIN assigned to taxpayer.

    3. If Part I of Form 8822 is complete and received in a Business Master File (BMF) site, it will be processed. See IRM 3.13.5.52, Form 8822, IMF Change of Address Request. Process Form 8822 per chart below.

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

  3. The Remarks field of the transaction updating the taxpayer's address will contain the name, title, and phone number from the signature line of Form 8822. If the signature is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of transaction.

    If... And... Then...
    A) Form 8822 clearly indicates a primary name change (Formerly Known As (FKA), previous name, etc.), The Form 8822 is signed by authorized individual, Change the name and send Letter 147C as confirmation.
    B) Form 8822 clearly indicates a primary name change (FKA, previous name, etc.), The Form 8822 does not have an authorized signature, Correspond for verification with a Letter 252C.
    C) Unable to determine if the taxpayer is changing their name, Unable to determine after researching Secretary of State’s office, Do not update the taxpayer's name. Send the Letter 252C instructing the taxpayer to verify the name change, after updating address.
    D) Any required information is missing,   Return Form 8822 to the taxpayer with Letter 104C or Letter 6800sce. Send the letter to the taxpayer's address on Master File. Instruct the taxpayer to complete Form 8822 and return to us.
    E) The taxpayer is affected by a federally declared disaster area,   Change the address(s) via telephone call or any other way the taxpayer informs us to change the address.
    F) The taxpayer checks Box 2 in Part 1, indicating that gift, estate, or generation-skipping transfer tax will be filed (Form 706, Form 709, etc.), The BMF SSN (SSN'V') is not established on the Master File, Input a TC 000 to establish the account. IRM 3.13.2.8.13, Processing Form 706 and Form 709 series.
    G) The taxpayer checks Box 2 in Part 1, indicating that gift, estate, or generation-skipping transfer tax will be filed (Form 706, Form 709, etc.), The SSN'V' is already established on the Master File, Update the address(es) as required. When updating the address on an SSN'V'/'W', the MFT> field of CC BNCHG must be completed: 51 for Form 709, 52 for Form 706. If the change is for a Form 709 account, the field NM-YR/QTR> must also be completed in YYYY format. If the change is for a Form 706 account, the field DT-OF-DEATH> must also be completed.
    H) The EIN on Form 8822 is not on the Master File, IDRS research shows the EIN was assigned to the taxpayer reflected on Form 8822, Input TC 000 with no FRCs.
    I) The EIN on Form 8822 is not on the Master File, IDRS research shows no record of the EIN being assigned, Send the taxpayer a Letter 104C without an EIN asking for a copy of the notice assigning the EIN. When received, TC 000 the EIN with no FRCs.

Form 8822-B, Change of Address or Responsible Party - Business

  1. Form 8822-B will continue to be used for address change requests from Business Master File (BMF), Exempt Organization (EO), and Employee Plan (EP) taxpayers.

  2. Treas. Reg. 301.6109-1(d)(2)(ii) requires taxpayers who were issued an Employer Identification Number (EIN) after applying for one using a Form SS-4 to provide any updated application information, which presumably includes "responsible party" information. Form 8822-B was revised to include this function.

  3. Ensure the EIN on the form is the only EIN assigned to the taxpayer. Take necessary actions to consolidate if more than one EIN is located. See IRM 3.13.2.14, Multiple EINs.

  4. Taxpayers using BMF SSNs (filers of Form 706 and Form 709 series) will use Form 8822 to request an address change, as will IMF taxpayers.

  5. Every field of Form 8822-B must be completed before it is considered processable. However, a location address is not required of every taxpayer:

    • Items 1-7 and Item 10 for Change of Address, or

    • Item(s) 4 and 8-10 for Change of Responsible Party.


    If any items are missing and cannot be found through research, return Form 8822-B to the taxpayer at the address on Master File.

  6. Ensure the person signing Form 8822-B is authorized to represent the entity shown in Item 4a. See IRM 3.13.2.3, Entity Types - Name Controls, Filing Requirement Codes (FRCs), and Authorized Representatives, for definitions of an authorized representative.

  7. An individual TIN (SSN or ITIN) must be provided for the responsible party. Business entities can no longer be considered the responsible party of a business entity (other than a government entity). A TIN is not required if the responsible party does not have and is ineligible to obtain an SSN or ITIN.

  8. Signatures on Form 8822/Form 8822-B and requests for address changes will be accepted prima facie. See IRM 3.13.2.2(10), BMF Entity - General. If there is no contradicting evidence to dispute the authority of that person, the signature must be accepted. This policy applies to signatures accompanied by titles such as owner, president, etc. This authority does not apply to third party requests. A Form 2848 is required for a third party not listed on CC CFINK.

  9. The Remarks field of the transaction updating the taxpayer's address will contain the name, title, and phone number if available from the signature line of Form 8822-B.

  10. Processed Forms 8822-B will be stored in the Files Operation in an "Alpha File." Ensure each document has been name controlled and contains an audit trail in the lower left margin of the document.

  11. Before updating any field of the Entity module, research CC ENMOD to determine if an IDT indicator is present, see IRM 25.23.9.6, BMF Identity Theft Tracking Indicators, for description of BMF IDT indicators. If so, refer the address change request to Image Control Team (ICT):

    • Cincinnati - Stop 318A

    • Kansas City - Stop 6525 Bldg. C-1

    • Ogden - Stop 6552 ARKA


    Ensure the routing slip clearly states which IDT indicator is present.

Form 8822-B - Change of Address
  1. The Remarks field of the transaction updating the taxpayer's address will contain the name, title, and phone number if available from the signature line of Form 8822-B. If the signature is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of transaction.

  2. Process the Form 8822-B as follows:

    If... And... Then...
    A) Form 8822-B clearly indicates a primary name change (FKA, previous name, etc.), The Form 8822-B is signed by authorized individual, Research the Secretary of State website to verify the change. If verified, change the name and send Letter 147C as confirmation.
    B) Form 8822-B clearly indicates a primary name change (FKA, previous name, etc.), Unable to verify after researching Secretary of State website, Correspond for verification with a Letter 252C.
    C) Unable to determine if the taxpayer is changing their name, Unable to verify after researching Secretary of State website, Do not update the taxpayer's name. Update the address as needed. Send the Letter 252C after updating address instructing the taxpayer to verify the name change.
    D) Any required information is missing, Information cannot be found through research, Return Form 8822-B to the taxpayer with Letter 104C/6800sce. Send the letter to the taxpayer's address on Master File. Instruct the taxpayer to complete Form 8822-B and return to us.
    E) You are speaking with the taxpayer by telephone discussing any issue, The taxpayer requests an address change, Change the address(s), entering the taxpayer's name, title, and phone number in the Remarks field of CC BNCHG.
    F) The EIN on Form 8822-B is not on the Master File, IDRS research shows the EIN was assigned to the taxpayer reflected on Form 8822-B, Input TC 000 with appropriate FRCs. For example, INC = 1120, LLC = 1065.
    G) The EIN on Form 8822-B is not on the Master File, IDRS research shows no record of this or any other EIN being assigned, Send the taxpayer a Letter 104C/6800sce without an EIN asking for a copy of the notice assigning the EIN. Advise to apply for new EIN if unable to provide a notice. If response is received, TC 000 the EIN with appropriate FRCs and the "new" address.
    H) The EIN on Form 8822-B does not match Master File, EIN cannot be found through research, Circle out the incorrect EIN and return Form 8822-B to the new mailing address on Form 8822-B requesting a valid EIN.

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

  4. If an acknowledgement letter is requested, send if taxpayer does not have Employment Tax FRCs. CPs 148A/B will generate if the EIN has Employment Tax FRCs.

  5. If box 2 labeled Employee plan returns is marked, update the address on the P tape. BMF input rules apply.

    Note:

    All Entity employees can update the P tape. To input to the P tape, add the letter "P" to the end of the EIN. If no module comes up, update the address for BMF.

  6. Processed Forms 8822-B will be stored in the Files Operation in an Alpha File. Ensure each document has been name controlled and contains an audit trail in the lower left margin of the document.

Form 8822-B - Change of Responsible Party
  1. This part of the form is used to update the XREF-TIN-ITIN-IND, XREF-TIN-ITIN, SORT-NAME, and/or CARE-OF-NAME fields on CC BNCHG. No other fields will be updated unless indicated on Form 8822-B.

  2. The Remarks field of the transaction updating the taxpayer's change of responsible party will contain the name, title, and phone number if available from the signature line of Form 8822-B. If the signature is illegible, enter "SIGNATURE ILLEGIBLE" in Remarks field of transaction.

  3. Always verify that the TIN provided belongs to the name provided. BMF taxpayers must list an individual (SSN or ITIN only) as the Responsible Party (RP). Beginning May 13, 2019, the Responsible Party can no longer be an individual or entity with an EIN. If Form 8822-B is received listing an individual or entity with an EIN as the new RP, return the document to the taxpayer with the following language: A responsible party is the person who owns or controls the entity, who exercises ultimate effective control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the person, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (a natural person) with an SSN or ITIN, not an entity.

    Exception:

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

    Note:

    The Responsible Party may not be changed on a Sole Proprietor account. A new EIN is required.
    EXAMPLE: If an existing Sole Proprietor business is inherited, a new EIN must be assigned to the new owner.

  4. We maintain the XREF-TIN-ITIN field for the following types of entities:

    • Corporations (for-profit only);

    • Partnerships;

    • LLCs;

    • Business trusts;

    • Trusts (Grantor's TIN); and

    • Estates (Decedent's SSN).

      Reminder:

      A sole proprietor may not submit a request to change the RP as sole proprietor EINs are not transferable between people.


    For instructions on updating the XREF-TIN-ITIN field, see IRM 3.13.2.10.20, Updating “XREF-TIN-ITIN” Field - Responsible Party.

  5. To update the XREF-TIN-ITIN-IND and XREF-TIN-ITIN fields, enter the appropriate indicator in the XREF-TIN-ITIN-IND field:

    • 0 (zero) if TIN is an SSN or ITIN.

    • Previously used 2 if TIN is an EIN, and 3 if the TIN is a parent’s EIN.


    Enter the new TIN without hyphens in the XREF-TIN-ITIN, add appropriate comment in the Remarks field and XMIT.

  6. Process the change of responsible party section of Form 8822-B as follows utilizing thorough research of IDRS:

    If... And... Then...
    A) T/P is EO or a church,   Send to OSPC for EO processing. See IRM 3.13.2.2(28), BMF Entity - General.
    B) T/P is an Estate and an SSN is being provided as "new" and it does not belong to the decedent, The decedent's SSN is on the Estate EIN as XREF, Take no further action.
    C) T/P is an Estate and an SSN is being provided as "new" and it does not belong to the decedent, The decedent's SSN is not on the Estate EIN, Research IDRS to locate decedent's SSN. Update Estate EIN with decedent's SSN and XREF-TIN-ITIN-IND to "0" (zero).
    D) T/P is a Grantor Trust and an SSN is being provided as "new" and it does not belong to the grantor, The grantor's SSN is already on the Trust EIN, Take no further action.
    E) T/P is a Grantor Trust and an SSN is being provided as "new" and it does not belong to the grantor, The grantor's SSN is not on the Trust EIN, Research IDRS to locate grantor's TIN. Update Trust EIN with grantor's SSN and XREF-TIN-ITIN-IND to "0" (zero).
    F) There is a Care Of Name on Master File, The Care Of Name on Master File does not match the new Responsible Party, Take no action unless the new third party has indicated such on Form 8822-B.
    G) There is a Care Of Name on Master File, The Care of Name on Master File matches the previous Responsible Party, Enter the name of the new Responsible Party in the Care Of Name field.

  7. Send Letter 147C to taxpayer at the address on Master File, In Care of (%) the new Responsible Party, notifying them we have updated our records. Send Letter 147C without an EIN to the previous Responsible Party telling them their name has been removed from the account, unless the previous Responsible Party is deceased. If you do not have a new address for the previous Responsible Party or they are deceased, send the letter to the address of record of the requesting EIN advising the removal of the previous Responsible Party. Correspondence must never be sent to a deceased taxpayer.

  8. Processed Forms 8822-B will be stored in the Files Operation in an Alpha File. Ensure each document has been name controlled and contains an audit trail in the lower left margin of the document.

CP 148A and CP 148B, Dual Notice of Address Change

  1. Beginning in 2015, any address change made on an EIN reflecting open Employment Tax FRCs (Form 94X series) generates two notices to the taxpayer:

    • CP 148A: Confirmation of address change mailed to the taxpayer’s new address.

    • CP 148B: Confirmation of address change mailed to the taxpayer’s previous address.

  2. This notice was created to protect employers/payers/taxpayers from abusive third-party payroll providers/Professional Employer Organizations (PEOs).

  3. Undeliverable CPs 148A/148B will be destroyed as classified waste in Receipt and Control Operation (RCO). If received in Entity, prepare for destruction as classified waste.

  4. Rev. Proc. 2010-16 requires IRS to update the taxpayer's address of record from every return type listed in Rev. Proc. 2010-16 that is filed with an address that is different than the address currently on file. Therefore, it is possible one taxpayer could experience multiple "address changes" a year.

  5. You will need to know the reason an address change occurred to process taxpayer replies to CPs 148.

    • Locate the ADDR-CHG-CYC field on CC ENMOD/BMFOL'E.' The field is Item 33 on the ENMOD CC Job Aid. It is Item 26 on the BMFOL'E' CC Job Aid.

    • When a TC 150 is shown in the Entity module (CC ENMOD/BMFOL'E'), the taxpayer's name and/or address was changed from the return represented by the DLN of the TC 150. Compare the cycle of the TC 150 with the ADDR-CHG-CYC.
      If they match, the address was changed from that return. Use CCs BMFOL'I' and BMFOL'T' to identify the tax period and type of return.
      If they do not match, the address was not changed from the return.

    • Research CC ENMOD/BMFOL'E' for an Entity TC (013, 014). Compare the cycle of the TC with the ADDR-CHG-CYC to determine if the TC updated the taxpayer's address. Keep in mind, the change could have been input by any area of the IRS, including Customer Service Representatives in AM.

  6. If you are making an address change and determine the CP 148A or 148B notices must not go to the taxpayer, suppress them by entering a "Z" in the PARA-SEL-CD> field.

  7. BMF Entity will process the taxpayer responses as shown below:

    If... And... Then...
    A) Taxpayer returns one or both notices, Agrees with the change and makes no other requests, Take no further action. Prepare for destruction as classified waste per local procedures.
    B) Taxpayer returns one or both notices, Does not agree with the change, Update address as indicated by taxpayer. Ensure Remarks field of CC BNCHG contains the name and title (and phone number if available) of the submitter. A new set of CPs 148 will generate.
    C) Taxpayer returns one or both notices, Asks the source of address change, Research CCs ENMOD, BMFOL'E', BMFOL'I' and BMFOL'T' to determine the origin of the address change. Send Letter 104C appropriately explaining the source of the change.
    D) Taxpayer returns one or both notices, Disagrees with address change and alleges it was triggered by fraud, ID Theft, or other nefarious motives, Use CCs ENMOD, BMFOL ‘E’, ‘I’, and ‘T’ and CC TRDBV to research EIN for source of address change. The Employee User Portal (EUP) must also be researched if the return was filed electronically. If address change was triggered by fraud, ID Theft, or other nefarious motives, scan case and e-mail to IRM author at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Send interim letter to taxpayer.
    E) Unauthorized third party returns one or both notices, Requests invalid address change, Take no action, scan case and e-mail to IRM author ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. Courtesy copy your manager.

    Note:

    Responses to Spanish versions of these notices, CP 848A and CP 848B, are to be handled in the same manner as CP 148A and CP 148B.

  8. Once processed and reviewed, destroy CP 148A and CP 148B as classified waste.

Undeliverable Mail and Notices

  1. Undelivered notices will be returned to Entity for research and correction of entity data. If received in Entity, CPs 575 will be routed to Cincinnati Accounts Management Center, EIN Function.

  2. Undels (Undelivered Mail) generated from BMF Entity will be the top priority when processing undelivered mail.

  3. Undeliverable mail may have a United States Postal Service (USPS) sticker showing the taxpayer's new address. Research to ensure the address on the USPS sticker isn’t already posted/pending. If the sticker has a new address, send Letter 2475C/6800sce to the taxpayer's new address enclosing undeliverable CP/Correspondence letter.

  4. If the USPS sticker does not contain a new address and a better address cannot be found, destroy the undeliverable in the control team as classified waste.

  5. Research CCs BMFOL'E', ENMOD, FINDE/FINDS, INOLE, IRPTR, NAMEE, NAMEI and the EUP for a better address for the taxpayer. In most cases the address on CC INOLE will be the same as the notice. The Secretary of State web sites may provide a better address.

    Note:

    If a better address is found, re-mail notice and envelope, and Form 8822-B using Letter 6800sce or Letter 2475C. If Letter 6800sce is used, input history item on CC ENMOD that says:
    6800SCE
    4UNDEL

  6. CC INOLE can give you alternatives to locating the taxpayer such as:

    1. BMF sole proprietor—the IMF account for this taxpayer may contain a different address.

    2. Any BMF account can be checked with CC INOLE 'P' to show an address from the EPMF and vice versa.

    3. Research for another address under the XREF TIN. If address is found, re-mail notice and envelope using Letter 6800sce or Letter 2475C in care of the individual found from the XREF TIN. If Letter 6800sce is used, Input history item on CC ENMOD that says:
      6800SCE
      4UNDEL

    4. Follow the steps below for processing:

      If... And... Then...
      A) Interim letter (2645C, 2644C, etc.) is received as undeliverable, Account issue has been resolved, Prepare undeliverable letter for destruction as classified waste per local procedures.
      B) A new address cannot be found via IDRS, All XREF TINs have been researched without finding a better address, Contact the taxpayer via telephone.
      C) Taxpayer can be reached via telephone, Taxpayer supplies you with better address, Update the address per T/P instruction include T/P name and title and phone in remarks. Mail the notice/correspondence and envelope to the new address using 2475C or 6800sce.
      D) Unable to locate a better address, Unable to reach taxpayer via telephone, Input TCs 593 Action Code (AC) 082 on all active FRCs. Input TC 971 AC 661 which will generate the Undeliverable (UD) indicator. Prepare notice/correspondence for destruction as classified waste per local procedures.
      E) There is indication the taxpayer is deceased, There are no active FRCs on the EIN, Input TC 971 Action Code 661 on all MFTs that reflect posted returns. Use the tax period containing the date of death. TC 971 AC 661 generates the Undeliverable (UD) indicator. Prepare undeliverable for destruction as classified waste per local procedures.
      F) There is indication the taxpayer is deceased, There are active FRCs on the EIN,
      • Research IDRS for an ESTATE EIN.

      • If found, update the taxpayer's address to match the address on the estate EIN.

      • If unable to locate an estate EIN, input TC 593-082 on all open FRCs. Input TC 971 Action Code 661 on all open FRCs which will generate the Undeliverable (UD) indicator on all open modules. Prepare undeliverable for destruction as classified waste per local procedures.

      G) Taxpayer states mail is not theirs, Unable to locate valid address for taxpayer on EIN, Input TC 593-082 on all open FRCs. Input TC 971 Action Code 661 on all open FRCs which will generate the Undeliverable (UD) indicator on all open modules. Prepare undeliverable for destruction as classified waste per local procedures.
      H) CP 148B is undeliverable,   Prepare for destruction as classified waste.

  7. Undelivered CPs 26X notices (Notices of Form 2553 - Election by a Small Business Corporation) will be returned to Entity for research and correction of entity data. You may need to ESTAB Form 2553 to secure a shareholder's address. However, undeliverable CPs 26X generated from ICO/Entity Unpostables will be returned to them for resolution.

  8. It is acceptable to re-mail a notice to another address.

  9. If a Letter 2475C/6800sce is undeliverable with taxpayer information attached and address has been recently updated on Master File since the previous letter was sent, re-send the Letter 2475C/6800sce to the correct address.

  10. If an undeliverable is received and it was undeliverable previously, prepare for destruction as classified waste per local procedures. Ensure a TC 593 AC 082 is on all open FRCs.

  11. If unable to locate a better address, input TC 971 AC 661 on any open tax module to generate the UD indicator.

  12. Once a UD indicator is on an account, the next address change will remove the UD indicator. The address change can be input manually or systemically generated.

Undelivered Correspondence

  1. Undeliverable correspondence initiated by Entity will be returned to Entity for research and correction of entity data. CCs ENMOD, BMFOL, INOLE, IRPTR, FINDE/FINDS can be utilized to locate a different address. Use the following procedures:

    If... Then...
    A) A different address is found, Re-mail the correspondence and envelope to the new address using the Letter 6800sce or Letter 2475C without updating the address on Master File. If Letter 6800sce is utilized, input history item on CC ENMOD that says:
    6800SCE
    4UNDEL
    If an undeliverable is received and it was undeliverable previously, prepare for destruction as classified waste per local procedures. Ensure a TC 593-082 is on all open FRCs.
    B) A new address cannot be found, Input TC 593 CC 082 on the current tax period for all active FRCs. Input TC 971 Action Code 661 to generate Undeliverable (UD) indicator on all open modules. Prepare for destruction as classified waste per local procedures.

Print Site Products with an "Undeliverable" Address.

  1. The Print Sites are identifying notices and letters that cannot be delivered by the United States Postal Service (USPS) standards. FINALIST was unable to correct the addresses on these accounts. The issues making the address "bad" are varied. For example:

    • The building number may not be valid for that street name,

    • The zip code may be incorrect or missing, or

    • The street name does not exist within specific ZIP code, etc.

  2. Accounts with a Campus address as the mailing address are also pulled for correction.

  3. Office Function Program (OFP) 390–00800 will be used when processing this work.

  4. See IRM 3.13.2.5(6)(d), Undeliverable Mail and Notices, for processing instructions.

BMF Employment Codes (ECs)

  1. BMF Employment Codes (ECs) identify employers who are other than normal business employers.

  2. The BMF Employment Codes (ECs) are A, C, F, G, I, M, Q, S, T, and W.

  3. The primary programs processed by Entity TEs involving ECs are Form 941 and Form 940.

  4. Entity TEs are responsible for ensuring ECs are correct and the taxpayer is filing the correct return(s).

  5. BMF Entity is not able to add or change ECs A, F, G, Q, or T. If an entity needs action on one of these ECs, submit to Federal, State, Local/Employment Tax (FSL/ET) by e-mailing to tege.fast@irs.gov, ensure the e-mail is encrypted.

    Note:

    Do not prepare Form 3210.

  6. The ECs are applicable to certain Form 941, Form 943, and Form 944 filers. See table below for EC definitions:

    EC Entity Type
    A A government agency acting as an employer's fiscal agent under IRC 3504.
    C Church or Church -controlled Organization filing Form 8274 (not subject to FICA or FUTA).
    F Federal Employer
    G State or Local Government Agency
    I Indian Tribal Government
    M Maritime Industry
    Q Quasi-Governmental Entity
    S Foreign Subsidiary
    T State or Local Government Agency covered under a Section 218 Agreement.
    W IRC 501(c)(3) of the IRC Non-profit Organization (not subject to FUTA).
    Z Federal Credit Union - Liable for Form 940.

  7. The input of a "9" in the EMPLMNT-CD> field of CC BNCHG deletes any existing EC. However, the changing of ECs A, F, G, Q, and T has been limited to employees of TEGE/Federal, State, Local/Employment Tax (FSL/ET). If a change to an EC is needed, contact FSL/ET at tege.fast@irs.gov.

  8. The Economic Opportunity Act (EOA) programs are carried out by state and local governmental entities or private non-profit organizations through grants or contracts with the Federal Government. When new entities are formed to carry out EOA projects they will be state or local government entities or non-profit organizations. Examples of EOA employers are as follows:

    • Anti-Poverty Programs,

    • Community Action Programs,

    • Head Start Programs,

    • Neighborhood Youth Corps,

    • Public Law 88–452,

    • Economic Opportunity Act, Office or Program,

    • Work Study or Work Training Program,

    • Youth Conservation Corps (YCC),

    • Job Corps, and

    • Volunteers in Service to America.

  9. If a Form 940 FRC is present on an EIN with an Employment Code, input TC 016 to delete the FRC. If you're dealing with ECs A, F, G, Q, or T, contact FSL/ET at tege.fast@irs.gov. Research CC BMFOL'I' for MFT 10 modules. If any are present and unsatisfied for the period (and later periods) the entity became exempt from FUTA, input TCs 590-020.

Employment Code (EC) "A"

  1. This Employment Code can only be changed by FSL/ET employees. Contact FSL/ET at tege.fast@irs.gov.

  2. This EC is given to government agencies acting as employer/payer's fiscal agents under IRC 3504. These agents may refer to themselves as:

    • Household Employer Agents,

    • Fiscal agents,

    • Employer agents, or

    • Fiscal intermediaries.

  3. The employer/payers may be disabled individuals or other welfare recipients receiving home-care services through a state or local government program.

  4. A fiscal agent may:

    • Represent many disabled individuals or other welfare recipients receiving home care services through a state or local program. These taxpayers may be referred to as "clients" by the agent.

    • Be a government entity or a non-governmental entity.

    • Already have an existing EIN that is used to file employment taxes for the agent's own employees.

    • Request a second EIN to be assigned to them for the specific purpose of acting as an agent for these employers under IRC 3504, if they are a government entity.

      Note:

      Non-governmental agents are not encouraged to obtain a second EIN to file employment taxes on behalf of these household employers. The Household Employer Agent files aggregate employment tax returns for all their own employees and for the employees of the household employers, including Form 940. However, if requested, non-governmental agents may also obtain a second EIN to file employment taxes on behalf of these household employers.

  5. The words Fiscal Agent will be behind the name of the governmental entity acting as a fiscal agent. If missing, add "Fiscal Agent" behind the agent's name.

  6. An entity with EC "A" will also have a Form 941 FRC 01.

Employment Code (EC) "C"

  1. This code is generated from a posted TC 070 on churches or qualified church-controlled organizations which have filed Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes.

  2. Forms 8274 are processed exclusively at OSPC.

  3. See IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers.

Employment Code (EC) "F"

  1. This code is assigned to agencies of the United States Government and can be changed by FSL/ET employees only. You can contact FSL/ET at tege.fast@irs.gov.

  2. If a new EIN needs EC "F" , or if an entity changes and becomes eligible for EC "F" :

    1. This EC may only be assigned with supervisory approval.

    2. An entity with EC "F" , will also have a Form 941 FRC of "02" .

    3. An entity will receive EC "F" whether the taxpayer currently has employees or not when processing Form SS-4, see IRM 21.7.13, Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EINs).

  3. The following agencies will have EC "F" :

    • Department of State,

    • Department of the Treasury,

    • Department of Defense,

    • Department of the Army,

    • Department of the Navy,

    • Department of the Air Force,

    • Department of Health and Human Services,

    • Department of Education,

    • Department of Energy,

    • Department of the Interior,

    • Department of Commerce,

    • Department of Labor,

    • Department of Transportation,

    • Department of Housing and Urban Development,

    • Department of Justice,

    • Department of Agriculture,

    • Department of Homeland Security,

    • Department of Veterans Affairs,

    • National Guard, and

    • An executive department of the government or a component agency.

  4. An agency of the U.S. Government that is not part of any executive department or its components at the National Headquarters of the agency or in the field such as the following:

    • U.S. District Court,

    • U.S. Court of Appeals,

    • U.S. Tax Court,

    • General Services Administration,

    • Federal Trade Commission,

    • Government Accountability Office,

    • Office of Community Services,

    • U.S. Small Business Administration,

    • Library of Congress,

    • Smithsonian Institution,

    • Securities and Exchange Commission, and

    • National Aeronautics and Space Administration.

  5. Corporation wholly or principally owned by the U.S. Government which has been created by law and which performs a governmental function such as the following:

    • Federal Deposit Insurance Corporation,

    • U.S. Postal Service,

    • Tennessee Valley Authority,

    • Federal Home Loan Bank (Not Individual Home Loan Banks), and

    • Federal Reserve Board (Not Individual Regional Federal Reserve Banks).

  6. EC F can also be used for federal instrumentalities such as:

    • Army and Air Force Post Exchange,

    • Navy or Coast Guard Ship Stores, and

    • Army and Air Force Motion Picture Services and Navy counterpart.

  7. Organizations that are closely connected to, but are not an official part of the U.S. government establishment are entitled to EC "F" if they meet strict standards. These organizations conduct financial, social, morale or housekeeping activities such as the following:

    • Officer's Clubs,

    • Enlisted Men's Club,

    • Non-Commissioned Officer's (NCO) Clubs,

    • Officer's Open Messes,

    • NCO's Open Mess, and

    • Billeting Funds, etc.

  8. Before assigning EC "F" to these organizations, a statement must be obtained from the Post, Camp, Station or Base Commander stating the following:

    1. The activity exists to promote the morale, comfort and wellbeing of members of the Armed Forces, or authorized civilians.

    2. The activity is supported by an authorized non-appropriated fund as prescribed by the applicable regulations of the Service concerned.

    3. The activity is authorized by the Post, Camp, Station, Base or Major Command Commander, and is supervised by them.

    4. That the above referenced commander's supervision includes the periodic audit of the activities financial records, or that such audit is regularly performed by a higher authority, as the appropriate service regulations prescribed.

  9. Do not assign EC "F" to any of the following:

    1. Any religious, fraternal or benevolent organization.

    2. Any ethnic or tribal organization for example, Indian tribe, tribal council, etc.

    3. Any private corporation or business entity that has in its name words such as U.S., United States, Federal or Government.

  10. If the type of entity cannot be determined or if the entity is a questionable "F" Code filer, take the following actions:

    1. Research the account as necessary.

    2. Contact the organization to clarify its status.

    3. If the organization is a true "F" Code filer, remove any erroneous filing requirements such as 1120, 1065, etc.

  11. If the organization is not a true "F" Code, take the following actions:

    1. Remove any erroneous filing requirements.

    2. Remove the "F" Code.

    3. Establish the entity with the correct filing requirements. Ensure that the organization does not have another EIN established for the same "F" Code entity.

    4. If the "F" Code is removed forward the information to BMF AM/Adjustments to be assessed penalty and interest under the correct filing requirements.

Employment Code (EC) "G"

  1. Assign this code to all state and local government agencies. If a change needs to be made to the EC "G" , contact FSL/ET at tege.fast@irs.gov.

  2. When assigning EC "G" , also assign a Form 941 filing requirement of 01, because these taxpayers are responsible for income tax withholding, even if they are not responsible for social security and Medicare taxes. However, if the taxpayer is from Guam or American Samoa, assign a filing requirement of 06.

  3. If you cannot determine from Form SS–4 that the entity is an agency of a state or local government or it is a privately-owned organization, contact the entity to clarify the status prior to the assignment of EC "G" . If contact cannot be made using the telephone, input Letter 45C.

  4. The following organizations will be assigned EC "G" :

    • A state or commonwealth,

    • An agency, bureau, or department of any such state or commonwealth,

    • A county,

    • An agency, bureau, board, or department of any such county,

    • A municipality, town, village, ownership or any like unit of local government, and

    • An agency of a local government, such as a school district, Board of Education, public school, sanitation district, transit authority, welfare department, housing authority, cemetery, district soil/water conservation, water district, community service district, health department, etc.

  5. If a state or local government instrumentality requests and receives an exemption under IRC 501(c)(3), the EC remains a "G"

Employment Code (EC) "I"

  1. Assign EC "I" to Indian Tribal Governmental (ITG) entities. Chief Counsel ITG will determine if an entity requires an EC "I" . If so, verify that the BOD Code is TE. Update the Business Operation Date (BOD) Client Code to I. Add a Form 940 FR of either 3 (compliant) or 4 (non-compliant) at the time the EC "I" is added. Chief Counsel ITG will determine whether the tribe is compliant or non-compliant.

  2. If an Indian Tribal Governmental entity also has a 501(c)(3) exemption, the EC must be "W" without a Form 940 filing requirement.

  3. If Master File research indicates the Exempt Organization (EO) Status is 41, 70-72, treat the entity as if they are a "regular" ITG entity with a BOD Code of TE, EC of I, and a Form 940 FR of 3 or 4.

  4. If the EO Status of 40 or 42, the BOD Code should be TE, but make no changes to the EC, BOD Client Code or filing requirements. If the EO Status has been in 40 for several years and the organization is continuing to file Forms 941 only and there is no "I" case on EDS, update the EO Status to 41 and treat as a "regular" ITG entity.

Employment Code (EC) "M"

  1. Assign this code to those Maritime Industry entities which have made payments for employment taxes not yet reported.

  2. This situation arises when a shipping company estimates liabilities and makes payments currently; however, the actual liability is reported on a supplemental Form 941 filed at the termination of the voyage.

Employment Code (EC) "Q"

  1. This EC is used for quasi-governmental entities that do not qualify for an EC "F" or "G." The Federal, State, Local/Employment Tax (FSL/ET) staff saw a need for an EC that would allow penalties and interest to accrue. The EC "Q" was created for this purpose.

  2. This EC can only be assigned or altered by the Federal, State, Local/Employment Tax staff. If necessary, contact FSL/ET at tege.fast@irs.gov.

    Note:

    E-mail address is for internal use only.

Employment Code (EC) "S"

  1. This code is assigned to a domestic business that has applied for another EIN to extend social security coverage to certain employees of its Foreign Affiliate(s) by filing Form 2032, Contract Coverage under Title II of the Social Security Act.

  2. The filing of Form 2032 secures the election to withhold Social Security tax from the paychecks of American citizens working overseas.

  3. See IRM 3.13.2.18, Form 2032, Contract Coverage under Title II of the Social Security Act, IRC 3121(I).

Employment Code (EC) "T"

  1. This code is to be assigned to state and local governmental agencies that have obtained social security coverage for employees under an agreement between the state and the Commissioner of the Social Security Administration. Under 42 USC Section 218, they are to pay social security tax directly to IRS. This EC can be altered by FSL/ET employees only. You can contact FSL/ET at tege.fast@irs.gov.

    Note:

    Email address is for internal use only.

  2. This code will be input through CC BNCHG upon notification from Chief Counsel that a Section 218 Agreement has been entered by a state or local governmental agency.

    Note:

    This code is never assigned from Form SS–4.

  3. Updating the EC from a "G" to a "T" :

    If... Then...
    A) The account is for the same entity as indicated by SSA on the modification letter, Update the EC from "G" to "T" and update the Form 941 to FR 01 or 07 for Puerto Rico accounts.

    Note:

    Delete any erroneous Form 940 filing requirement. Do not update Form 941 FRC 9 or 10 to a 941-01.

    B) The account is not for the same entity as indicated by SSA, Research for a better EIN.
    C) No EIN can be found, Correspond with the taxpayer or state administrator.
    D) A filling requirement other than Form 941/Form 940 (for example, Form 1120, Form 1065) is present, Research the account. Taxpayer contact may be necessary.
    E) The taxpayer corresponds that he is not active, Do not remove EC "T" . Correspond with the taxpayer informing them that Form 941 will still be required once a year and they must check the seasonal/intermittent box.

Employment Code (EC) "W"

  1. This code is assigned to tax-exempt organizations of the type described in IRC 501(c)(3), IRC 501(e), IRC 501(f) and IRC 501(k).

  2. These will be organizations operated exclusively for religious, charitable, scientific, literary, educational, or humane purposes, or for the purposes of testing for public safety, and indicates that the organization is not subject to Federal Unemployment Tax Act (FUTA).

  3. The organization is accorded this exemption from FUTA tax until their application for exempt status is ruled on or it is determined that an application has not been submitted.

Employment Code (EC) "Z"

  1. This code is assigned to Federal Credit Unions.

  2. This Employment Code does not behave like other Employment Codes as Federal Credit Unions are liable for Form 940. All other ECs indicate the taxpayer is not liable for FUTA, Form 940.

Integrated Data Retrieval System (IDRS)

  1. The Integrated Data Retrieval System (IDRS) is used to access and update taxpayer information. IDRS is to be accessed for official business only. Never access your own TIN, or the TIN of a friend, acquaintance, or family member. Unauthorized access is prohibited by law and can result in removal from the IRS.

  2. This subsection lists many of the IDRS Command Codes (CCs) used by Entity TEs. This list is not all inclusive.

  3. One of the key elements on IDRS Entity TEs must understand is the Filing Requirement Code (FRC).

    1. The FRC is used to identify the type of return to be mailed to the taxpayer.

    2. If the taxpayer has a FRC and does not file a return, the FRC is used to perform a delinquency check.

  4. The FRCs are input with CC ESIGN, BNCHG or EOCHG or in some cases will be established when a return posts.

  5. Whenever an account is established (TC 000) on the BMF it must have an entry in one of the filing requirement fields, including not required.
    For example, a corporation will have an 1120 FRC and possibly FRCs for Form 940 and Form 941. A social club may not need any FRCs, therefore, you must enter a "1" in the Not Required field at the end of the FRCs on CC BNCHG.

  6. The validity checks for filing requirements on CC ESIGN are in IRM 3.13.2.7.2, CC ESIGN.

  7. The validity checks for filing requirements on CC BNCHG are in IRM 3.13.2.7.3.2, CC ENREQ/BNCHG.

  8. The validity checks for filing requirements on CC EOCHG are in IRM 3.13.12, Exempt Organization Account Numbers.

  9. For a list of the MFT, Form, Type of Return, filing requirements, when to file and the Statutory date for all returns refer to Document 6209, IRS Processing Codes and Information.

  10. While working assigned cases, SP employees may come across some accounts that are blocked on IDRS. These accounts can be identified by an IDRS security violation message: Unauthorized Access to This Account. Forward the case (Form 8822-B, Form 2553, etc.) to your manager. Managers will notify the local Planning & Analysis Staff who will scan the case and send encrypted information to the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to five business days). Once notified access has been granted, the case can be processed following applicable procedures.

Research Command Codes (CCs)

  1. Research must be performed to determine if there is an EIN already assigned to a taxpayer before a new EIN is assigned. Be sure to research using the Entity "sort line format" and the Accounts Management Modernized Internet EIN (Mod IEIN) "enter as taxpayer did" format. See IRM 21.7.13, Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EINs). Many consolidation cases have been created due to the taxpayer being on IDRS with two different name controls. Be very cautious so as not to create new work. You must research both ways: historical format used in Entity and Modernized Internet EIN "enter as taxpayer did" format.

  2. There are several systems available in the Campus for research as follows:

    • The Taxpayer Information File (TIF) CC ENMOD.

    • The BMF with CCs BMFOL/BRTVU/INOLE.

    • Tax Modules that are on IDRS with CC TXMOD.

    • Everything available on IDRS with CC SUMRY.

    • On-Line Entity and related CCs.

    • The Name Search Facility (NSF) CC NAMES, for SSN research, and NAMEE for EIN research, and NAMEB search for EINs for both primary and trade names.

    • The Name Search Facility (NSF) CC NAMEI to research individuals.

    • IDRS CC Job Aids on SERP.

    • IAT New Name Tool

CCs MESSG and STATS
  1. CC STATS is the first page of IDRS that appears when the user signs on to IDRS. STATS will reflect today's date and the availability of IDRS.

  2. CC MESSG is used to report daily IDRS and miscellaneous information at each Campus. CC MESSG can be accessed at a different site via Universal access.

  3. Some of the specific items shown on CC MESSG include:

    • Availability of IDRS real-time and CCs, including problems experienced by CCs.

    • Correspondex status and updates.

    • Lockbox information.

    • Campus user support information.

CC FIEMP
  1. The use of this CC enables IDRS users to identify and contact case control owners by researching the ten-digit IDRS number of the employee. The user will enter CC FIEMP, one blank space, then the ten-digit IDRS number of the case control owner.

  2. CC FIEMP displays the following information:

    • Case control owners name.

    • Standard Employee Identification (SEID).

    • Employee's (or their manager's) telephone number

    • IDRS status of the employee (active or inactive).

  3. If CC FIEMP does not show the telephone number, the user may use the case owner's name or SEID to search the Discovery Directory on the IRS intranet or Outlook E-mail system to obtain a valid telephone number.

  4. CC FIEMP will only be used to research work related activities.

CCs NAMEE, NAMEB, NAMES and NAMEI
  1. CCs NAMEE and NAMEB search for EINs for both primary name line and sort name line (trade names).

  2. CCs NAMES and NAMEI search for SSNs for both the primary and the secondary filer.

  3. These CCs access the national Name Search Facility (NSF) file at Enterprise Computing Center at Martinsburg and will search for phonetic and spelling similarities. Common abbreviations like Mr., Mrs., Jr., Irrv. Tr., M.D., Corp., and Inc. will not be used as search criteria. CC NAMES can search using last name"," first name or first initial or blank. Using a first name or an initial in addition to the last name is better than using the last name alone.

  4. NAMES/NAMEE does not perform searches on partial last names or partial first names.

  5. Search time for CCs NAMEE/NAMES and NAMEI/NAMEB is directly related to the quality of the input fields. The more specific the information entered, the shorter the search time.

  6. If the CC NAMEB first initial is a plus (+), matching is done on all 15 characters of the last name instead of the first 10 characters.

  7. NAMEB with the definer of X and a first initial of plus (+) will not use the additional last name characters (more than 10) as selection criteria.

  8. The most efficient search is done when the name and Zip Code fields are entered. The Zip Code field must contain a valid 3 or 5-digit Zip Code or will be left blank. It must not contain all zeros. The more specific the information entered, the shorter the search time. For example, a Zip Code search is faster than a state search. The Zip Code has priority over the state and the city, neither of which will be used if the Zip Code has been entered. The address (or partial address), if entered, is then used to further refine the search results.

  9. When a name is the only information entered, CCs NAMES/NAMEE will search default to a national search.

  10. If ** is entered in the state code field, a national search is performed.

  11. Do not query using blanks in the state and ZIP Code fields, because an error message will generate to say, "Campus search not available for this campus."

  12. If "NO DATA FOR THIS NAME" is displayed, verify the input and try again after removing input fields in the following order street address, city name, and last 2 digits of Zip Code.

  13. NAMES/NAMEE does not automatically reduce the search. NAMES/NAMEE will display taxpayer names in the sequence of their probability of matching the requested name, with the best matches being displayed first.

  14. NAMEB and NAMEI do not use a formatted input screen like NAMES and NAMEE. Also, if NAMEB and NAMEI does not find an exact match, the search will default to the point of searching for matching name. See IRM 2.3.60, IDRS Terminal Responses - Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP, for additional information.

  15. CC NAMEE - You can enter up to 70 characters in the Name Line. You must enter the zip code when present. If the zip code is not present then enter the state. The state can be optional when entering the zip code. To narrow the search, a minimum of 5 characters to identify the street address will be entered.

    Example:

    112 Peachtree St will be entered as "112 P" .

  16. The cycle format has been expanded to YYYYMMDD.

  17. For examples of needed fields for these command codes, see the IDRS Command Code Job Aid on SERP.

CC ENMOD
  1. This CC is used to provide a taxpayer's Entity account; BMF, IMF (Individual Master File), NMF (Non-Master File), IRAF (Individual Retirement Account File) and EPMF (Employee Plans Master File). This CC shows all the Entity data and transactions available on the Taxpayer Index File (TIF).

  2. The use of CC ENMOD is required prior to accessing CCs ENREQ, BNCHG, and INCHG.

  3. All Entity transactions post to CC ENMOD. Once CC ENMOD falls from the TIF, all Entity transactions are displayed on CC BMFOL'E'.

  4. There are two indicators for IDRS that will be displayed on CC ENMOD or CC BMFOL'E.' The indicators are Undeliverable As Addressed "UAA" and Undelivered "UD" . UAA will generate from FINALIST when it's not able to expand or hygiene an address. UD is generated from the input of TC 971 Action Code 661 when mail is received back from USPS as undeliverable.

  5. See IRM 2.3.15, IDRS Terminal Responses - Command Code ENMOD, for more information about CC ENMOD

  6. Always look for the Large Corporation Indicator (LCI). Do not take action on an EIN reflecting an LCI before contacting the specific representative for that Large Corporation. The LCI can be seen on ENMOD (directly under ENMOD).See IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases. Please allow three days for a call back. If a call back has not been received within three days, contact the HQ AM Large Corporation analyst via email. Contact information can be found on SERP - Who/Where - Large Corporation Contacts

CCs FINDE/FINDS
  1. There are two new CCs to query the NSF database. When an EIN or SSN is entered, every name and address reported to that EIN will appear on your screen.

  2. CC FINDE searches the NSF data base using the taxpayer’s EIN and requires either of the following definers:

    1. D – Only BMF Domestic names and addresses are displayed.

    2. I – Only BMF International names and addresses are displayed.

  3. CC FINDS searches the NSF data base using the taxpayer’s SSN and requires either of the following definers:

    1. D – Only IMF Domestic names and addresses are displayed.

    2. I – Only IMF International names and addresses are displayed.

  4. To search using CC FINDE/FINDS, input the appropriate CC plus the definer D or I and use the taxpayer’s EIN/SSN (without hyphens or dash).
    Example
    FINDED020278969, will display the domestic names and addresses for EIN 02-0278969.
    The domestic or international addresses/names for the appropriate EIN will display in cycle/year order. The most current taxpayer information will display first and includes any subsequent names/addresses displaying in descending order.

  5. The cycle format has been updated to YYYYMMDD.

  6. See IRM 2.3.60, Command Codes NAMES, NAMEE, NAMEI, NAMEB, FINDS, FINDE, and TPIIP for additional information.

CCs INOLE, BMFOL
  1. Command Code INOLE is designed to display Master File entity data (including SSA name controls, Cross Reference information, and Merge Transactions) for a specific Taxpayer Identification Number (TIN) residing on the NAP. The request type (via command code definer) determines the kind of data desired by the requester. Requests are researched via the input TIN. If primary TIN is unknown, a request may be input with the spouse's TIN. There are five types of INOLE inquiries that can be requested.

  2. Command Code INOLE input with the definer "G" — an unedited or edited TIN will be input. This command will be useful when the tin type is unknown. The returning screen will contain any name line information available for any account attributable to that number, regardless of file if edited TIN is input. This request type involves multiple database accesses and will only be used when necessary.

    1. Command Code INOLE input with the definer "T" — an edited TIN (either SSN or EIN) and file source will be input. This command will be useful when research is desired on all accounts with the same SSN or EIN. Name line and street address information will be returned to the user for each matching account.

    2. Command Code INOLE input with the definer "S" — an edited TIN and file source will be input. This request type will be most useful when the specific account is already known. Name lines (current and prior), street addresses, tax year, Social Security name controls, cross reference and other information specific to the type of account being requested will be returned to the user.

    3. Command Code INOLE input with the definer "X" — an edited TIN and file source will be input. This request type will be most useful when researching TINs that have no Master File account. DM1 name controls, Cross reference and merge transaction information will be returned to the user. Information returned to the user will be specific to the file source input. On SSN requests, both tin types (valid and invalid) will be searched for data, regardless of file source input. If a file source of IMF valid is input, the resulting display will show data for both the valid and invalid accounts if such data exists.

    4. Command Code INOLE input with the definer "P" — an edited EIN, file source (P), and EPMF Plan number. This request type will be used to display EPMF Plan information. The EPMF SPECIFIC SCREEN can display only five plan names. The screen display for the "P" definer can display up to ten plan names. The list of plan names displayed will begin with the plan number that is input, or the next highest number.

  3. The Business Master file on-line, BMFOL system provides read-only access to accounts on the Business Master File in Martinsburg, WV. All entities, master file tax modules and the most recent seven years of retention data are in on-line status. See IRM 2.3.59, IDRS Terminal Responses - Command Codes BMFOL and BMFOR.

    1. CC BMFOL with Definer "E" will show all Entity transactions posted to the Master File. This definer will also show:
      - Parent's EIN,
      - XREF TIN/ITIN (owner's TIN),
      - Railroad Retirement Board Number,
      - Wages Paid Date/Business Operational Date and Business Close Date/Wages Last Paid Date,
      - Employment Codes, and
      -Active FRCs.

    2. Definer "I" will show the modules that have been created on the EIN with an extension, return, or transaction code. The modules are listed in order of MFT. Entity will utilize several fields of the screen display.
      - MFT,
      -TXPD (Tax Period), and
      - RET PST (Return Posted, Y=Yes, N=No).

    3. Definer "T" shows the specific tax module being viewed.
      Input the command code as follows:
      BMFOLTNN-NNNNNNN XXXXXXXX (X=MFT and Tax Period).

    4. Definer "R" shows the specifics of the return posted on the module. The input format is the same as Definer "T"

  4. Always look for the Large Corporation Indicator (LCI) on Definer 'I' (fourth line of BMFOL'I') Do not take action on an EIN reflecting an LCI before contacting the specific representative for that Large Corporation. See IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases. Please allow three days for a call back. If a call back has not been received within three days, contact the HQ AM Large Corporation analyst via email. Contact information can be found on SERP - Who/Where - Large Corporation Contacts

CCs SUMRY/TXMOD
  1. Command Code SUMRY will normally be used as a first contact with IDRS to determine if a tax module or Control Base exists in the TIF. The SUMRY display will show sufficient data to enable operators to close many cases and associate others in process without further research.

  2. CC SUMRY is used to request for display, a summary of a taxpayer's account which includes all tax modules meeting IDRS selection criteria. The display shows entity data on lines 1 and 2. Tax Module Data, including tax period, various indicators, IDRS Status, Control Base information, Control DLN, IDRS Module Balance and Freeze Codes for a specific tax period begins on line 3 and ends on line 4. Other tax period data follows every two lines until all tax modules have been summarized.

  3. Command Code TXMOD is used to request for display all tax module information for a specific tax period on the TIF. The display consists of Entity data, posted returns, posted transactions, pending transactions, and reject data if available on IDRS TIF. The display shows the latest control DLN of the return.

  4. Command Code TXMOD stores the TIN, File Source, TIN Type, MFT, Tax Period, Case Control Indicator, Name Control and, for EPMF, Plan Number as required data elements for subsequent processing.

  5. For TXMOD a command code definer is required. Definer "A" will display most tax module information present on the TIF.

  6. For more information on CCs SUMRY and TXMOD, see IRM 2.3.11, IDRS Terminal Responses - Command Codes TXMOD and SUMRY.

  7. Always look for the Large Corporation Indicator (LCI). Do not take action on an EIN reflecting an LCI before contacting the specific representative for that Large Corporation. See IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases. The indicator can be found on:

    • Third line of CC SUMRY.

    • Second line of CC TXMOD'A'.

    Please allow three days for a call back. If a call back has not been received within three days, contact the HQ AM Large Corporation analyst via email. Contact information can be found on SERP - Who/Where - Large Corporation Contacts

CCs RTVUE/BRTVU
  1. These CCs will display return information for both BMF and IMF.

  2. Command Code (CC) BRTVU is used to research edited, transcribed and computer-generated line items for BMF returns and related forms and schedules. This information will be accessed using CC BRTVU with a taxpayer TIN, a two-digit Master File Transaction (MFT) Code and Tax Period.

  3. See the IDRS Command Code Job Aids on SERP for additional information on CC BRTVU and CC RTVUE.

CC ESTAB
  1. Use CC ESTAB to request documents from Files.

    Note:

    Whenever possible CCs BRTVU and/or RTVUE will be used instead of CC ESTAB.

  2. When requesting documents with CC ESTAB the DLN must be known.

    1. A Form 4251, Return Charge-Out, will be generated to Files for the document.

    2. Files will pull the document and route it to the requester.

  3. When requesting documents with CC ESTAB the file and type of information needed must be input.

  4. Be sure to use Form 2275, Records Request, Charge and Recharge, if document is not received after three timely requests.

  5. For additional information on CC ESTAB, see IRM 2.3.62, IDRS Terminal Response - CC ESTAB and IRM 2.3.17, IDRS Terminal Responses - Command Code ESTABD.

CC TRDBV
  1. This CC is used to access paper tax return information after corrections have been made to the return by ERS and/or GUF.

  2. CC TRDBV is especially useful to Entity and Entity Unpostable TEs as it will show a paper DLN that has been converted or cancelled.

  3. Any case or document being processed under a Revenue Procedure will require the use of CC TRDBV.

  4. See IRM 2.3.73, Command Code (CC) TRDBV.

  5. Review of the IDRS Command Code Job Aid on SERP would be beneficial, see CC TRDBV.

  6. Electronic returns are researchable on the Employee User Portal (EUP).

CC MFREQ
  1. CC MFREQ Definer 'C' is used to request the Entity module or a tax module and its related entity data when case control is not required.

  2. MFREQ 'C' will download the module data from CFOL to the local IDRS while the user is waiting online. CC MFREQ Definer 'D' will bring the module data from Master File to IDRS approximately two weeks from the time of the request.

  3. MFREQ 'D' will create a dummy module on the local IDRS while waiting for IDRS information to load.

  4. The real module must not be on the local IDRS (TIF) for CC MFREQ to be used.

  5. See IRM 2.3.10, Command Codes MFREQ and RECON.

CC EFTPS
  1. CC EFTPS is used to access payments made through the Electronic Federal Tax Payment System (EFTPS).

  2. This CC is not restricted.

  3. See IRM 2.3.70, Command Code EFTPS.

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

  2. Each Unpostable Record will be sorted first by TIN, MFT, Tax Period and Transaction Code.

  3. The CC UPTIN data will be updated daily.

  4. Entity TEs working returns and issues involving Form 2553 and Form 8832 must access CC UPTIN at all BMF Campuses to get a clear picture of the taxpayer's case. If there is an open UPC 310/329, coordinate with the appropriate BMF Entity Unpostable Team and route the document (if same Campus) to BMF Entity Unpostables to be processed with the unpostable. If not in the same Campus, process the Form 2553 and notify the Campus that has the open unpostable so they can resolve their case:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

    Note:

    Phone numbers are for internal use only.

CCs UPDIS/UPRES
  1. CC UPDIS will display the open unpostable case for a specific sequence number. CC UPDIS must be used prior to CC UPCAS and CC UPRES.

  2. CC UPRES allows the user to take action on the unpostable, either suspend or close.

  3. See IRM 2.3.48, IDRS Terminal Responses - Command Code UPDIS for the GUF System.

CC IRPTR
  1. CC IRPTR, (Information Returns Processing Transcript Requests), allows IDRS users to request either on-line or hardcopy Information Returns Processing (IRP) transcripts from the Information Returns Master File (IRMF).

  2. CC IRPTR can be used to request data, either online or hardcopy transcripts, for a Payee (online or Hardcopy) or Payer (Hardcopy only) using Taxpayer Identification Number (TIN) along with one or more Tax Years (TY).

  3. See IRM 2.3.35, IDRS Terminal Responses - Command Code IRPTR.

  4. The IDRS Command Code Job Aid for CC IRPTR will show how to use the CC.

CC ESIGN

  1. BMF returns and payments are processed with Employer Identification Numbers (EINs). EINs are assigned from paper Forms SS-4 by Accounts Management, EIN Function. Taxpayers can also obtain an EIN from the Modernized Internet EIN (Mod IEIN) application by going online at http://www.irs.gov. However, many taxpayers submit documents, returns, and payments without a valid EIN. BMF Entity receives these documents.

  2. CC ESIGN allows you to assign an Employer Identification Number (EIN). Always thoroughly research CCs NAMEE/NAMEB prior to initiating CC ESIGN. Always research using the "sort line format" and the Modernized Internet EIN "enter as taxpayer did" format.

  3. EINs are assigned by Entity TEs when processing returns and payments in the form of "pipeline" returns, Rejects, and loose unnumbered documents.

  4. MASTER-FILE-IND> is the first field of CC ESIGN that must be completed. Master File Indicator B is used when the EIN will have FRCs. Master File Indicator alpha O is used when the EIN will not have FRCs. See below for examples:

    MFI Code Examples
    B Taxpayer:
    • Is filing any BMF tax return

    • Is a trust, estate, or multi-member LLC

    • Is a partnership

    • Is a corporation

    • Has employees

    • Accepts wagering

    • Owns a heavy vehicle for hauling

    • Is a withholding agent (TEFRA)

    • Is a pension/profit sharing/retirement plan and filing a BMF return.

    • Is a REMIC

    • Is an unincorporated business organization trust and is filing a BMF return.

    • Is a political organization under IRC 527 or Form 8871 will be filed.

    O
    • Exempt organizations

    • Social clubs

    • Pension/profit sharing/retirement plan not filing a BMF return.

    • Mutual fund investment companies with Form 1096 filing requirements.

    • Lottery clubs

    • Administrator of a pension plan

    • Individuals with household employees

    P Sponsor or employer of a plan.

  5. The IRS no longer requires specific District Office codes to be used as the prefix for EINs assigned. When assigning an EIN, the Business Master File (BMF) sites will use (have used) the following prefixes:

    • Andover - 10, 12

    • Atlanta - 60, 67

    • Austin - 50, 53

    • Brookhaven - 01, 02, 03, 04, 05, 06, 11, 13, 14, 16, 21, 22, 23, 25, 34, 51, 52, 54, 55, 56, 57, 58, 59, 65

    • Cincinnati - 31,30, 32, 35, 36, 37, 38, 61

    • Fresno - 15, 24

    • Kansas City - 40, 44

    • Memphis - 94, 95

    • Ogden - 80, 90

    • Philadelphia - 33, 39, 41, 42, 43, 45, 46, 47, 48, 62, 63, 64, 66 (reserved for taxpayers located in Puerto Rico, Guam, Virgin Islands, American Samoa, Northern Mariana Islands and Palau), 68, 71, 72, 73, 74, 75, 76, 77, 81, 82, 83, 84, 85, 86, 87, 88, 91, 92, 93, 98, 99

    • Modernized Internet EINs - 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, 86, 87, 88, 92 and 93 (The File Location Code (FLC) for TC 000 on EINs assigned via Mod IEIN are always "28." )

      Note:

      Long before the creation of Mod IEIN, Philadelphia used prefixes 26, 27 and 81 but had stopped.

    • International EINs will begin with prefix 98.

    • Invalid EIN Prefixes are 00, 07, 08, 09, 17, 18, 19, 28, 29, 49, 69, 70, 78, 79, 89, 96, and 97 (see IRM 21.7.13.2.4.1, EIN Prefixes No Longer Available for Assignment). EINs with one of these prefixes must never be put (back) on Master File with a TC 000. If you find an EIN on Master File with one of these prefixes, assign a new EIN and consolidate the invalid prefix into the new EIN.

  6. CC ESIGN will not allow the Primary Name line and the Sort Name line to be identical.

  7. If the assigned EIN has FRCs that are liable for federal tax payments, the taxpayer is pre-enrolled in the Electronic Federal Tax Payment System (EFTPS).

  8. Entity will complete every possible field of CC ESIGN when assigning an EIN. See IRM 2.4.8, IDRS Terminal Input - Command Codes ESIGN and BSIGN, IRM 21.7.13, Business Tax Returns and Non-Master File Accounts - Assigning Employer Identification Numbers (EINs), and the IDRS Command Code Job Aid on SERP. The XREF TIN TYPE and TIN of the entity's owner are required fields. If the taxpayer is a sole proprietor, we will complete the SOLE PROPRTR SSN field. Beginning May 12, 2019, the IRS will no longer accept an EIN for XREF TIN. An applicant must provide an SSN or ITIN for the XREF TIN and an individual’s name for the Responsible Party.

  9. If you do not have the entity owner's TIN, a "9" will be entered in the XREF TIN TYPE field. The XREF TIN and XREF TIN TYPE Fields will not be completed for non-profit organizations.

  10. See Exhibit 3.13.2-7 for the CP notice language generated by CC ESIGN.

  11. For disposition of Form SS-4, see IRM 21.7.13.3.2.11, Disposition of Forms SS-4 and Supporting Documentation.

  12. The validity checks on filing requirements for CC ESIGN are listed in the chart below.

  13. The valid range of values for Form 941 are 01, 02, 06, or 07. A Form 941 FR must have a "wages paid date" .

    If... Then...
    Form 941 FRC = 01 Form 940 FRC must be 1 or 2, unless EC is "G" or "W" .
    Form 941 FRC = 02 EC must be "F" and Form 940 FRC must be blank.
    Form 941 FRC = 06 Location Code must be 6601. Form 940 FRC must be "7" unless EC is "W" .
    Form 941 FRC = 07 Location Code must be 6601. Form 940 FRC must be 1 or 2, or "F" EC must be # or blank.
    Form 944 FRC = 01, 02, 06, 07 Form 944 FRC is generated by Master File.
    Form 1120C FRC = 0, 20 See CC EOCHG for positive filing requirements. A Form 1120C FRC 0 will delete the Form 1120C filing requirement on the BMF.
    Form 1120 FRC = 01, 03, 04, 06,07, 09, 10, 11, 16, 17, 18, 19, or 20 "Fiscal Year Month" (FYM) must be input and the "Business Operation Date" (BOD) must be input. A FRC for Form 1065, Form 1066 or Form 1041 cannot be input.
    Form 720 = 1 or 4. The "Business Operation Date" must be input.

    Note:

    A Form 720 FRC is valid with all other filing requirements.

     
    Form 1041 = 1 or 2. The "Business Operation Date" must be input. The "Wages Paid Date" for FRC 2 must be present. A FRC for Form 1065, Form 1066 or Form 1120 cannot be input. The FYM must be input.
    If the FRC is 1041-1 only, CC ESIGN will generate an EIN within the six/seven million series.
    Form 1041 QFT = 9 The "Business Operation Date" must be input. A FRC for Form 1065, Form 1066 or Form 1120 cannot be input. The FYM must be input.
    Form 1065 = 1 The "Business Operation Date" must be input. A FRC for Form 1041, Form 1066 or Form 1120 must not be input. The FYM must be input.
    Form CT–1 = 1 or 2 The "Business Operation Date" must be input. A Form 941 FR of 04 may also be input.
    Form 940 = 1, 2 or 7 The "Wages Paid Date" must be input.
    Form 940 FRC = 1 The Form 941 FR must be 01 or 06. The Form 943 FRC must be 1.
    Form 940 FRC = 2 The Form 941 FR must be 01 or 06. The Form 943 FRC must be 1.
    Form 940 FRC = 7 The location Code must be 6601. Form 941 FRC must be 7. The Form 943 FR must be 7.
    Form 943 = 1 or 7 The "Wages Paid Date" must be input.
    Form 943 = 7 The location code must be 6601.
  14. Form 945 valid range is 1. Form 945 FR is valid with all other filing requirements. If Entity can determine by taxpayer contact or the taxpayer indicates that they are liable to file Form 945 (for example, liable for non-payroll income tax withholding on backup withholding or withholding for pensions, annuities, IRAs, Indian gaming and gambling winnings) establish Form 945 FRC 01. Otherwise, DO NOT establish a 945 FRC. Form 1042 valid ranges are 0, 1 or 8. Form 1042 FR is valid with all other filing requirements. See Figure 3.13.2-4 for the CC ESIGN format.

    Form 2290 = 1 The "Business Operation Date" must be input.
    Form 1066 = 1 The "Business Operation Date" must be input. A FR for Forms 1120, Form 1041 and Form 1065 cannot be input.
    Form 11-C = 1 The "Business Operation Date" must be input.

    Note:

    Most Forms 11–C are not required to file Form 730.

    Form 730 = 1 The "Business Operation Date" must be input. The FRC for Form 11–C must be a 1.

    Figure 3.13.2-4

    This is an Image: 33746110.gif

    Please click here for the text description of the image.

  15. After an EIN has been assigned, CC ENMOD can be used to view the input information while it is pending. The CC ENMOD screen will display "DUMMY ENTITY" in the upper left corner of the newly assigned EIN on IDRS.

  16. Do not correct mistakes to a newly assigned EIN using CC BNCHG. The taxpayer notice generated by CC ESIGN may be sent to the taxpayer with the incorrect information. If any information is entered incorrectly, delete the EIN with CC ESIGN definer T using the ERAS sequence number (ERAS-SEQ-NUM>) found on CC ENMOD. The records will be removed from the Taxpayer Information File (TIF) and Name Search Facility (NSF).

  17. CC ESIGN’T’ must be preceded by CC ENMOD. The sequence number entered must match the sequence number on the newly ESIGN’d EIN. See IRM 2.4.8.15, IDRS Terminal Input - Command Code ESIGNT Daily Delete.

Update CCs

  1. This subsection covers IDRS CCs that are used to update Master File.

  2. For additional information on any CC, see the IDRS Command Code Job Aids on SERP.

CC ACTON
  1. Command Code ACTON may be used to establish control bases, to update or close control bases that are open, to correct name controls on dummy accounts, to add history items to modules on IDRS, and to generate TCs 902 to secure tax modules and their related entity data from the Master File.

  2. For more information on CC ACTON, see IRM 2.3.12, IDRS Terminal Responses - Command Code ACTON and CC ACTON.

CC ENREQ/BNCHG
  1. CC ENREQ must be preceded by CC ENMOD. For specific information on character/space limitations for CC ENREQ/BNCHG, see IRM 2.4.9, IDRS Terminal Input - Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

  2. The following list reflects the filing requirements that can be input with CC ENREQ/BNCHG. With CC BNCHG a filing requirement can be added, changed or deleted on the BMF.

  3. Form 941 valid ranges are blank, 00, 01, 02, 04, 06, 07, 09, 10, 11, 13 or 14. A Form 941 FR 00 will delete the Form 941 filing requirement on the BMF.

    If... Then...
    Form 941 FR = 01 Form 940 FR must be a 1 or 2, unless EC input is: "W" , "G" or "T" is also input.
    Form 941 FR = 02 There must also be input an EC of "F" .
    Form 941 FR = 04 A TC 070 must be posted. See IRM 3.13.12, Exempt Organization Account Numbers.
    Form 941 FR = 06 The location code must be 6601 or 9801.
    Form 941 FR = 07 The Form 940 FR must be a "7" , unless the EC input is a "W" or "T" .
    Form 941 FR = 09 The transaction code cannot be 000.
    Form 941 FR = 11 If an EC is present, it must be: "T" , "S" , "M" , "W" or "9" .
    If an EC is not present, input a Form 940 filing requirement code of "1" or "2" .
    Form 941 FR = 13 The location code must be 6601.
    Form 941 FR = 14 The location code is input it must be 6601. If an EC is present it must be "W" or "T" and the Form 940 filing requirement code must not equal a "1" , "2" or "7" .
    If an EC is not present, the Form 940 filing requirement code must be "7" .
    Form 944 FR = 01, 02, 03, 11 Input 00 to remove the Form 944 FR. Use (0-9) to establish the 944 Establishment Year in year format (YYYY).

  4. Form 1120 valid ranges are blank, 00, 01, 03, 04, 06, 07, 09, 10, 11, 16, 17,18, 19 or 20. A Form 1120 FR-0 will delete the Form 1120 filing requirements on the BMF.

    Note:

    If a Sole Proprietor SSN is present on an EIN, an annual FRC (MFTs 02, 05, 06, etc.) cannot be added. If needed, delete the Sole Proprietor SSN by entering 000-00-0001.

    If... Then...
    Form 1120 FRC = 01, 03, 04, 06, 07, 09, 10, 11, 16, 17, 18, 19 or 20 The FYM must be input.
    A filing requirement for Form 1041 or Form 1065 must not be input or must be zero.
    Form 1120 FRC = 15 The input Campus must be OSPC.
    Form 720 FRC = 9 The transaction Code cannot be 000.
    Form 1041 FRC = 1 or 2 The FYM must be input. A filing requirement for Form 1065 or Form 1120 must not be input, unless it is zero.
    Form 1065 FRC = 1 The FYM must be input. A filing requirement for Form 1041 or Form 1120 must not be input, unless it is zero.
    Form 1066 FRC = 1 A filing requirement for Form 1120, Form 1041 or Form 1065 cannot be input, unless it is zero. The FYM must be 12.
    Form CT–1 FRC of 1 or 2 The Railroad Retirement number must be input.
    Form 940 FRC = 1, 2, or 7 A FRC for Form 941 or Form 943 must be input.
    Form 940 FRC = 1 A Form 941 FRC of 01, 09, or 10 must be input. A Form 943 FRC of 1 must be input.
    Form 940 FRC = 2 A Form 941 FRC of 01, 09, or 10 must be input. A Form 943 FRC of 1 must be input.
    Form 940 FRC = 7 A Form 941 FRC of 7 must be input. A Form 943 FRC of 7 must be input.
    Form 943 FRC = 7 The location code must equal "6601" .

  5. Form 1042 valid ranges are blank, 0 or 1. A Form 1042 FRC 0 (zero) will delete the Form 1042 filing requirement on the BMF.

  6. Form 990-T valid ranges are blank, 0 or 2. A Form 990-T FRC 0 will delete the Form 990–T filing requirement code on the BMF. Form 990-T FRC = 2; The FYM must be input. A Form 1041, Form 1065 or Form 1120 filing requirement code greater than zero cannot be input.

  7. Form 5227 valid ranges are blank or 0. A Form 5227 FRC 0 will delete the Form 5227 filing requirement code on the BMF. Use CC EOCHG to add/update FRC.

  8. Form 990–PF valid ranges are blank or 0. A Form 990–PF FRC 0 will delete the Form 990–PF filing requirement code on the BMF. Use CC EOCHG to add/update FRC.

  9. Form 2290 valid ranges are blank, 0 or 1. A Form 2290 FRC 0 will delete the Form 2290 filing requirement code on the BMF.

    If... Then...
    Form 11–C FRC = 1 Form 11–C FRC must be 1.
    Form 730 FRC = 1 Form 730 FRC must be 1.

  10. Form 990/Form 990EZ valid ranges are blank or 0 (zero). A Form 990 FRC 0 will delete the Form 990 filing requirements on the BMF. Use CC EOCHG to add/update FRC.

    If... Then...
    Form 706GS(D) = Blank, 0 or 1 Input must be to a BMF EIN or SSN account only. MFT must be input to update Form 706GS(D) FRC.
    Form 706GS(T) = Blank, 0 or 1 Input must be to a BMF EIN account only.
    Form 706GS(T) FRC = 1 Only Form 1041, Form 720, Form 940, Form 941 or Form 943, Form 944 FRCs may be input.

  11. Form 945 valid ranges are blank, 0, or 1. A Form 945 FRC = 0 (zero) will delete the Form 945 filing requirement on the BMF. Form 945 is valid with all other filing requirements. If Entity can determine by taxpayer contact or the taxpayer indicates that they are liable to file Form 945 (for example, liable for non-payroll income tax withholding on backup withholding and withholding for pensions, annuities, IRAs, and gambling winnings) establish Form 945 FRC 01. Otherwise, DO NOT establish a 945 FRC.

  12. Not Required

    1. Valid range blank, 0 or 1.

    2. This field is used when the EIN needs to be placed on the BMF, but a filing requirement is not necessary. See Figure 3.13.2–5.

  13. Use this CC to request a BNCHG format for input of an entity change transaction. It must be preceded by CC ENMOD.

    1. ENREQ is designed to initiate BNCHG. CC ENREQ with a blank definer is keyed in after a response to ENMOD indicates that the entity is on the file. Response to "ENREQ" is a generated BNCHG format for BMF.

    2. CC ENREQ with an "R" definer is keyed in after response to ENMOD indicates that the entity is on the file. Response to CC ENREQ'R' is a generated BRCHG format for BMF or EPMF accounts.

    Figure 3.13.2-5

    This is an Image: 33746114.gif

    Please click here for the text description of the image.

  14. The TIN will be validated with CC ENREQ and EOREQ. For a TC 000 to be input, a TC 000 intend indicator of 1 must be input in space 20 with the CCs ENREQ or EOREQ. If the TIN is not on the Master File when the indicator is input it will allow the TC 000 to post. If the TIN is known to be on the Master File and no TC 000 intend indicator is input the appropriate TC (those other than TC 000) can be input. See Figure 3.13.2-6

  15. When the TIN has been validated, the input transaction can be made. If the TIN is not validated, research or contact the taxpayer.

  16. If research or taxpayer contact does not resolve the discrepancy in the TIN, each case will have to be resolved based on the taxpayer's change.

  17. If a TC 000 intend indicator is input and the TIN is already on the MF, an error message "TIN EXISTS ON MF" will be generated.

    1. Compare the input TIN with the source document to determine if a transcription (finger) error was made.

    2. If a finger error has been made, correct the EIN and re-input the transaction. Be sure the TC 000 intend indicator is correct.

    3. If a finger error was not made, research using CC INOLE and NAMEE to ensure the EIN is for the taxpayer. If it is, it may be necessary to make an entity change. Re-input the transaction and change the TC 000 intend indicator to blank.

    4. If the input TIN is on the MF for a different taxpayer, assign a new EIN if the source document is other than correspondence. If the source document is correspondence, return it to the taxpayer with a Form SS–4 explaining that the EIN has already been assigned to another taxpayer. Before their correspondence can be processed, a valid EIN is needed.

  18. Because the ESIGN (TC 000) is held for quality review, care will be taken when changing information while the transaction is pending. If Quality Review needs to reject the ESIGN, the transaction will not post. If it is determined that the action must be input, use CC ENREQ with an intend indicator 1 to access the dummy module and use posting delay code as needed.

  19. The TE establishing the EIN needs to add to or change information, input CC ENREQ with an intend indicator 1 to access the dummy module. This will access CC BNCHG. Input the additional or correct information required and use posting delay code as appropriate.

  20. Complete research (including CC INOLE if necessary) will be performed prior to executing any entity change. Any transaction that needs to be cycled or held for later input can be cycled up to 6 cycles using a Posting Delay Code (PDC). See IRM 2.4, IDRS Terminal Input.

  21. If the information that will print on the CP 575 needs to be changed, such as mailing address, primary name line, etc. use CC ESIGN'T' to remove the newly assigned number. Reassign an EIN to allow the CP 575 to be delivered with the correct information.

  22. The transactions input with CCs ENREQ/BNCHG follow:

  23. Transaction Code 000: This transaction code establishes an account on the BMF (See Figure 3.13.2–5). Prior to 2008, if an EIN did not file a return or make a payment for three consecutive years, the EIN was removed from Master File. However, the Primary Name Line of the EIN is still researchable via CCs NAMEE and NAMEB. If able to validate the prior presence of an EIN, input TC 000 to re-establish with the current name, address, and FRCs. The following fields must be input:

    • TC 000,

    • New Name Control,

    • Primary Name,

    • Complete Address, and

    • Filing Requirement (If a filing requirement is not needed, input a "1" in the NOT-REQUIRED field. See Figure 3.13.2–5.)

      Exception:

      If the TC 000 is input for a BMF SSN account, then no filing requirements will be input, including NOT REQUIRED. However, complete the NM-YR-QTR> and MFT> or MFT> and DT-OF-DEATH> fields for BMF SSNs.

      Note:

      Complete research (including CC INOLE if necessary) will be performed before executing any entity change. Any transaction that needs to be cycled or held for later input can be cycled up to 6 cycles using a PDC. See IRM 2.4, Terminal Input.


    If the EIN assigned has FRCs that require federal tax payments, the taxpayer is automatically pre-enrolled in EFTPS.
    The "Notice of Intent" indicator 1 must be entered in line 1, space 20 of IDRS screen when establishing an EIN with a TC 000. See Figure 6.

    Figure 3.13.2-6

    This is an Image: 33746116.gif

    Please click here for the text description of the image.

  24. Transaction Code 012: This transaction code reopens an inactive account where a consolidation has been attempted but failed (because of duplicate modules, invalid FRCs, etc.) or a TC 020 failed because modules exist. Filing requirements of such accounts are all "8."

    The transaction will not post to the account unless all filing requirements are changed to either a significant code or zero.

    Note:

    Do not re-open an EIN if the words "ID THEFT" or "POTENTIAL FAB EIN" are on one of the name lines or a TC 971 AC 524 is present on the account. Please notify Submission Processing Headquarter Analyst via P & A when the account has ID THEFT or POTENTIAL FAB EIN in the name lines for resolution.

    Caution:

    The Detroit Computing Center (DCC) was assigned an EIN ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡for the sole purpose of providing the “Payer” EIN on Form 1099-INT statements issued by IRS to taxpayers who have received interest on their federal refunds. The Detroit Computing Center is not a “true” taxpayer account entity. Do not input a TC 012 or post payments or returns to this account. See IRM 3.8.45.8.31(2), Information Return (IRP), for additional information.

    Figure 3.13.2-7

    This is an Image: 33746118.gif

    Please click here for the text description of the image.

  25. Transaction Code 013: This generated transaction code indicates the primary name line has been changed. See Figure 3.13.2–8.

    1. Always use the Master File name control, not a check digit or dummy name control when changing the name lines.

    2. If it appears that a change in ownership has occurred which will require a new EIN, correspond with the taxpayer using Letter 45C.

    3. Name changes to SSNV accounts will be processed using TC 040 or TC 041.

    4. A name change can be processed from any type of correspondence, return, payment, etc., if one of the following is indicated in the examples; Formerly Known As (FKA); Also Known As (AKA); New name; Old name; Name change box is checked on a return (if present). You will research the Secretary of State web site(s) for name change verification. If needed, phone contact with the taxpayer can be initiated.

    5. If none of the above is indicated, correspond with the taxpayer to verify the correct name.

    6. If correspondence, notices, or C letters sent by the IRS that solicits or requires a response from the taxpayer are returned to the IRS by the taxpayer with corrections marked on the taxpayer's Primary Name information, the correspondence will constitute clear and concise written notification of a name change. The taxpayer's signature is not required on the correspondence, notice or C letter.

    7. If a name change is input, send an acknowledgement Letter 147C to the taxpayer.

      Figure 3.13.2-8

      This is an Image: 33746120.gif

      Please click here for the text description of the image.

  26. Transaction Code 014: This generated transaction indicates a change has been made to the mailing address fields. All transactions containing an address change will have the requester's name, title, and phone number if present in the Remarks field of the transaction. If you are unable to determine the name and/or title, enter "SIGNATURE ILLEGIBLE" and the requester's phone number (if available). See Figure 3.13.2-9.

    Figure 3.13.2-9

    This is an Image: 33746122.gif

    Please click here for the text description of the image.

  27. Transaction Code 016: This generated transaction code indicates a change to any of the following fields:

    • BMF filing requirements/WPD/BOD,

    • Railroad Retirement Board Numbers,

    • Form 8123 code,

    • Fiscal Year Month (FYM),

    • Employment Code (EC),

    • Date of Death,

    • Sole Proprietor SSN,

    • Sort Name,

    • Location street address,

    • Location city, state, and ZIP,

    • Care Of Name,

    • XREF-TIN-ITIN-IND/XREF-TIN-ITIN,

    • EIN-EST-DT>, and

    • DT-WG-L-PD/DT-BUS-CLD.


    See Figure 3.13.2-10.
    1. To delete an erroneously input Sole Proprietor SSN, input 000–00–0001 in this field. To correct a wrong SSN, input the correct sole proprietor SSN. It will be over laid in the sole proprietor SSN field. To delete an erroneously input XREF-TIN-ITIN, input 0 in the XREF-TIN-IND field and enter 000-00-0001 in the XREF-TIN field, minus hyphens. To correct a wrong XREF TIN, input the correct XREF TIN. Overlay it in the XREF TIN field.

    2. These items are input because of correspondence and unprocessable returns and documents.

    3. A TC 016 with special DLN XX963-888-88888-X is generated to validate sole proprietor's Social Security Number (SSN) in the entity.

    4. There are online services available to taxpayers that interfaces with Master File. One such service is the System for Award Management (SAM). This system verifies EINs by using the EIN-EST-DT>. Therefore, it may be necessary to input a TC 016 to update.

    Figure 3.13.2-10

    This is an Image: 33746124.gif

    Please click here for the text description of the image.

  28. Transaction Code 020: (This Transaction Requires Management/Lead Approval) This input transaction code deletes an account from Master File if no modules are present which contain return or credit transactions. Recently this TC has been used on EINs resulting from ID Theft or Fraud. When this is the case, the words ID THEFT or POTENTIAL FAB EIN will be entered on the Sort Name Line. This TC is restricted to BMF Entity TEs. See Figure 3.13.2–11.

    Note:

    Accounts with modules present will remain on the BMF but all the filing requirements will be changed to "8" to indicate that the account is in inactive status.

    Figure 3.13.2-11

    This is an Image: 33746126.gif

    Please click here for the text description of the image.

  29. Transaction Code 030: This generated transaction code indicates the location codes have been updated when a change in Campus code is involved. If a TDA is being transferred, use document code 50; otherwise, use document code 63.

  30. Transaction Code 040: This input transaction code changes an SSN or name of an account to the valid portion of the BMF. See Figure 3.13.2-12.

    • This transaction must be input to a BMF valid SSN account.

    • If Primary Name is entered, New Name Control and Continuation of Primary Name are the only fields that may be entered. Remarks must also be entered.

    • If new SSN field is entered, Posting Delay Code and the Remarks fields are the only other fields that may be entered.

    • For specific instructions on inputting TC 040, see IRM 2.4.9-6, IMF - 040, 041, to Change SSN or Nameline.

    Figure 3.13.2-12

    This is an Image: 33746128.gif

    Please click here for the text description of the image.

  31. Transaction Code 041: This input transaction code changes an SSN or name of an account to the invalid portion of the BMF. This transaction must be input to a BMF invalid SSN account. See Figure 3.13.2-13.

    1. This transaction must be input to a BMF invalid SSN account.

    2. If Primary Name is entered, then no other data except Continuation of Primary Name may be entered. Remarks must be entered.

    3. If a new SSN is entered, then no other data except Posting Delay Code and the Remarks field may be entered.

    Figure 3.13.2-13

    This is an Image: 33746130.gif

    Please click here for the text description of the image.

  32. Transaction Codes 07X: TCs 074, 075, 076, 077, and 078 are used when processing Form 8832, Entity Classification Election. TCs 070 through 073 are used when processing Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes. See IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers

  33. Transaction Codes 090 through 097: are used when processing Form 2553, Election by a Small Business Corporation. See IRM 3.13.2.23, Form 2553, Election by a Small Business Corporation, and Related Transactions/CPs.

  34. Transaction Codes 098 and 099: are used when processing Forms 56, Notice Concerning Fiduciary Relationship. See IRM 3.13.2.19, Form 56, Notice Concerning Fiduciary Relationship.

CC ENREQ "R" /BRCHG
  1. CC BRCHG is restricted to Entity. Listed below are the transactions used by Entity for this CC.

  2. Transaction Code 011: is used to consolidate two EINs. See IRM 3.13.2.14, Multiple EINs.

  3. Transaction Code 053: identifies a change to accounting period because of an approved Form 1128, Application to Adopt, Change, or Retain a Tax Year. See IRM 3.13.2.21, Form 1128 - Application to Adopt, Change or Retain a Tax Year.

  4. Transaction Code 054: identifies an approved FYM under Rev. Proc. 2006–46. See IRM 3.13.2.21.5, Form 1128, Page 2, Part II, Section B. TC 054 also represents an approved Form 8716 for a Personal Service Corporation.

  5. Transaction Code 055: identifies an approved FYM under IRC Section 444 on Form 8716, Election To Have a Tax Year Other Than a Required Tax Year. See IRM 3.13.2.22, Form 8716 - Election to Have a Tax Year Other Than a Required Tax Year.

  6. Transaction Code 058: identifies a denied Form 8716. See IRM 3.13.2.22.3 (1), Form 8716 Denial Procedures.

  7. Transaction Code 059: identifies a denied Form 1128. See IRM 3.13.2.21.9 (1), Denial of Form 1128 - Procedures.

CCs LPAGE/LPAGD/LETER/LREVW
  1. These command codes are used to send and delete letters from IDRS.

  2. CC LPAGE initiates CC LETER which composes and sends the letter. This is the second step in building a letter. Enter all the information needed to generate a taxpayer letter, including the Salutation, Selective Paragraph codes, Signature Title code, and fill-in content. CC LPAGE must be preceded by one of the following — CC LETER, CC ADJ54, CC DOALL, CC EPLET, CC LREVW, CC NOREF, CC IAPND, CC IAREV, CC IAORG, or CC QRACN. CC LPAGE checks the complete letter request for validity and consistency with the Form Letter being requested. If valid, the command code accesses the CAF and Reporting Agents File (RAF) to generate additional copies of the letter with authorized representatives' names and addresses. If the letter to the taxpayer will close a case, you may enter a Control-Sequence-Number on the CC LPAGE screen, and when the letter goes out, the system will close that control base.

  3. Upon termination of a successful CC LPAGE request, the TIN, MFT code, tax period, and plan number, if any, will be "unprotected" again, so the user will be able to input data or type over these fields for their next IDRS transaction. LPAGE will check the letter pending database to see if there was an earlier letter input. If so, it will put out a message to use definer 'S' if the user wants to create a duplicate letter. At the end of a successful request, LPAGE will update this same database using input operator's employee number as the key.

  4. CC LPAGD deletes a letter sent the same day of Realtime processing. The same employee who input the original letter must input the LPAGD using the same TIN, MFT-CODE, Tax Period, Plan Number, and Form Letter Number. All these fields, including the input Employee Number must match or the letter request will not be deleted, and a taxpayer letter will be generated.

  5. This is another tool to improve the quality of outgoing correspondence. To use CC LREVW, set the "View" indicator on the CC LPAGE screen to "Y" and transmit. CC LREVW will be automatically executed for you. CC LREVW combines the Selective paragraph codes, fill-in content, and other optional entries you made on the LPAGE screen with the form letter you selected from the Master Letter File. The program operates like the end-of-day program, CRX03, and formats the letter with headings, salutations, 70-character print lines, and even page breaks identical to those used on the final letter. However, where CRX03 prints the letter on paper, CC LREVW will do it on your terminal screen. Your fill-ins will be highlighted with inverse video, so you can easily see if you made any errors. The paragraphs you selected will be printed out completely. You can even see the name and title of the person you selected with your Signature Title code. After you have reviewed your letter, return to page one and make any corrections. When you are satisfied with your letter, set the "View" indicator to "N" and transmit CC LPAGE to send your letter.

CCs LLIST and LLIST'D'
  1. CC LLIST can be used to research whether a letter was input earlier in the day. Simply enter LLIST and the program will find all LPAGE records using employee number. If there is more than one screen, 'PAGE' will be used for display purposes. If the TIN/MFT/TAX PERIOD are entered, then only the LPAGE records for that one account will show. A search may also be done based on employee number. The order of the list will be 'LIFO' - last in first out.

  2. LLIST with definer 'D' can be used to delete individual LPAGE records. This command code will only be used after LLIST and only for deletes. You may delete more than one record on the same screen.

    • The cursor must be below the record you are deleting and above the PAGE prompt;.

    • You cannot delete multiple records that are on different screens.

    • Keep in mind, this is no different than using LPAGD. Deletes will not be done for letters created prior to the GENDATA swap and deletes done after the swap will go on the next day's Quality Review matches.

    • Any deletes on duplicates will begin with the last one input and will delete all earlier versions.

CCs TELEA/TELEC/TELED/TELER
  1. Taxpayer phone numbers can be displayed on the TIF (CC ENMOD).

  2. CCs TELEA, TELEC, and TELED are used to add, change, and/or delete a telephone number from the TIF.

  3. If an EIN does not have a phone number, CC TELEA can be used to add the phone number to the EIN. If the phone number on an EIN is incorrect, CCs TELEC or TELED can be used to correct or delete the phone numbers.

  4. If the EIN does not come up on CC ENMOD, the taxpayer's telephone number(s) can be viewed via CC TELER.

  5. See IRM 2.4.29, IDRS Terminal Input - Command Codes TELEA, TELEC, TELED and TELER for Telephone Processing.

CC REQ54/ADJ54
  1. These command codes are used to adjust tax, penalty, and interest.

  2. BMF Entity use these command codes to create a DLN that allows other documents to be attached to electronic DLNs.

  3. See IRM 2.4.16, Command Codes REQ54 and ADJ54 and IDRS Command Code Job Aid for CC REQ54.

CC TMSSN

  1. This command code is used to assign Internal Revenue Service Numbers (IRSNs), also known as Temporary SSNs. If the taxpayer is international, use CMODE to the Philadelphia Campus.

  2. IRSNs are utilized when a taxpayer's SSN cannot be located and a return or payment must be processed.

  3. BMF Entity primarily uses IRSNs when processing Estate and Gift (E&G) returns, Form 706 and Form 709 families, and Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests. IRSNs are also used when processing INVALID SSN TRANSCRIPTS, see IRM 3.13.2.20.1, Transcripts. Form 9956, Request for Temporary SSN, is used by other areas to request an IRSN from Entity.

  4. CC TMSSN has two definers: "I" and "B." These indicators stand for IMF and BMF respectively.

  5. See IRM 2.4.59, IDRS Terminal input - Command Code TMSSN.

  6. When Accounts Management/International team (IMF or BMF) requests an IRSN be assigned/established, then merged into another SSN’V’, this request will be expedited. These requests most commonly accompany Forms 8288.

  7. When assigning an IRSN for the Form 706/Form 709 family, send Letter 685C/685SP to the taxpayer for confirmation.

Internal Revenue Service Numbers (IRSNs)
  1. BMF Entity uses Internal Revenue Service Numbers (IRSNs) for processing documents/payments when an SSN cannot be located. IRSNs are also called "Temporary SSNs."

  2. IMF Entity uses IRSNs for non-citizen filers and Identity Theft cases.

  3. An IDRS Command Code (CC) was created for assigning IRSNs: CC TMSSN.

  4. IRSNs are the same format as an SSN (XXX-XX-XXXX), however, IRSNs will always begin with "9" .

  5. IRSNs will always be on the invalid segment, "W" , for example, XXX-XX-XXXXW.

  6. The fourth and fifth digits signify the Campus that assigned the IRSN. See the chart below for details:

    Campus 4th and 5th Digits Expansion Ranges
    Andover 08 38
    Atlanta 07 37
    Austin 18 06
    Brookhaven 19  
    Cincinnati 17 02
    Fresno 89 10
    Kansas City 09 39
    Memphis 49  
    Ogden 29 04
    Philadelphia 28 05
    International 66  

  7. Currently, IRSNs are assigned in Austin, Kansas City, and Ogden. Each Campus can assign an International IRSN by using CC CMODE to Philadelphia Campus.

  8. Form 9956, Request for Temporary SSN, is used by other areas to request an IRSN from Entity.

  9. When assigning an IRSN to the Form 706/Form 709 family, send Letter 685C/685SP to the taxpayer for confirmation.

Unprocessable Returns and Documents/Pipeline and Rejects

  1. Background—For a return or payment to be processable, it must have:

    • A valid TIN,

    • A legible name or name control,

    • A valid tax year ending, and

    • Legible tax data.

    Note:

    Edit the name control and/or tax period if not previously edited. Current year calendar annual returns will not have a tax period coded. Tax periods are edited in YYMM format.

  2. Returns and payments not meeting the requirements to be processable are considered unprocessable. Returns and payments that are unprocessable will be received from:

    • Receipt and Control (Under BBTS Control) - These returns are commonly called "Pipeline." All return types will be controlled to Entity for resolution of Entity criteria: EIN perfection, FYM issues, FRC issues, etc. These returns are usually numbered with a DLN.

      Note:

      The Receipt and Control Operation (RCO) Payment Perfection Unit (PPU) needs EINs assigned to returns and payments daily. A local Customer Service Agreement (CSA) may be developed to allow expeditious processing of payments.

    • Document Perfection/Code & Edit (Unnumbered Returns) - This work is known as "Loose Returns." These returns are always unnumbered (no DLN).

    • Reject function (ERS Suspense) - The term "Rejects" is used to describe this work. This work is tightly controlled and is always numbered. The returns will be in the same order as the DLNs on the transmittal when batch is completed. Returns and Payments received from ERS Suspense will be assigned and processed as soon as possible upon receipt. These cases are time sensitive and must be closely monitored.

    Note:

    For Payments/documents received from Rejects (ERS Suspense), research the Remittance Transaction Research (RTR) database and leave audit trail on RTR. See IRM 3.5.10, Remittance Transaction Research (RTR) System.

  3. Entity will perform IDRS research to ensure taxpayer is using correct EIN and name.

    • EINs must initially be researched on IDRS with CCs ENMOD, BMFOL (definers 'E,' 'I,' 'T,' and 'R'), INOLE (definers 'G,' 'S,' and 'T') and FINDE/FINDS (definer 'D'). Compare TIN on Form 8161/voucher/routing slip with TIN on Master File (MF). Utilize CCs SUMRY, TXMOD, and UPTIN to ensure TIN is correct. Names will be researched via CCs NAMEE, NAMEB, NAMEI, and NAMES.

    • If EIN is not on Master File and has a prefix of 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, 86, 87, 88, 92 or 93 indicating it was assigned by Modernized Internet EIN (Mod IEIN), and there is enough information to ESIGN, utilize CC ESIGN to issue a new EIN. Be sure to use appropriate Notice Information Code.

    • If EIN is not on Master File and is not a Mod IEIN, but can be verified with CCs NAMEE, NAMEB, NAMEI, FINDE, or FINDS, input TC 000 with CC BNCHG entering correct FRCs, XREF TIN fields, etc.

    • If an EIN cannot be located and the check does not contain enough information to assign an EIN, it will be considered "Unprocessable." If the check contains enough information to assign an EIN, ESIGN using NIC D. Send Letter 147C requesting a completed Form SS-4.

    • All EINs will be assigned with the procedures in IRM 3.13.2.8.2(8), Processing BMF Returns.

    • If a valid EIN is found, utilize CCs BMFOL, IMFOL, TXMOD, SUMRY, BRTVU/RTVUE and UPTIN to ensure FRCs and FYM are correct. Send Letter 147C informing the taxpayer of their correct EIN.

    • Edit Form 8161/voucher/routing slip by circling out incorrect information such as name control, MFT, tax period and/or EIN. Edit correct information and underline in appropriate field(s) of Form 8161. If the form is processable, underline the Tax Period at the top of Form 8161 and edit MFT in Field (14) of Form 8161. If payment is Unprocessable write "unprocessable" in Field (14) of Form 8161. Enter audit trail as shown in IRM 3.13.2.8.2, Processing BMF Returns, with TE number and date.

    • Enter account history item with the "Add a Note" feature of the RTR system. Include completed entity information, MFT, Tax Period, and Name Control or "Unprocessable" when account information cannot be found.

  4. If received at the incorrect Campus, returns/documents belonging to specialty/centralized programs will be transshipped to the correct Campus. Exempt Organization returns will be transshipped to Ogden regardless of the Campus receiving the return first. International returns are processed in Ogden except for Estate and Gift (Form 706/Form 709 series) which are processed in Kansas City. Documents received with an address outside the Campus jurisdiction will be processed at the Campus received. For example, if a California taxpayer submits his Form 2553 to Kansas City, it will be processed in Kansas City. If a Missouri taxpayer submits his Form 8716 to Ogden, it will be processed in Ogden.

  5. See IRM 3.30.123, Work Planning and Control - Processing Timeliness Cycles, Criteria, and Critical Dates, for Entity Control's processing time frames for unprocessable returns.

  6. All BMF returns and documents must be controlled for accountability. The Batch Profile Report is used to control and identify cases in Entity Control.

  7. Always look for the Large Corporation Indicator (LCI). Do not take action on an EIN reflecting an LCI before contacting the specific representative for that Large Corporation. The LCI can be seen on CCs ENMOD (directly under ENMOD), BMFOL'I' (fourth line), TXMOD'A' (second line), and SUMRY (third line). See IRM 21.7.1.4.11.4, Campus Contacts for Large Corp Cases. Please allow three days for a call back. If a call back has not been received within three days, contact the HQ AM Large Corporation analyst via email. Contact information can be found on SERP - Who/Where - Large Corporation Contacts.

  8. If you are processing a return with a Name Change box and it is marked, update Master File to reflect the name entered on the return. Send Letter 147C as acknowledgement. Underline the new name control. If the Name Change box is not marked, and the name is different than what is on our records, verify the name change with Secretary of State office. If unable to verify the name change, edit the correct name control from Master File onto the return and underline it. Correspond with taxpayer asking for verification of the name change. Ask taxpayer to include a copy of any amendment documents pertaining to name change when responding to us.

    Exception:

    Trusts: The name entered on trust returns may vary depending on the person completing the return. When evaluating if a TC 013 will be input, compare the dates the trust was created/funded on Master File and the dates entered on the return.
    Also, Form 1041 now has boxes for changes in trust name, fiduciary, fiduciary's name, and fiduciary's address. If any of these boxes are marked, input the change requested by the box. Do not write the taxpayer asking for documentation!

  9. Copies of page 1 of returns and documents that indicate a change in name or an address for EO accounts will be received from:

    • Receipt and Control Operation (RCO),

    • Document Perfection/Code & Edit (DPO/C&E), and

    • Reject function (ERS Suspense).

  10. For processing copies or originals of EO returns or documents, see IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers.

  11. BMF returns will be placed on the error register when the input name control does not match the name control on the Entity Index File (EIF).

    1. Error Resolution/Rejects will perform research to determine if the taxpayer is using the correct EIN.

    2. If Error Resolution/Rejects determines that the EIN is for the same taxpayer, but the BMF is not name controlled properly, a copy of the first page of the return and any research will be forwarded to Entity Control.

  12. Process the photocopy of the return as follows:
    Compare the way the taxpayer shows their name on the return with the name as shown on the BMF,

    If... Then...
    A) The name control on the BMF is not according to acceptable name control procedures, Input the correct name control to update the BMF.
    B) The business name is not identified on the BMF as a sort name, Input the sort name in the sort name field to correct the BMF.
    C) There are misspelled names on the BMF, Input the changes in the correct name line fields to correct the BMF.
    D) It is obvious the BMF is correct, Destroy the photocopy of the return and take no action.
    E) A PO Box is indicated with a mailing address, Input the mailing address as the location and the PO Box as the mailing address.

  13. Copies of prior year Form 941-E for taxpayers with EC "G" and Social Security tax indicated may be sent to Entity for filing requirement determination. Contact the state administrator to determine if the entity is covered under a Section 218 Agreement. If they are covered under a Section 218 Agreement, update the account to reflect EC "T" and a Form 941-01 filing requirement code. If they are not covered under a Section 218 Agreement, return the case to Code and Edit to be processed as a Form 941.

  14. Returns with no entity data, (no name, EIN, SSN) may be forwarded to Entity from Receipt and Control.

    1. Review the form for a legible name on the signature line, schedules, or any attached correspondence.

    2. If possible, locate a valid telephone number for the name secured. Contact the taxpayer, and if sufficient information is provided, perfect the return and continue processing.

    3. If a state unemployment reporting number is present in the body of the return, the state unemployment agency may be contacted for the entity information.

      Note:

      IRS may disclose return information for obtaining information not otherwise reasonably available.

    4. Every available option to perfect the return will be utilized, including contacting the taxpayer by phone.

    5. If the return cannot be identified in any manner, see your manager for disposition of the form. If the manager determines the return will be destroyed, prepare as classified waste. See IRM 21.5.1, General Adjustments, for guidance on handling classified waste to prevent inadvertent/unlawful destruction of records.

  15. Form 1120-S filed under Internal Revenue Code 1377 (termination of a shareholder) will be sent to Entity Control for verification of "S" corporation termination.

    1. Review the return to verify the termination is for that shareholder only and the "S" corporation has not been terminated.

    2. If the "S" corporation is terminated use normal procedures for an "S" corporation termination.

    3. If the termination is for that shareholder only, contact the taxpayer who filed the Form 1120-S. Let them know that a separate return is not required to terminate a shareholder and they need to file Schedules K–1 for their terminated shareholders with Form 1120-S at the end of their normal tax year. Also inform them that the Form 1120-S that was filed is being returned.

    4. Notate on Form 4227 "Return to taxpayer" and send to the Reject function to void the DLN and return to the taxpayer.

  16. Modernized e-File (MeF) will refer cases to Entity via ERS Action Code 321. The Employee User Portal (EUP) will be accessed to verify Entity information. Any needed Entity transactions will be input by Entity TEs to ensure the taxpayer's information on Master File is current and correct. These cases are time sensitive and must be closely monitored.

  17. Form 7004 or form 1120 with a subsidiary listing (Form 851) will be sent to Entity by Code and Edit and/or ERS for verification of the subsidiary names, tax period and EIN. However, Code and Edit must research using CCs INOLE or BMFOL before the case is sent to the Entity function. If Code and Edit has not researched the subsidiary name, tax period and EIN, return the case(s) to the Code and Edit function.

    Reminder:

    TCs 590-014 cannot be input on 1120-20 FRCs until further notice.

    If... Then...
    A) The parent corporation's EIN is not on BMF and you cannot locate a valid number via research, Use CC ESIGN to assign a new number.
    B) The subsidiary's EIN is not on BMF and you cannot locate a valid number via research, Inform originating office not to enter the TC 590 - CC 014.
    C) The subsidiary has changed their name, Edit the name control from Master File onto Form 851. Send Letter 252C requesting name verification.
    D) Code and Edit has requested a change, Update the module with the change.
    E) The FYM is the same as the parent, Input TC 590-014 for tax period of return.
    F) The FYM is different, Change it to match the parent's FYM and input TC 590-014 for tax period of return. Dummy a module for tax period of return using CC MFREQ’D’ first.
    G) Research indicates the subsidiary information has already been updated and the parent's EIN is on the BMF, Take no further action.
    H) The subsidiary is an LLC (or partnership) without a TC 076, Do not change or add FRCs. Correspond with the taxpayer requesting a valid Form 8832.
    I) If an entity shown on Form 851 is a QSub, Do not terminate the Subchapter S-election. Send Letter 3064C to QSub asking if election has been terminated.

    Note:

    The TC 590-014 will be input for the tax period of the return being processed.

  18. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  19. When processing returns and a letter must be sent, ensure the correct MFT and tax period are entered into CC LPAGE. If a letter has been sent within the last 45 days on the same MFT and tax period, do not duplicate letters.

  20. Entities can convert to a trust for liquidation purposes. If Form 1041 is received indicating the entity has converted to a trust, update the EIN to reflect the correct name and FRC.

Statute Dates

  1. This subsection contains information on Statute Dates. If the Assessment Statute Date is imminent (two months prior to the ASED) notify the manager or work leader and initiate the necessary action to resolve the case.

  2. The ASED is identified by Generalized Unpostable Framework (GUF) and must be monitored to assure that statute does not expire.

  3. The ASED is generally determined as three years after the Return Due Date (RDD) or IRS received date, whichever is later. See Document 6209, IRS Processing Codes and Information, for RDD information.

    Note:

    A return under statute criteria must be statute cleared every 90 days until posted.

Processing BMF Returns

  1. The following instructions are to be used when processing returns and documents with:

    • Missing or invalid EINs,

    • Change in ownership,

    • Multiple EINs,

    • Form SS–4 attached, and

    • Indications of Bankruptcy/Receivership.

  2. Research must be performed on all cases using CCs NAMEE and NAMEB when the EIN is missing or invalid.

  3. Electronic returns are found on the Employee User Portal (EUP).

  4. Payments are researchable via the Remittance Transaction Research (RTR) database.

  5. Before applying a return to a different EIN, always compare the return's deposit history with the deposits posted on Master File for the tax period of the return. For specific locations on applicable returns, see chart below:

    Form Number Location of Deposit History
    CT-1 Part 1, Line 25
    940 Part 4, Line 13
    941 Part 1, Line 13a or Part 2
    943 Line 14a
    944 Part 1, Line 10a
    945 Line 4
    1120 Schedule J, Part II, Line 19
    1120-S Lines 24a and b
    1041 Line 26
    1042 Line 68
    720 Part III, Line 5
    2290 Part I, Line 5
    7004 Part II, Line 7
    1065 Line 30
    1066 Section II, Line 2
    8752 Line 2

    If unable to find EIN with matching deposits, assign an EIN.

  6. A corporation may move from one state to another through a corporate merger in an IRC 368(a)(1)(F) reorganization. In this type of reorganization, the corporation may create and charter a new corporation in the state to which it wishes to move and merge with that new corporation; the shareholders of the original corporation own all the stock of the merged corporation. Under these circumstances, the merged corporation retains the EIN of the original corporation.

  7. ERS Action Code 320 is assigned to returns that need Entity attention.

    • If research locates an EIN on CC NAMEE, the entity must be verified by using CC ENMOD, INOLE and BMFOL.

    • If Form 1128 is attached to the return and the FYM is the issue, after taking corrective actions, leave a clear and concise audit trail on the routing sheet so ERS knows the disposition of the return.

  8. Enter the EIN on the return or document and underline the name control. Circle out the invalid EIN if present. Notify the taxpayer of the correct EIN. If the taxpayer submits an EIN clearly changed from the one the taxpayer was assigned, issue Letter 147C as a non-suspense letter to advise the taxpayer of their correct EIN. If the taxpayer makes an error in writing their EIN by three or less digits, uses their SSN (specifically on Form 2290) or fails to include the EIN, do not correspond after research reveals a valid EIN. However, if this return is the first return filed (check CC BMFOL'I'), notify the taxpayer of their correct EIN.

    Exception:

    Do not send Letter 147C to taxpayer if EIN has been redacted by the software used to prepare the return. For example, asterisks or pound signs in place of digits.

    1. If the EIN located is correct on the BMF Master File Indicator (MFI) "P" and no module on the BMF MFI "B" TC 000 the account on Master File "B" tape (Intend indicator 1 to create a dummy module). Enter the EIN on the return or document, underline the name control, and release for processing.

    2. If the EIN located is correct but not on the BMF, use CC BNCHG with TC 000 (intend indicator of 1) to place the account on the BMF. Enter the EIN on the return or document and underline the name control. Release the return.

  9. Edit Form 8161/voucher/routing slip for ERS return by circling out incorrect information such as name control and/or EIN. Write correct information and underline in appropriate field of Form 8161. If return is unprocessable, enter such in Field 7 of Form 8161. Edit in Tax Period and MFT or unprocessable in Field (14) of Form 8161. Enter audit trail as shown in IRM 3.13.2.8.2(16), Processing BMF Returns, with TE number and date.

  10. If an EIN is not located, assign a new EIN with CC ESIGN using the appropriate Notice Information Code (NIC), see below. Enter the Business Operation Date (BOD) shown on the return. Annual returns have a box which contain the words: Date Incorporated (1120), Date Entity Created (1041), and Date Business Started (1065). Otherwise, use the first day of the beginning of the tax period. Enter the Wages Paid Date (WPD) for Form 941, Form 943, Form 944, and Form 940. Determine the date as follows:

    • If a Form 941, the WPD is the first day of the quarter.

    • If a household employer, contact the taxpayer, if possible, to determine the date wages were first paid. If unable to contact the taxpayer use the date of 01–01–YY (the year of the return).

    • If a Form 943, the WPD is the first day of the year.

    • If a Form 940, contact the taxpayer using the telephone for the date wages were first paid. If available, use Form 940, Part III to determine the WPD date. If unable to locate the taxpayer use the first day of the current quarter.


    Enter the new EIN on the return or document and underline the name control.
    See below for the NICs and the notice generated by each.
    If... Use NIC To generate CP
    A) The EIN is being assigned to a return/document for which no other valid EIN can be found. A CP 576A
    B) The EIN is being assigned to a return/document which indicates there is a change in the business organization (for example, a sole proprietor to a corporation) which requires a new EIN. B CP 577
    C) Notice and prior period analysis is to be suppressed. D

    Note:

    This will also suppress TC 474 and TC 590.

    None
    D) EPMF EIN established for Plan Sponsor. F CP 580A
    E) EPMF EIN assigned. G CP 582A
    F) EIN for Employee Benefit Trust assigned via the EIN Toll-Free Telephone Service. H CP 583A
    G) The EPMF EIN assigned via the EIN Toll-Free Telephone Service for Plan Sponsor. F CP 580A
    H) The EPMF EIN assigned via the EIN Toll-Free Telephone Service. L CP 582A
    I) The EPMF EIN assigned from Form 5500 family. P CP 581
    J) Form SS-4 received with a return/document. R CP 57X series

    Note:

    If assigning an EIN from a Return or Document listed below, the use of a Return Identity Code (RIC) is mandatory.

    Return/Doc RIC Return/Doc RIC Return/Doc RIC
    CT-1 09   3672 72   8038 46
    11-C 63   4461 61   8288 18
    1040-NR N2   4461-A 62   8716 87
    1041 05   5227 37   8868 E8
    1041-A 36   5300 (MFI ‘O’) 53   8871 PL
    1042 12   5301 50   8872 PL
    1065 06   5302 52   940 10
    1065-B 06   5303 58   940-EZ Z1
    1066 66   5304 54   941 01
    1120 02   5306 56   943 11
    1120-F F1   5307 57   943-SS S1
    1120-H H2   5309 59   944 14
    1120-L L1   5310 55   945 JN
    1120-M M1   5330 35   990 67
    1120-ND N1   5500 74   990-EZ Z6
    1120-PC P3   5500-C 7C   990-PF 44
    1120-POL P1   5500-EZ 7E   990-T 34
    1120-REIT R2   5500-R 7R   Household Employees ZZ
    1120-RIC R1   7004 E2   SGRI SG
    1120-SF S3   706-GS(D) D6      
    2553 (MFI ‘B’) 53   706-GS(T) T6      
    3520 68   720 03      
    3520-A 42   730 64      

    Note:

    If a RIC is not listed for the Return/Document, NIC D will be used. Send Letter 147C requesting taxpayer to complete and return Form SS-4.

    Reminder:

    When ESIGNing an EIN to Form 1120, Form 1120-S, or Form 1041, and the return is claiming a refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter CCC ‘E’ on the return. This will place the return in a RIVO filter for fraud monitoring.

    Return Refund Line
    1120 Line 36
    1120-S Line 27
    1041 Line 29
    1065 Line 32

  11. Use the chart below to determine the Filing Requirement Code (FRC):

    If... Then...
    A) The filer is a Form 941 filer, Enter a Form 940 FRC also.
    B) The name is a corporation or Inc, Enter a Form 1120 FRC.
    C) The name is a partnership, Enter a Form 1065 FRC.
    D) The name is an estate, Enter a Form 1041 FRC.
    E) The name contains words such as mortgage, investors, mortgage securities, asset followed by the word trust, Enter a Form 1066 FRC.
    F) The above words are not present with the word "trust," Enter a Form 1041 FRC.
    G) The unprocessable return is for a Form 730, Enter a Form 11-C FRC.
    H) The unprocessable return or document is a Form 1041, or Form 1065, or Form 1120, Enter the appropriate filing requirement code and enter the FYM on the return.

    Note:

    If return is Form 1120 and primary name indicates LLC, enter the default filing requirement of Form 1065 as the filing requirement. Include allow to unpost in the audit trail.

  12. If a return or document indicates a change in ownership, the research is performed on the new entity.

    • Enter the new EIN and name control on the unprocessable return or document, circle out the old EIN, name control (and/or check digit) of the former owner. Release the return.

    • If it can be determined that the original owner filed a return for the final period but it posted without condition code "F," input a TC 591, CC 020 on the next tax period to indicate the original owner is no longer liable for this type of tax.

    • If a final return has not posted correspond with the original owner using Letter 696C requesting a "Final" return.

  13. Multiple EINs:

    • If multiple EINs are present, verify using CCs NAMEE, NAMEB, or INOLE.

    • The most active EIN on the module is the taxpayer's EIN.

    • If they are the same taxpayer, process using the consolidating accounts procedures.

    • If they are not the same taxpayer, determine the correct EIN for the name on the return and process according to (3) and (4) above.

  14. Return received with a Form SS–4 attached:

    • Process the Form SS–4 per instructions in IRM 21.7.13 , Assigning Employer Identification Numbers (EINs).

    • Use NTC-CD> R, the correct RIC and tax period ending.

    • Annotate the new EIN on the return and underline the name control.

    • Release the return for processing.

  15. Returns received with a Form SS-4 attached and the account has already been established on the Master File:

    • If the Notice Code (NTC-CD>) on ENMOD is A or B, this indicates that a new EIN was assigned from a return/payment and a notice was sent to the taxpayer requesting completion of a Form SS-4 (See Figure 3.13.2-14).

    • To keep a second notice from being sent to the taxpayer, an ESIGN'U' transaction must be entered by the following steps:

    • Bring up the account on ENMOD.

    • Input ESIGN'U' and transmit.

    Figure 3.13.2-14

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    Please click here for the text description of the image.

  16. Before releasing the return for processing, an audit trail containing the TEs IDRS number must be entered in the lower left corner of the return. The following applicable format will be used:

    • EIN 'F' MMDDYYYY (used when TE finds the taxpayer's valid EIN).

    • EIN 'E' MMDDYYYY (used when TE must assign a new EIN to the taxpayer).

    • EIN 'OK' MMDDYYYY (used when correct EIN was already entered on the return).


    This is the "Return Processable Date" . This is the date the return became processable for purposes of calculating penalties and interest. This specific audit trail is only required on returns where the EIN is the issue.

  17. If the return contains indication that it is for a bankruptcy or receivership, refer to IRM 3.13.2.10.16 (1), Correspondence of Bankruptcy, Receiver/Receivership and State Receivership.

  18. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  19. If the returns/documents are numbered, they must be in DLN order, as shown on the transmittal, before releasing.

  20. If a numbered return reflects an address other than what’s on Master File, input TC 014 to update taxpayer’s mailing address. See IRM 3.13.2.4.6(2), Change of Address.

  21. If the Program Completion Date (PCD) for the return is impending or the return is late filed/delinquent, input TC 599 CC 018 for the tax period on the return and annotate TC 599 in the left margin of the return.

  22. Do not input TC 599 if the return is annotated with:

    • "3177"

    • TC 59X

    • CCC "G" (amended return)

    • RPS return

    • Rejected return

    • Unpostable return

    • Secured by Examination

    Note:

    See IRM 3.30.123-5, Processing Timeliness: Cycles, Criteria and Critical Dates.

    Figure 3.13.2-15

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Form 940/Form 941 SCRIPS

  1. Entity is responsible for editing entity changes on all SCRIPS Form 940/Form 941. Entity will do the following when editing Form 940/Form 941 for SCRIPS:

  2. Edit an asterisk (*) to the left (as close to the entry as possible) of the incorrect EIN and/or name control. This will prompt the system to stop on the indicated field.

  3. Line through the incorrect information.

Form 941, Form 943, Form 944, Form 945 and Form 940 - Employment Returns

  1. Form 941, Employer's Quarterly Federal Tax Return
    See Figure 3.13.2-16.
    Use Publication 15, (Circular E ), Employer’s Tax Guide, for resolving questions concerning Employer's Tax for Form 941, Form 940, Form 944 and Form 945.

    1. This return is filed by taxpayers with employees. Wages paid for services performed by a son/daughter aged 18 or older are taxable for Social Security and Medicare purposes.

    2. Wages paid for services performed by a spouse are taxable for Social Security and Medicare purposes.

    3. Cash tips are wages and are subject to social security and Medicare tax. Employees who receive tips of less than $20 in a calendar month aren’t required to report their tips to their employer, but the employee must report these amounts as income on their tax returns and pay taxes, if any. 0. A separate line has been retained on the return for this item.

    4. The return is filed to report withheld income tax and social security and Medicare taxes.

    5. The return is filed on paper Forms 941 or MeF. Some taxpayers are required to e-file.

    6. The return is filed four times a year, with the tax period ending on the following dates and the return due accordingly:
      March 31 and the return due on April 30.
      June 30 and the return due on July 31.
      September 30 and the return due on October 31.
      December 31 and the return due on January 31. However, if the taxpayer made deposits on time in full payment of the taxes due for the year, it may be filed by February 10.

      Exception:

      Intermittent filer

    Figure 3.13.2-16

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  2. Form 943 - Employer's Annual Tax Return for Agricultural Employees
    Use Publication 15, (Circular E ), Employer’s Tax Guide, for resolving questions concerning agricultural employers. See Figure 3.13.2–17. This return is filed by Employers of Farm workers. A farm worker is an employee of the operator of a farm who:

    1. Raises or harvests agricultural or horticultural products,

    2. Cares for the farm and equipment,

    3. Handles, processes, or packages any agricultural or horticultural commodity, if over half is produced on the farm, or

    4. Does work related to cotton ginning, turpentine, or gum resin products.

      Note:

      Definition of Farm—includes stock, dairy, poultry, fruit, fur-bearing, animal and truck farms, orchards, plantations, ranches, nurseries, ranges and green houses or other similar structures used mainly for raising agricultural or horticultural commodities.


    Form 943 is filed to report federal income tax withheld and FICA taxes. The employer must withhold federal income tax from the cash wages it pays its farm workers if the cash wages are subject to social security and Medicare taxes. Although non-cash wages are subject to federal income tax, an employer may withhold federal income tax only when the employer and its employee agree to do so.
    Forms 943 are filed on paper or by MeF once a year. Forms 943 are filed once a year with the tax period ending on December 31st and the return due on January 31st. If an employer makes deposits on time in full payment of the taxes due for the year, the return is due February 10.

    Note:

    Forestry and lumbering are not "Farm work" unless the products are for use in the employers’ farming operations.

    Figure 3.13.2-17

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  3. Form 940 - Employer's Annual Federal Unemployment (FUTA) Tax Return

    1. This return is filed by employers that have employees and are subject to Federal Unemployment tax.

    2. Non-agricultural and non-household employers are required to file this return if during this year or last year either paid wages of $1,500 or more in any calendar quarter or they had one or more employees for at least some part of a day in any 20 or more different calendar weeks.

    3. An Agricultural Employer files this return if during this year or last year they either paid cash wages of $20,000 or more in any calendar quarter; or employed 10 or more farm workers during some part of a day during any 20 different weeks.

    4. A household employer is required to report unemployment taxes if they paid $1,000 or more in any calendar quarter. Household employers report wages and unemployment taxes paid on Schedule H (Form 1040).

      Note:

      State and local government health and welfare agencies, who assume responsibility for reporting and paying FICA and FUTA taxes and any withheld income tax with respect to individuals furnished by the agency to provide domestic services (home care workers) for recipients of public assistance must obtain a separate EIN to report these taxes.

    5. The return is filed once a year with the tax period ending on December 31st and the return is due on January 31st. If the taxpayer deposits all FUTA tax when due, the taxpayer may file on or before February 10th. See Figure 3.13.2–18.

    Figure 3.13.2-18

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  4. Form 944 - Employer’s Annual Federal Tax Return. Form 944 is filed annually by certain small employers to report and pay employment taxes. Taxpayers who apply for an EIN via phone, mail, internet, or fax are assigned a Form 944 FRC based on a "yes" response to Form SS-4, Item 14. Effective 1-1-10, participation in the Form 944 project became voluntary. However, to "opt out" a taxpayer must call the IRS at 800-829-4933 or 267-941-1000 (toll call) between January 1 and April 1 or send a written request postmarked between January 1 and March 17.

    • Command Code BNCHG Element Name F944-YR/IND must equal 1 or 9.

    • See IRM 2.4.9, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

    • F944-CACHE-YEAR/IND.

    • 2015 thru 2024 for year. Indicator values are 1 or 9.

    • 1 -Turn on FR944 for year indicated.

    • 9 -Turn off FR944 for year indicated.

    • If input, both the year and indicator must be present.

    • The return is due January 31, however, if the taxpayer made deposits on time in full payment of the taxes due for the year, it may be filed by February 10.

    If... Then...
    A) The taxpayer is filing Form 944 and there is no FRC for Form 944 and Form 941, Establish a Form 944 FRC if the wages are under $5,000 annually.
    B) The taxpayer is filing Form 944 and they qualify for a Form 944 FRC and the Form 941 FRC is present.

    Note:

    Exercise caution when changing the FRC from 941 to 944. Form 944 is an annual return so the taxpayer could have filed Form 941 and a Form 944. See Figure 3.13.2–19,

    Delete the Form 941 FRC and establish a Form 944 FRC if the wages are under $5,000 annually.
    C) The taxpayer has a Form 944 FRC and the taxpayer did not opt out of the Form 944 program by April 1st, Entity cannot change the FRC unless IRS made an error. The taxpayer must file Form 944. Example: Taxpayer is notified in Feb. 2023 that he is now a Form 944 filer. Taxpayer files Form 944 in Jan. 2024 for the 2023 tax year showing liability of more than $4,000. Taxpayer's Form 944 will be processed regardless of the liability amount.

    Note:

    If the taxpayer has a Form 944 FRC and did not opt out by April 1st and files Form 941, the Form 941 will unpost. The taxpayer must be notified that he must file Form 944 (regardless of the liability amount).

    D) The Form 944 shows a tax liability of more than $5,000 and has a Form 944 FRC, Taxpayer must file Form 944 (unless they "opt out" before April 1st of the tax year).

    Note:

    Once the Form 944 posts, the taxpayer will receive a letter stating that he exceeded the threshold and must file Form 941 for the next tax year.

    Note:

    If a permanent 944-bypass indicator is present on CC BMFOLE never post as a Form 944 filer. The taxpayer wants to file Form 941 quarterly. The one digit 944-bypass indicator is entered via BNCHG or EOCHG screens and is called “944-BYP”. A “1” is input to set the bypass, and a 9 to turn off the bypass. If 944-BYP input is “1” and FR944 FRC is on Master File, then FR944 must be input with “0”. See IRM 2.4.9, IDRS Terminal Input - Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG, for additional information

    Figure 3.13.2-19

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  5. Form 945 - Annual Return of Withheld Federal Income Tax

    1. Form 945 is a multi-use form. The taxpayer may file it to report federal income tax withheld from non-payroll payments such as pensions, annuities, IRAs, gambling winnings, Indian gaming profits and backup withholding.

    2. The return is due January 31, however, if the taxpayer made deposits on time in full payment of the taxes due for the year, it may be filed by February 10.

    3. Form 945 posts to the BMF.

    4. Taxpayers can request a separate EIN for the pension income; however, it is not a requirement. Separate branches within a company may want a different EIN for internal purposes.

    5. When the taxpayer provides the name of a plan on the Form 945, it indicates that the filing is for withholding on a pension plan. The taxpayer may use either their business EIN or their plan trust EIN for filing Form 945 in this case. The taxpayer may choose to switch between using a plan trust EIN and the business EIN each year.

    6. Primary Name Line - A business EIN will never have wording such as "PROFIT SHARING PLAN" . A plan trust EIN will always have wording such as "PROFIT SHARING PLAN" .

    7. Sort Name Line - A business EIN will never have "ACCOUNT UNDER TEFRA" in the sort name. A plan trust EIN will have "ACCOUNT UNDER TEFRA" in the sort name.

    8. Check BMFOL'I' or BMFOL'T' for MFT 16 to compare deposits when unsure where to post the return.

    9. A TC 011 (consolidation) will only be performed when two plan trust EINs were issued for the same plan trust. Never consolidate a plan trust EIN to a business EIN, even if the taxpayer indicates that they don’t want to use the plan trust EIN. These are two separate and distinct entities. Input a TC 591 CC 020 on the account that will no longer be filing the Form 945.

      Exception:

      If the plan trust EIN was assigned in error to process a return or payment, TC 011 must be done to consolidate the accounts.

    10. Processing Form 945. See Figure 3.13.2-20.

      If... And... Then...
      A) The taxpayer uses their business EIN, The EIN is valid, Use the business EIN to process the return. Circle out any plan name wording on the Form 945 such as "PROFIT SHARING PLAN" .
      B) The taxpayer uses their plan trust EIN, The EIN is valid, Use the plan trust EIN to process the return.
      C) The plan trust EIN is no longer on Master File,   Research to verify the plan trust EIN.
      D)The plan trust EIN is no longer on Master File, The EIN is valid, Re-establish the EIN via TC 000.
      E) The plan trust EIN is no longer on Master File, A valid EIN is not found, Assign a new EIN with the information provided.

    11. If the EIN provided is not valid or there is no EIN on the form and:

    If... Then...
    A) The name provided is a business name,
    • Research using NAMEE for a business EIN.

    • If found, process the return using the business EIN.

    • If no valid EIN is found, re-establish the EIN with the info provided.

    B) The name provided is a pension plan trust type name,
    • Research using NAMEE for a plan trust EIN.

    • If a plan trust EIN is found, use this EIN to process the return.

    • If a plan trust EIN is not found and a business EIN is found, check BMFOL'I' for deposits to MFT 16. If the deposits match, post the return to the business EIN. Circle out any plan name wording on the 945 such as "PROFIT SHARING PLAN" .

    • If no plan trust or business EIN is found, establish an EIN via CC ESIGN as a plan trust.

    Figure 3.13.2-20

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Form 1120 Series - Corporation Returns

  1. Entities that are incorporated under state law are considered corporations for Federal Tax purposes. A corporation must file one of the Forms 1120, unless it is an exempt organization. See Figure 3.13.2-21. Exempt organizations that are incorporated file one of the Forms 990 series returns.

  2. Foreign companies (including companies from U.S. territories such as Guam, Puerto Rico, Virgin Islands, the Northern Mariana Islands, and American Samoa) that incorporate within the United States will file Form 1120. If the foreign company is not incorporated in the United States but does business in the United States (for example a branch office), it will file Form 1120-F.

  3. Use the beginning of the tax year (located at the top of Form 1120) as the Business Operational Date (BOD). If the date entered in the "Date Incorporated" box is during the year covered by the return, use that date as the BOD.

  4. Form 1120 (a domestic entity only) received from a Limited Liability Company (LLC) or a Limited Company (LC) must have a previously accepted Form 8832 (TC 076) on file. If the company has LP or LLP or LC after their business name, you are responsible for determining if the company is treated as a partnership. You can research the entity module for a TC 076. Most Limited Liability Partnerships (LLPs) file Form 1065 for federal tax purposes, however, there will be limited partnerships companies (LP) that will opt to file as a corporation for federal tax purposes. If you are undecided about the taxpayer’s entity classification for federal tax purposes, contact the taxpayer.

    Figure 3.13.2-21

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  5. If Form 1128 is attached to Form 1120, see IRM 3.13.2.21, Form 1128 - Application to Adopt, Change or Retain a Tax Year, for Form 1128 processing procedures.

  6. The different types of Forms 1120 are as follows:

    • Form 1120, U.S. Corporation Income Tax Return.

    • Form 1120-C, U.S. Income Tax Return for Cooperative Associations.

    • Form 1120-F, U.S. Income Tax Return of a Foreign Corporation.

    • Form 1120–FSC, U.S. Income Tax Return of a Foreign Sales Corporation.

    • Form 1120–H, U.S. Income Tax Return for Homeowners Associations.

    • Form 1120–IC–DISC, Interest Charge Domestic International Sales Corporation Return.

    • Form 1120-L, U.S. Life Insurance Company Income Tax Return.

    • Form 1120–ND, Return for Nuclear Decommissioning Funds and Certain Related Persons.

    • Form 1120–PC, U.S. Property and Casualty Insurance Company Income Tax Return.

    • Form 1120–POL, U.S. Income Tax Return for Certain Political Organizations.

    • Form 1120–REIT, U.S. Income Tax Return for Real Estate Investment Trusts.

    • Form 1120–RIC, U.S. Income Tax Return for Regulated Investment Companies.

    • Form 1120-S, U.S. Income Tax Return for an S Corporation.

    • Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B).

  7. Corporation tax years can end any month of the year. A fiscal year ends January through November; a calendar year end is a December tax year end. Generally, a Subchapter S corporation, a personal service corporation, and a life insurance company must use a required tax year. A required tax year is a tax year that is required under the Internal Revenue Code and Income Tax Regulations. S corporations and PSCs must use the calendar year. The entity does not have to use the required tax year if it receives IRS approval to use another permitted tax year or makes an election under Section 444 of the Internal Revenue Code. Once the fiscal year month (FYM) is determined (return filed), the taxpayer can only change their FYM by filing Form 1128.

  8. All corporate returns are posted to the BMF except Forms 1120–IC–DISC which are Non-Master File.

  9. Form 1120 - U.S. Corporation Income Tax Return

    • This return is filed by domestic corporations. Domestic corporations can be members of an affiliated group that files a consolidated return.

    • Form 1120 is filed annually and the return is due on the 15th day of the fourth month after the end of the tax year.

    • For due dates of the Form 1120 family, see IRM 3.11.16-2, Corporate Income Tax Returns, Due Date Charts.

    • When ESIGNing an EIN to Form 1120 and the return is claiming a refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter CCC ‘E’ on the return. This will place the return in a RIVO filter for fraud monitoring. See Line 36 on the 2023 form.

    • Personal Service Corporations can make an IRC Section 444 election on Form 8716 to use a fiscal tax year ending. If the taxpayer has a TC 054 posted and they file a short period Dec. 31 year end return, they are terminating their IRC Section 444 election. They will often enter Terminate Section 444 at the top of the return. Enter CCC Y on the upper body of the return, beneath the check boxes. The CCC Y will force the short period return to post, update the FYM to 12, and reverse the TC 054 with a TC 057.

  10. Form 1120-C - U.S. Income Tax Return for Cooperative Associations

    • This return is filed by cooperative associations.

    • It was created to replace Form 990-C beginning Jan. 1, 2007.

    • For due dates of Form 1120-C, see IRM 3.11.16-2, Corporate Income Tax Returns, Due Date Charts.

  11. Form 1120-F - U.S. Income Tax Return of a Foreign Corporation

    • This return is filed annually and the return is generally due on the 15th day of the fourth month after the end of the tax year. For a foreign corporation with no office or place of business in the U.S., this return is due by the 15th day of the sixth month after the end of the tax year. However, a foreign corporation with a fiscal tax year ending June 30th must file by the 15th day of the third month after the end of its tax year.

    • If the return indicates No Liability, send Letter 6098C. See IRM 3.13.2.10.7, Going Out of Business, No Longer Liable, or Not Liable, for more information.

  12. Form 1120-FSC - U.S. Income Tax Return of a Foreign Sales Corporation

    • Forms 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, are filed with the Ogden Submission Processing Center.

  13. Form 1120-H - U.S. Income Tax Return for Homeowners Associations

    • This return is filed by homeowner’s associations. The filing of Form 1120-H is an election under IRC 528 and may not under certain circumstances be changed for the year of filing.

    • If the homeowner’s association does not elect to use Form 1120-H, it can file a Form 1120.

    • If the homeowner’s association is exempt from tax under IRC 501(c)(4), it will file a Form 990 instead of Form 1120-H.

    • The Form 1120-H is filed annually and generally, the return is due on the 15th day of the fourth month after the tax year ends.

  14. Form 1120-IC-DISC - Interest Charge Domestic International Sales - Corporation Return

    • This return is an information return filed by an interest charge domestic international sales corporation (DISC), a former DISC, and a former IC-DISC.

    • The IC-DISC election is made by filing Form 4876-A, Election To Be Treated as an Interest Charge DISC.

    • The return is filed annually and is due on the 15th day of the ninth month after the tax year ends. No extensions are allowed.

  15. Form 1120-L - U.S. Life Insurance Company Income Tax Return

    • This return is filed by domestic life insurance companies and foreign corporations carrying on an insurance business within the U.S. that would qualify as life insurance companies if they were U.S. corporations.

    • A benevolent life insurance company of a purely local character of which 85 percent or more of the income consists of amounts collected from members for the sole purpose of meeting losses and expenses may file for a tax-exemption under IRC 501(c)(12) and then will file Form 990. An exempt organization may be required to file a Form 1120-L when it meets certain criteria.

    • This return is filed annually and generally is due on the 15th day of the fourth month after the tax year ends.

  16. Form 1120-ND - Return for Nuclear Decommissioning Funds and Certain Related Persons

    • This return is filed by nuclear decommissioning funds under IRC 468A to report contributions received, income earned, the administrative expenses of operating the fund, and the tax on the income earned.

    • The tax year must be the same as that of the creating public utility.

    • The return is filed annually and is due on the 15th day of the fourth month after the close of the tax year.

  17. Form 1120-PC - U.S. Property and Casualty Insurance Company Income Tax Return

    • This return is filed by domestic non-life insurance companies and any foreign corporations carrying on an insurance business within the U.S. that would qualify as non-life insurance companies subject to tax under IRC 831 if they were U.S. corporations.

    • Certain small mutual and stock non-life insurance companies may file for a tax-exemption under IRC 501(c)(15) and then will file Form 990. An exempt organization may be required to file a Form 1120-PC when it meets certain criteria.

    • This type of taxpayer can be a member of an affiliated group and file a consolidated return.

    • Normally the return will be filed on a calendar year but can be a fiscal filer if the parent is a fiscal filer.

    • The return is filed annually and generally the return is due on the 15th day of the fourth month after the tax year ends.

  18. Form 1120-POL - U.S. Income Tax Return for Certain Political Organizations- Filed exclusively at Ogden Submission Processing Center (OSPC).

    • This return is filed by political organizations, that is, a party, committee, association, fund (including a separate segregated fund set up by IRC 501(c) tax-exempt organizations), such as a political action committee. A political organization may also be required to file a Form 990 or Form 990-EZ.

    • A tax-exempt organization required to file Form 1120-POL must also file either Form 990 or Form 990-EZ.

    • The return is filed annually and is due on the 15th day of the fourth month after the tax year ends.

    • Use the individual's name as the name control:
      Committee to Elect Patrick Doe: Input name control as PATRICK DOE COMMITTEE TO ELECT.
      Committee to Elect Pat Doe: Input name control as PATDOE COMMITTEE TO ELECT.

  19. Form 1120-RIC - U.S. Income Tax Return for Regulated Investment Companies

    • This return is filed to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a Regulated Investment Company (RIC).

    • A RIC cannot be a member of a consolidated group.

    • Form 1120-RIC is an annual return required to be filed on the 15th day of the fourth month after the end of the RIC's taxable year.

  20. Form 1120-REIT - U.S. Income Tax Return for Real Estate Investment Trusts

    • This return is filed to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a Real Estate Investment Trust (REIT).

    • Any Entity that elects to be treated as a REIT (or has made a valid election for a prior tax year) and meets the requirements to be taxed as a REIT must file this return. The election is made on this return. An Entity cannot be taxed as a REIT until it files Form 1120-REIT.

    • Once the election is made it remains in effect until terminated or revoked. An election terminates automatically for any year the entity is not a qualified REIT. An election can be revoked by the taxpayer by filing a statement with the Campus by the 90th day after the first day of the tax year. In general, if an election terminates or is revoked, the entity may not re-elect to be taxed as a REIT until the 5th taxable year after the year the termination or revocation is effective.

    • The revoking correspondence must be held in Entity until the final Form 1120-REIT is filed. Do not suspend. Associate the correspondence with the final Form 1120-REIT. Ensure the return has CCC "F" .

    • A REIT cannot be a member of a consolidated return.

    • Form 1120-REIT is an annual return required to be filed by the 15th day of the fourth month after the end of the REIT's taxable year.

  21. Form 1120-S - U.S. Income Tax Return for an S Corporation

    • S corporations are domestic corporations in which the income/loss flows through to the owners/shareholders.

    • The corporation must make a Subchapter S-election on a timely filed Form 2553. If Form 2553 is attached to Form 1120-S and the return has yet to be numbered, detach and process Form 2553. See IRM 3.13.2.23, Form 2553, Election by a Small Business Corporation, and Related Transactions/CPs.

    • This taxpayer cannot be a member of a consolidated group of corporations.

    • Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income.

    • This return is filed annually and is due by the 15th day of the third month after the close of the tax year. See IRM 3.11.217-2, Form 1120-S Corporation Income Tax Returns, Due Date Chart.

    • The Tax Reform Act of 1986 required all S corporations to use the same tax year/FYM as their owner. There are certain provisions (Form 8716, Form 1128, Rev. Proc. 2006-46) whereby an S corporation can use a fiscal tax year. This will be denoted by a TC 054 or TC 055 on the Entity module.

    • Subchapter S corporations can make an IRC Section 444 election on Form 8716 to use a fiscal tax year. If the taxpayer has a TC 055 posted and they file a short period Dec. 31 year end return, they are terminating their IRC Section 444 election. They will often enter Terminate Section 444 at the top of the return. Enter CCC Y on the upper body of the return, beneath the check boxes. The CCC Y will force the short period return to post, update the FYM to 12, and reverse the TC 054/055 with a TC 057.

    • If an EIN must be assigned to a Form 1120-S, NIC D will be input. Send Letter 147C to the taxpayer to notify them of the EIN assignment, asking them to complete and return a Form SS-4. Also tell the taxpayer that they will be contacted separately regarding their Form 2553.

      Note:

      When ESIGNing an EIN to Form 1120-S and the return is claiming a refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter CCC ‘E’ on the return. This will place the return in a RIVO filter for fraud monitoring. See Line 26 of the 2023 form.

    • If a valid paper Form 1120-S is received in Entity because the current FRC on IDRS is 1120-01, check for an unreversed TC 090. If found, delete the 1120-01 FRC and release the return. The return will now read the DLN of the TC 090, post and generate an 1120-02 FRC. If TC 090 is not posted, route return to originator explaining taxpayer does not have a valid Subchapter S-election. See IRM 3.13.2.23 (3), Form 2553, Election by a Small Business Corporation, and Related Transactions/CPs. This will not work for MeF returns as MeF returns must pass a FRC validity check. See IRM 3.13.2.10.19, Updating Account Information for Modernized e-File (MeF), for resolving electronic returns with a FRC problem.

    • BMF Entity will receive a Form 1120-S when Item H, Box (5) is checked. This box is labeled S-election termination or revocation. Research IDRS for the taxpayer's status:

    If... And... Then...
    A) TC 091/096 is posted with an effective date prior to the tax period of the Form 1120-S,   Edit return with "Let Unpost" and any other needed information and release.
    B) TC 091/096 is posted with an effective date within the tax period of the Form 1120-S, 1) Tax period of Form 1120-S is valid with the posted TC 091/096 effective date, Edit return as required and release.
    B) TC 091/096 is posted with an effective date within the tax period of the Form 1120-S, 2) Tax period of Form 1120-S is not valid with posted TC 091/096 effective date, Edit return with "Let Unpost" and any other needed information and release.
    C) TC 091/096 is posted with an effective date after the tax period of the Form 1120-S,   Edit return as required and release.


    If there is not a TC 091/096 posted, look through the return for correspondence or other evidence of a statement of revocation/termination and proceed as follows:
    If... And... Then...
    A) Statement of Revocation is found, 1) It is timely filed with the IRS received date of the return (edit said date on Statement of Revocation),
    • Detach Revocation statement from return (or print if electronic), edit IRS received date.

    • Process Revocation per IRM 3.13.2.23.16, Processing the Revocation.

    • Edit return as required.

    • Associate documentation with posted TC 090 DLN.

    A) Statement of Revocation is found, 2) It is not timely filed,
    • Send Letter 326C telling taxpayer revocation statement attached to return was not timely filed.

    • Edit and release.

    • Associate documentation with posted TC 090 DLN.

    B) Statement of Termination is found, 1) Termination is valid,
    • Detach Statement of Termination from the return (or print if electronic).

    • Input TC 096 per IRM 3.13.2.23.18, Processing the Termination.

    • Edit return as required and release.

    • Associate documentation with posted TC 090 DLN.

    B) Statement of Termination is found, 2) Termination is not valid,
    • Send Letter 326C telling taxpayer statement of termination attached to return was not valid and their election will remain in effect.

    • Edit return as required and release.

    • Associate documentation with posted TC 090 DLN.

    C) Statement of Revocation/Termination is not found,   Edit return as required and release.

  22. Form 1120-SF - U.S. Income Tax Return for Settlement Funds (Under Section 468B)

    • This return is filed by an IRC 468B designated or qualified settlement fund that has been established to settle and pay claims asserting liability against a particular taxpayer.

    • The return is filed annually and is due on the 15th day of the fourth month after the end of the fund's taxable year, and the return’s filing time may be extended by filing Form 7004.

    • The taxable year of a qualified settlement fund is the calendar year.

ERS Action Code 347 - Revenue Procedure 2013-30
  1. Rev. Proc. 2013-30 allows taxpayers to request relief for late submission of their S corporation elections by filing their Form 2553 and all required attachments with their Form 1120-S if the current year Form 1120-S is filed within 3 years and 75 days after the desired effective date. Rev. Proc. 2013-30 also allows taxpayers to submit the Form 2553 to the applicable IRS Service Center within 3 years and 75 days after the Effective Date without a Form 1120-S. They may file electronically through Modernized e-File (MeF) or paper. Code and Edit will edit Error Resolution System (ERS) Action Code (AC) 347 on paper returns and MeF will generate ERS AC 347 for electronically filed Forms 1120-S quoting Rev. Proc. 2013-30. For MeF returns, Entity TEs must print Form 2553 from the Employee User Portal (EUP). The instructions for this Rev. Proc. will be applied to numbered returns in the form of pipeline, Rejects, or Unpostables.

  2. Rejected returns will be assigned and processed as soon as possible upon receipt. These cases are time sensitive and may take several days to complete. These cases will be processed within 20 days.

  3. Rev. Proc. 2013-30 modifies and supersedes Rev. Proc. 2003-43, Rev. Proc. 2004-48, and Rev. Proc. 2007-62 and supersedes the relief in Situation 1 of Rev. Proc. 97-48 as well as making obsolete the relief in Situation 2 of Rev. Proc. 97-48. Additionally, Rev. Proc. 2013-30 modifies, supersedes and makes obsolete certain relief in Rev. Proc. 2004-49.

  4. Requests for relief under Rev. Proc. 2013-30 filed on a return will be processed as follows:

    Note:

    Always ensure the IRS received date of the Form 1120-S is also entered on Form 2553.

    Reminder:

    Before processing the return, edit/circle out the AC 347 from the return.

    If... And... Then...
    A) Initial Form 1120-S is received with a Form 2553 attached requesting an effective date in a prior tax year, Form 2553 is complete with all required attachments and all necessary Forms 1120-S are in house,
    1. Detach Form 2553 and required attachments to use as source document. For MeF returns, use the EUP print of Form 2553.

      • On Form 1120-S, edit: For Corporations -D2553, TC090.
        For LLCs- D2553, TC 090, TC 074.
        For both - enter current date and your IDRS number in the lower left margin of Form 1120-S and Form 8161 or local Reject routing slip.

      • On Form 2553, edit: For Corporations - D1120-S, TC 090.
        For LLCs - D1120-S, TC 090, TC 074.
        For both - the tax period, your IDRS number, and the current date.

    2. Input TC 090 per IRM 3.13.2.23.6, Processing Procedures for Approved Form 2553.

    3. Release paper Form(s) 1120-S to ERS/Rejects with instructions to hold one week (7 calendar days) then release for processing.

    4. Annotate Form 8161 or local Reject routing slip with actions taken and "Return will Post" . Return to ERS/Rejects.

    B) Form(s) 1120-S received with a Form 2553 attached requesting an effective date in a prior tax year, Form 2553 is complete with all required attachments but all necessary Forms 1120-S have not been received per CCs ENMOD, BMFOL, UPTIN, and TRDBV at both sites,
    1. Detach Form 2553 and required attachments to use as a source document.

    2. On Form 1120-S edit: For Corporations - D2553, BK95, Let Unpost - Convert to 1120. For LLCs - D2553, BK 95, Let Unpost then Cancel DLN. For both - enter current date, and your IDRS number in the lower left margin of Form 1120-S and Form 8161 or local routing slip.

    3. On Form 2553 edit: D1120-S, TC090, BK95, 385C, the tax period of Form 1120-S, current date, and your IDRS number in lower left margin of form.

    4. Approve Form 2553 for the earliest valid effective date, suppress CP 261 (PSC - Z), send Letter 385C informing taxpayer of reason election was not accepted for requested date, and their only recourse is a PLR.

    5. Release paper Form(s) 1120-S to ERS/Rejects.

    6. Annotate Form 8161 or local Reject routing slip with actions taken and "Return will Unpost" . Return to ERS/Rejects.

    C) Form 1120-S is received from a corporation with Form 2553 attached, Form 2553 is incomplete and all necessary Forms 1120-S are in house,
    1. Detach Form 2553 and required attachments.

    2. Input TC 093, if there is not a pending or posted TC 090.

    3. Input TC 971-375.

      Note:

      Ensure FYM of return matches FYM on Master File even if return has an invalid fiscal year, otherwise TC 971 will go UPC 307. TC 971-375 cannot be input on MFT 02 if taxpayer is LLC unless there is a valid TC 076 posted for the current or prior year of the tax return.

    4. If the paid preparer check box is marked yes, contact the preparer via telephone (make two attempts) for missing information. Ask preparer to fax complete document within 48 hours. If the paid preparer check box is marked no, contact the taxpayer via telephone (make two attempts) for missing information. Ask taxpayer to fax complete document within 48 hours. See Note: beneath chart for telephone script.

    5. Annotate call on Form 12130.

      Reminder:

      We must give the taxpayer a chance to respond to our request. It is not acceptable to make two phone calls to the taxpayer or their representative within the same day to expedite your case. The return will be held for one full day after the second call.

    D) Requested information is received within 48 hours, Form 2553 is complete (including necessary statements required by Rev. Proc.), Paper Returns:
    1. On paper Form(s) 1120-S, edit D2553, TC090, current date, and your IDRS number in the lower left margin of Form 1120-S and Form 8161 or local Reject routing slip.

    2. On Form 2553, edit D1120-S, TC 090, the tax period, your IDRS number, and the current date on Form 2553.

    3. Input TC 090 per IRM 3.13.2.23.6, Processing Procedures for Approved Form 2553.

    4. Detach Form 2553 and required statements to use as source document.

    5. Release paper Form 1120-S to ERS/Rejects with instructions to hold one week (7 calendar days) then release for processing.


    MeF Returns:
    1. On MeF Form(s) 1120-S, edit D2553, TC090, current date, and your IDRS number on Form 8161 or local Reject routing slip.

    2. On Form 2553, edit D1120-S, TC 090, the tax period, your IDRS number, and the current date on Form 2553.

    3. Input TC 090 per IRM 3.13.2.23.6, Processing Procedures for Approved Form 2553.

    4. Use the EUP print of Form 2553 and required statements.

    5. Release Form 8161 to ERS/Rejects with instructions to hold one week (7 calendar days) then release for processing.

    E) Requested information is not received within 48 hours,  
    1. Detach Form 2553 from return.

    2. On Form 1120-S, edit D2553, TC 093/092, Let Unpost - Convert to 1120 in lower left margin of paper return and Form 8161 or local Reject routing slip.

    3. On Form 2553 edit D1120-S, TC 093/092, tax period of Form 1120-S and received date of the return.

    4. Input TC 092, PDC 1.

    5. Input TC 971-376, PDC 1 (Ensure FYM matches Master File).

    6. Return Form 2553 to the taxpayer for completion using the Letter 312C/6800sce. Enter DLN of return in fill-in 03 of Letter 312C or below Reference ID number on Letter 6800sce. If using Letter 6800sce, be sure to mark the box that tells the taxpayer if response is not received within 30 days, their Form 1120-S will be converted to Form 1120. Put history item on CC ENMOD that reads: 6800SCE
      W2553

    7. Release return to ERS/Rejects.

    Note:

    It is important TCs 971-375 and 971-376 are not input on the same day. This program has a 48 hour "suspense period." We must give the taxpayer a chance to respond to our request. It is not acceptable to make two phone calls to the taxpayer or their representative within the same day to expedite your case.

    F) Requested information is not received within 48 hours and the entity is an LLC without a posted TC 076, Form 2553 is still incomplete,
    1. Detach Form 2553 from return.

    2. On Form 1120-S, edit D2553, TCs 093 and 092, Let Unpost Then Cancel DLN in lower left margin of paper Form 1120-S and Form 8161 or local Reject routing slip.

    3. On Form 2553, edit D1120-S, TCs 093/092, tax period of Form 1120-S, and IRS received date of return.

    4. Input TC 092, PDC 1.

    5. Return Form 2553 to the taxpayer for completion using the Letter 312C/6800sce. Enter DLN of return in fill-in 03 of Letter 312C or below Reference ID number on Letter 6800sce. If using Letter 6800sce, be sure to mark the box that tells the T/P that failure to respond will result in processing being stopped on their return. Enter history item on CC ENMOD that reads:
      6800SCE
      W2553

    6. Release to ERS/Rejects.

    G) Return is initial Form 1120-S, Form 2553 is complete (including statement of reasonable cause) and a posted TC 090 has effective date later than tax period of return,
    1. Detach Form 2553 and required statements to use as source document. For MeF returns, use the EUP print of Form 2553.

    2. On Form 1120-S, edit D2553, TCs 092/090 in lower left margin of return and on Form 8161 or Reject routing slip.

    3. On Form 2553, edit D1120-S, TC 092/090, 385C, tax period of Form 1120-S, the date and your IDRS number in the lower left margin of Form 2553.

    4. Input TC 092.

    5. Input TC 090 with new effective date, PDC 1, PSC - Z.

    6. Send Letter 385C to taxpayer informing them the effective date of their S-election has been approved based on Rev. Proc. 2013-30.

    7. Release Form 1120-S to ERS/Rejects.

    H) Form 2553 is not attached, There is not a TC 090 posted on CC ENMOD of IDRS,
    1. Edit on Form 1120-S:
      Corporation:No 2553, No TC 090, Let Unpost - Correspondence needed, the current date and your IDRS number in the lower left margin of Form 1120-S and on Form 8161 or local Reject routing slip.
      LLC: No 2553, No TC 090, Let Unpost - Correspondence needed, the current date and your IDRS number in the lower left margin of Form 1120-S and on Form 8161 or local Reject Routing Slip.

    2. Release Form 1120-S to ERS/Rejects.

    I) Form 2553 is not attached, There is a posted TC 090 for the tax period of the Form 1120-S,
    1. Edit on Form 1120-S : No 2553, TC 090 Posted, the current date and your IDRS number in the lower left margin of Form 1120-S and on 8161 or local Reject Routing Slip.

    2. Release Form 1120-S to ERS/Rejects.

    J) The effective date of the TC 090 on ENMOD/BMFOL’E’ is the same or prior to the effective date requested on Form 2553, The TC 090 was input within the last 45 days,
    1. Edit on Form 1120-S: TC 090 posted in lower left margin.

    2. Place a large X on Form 2553 and prepare for destruction per local procedures.

    3. Release Form 1120-S to ERS/Rejects.

    K)The effective date of the TC 090 on ENMOD/BMFOL’E’ is the same as the effective date requested on Form 2553, The TC 090 was input more than 45 days ago,
    1. Edit on Form 1120-S: D2553, TC 090 posted in lower left margin of Form 1120-S and on Form 8161 or local reject routing slip.

    2. Place a large X on Form 2553 and prepare for destruction per local procedures.

    3. Send a Letter 385C to taxpayer informing them of their election and the date it was effective.

    4. Release Form 1120-S to ERS/Rejects.

    L) The effective date of the TC 090 on ENMOD/BMFOL’E’ is prior to the effective date requested on Form 2553, The TC 090 was input more than 45 days ago,
    1. On Form 1120-S, edit D2553, TC 090 posted in lower left margin of Form 1120-S and on 8161 or local Reject routing slip.

    2. On Form 2553, edit D1120-S and the tax period of the Form 1120-S, the current date and your IDRS number. Associate Form 2553 to the TC 090 DLN.

    3. Send a Letter 385C to the taxpayer informing them of their election and the date it was effective

    4. Release Form 1120-S to ERS/Rejects.

    M) Form 2553 cannot be approved for the requested tax year and is approved for the next qualifying year, a)The taxpayer is a corporation,
    1. Detach Form 2553 and required statements to use as source document. For MeF returns, use the EUP print of Form 2553.

    2. On Form 1120-S, edit D2553, BK95, Let Unpost - Convert to 1120 in lower left margin of Form 1120-S and Form 8161 or local Reject routing slip.

    3. On Form 2553, edit D1120-S, tax period of return, TC 090, BK95, 385C.

    4. Input TC 090, BK95, suppress CP notice (PSC - Z) and send Letter 385C informing taxpayer reason Form 2553 was not accepted for requested effective date, the Form 1120-S was converted to a Form 1120, and the process for a PLR.

    5. Input TC 971-376, PDC 1. Ensure FYM matches Master File.

    6. Release return to ERS/Rejects.

    M) Form 2553 cannot be approved for the requested tax year and is approved for the next qualifying year, b) The entity is an LLC,
    1. Detach Form 2553 and required statements to use as source document. For MeF returns, use the EUP print of Form 2553.

    2. On Form 1120-S, edit D2553, BK95, Let Unpost Then Cancel DLN, the current date, and your IDRS number, in lower left margin of Form 1120-S and Form 8161 or Reject routing slip.

    3. On Form 2553 edit, D1120-S, BK95, 090, TC 074 (if needed), 385C, current date, and your IDRS number.

    4. Input TC 074 (if needed), TC 090 for the earliest possible effective date with PDC 1. Suppress CP notice (PSC - Z) and send Letter 385C with DLN inserted, informing taxpayer the reason Form 2553 was not accepted for requested effective date, and Form 1120-S was removed from processing. Edit Form 2553 with: D1120-S, TC 074, TC 090, 385C, tax period of return, the date and your IDRS number.

    5. Input 971-373 on MFT 06 (if Form 1065 FRC is present), on the same tax period as return being processed.

    6. Release return to ERS/Rejects.

    Note:

    1065 FRC must be on EIN prior to TC 971-373, therefore, do not input on SMLLCs.

    N) Initial Form 1120-S is received with Form 2553 attached and taxpayer needs a new EIN assigned, Form 2553 is incomplete,
    1. Assign EIN using NIC A and RIC 53.

    2. On Form 1120-S and routing slip, edit : D2553, Let Unpost as TC 971–375 cannot be input until EIN posts to Master File.

    3. Annotate on Form 2553: D1120-S, the tax period and received date of the return.

    4. Return Form 2553 to taxpayer for completion, see IRM 3.13.2.23.1, Completeness of Form 2553.

    5. Release return to ERS/Rejects.

    O) The taxpayer is an established entity, Form 2553 is attached and complete, including statements of reasonable cause,
    1. Detach Form 2553 and required attachments to use as source document. For MeF returns, use the EUP print of Form 2553.
      On Form 1120-S, edit D2553, TC 090, current date, and your IDRS number in the lower left margin of Form 1120-S and Form 81612 or local Reject routing slip.
      On Form 2553, edit D1120-S, TC 090, the tax period of the Form 1120-S, current date, and your IDRS number.

    2. Input TC 090 per IRM 3.13.2.23.6, Processing Procedures for Approved Form 2553.

    3. Release paper Form(s) 1120-S to ERS/Rejects.

    Note:

    Following is suggested script to be utilized when contacting the taxpayer via telephone for Rev. Proc. 2013-30 information. Remember, specific data must never be left on an answering machine. This is (TE’s name) from the Internal Revenue Service and I am processing your Form 1120-S and Form 2553 filed under Rev. Proc. 2013-30. Before I can complete the processing of your forms, I must ask for additional information. (State the needed information). Please fax this information to me at (your team's fax number) no later than (two days from today). If I do not receive the requested information within the time frame requested, your Form 1120-S will be processed as a Form 1120 or removed from processing.

    Reminder:

    We must give the taxpayer a chance to respond to our request. It is not acceptable to make two phone calls to the taxpayer within the same day to expedite your case.

  5. TC 971-375/373 indicates Form 1120-S has failed to post to MF and a phone call was made or a letter has been issued to the preparer/taxpayer. TC 971-376 indicates the conversion of Form 1120-S to a Form 1120, when there is no reply or when the reply received does not resolve the unpostable issue.

  6. If taxpayer is not an LLC, the LLC indicator must be deleted by inserting a "9" in the LLC indicator field. See IRM 3.13.2.26 (2), Domestic Limited Liability Company (LLC).

  7. The most common examples of reasonable cause or inadvertence:

    • Miscommunication between the taxpayer's tax advisors/shareholders (for example attorneys, CPA/tax practitioner, accountants, bookkeepers, especially during incorporation period).

    • Circumstances beyond the taxpayer's control (for example unavoidable absence, illness), mistakes, or ignorance of the law.

    • Reliance on a paid professional (inside or outside the company) who failed to understand Form 2553 filing requirements.

    • Delay in obtaining shareholder signature for the election.

    • One of the shareholders forgot to make the election or each shareholder thought the other was going to do it.

      Reminder:

      It is not possible to list every valid scenario that might be given by the taxpayer. If taxpayer acknowledges late filing with a statement containing any plausible reason, and has included all other statements, give the taxpayer the benefit of the doubt and process form under Rev. Proc. 2013-30.

  8. If the taxpayer responds with the correct return or responds and Form 2553 is approved for the tax year in question, input TC 971-377 to indicate the converted Form 1120 has been re-processed as a Form 1120-S. See IRM 3.13.2.23.14, Correspondence Regarding Form 2553 Issues.

  9. TC 971 AC 376 will freeze all refunds to the taxpayer. To lift the freeze, input TC 971 AC 377.

  10. If correspondence is received in response to our inquiry regarding Rev. Proc. 2013-30, see IRM 3.13.2.23.4.1 (1), Revenue Procedure 2013-30, for processing instructions.

ERS Action Code 321

  1. ERS Action Code (AC) 321 was created specifically for electronically filed consolidated tax returns with subsidiary EIN and Name Control mismatch. A Consolidated Return Resolution report will be submitted to Entity with a listing of each subsidiary EIN and name (along with the parent corporation's EIN and name) and whether or not the TC 590 Closing Code 014 was input. Entity will update the subsidiary's name and/or EIN as needed.

  2. The AC 321 will be stamped in the lower left of the return.

  3. Thorough research of both the parent and subsidiary accounts is necessary.

  4. Electronic filed returns will be routed to Entity by Rejects with a 10-day suspense period/turnaround time.

  5. If rejected MeF return is for a name and/or address change for the parent, access EUP to verify.

Form 1041, U.S. Income Tax Return for Estates and Trusts

  1. This form is the income tax return for estates and trusts.

  2. EINs in the 6/7/8 million series are reserved for Form 1041 filers. A 6/7/8 Million series EIN can be identified by the number 6, 7, or 8 immediately following the hyphen (-).

  3. If the EIN on Form 1041 is not on Master File, but is a 6/7/8 million series, we can assume this EIN was part of a Bank List/Bulk Assignment that wasn't placed on Master File. See IRM 21.7.13.3.3.5, Processing a Consolidated List Returned by an Institution/Authorized Representative. Establish the EIN entered on the return with CC ESIGN (suppressing CP 576A) or TC 000.

  4. When ESIGNing an EIN to Form 1041 (or TC 000ing EIN) and the return is claiming a refund ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡, enter CCC ‘E’ on the return. This will place the return in a RIVO filter for fraud monitoring. See Line 29 of the 2023 form.

  5. The types of returns are:

    • Form 1041, U.S. Income Tax Return for Estates and Trusts.

    • Form 1041–A, U.S. Information Return Trust Accumulation of Charitable Amounts.

    • Form 1041–ES, Estimated Income Tax for Estates and Trusts.

    • Form 1041–N, U.S. Income Tax Return for Electing Alaska Native Settlement.

    • Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts.

  6. Form 1041-A is processed as an EO return; see IRM 3.13.12, Campus Document Services - Exempt Organization Account Numbers.

  7. Form 1041-QFT is processed at the Kansas City Submission Processing Center only. See IRM 3.13.2.8.8, Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts.

  8. The return is filed annually and is due on the 15th day of the 4th month following the close of the tax year. See Figure 3.13.2-22.

    Figure 3.13.2-22

    This is an Image: 33746044.gif

    Please click here for the text description of the image.

  9. The type of trusts that file Form 1041 are:

    1. Decedent's Trust - The fiduciary must file for a created trust from the estate of a decedent.

    2. Domestic Trust - The fiduciary must file for a domestic trust taxable under Treasury Regulation 1.645-1(c).

    3. Bankruptcy Estate - The fiduciary must file for an estate of an individual involved in bankruptcy proceeding under Chapter 7 or 11 of title 11 of the U.S. Code. If a corporation, partnership, or LLC in bankruptcy creates a liquidating trust, the trust must file Form 1041.

    4. Trusts filing under IRC 645 (Rev. Proc. 98-13) must state in the name line Trust filing as an Estate under Section 645 and that designation needs to be input into IDRS. (Example, JOHN PUBLIC TR FILING AS AN ESTATE UNDER SECTION 645). After two years has elapsed for that entity, the trust needs a new EIN (at this point they are a new entity). There will not be an EIN consolidation issue since the new EIN will be input into IDRS as JOHN PUBLIC TR.

  10. Generally, a trust must adopt a calendar year (FYM 12) and the return is due on the 15th day of the 4th month following the close of the tax year. The following trusts are exempt from this requirement:

    • A trust that is exempt from tax under IRC 501(a).

    • A charitable trust described in IRC 4947(a)(1).

    • A trust that is treated as wholly owned by a grantor under the rules of IRC 671 through IRC 679.

  11. If the taxpayer does not mark a box in Item A of Form 1041, and you can derive the exact type of entity by the name line, mark the appropriate box in Item A.

  12. Use the beginning of the tax year (located at the top of Form 1041) as the Business Operational Date (BOD). If the date entered in the Date Entity Created box is during the year covered by the return, use that date as the BOD.

  13. The chart below contains associated terms and types of trusts:

    Term Definition
    Fiduciary
    • Trustee of a trust, or

    • Executor, executrix, administrator, administratrix, personal representative, or person in possession of a property of a decedent.

    Beneficiary A person designated as the recipient of funds or other property under a trust or an estate.
    Corpus The principal sum of the capital of a trust or an estate, as distinguished from interest or income.
    Maker/grantor The person(s) or organization that:
    • Originated the trust, or

    • Has control over the trust.

    Simple Trust A trust:
    • For which the trust instrument requires that all income be distributed currently, with no authority to make charitable contributions or distribute amounts allocated to the corpus of the trust, and

    • That is a simple trust only for a year in which it distributes income and makes no other distributions to beneficiaries.

      Note:

      When a trust does not meet these requirements for a year, it is a complex trust.

    Complex Trust A trust which, for the taxable year, does not qualify as a simple trust.
    Grantor Trust A trust that:
    • Is established by a living person or organization, created by a will, or

    • Is established so the income from the trust is taxable income of the grantor.

    Non-taxable grantor trusts do not report income, deductions, and credits on Form 1041. The grantor may file Form 1041 for informational purposes only.
    Intervivos Trust A trust established by a grantor during their lifetime.
    Revocable Trust The grantor:
    • Has control of the trust (for example, has power to repeal or annul), and

    • Pays the taxes of the trust on their Form 1040. The grantor files Form 1041 for informational purposes only.

    Irrevocable Trust The grantor cannot revoke the trust.
    Testamentary Trust A testamentary trust is created by a will, which begins its existence upon the death of the person making the will, when property is transferred from the decedent's estate. Testamentary trusts are generally simple or complex trusts. A testamentary trust is irrevocable by definition, as it comes into being at the death of the grantor. It is also known as a "trust under the will" .
    Residual Trust A trust set up to receive the part of an estate that remains after the payment of all debts, charges, devices, and bequests to entities other than the beneficiary.
    Conservatorship A trust set up for an incompetent person.
    Guardianship/
    Custodianship
    A trust set up for a minor or incapacitated person.
    Ancillary and Domiciliary Trust Returns A trust which exists in a foreign domestic state because the grantor is domiciled (resides) in another state within the United States.
    Family Estate Trust
    • A trust instrument provides evidence of ownership, such as certificates of beneficial interest in the trust.

    • The grantor is a trustee and executive officer.

    • The corpus and undistributed income are distributed to the owners after the trust is terminated. This is also known as a family estate, pure trust, equity trust, equity pure, prime, or constitutional trust.

    Generation Skipping Trust A trust with younger generation beneficiaries who are more than one generation younger than the grantor’s generation.
    Pooled Income Trust (also known as Split Interest Trust) A split interest trust with a:
    • Remainder interest for a public charity, and

    • Life income interest retained by a donor or for another person.

    Clifford Trust A grantor type trust where the assets are placed in a trust but there is still some ownership. It is taxable to the grantor.
    Non-Explicit Trust
    • An arrangement that has substantially the same effect as a trust. It is treated as a trust even though it is not an explicit trust.

    • Non-explicit trusts do not include the decedent’s estate.
      Examples: Insurance and annuity contracts, arrangements involving life estates and remainders.

    Non-exempt Charitable Trusts A trust that is set up for a charitable purpose but that is not eligible for exempt status.

  14. If Form 1041 is being filed for an individual bankruptcy estate and an EIN must be assigned, the EIN will be assigned in the name of the debtor. The trustee's name will be entered on the Sort Name Line.

  15. When Form 1041 is filed for Corporations, Partnerships, or LLCs that are in bankruptcy, do not assign a new EIN unless the words "Liquidating Trust" are present. If these words are not present, annotate Allow to UPC 329, TC 013 in audit trail. Input TC 013 adding the bankruptcy term(s) entered on the return to the primary name line, complete audit trail and release return.

  16. If a Form 1040 is received that is overlaid with a Form 1041, do not detach Form 1040. The final Form 1040 will be filed for the same year a taxpayer becomes deceased. Quite often, executors of estates will file Forms 1040 for tax periods beyond the year the date of death is in. These Forms 1040 must be converted to Forms 1041.

    • Research for an estate EIN. If an EIN is found, enter the EIN on the Form 1041. Do not send a letter.

    • If an EIN is not found, assign an EIN, suppressing the notice with NIC D. Do not send a letter.

    • Ensure the Computer Condition Code (CCC) F is entered on the return.

  17. A decedent's estate is straightforward. The executor/administrator/etc. will be placed on the Sort Name line.

  18. If processing Form 1041 that bears an EIN with "Section 645" annotated in the name line and Forms 1041 for two tax periods are posted to the EIN, assign a new EIN with NIC B, RIC 05, and applicable tax period. Input TC 591-020 on the IRC 645 EIN for the tax period of the Form 1041 being processed.

  19. If Form 1041 is received indicating "No Liability" , see IRM 3.13.2.10.12, Relief from Filing.

  20. Do not establish a Form 1041 FRC if the taxpayer annotates "Widely Held Investment Trust" or "IRC 1.671-5(b)(22)."

Form 1041-QFT, U.S. Income Tax Return for Qualified Funeral Trusts

  1. The trustee of a trust that has elected to be taxed as a qualified funeral trust (QFT) files Form 1041-QFT to report the income, deductions, gains, losses, etc., and income tax liability of the QFT.

  2. Form 1041-QFT will be processed at the Kansas City Submission Processing Center only.

  3. Use the beginning of the tax year (located at the top of Form 1041-QFT) as the Business Operational Date (BOD).

  4. Follow these procedures to avoid balance due notices and incorrect filing requirements on QFTs with remittance. RCO/Extraction will call Entity when these returns are identified and the proper research must be completed before Deposit Activity processes the payment. Forms 1041–QFT must be processed on a same day basis. Research to determine the filing requirement.

  5. If FRC "9" is present, continue processing as received (QFT entity has already been established).

  6. If FRC other than "9" is present (most likely FRC "1" ), determine the entry present on Line 4 (Part 1) of Form 1041–QFT (number of QFTs included on this return).

    1. If line 4 contains an entry of 2 or more, establish a new EIN with FRC "9" .

    2. If line 4 is blank, or contains an entry of 1, and the filer has applied for a new EIN, establish a new EIN with FRC "9" .

    3. If line 4 is blank, or contains an entry of 1, but the filer has not applied for a new EIN, change the filing requirement to FRC "9" , but retain the existing EIN.

      Note:

      All Forms 1041–QFT must be established with FRC "9" . Taxpayers who elect to file a "single" Form 1041 QFT in lieu of Form 1041, may retain their original EIN as previously used for filing Form 1041. Taxpayers who elect to file a "composite" Form 1041–QFT (filed for more than one trust), must obtain a new EIN.

Form 1065, U.S. Return of Partnership Income

  1. This return is filed to report the income, deductions, gains, losses, etc., from the operation of a partnership. See Figure 3.13.2-23.

  2. The return is filed by all domestic partnerships, foreign partnerships, and Limited Liability Companies classified as partnerships for federal income tax if those entities have income from a trade or business within the United States or have income from sources in the United States.

  3. The return is filed by religious and apostolic organizations that are exempt from income tax under IRC 501(d). These taxpayers are reorganized on the BMF with a Subsection Code 40. A Form 1065 filed by these organizations is treated the same as any Form 1065, except name changes and address changes affecting the name lines must be processed under instructions in this IRM.

  4. The Tax Reform Act of 1986 generally requires all partnerships to use the tax year of their owner, usually December 31. If the partnership/LLC has received permission to use a fiscal tax year or a fiscal tax year is the actual year end of the owner, a TC 054 or TC 055 will be posted on the Entity module. If the taxpayer has not received permission to use a fiscal year, the phrase "allow to UPC 307" will be entered in the audit trail. The invalid tax year will be addressed when the return becomes unpostable.

  5. Partnerships can make an IRC Section 444 election on Form 8716 to use a fiscal tax year. If the taxpayer has a TC 055 posted and they file a short period Dec. 31 year end return, they are "terminating their IRC Section 444 election." They will often enter Terminate Section 444 at the top of the return. Enter CCC "Y" on the upper body of the return, beneath the check boxes. The CCC "Y" will force the short period return to post, update the FYM to 12, and reverse the TC 054/055 with a TC 057.

  6. Regulation 1.761-2(b)(2) allows certain investing partnerships and unincorporated organizations operating under joint production, extraction, or use agreements to elect out of partnership treatment by filing an initial Form 1065 with a list of the partners/members names and addresses. Attached must be a statement that the entity qualifies to elect out of Subchapter K under Reg. 1.761-2. The Computer Condition Code (CCC) F will be edited onto the return. Note: This is called an election out of Subchapter K election. A Private Letter Ruling (PLR) is required to revoke this election.

  7. Under IRC 708, a partnership is terminated if there is a sale or exchange of 50 percent or more of the total interest in partnership capital and profits within a 12-month period. Known as a “technical termination,” the partnership is treated as contributing all of its assets and liabilities to a new partnership in exchange for an interest in the new partnership, followed by a distribution of the interest in the new partnership to the purchasing and other remaining partners. Treasury Regulation 301.6109-1(d)(2)(iii) provides that the new partnership will retain the EIN of the terminated partnership. The partnership will file two short year Forms 1065: one with a year closing on the date on which the partnership terminates, and a second for the remainder of the year. See Treas. Reg. 1.708-1(b)(3). For tax years beginning after December 31, 2017, this section does not apply.

  8. The return is filed annually. For Form 1065 due dates, see IRM 3.11.15-3, Return of Partnership Income, Due Date Chart.

    1. For domestic partnerships on the 15th day of the 3rd month following the close of its tax year to comply with IRC 6072(b) (as amended).

    2. For partnerships that keep their records and books of account outside the United States and Puerto Rico, on the 15th day of the 6th month following the close of its tax year. The partnership must attach a statement to the Form 1065 stating that the partnership qualifies for the extension of time to file and pay.

  9. Use the beginning of the tax year (located at the top of Form 1065) as the Business Operational Date (BOD). If the date entered in the "Date Business Started" box is during the year covered by the return, use that date as the BOD.

  10. When Form 1065 is received from Code and Edit or ERS, research to determine the number of partners/members. If the return indicates the number of Schedules K-1 is "1" and the Schedule K-1 attached to the return has 100 percent interest in the partnership, correspond with the taxpayer as this is an invalid return. If the taxpayer fails to reply or states in their response they are no longer a partnership, input a TC 591 CC 020 to close the filing requirement. Route it back to the area that routed it to Entity.

    Figure 3.13.2-23

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Form 720, Quarterly Federal Excise Tax Return

  1. Form 720 is filed to report liability for certain excise taxes. See Figure 3.13.2–24.

  2. If the return is for a one-time filer, mark the return final and suppress the notice.

  3. If the taxable period is a calendar quarter, Form 720 is due by the last day of the first calendar month following the quarter for which it is made.

  4. Form 720 is filed and processed at the Ogden Submission Processing Center.

  5. The Affordable Care Act (ACA) created the Patient Centered Outcomes Research (PCOR) tax which will be reported on Line 133 of Form 720. This tax begins with the second quarter of 2013 and will be reported once a year. Therefore, the correct FRC for this taxpayer is 720-4. The account must be updated with this FRC. If the taxpayer is reporting Line 133 and any other Line, 720-1 is the correct FRC. This guidance will be used when ESIGNing an EIN or updating an account.

    Figure 3.13.2-24

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Form 11–C, Occupational Tax and Registration Return for Wagering, and Form 730, Monthly Tax Return for Wagers

  1. Form 11–C, Occupational Tax and Registration Return Wagering

    1. Form 11–C is filed by persons who accept taxable wagers to register certain information with the IRS and to pay the occupational tax imposed under IRC 4411.

    2. The occupational tax is $50 per year if all taxable wagers accepted are authorized under the laws of the state in which accepted or $500 per year if at least one unauthorized wager is accepted.

    3. All persons engaged in the business of receiving taxable wagers on their own behalf are required to file Form 11–C before accepting taxable wagers (principal operators). Anyone who accepts taxable wagers on behalf of a principal operator (agents) also is required to file Form 11–C before accepting taxable wagers.

    4. The first return will cover the tax period from the start of business until June 30 of the current year. For subsequent years, the form is due by July 1 if taxable wagers are accepted. The BOD is the date (month and day) listed at the top of Form 11–C. See Figure 3.13.2-25.

    5. If ESIGNing an EIN, you must also give a Form 730 FRC. If the taxpayer is not liable for Form 730, they will either call or write us and their EIN will be updated accordingly.

    6. Form 11-C will be processed at Ogden Submission Processing Center.

    Figure 3.13.2-25

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  2. Form 730, Monthly Tax Return for Wagers

    1. Taxpayers must file Form 730 and pay the tax on wagers under IRC 4401(a) if they are in the business of accepting taxable wagers, accept a wager, or conduct a wagering pool, or lottery for-profit, or are required to be registered (because they receive taxable wagers on behalf of another who would otherwise be liable for the tax) and they fail to properly register.

    2. On wagers authorized under the laws of the state in which accepted, tax is imposed at a rate of .25 percent of the amount of the wager. All other taxable wagers are subject to a rate of 2 percent of the amount of the wager.

    3. Form 730 is a monthly return that must be filed by the last day of the month following the month for which taxable wagers are reported. Once filed, Form 730 must be filed each month until a final return is filed, even if the taxpayer receives no wagers that month. These returns will show no activity. If no taxable wagers will be received in the future, a final Form 730 must be filed. The return must reflect the notation "Final Return." The BOD is the first day of the month entered above line 1 on the return.

    4. Persons liable for filing Form 730 must also file Form 11–C to be registered to accept wagers and to pay the occupational tax.

    5. These returns will be processed at the Ogden Submission Processing Center. See Figure 3.13.2-26.

    Figure 3.13.2-26

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Form 2290, Heavy Highway Vehicle Use Tax Return

  1. Form 2290 is filed to report the tax due on the use of any highway motor vehicle with a taxable gross weight of 55,000 pounds or more that is used on a public highway (any roadway in the United States that is not a private roadway) during the taxable period. See Figure 3.13.2–27.

  2. The taxable period begins each July 1 and ends the following June 30. For vehicles first put into service in July of the taxable period, Form 2290 is due by August 31. For vehicles first put into service after July of the taxable period, Form 2290 for that period is due by the last day of the month following the month of first use. The BOD is the first day of the month entered on line 1 of the return.

  3. Form 2290 is filed by the person in whose name a taxable vehicle is registered or required to be registered at the time of its first use on public highways.

  4. The use of certain highway motor vehicles may be exempt from tax in certain circumstances. For example, the exemption applies if the vehicles are actually operated by the Federal Government, a state or local government, or an Indian tribal government exercising an essential tribal government function.

  5. The processing of Form 2290 without payment due or using EFTPS is centralized at the Ogden Submission Processing Center.

    Figure 3.13.2-27

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Processing Form 706 and Form 709 series

  1. Form 706 is filed by both U.S. citizens and non-U.S. citizens who are residents of the U.S. These decedents are taxed on their worldwide assets. Form 706-NA (attached to which may be schedules from Form 706) is filed by non-U.S. citizens who are not residents of the U.S. (also known as alien non-resident decedents). These decedents are taxed on U.S. property only.

  2. Form 709 is filed by U.S. citizens, non-U.S. citizens who are residents of the U.S., and non-U.S. citizens who are not residents of the U.S. With respect to U.S. citizens who are not residents of the U.S., the Federal Gift Tax only applies to transfers of real property and tangible personal property physically situated in the U.S.

  3. The processing procedures for foreign taxpayers are the same as domestic taxpayers. See IRM 3.13.2.8.13.1, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, through IRM 3.13.2.8.13.7, Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

  4. Any change made to an SSN on the V (valid) or W (invalid) files, must include the following fields of CC BNCHG:

    • Form 706 - MFT> (52) and DT-OF-DEATH> (MMDDYYYY).

    • Form 709 - NM-YR-QTR>(YYYY) and MFT>(51).

  5. Form 9956, Request for Temporary SSN, is used by other areas to request an IRSN from Entity. Research must always be performed to ensure the correct SSN is being used. If unable to locate a valid SSN or the taxpayer does not have an SSN, an Internal Revenue Service Number (IRSN) must be assigned via CC TMSSN. Once assigned, the IRSN will be established on the invalid portion of the "V" tape, which is the "W" tape. Always send the Letter 685C/685SP to the taxpayer when assigning IRSNs to the Form 706/Form 709 family.

    Figure 3.13.2-28

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

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

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

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

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

Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return
  1. Form 706 is filed by the executor of an estate of a decedent who was a U.S. citizen or a non-U.S. citizen who was a resident of the United States to determine the estate tax imposed by Chapter 11 of the IRC on the decedent’s worldwide assets, (which is levied on the entire taxable estate, not just on the share of the estate received by a particular beneficiary). Form 706 must be filed by the executor of the estate of every U.S. citizen or resident whose executor elects to transfer the Deceased Spousal Unused Exclusion (DSUE) amount to the surviving spouse, regardless of the size of the decedent's gross estate. This form is also used to determine the generation-skipping transfer tax imposed by Chapter 13 of the IRC.

  2. This return is filed with the decedent’s social security number and the entity is treated like a BMF SSN.

  3. The return is filed within 9 months after the date of the decedent’s death. A Form 4768 is filed to request extensions.

  4. With respect to decedents who died in Tax Year 2010 only, the executors of their estates had the option to elect their estates to not be subject to the estate tax but instead be subject to the provisions of IRC 1022 (the carry over basis rules). This IRC 1022 Election was made by filing Form 8939. Notice 2011-66, 2011-35 I.R.B. 184, generally provides that the executor of the estate of a decedent who died in 2010 makes the IRC 1022 Election by filing a Form 8939 on or before November 15, 2011. Notice 2011-76, 2011-40 I.R.B. 479, extended the due date of the Form 8939 and thus, the election from November 15, 2011, to January 17, 2012. Notice 2011-66 further provides that the Internal Revenue Service will not grant extensions of time to file a Form 8939 and will not accept a Form 8939 filed after the due date except in four limited circumstances delineated in the Notice, including relief through the letter ruling program.

Form 706-A, United States Additional Estate Tax Return
  1. Form 706-A is filed by the qualified heir of a decedent to report a taxable disposition or cessation of qualified use of property valued under IRC 2032A on the decedent’s estate tax return.

  2. The form is filed with the qualified heir's social security number.

  3. The return is filed within 6 months after the taxable disposition or cessation of qualified use. A Form 7004 is filed to request an extension.

Form 706-GS(D), Generation-Skipping Transfer Tax Return for Distributions
  1. Form 706-GS(D) is filed by taxpayers who are "skip persons" who receive a taxable distribution from a trust.

  2. The Form 706-GS(D) must be filed with the SSN, if the distributee is an individual, and the trust's EIN if the distributee is a trust.

  3. The return is filed on a calendar year basis by April 15th of the year following the calendar year when the distributions were made.

  4. Form 7004 is filed to request extensions.

    Figure 3.13.2-29

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Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations
  1. Form 706-GS(T) is filed by the trustee of any trust which has a taxable termination.

  2. The Form 706-GS(T) is filed with the trust's EIN.

  3. The return is filed by the trustee of the trust by April 15th of the year following the calendar year in which the termination occurs.

  4. Form 7004 is filed to request extensions.

Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return
  1. Form 706-NA is filed by the executor of an estate of a decedent who was not a citizen or resident of the United States to figure the estate tax imposed by Chapter 11 of the IRC on the value of the decedent’s gross estate located in the United States under the situs rules of the IRC and the generation-skipping transfer tax imposed by Chapter 13 of the IRC. Schedules from Form 706 may be attached to Form 706-NA.

  2. The Form 706–NA is filed with the decedent’s U.S. social security number (if any).

  3. The return is due 9 months after the date of the decedent’s death. A Form 4768 is used to request an extension of time to file.

Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts
  1. Form 706-QDT is filed by the trustee or designated filer of a Qualified Domestic Trust (QDT) to figure and report estate tax due on certain distributions and taxable events with respect to a surviving spouse who is not a U.S. citizen. The return is also filed to report that the spouse has become a U.S. citizen and therefore, the QDT is no longer subject to the additional estate tax.

  2. The Form 706-QDT is due with the EIN of the trustee/designated filer, or, if the trustee/designated filer is an individual, with their SSN.

  3. The Form 706-QDT is generally filed on April 15th of the year following any calendar year in which a taxable event occurred during the spouse's lifetime, or a distribution was made to the spouse on account of hardship, or the spouse becomes a U.S. citizen. The return must also be filed within nine months of the death of the spouse, and within nine months after the trust ceases to qualify as a QDT. Extensions are granted by filing Form 4768.

Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return
  1. Form 709 is filed by U.S. citizens, non-U.S. citizens who are residents of the U.S., and non-U.S. citizens who are not U.S. residents who make transfers subject to the Federal Gift Tax. Note, with respect to non-U.S. citizens who are not U.S. residents the Federal Gift Tax can only apply to transfers of real property and tangible personal property physically situated in the U.S.

  2. The return is filed by individuals using their social security number and the entity is treated like a BMF SSN. This return is never filed as a joint return.

  3. The return is filed on a calendar year basis by April 15th of the year following the calendar year in which the gift was made. An extension to file can be obtained by Form 8892. An extension of time to file the donor's income tax return also extends the time to file the gift tax return.

    Note:

    No extension transaction (TC 460) will post to the BMF when the donor has an extension of time to file their income tax return. IMF will show a posted TC 460.

Form 7004, Application for Extension of Time to File Certain Business Income Tax, Information, and Other Returns

  1. This form is filed to request an extension of time to file for Form 706GS(D), Form 706-GS(T), Form 1041, Form 1041-N, Form 1041-QFT, Form 1042, Form 1065, Form 1066, Form 1120, Form 1120-C, Form 1120-F, Form 1120-FSC, Form 1120-H, Form 1120-L, Form 1120-ND, Form 1120-ND (Section 4951), Form 1120-PC, Form 1120-POL, Form 1120-REIT, Form 1120-RIC, Form 1120-S, Form 1120-SF, Form 3520-A, Form 8612, Form 8613, Form 8725, Form 8804, Form 8831, Form 8876, Form 8924, and Form 8928.

  2. The automatic extension period for time to file is generally 6 months. Exceptions apply for certain filers of Form 1041 and for C corporations with tax years ending June 30. An estate (other than a bankruptcy estate) and a trust filing Form 1041 are eligible for an automatic 5 1/2-month extension of time to file. Generally, C corporations with tax years ending June 30 are eligible for an automatic 7-month extension of time to file (6-month extension if filing Form 1120-POL).

  3. If a Form 7004 is found attached to a return, do not detach.

  4. The form must be filed by the normal due date of the type of return the taxpayer is requesting to file.

  5. Never allow a Form 7004 for MFT 02 (a corporate return) to post for a Limited Liability Company (LLC) when there is not a TC 076 on the Entity module. If Form 1120 FRC is present on the account, and there is not a TC 076, input TC 016 to zero out the Form 1120 FRC and add a Form 1065 FRC. This will cause Form 7004 to go Unpostable Code (UPC) 329.

  6. If Form 7004 contains "INC" in the name line, is coded for MFT 02, and Master File shows "LLC" , ensure a 1065 FRC is on Master File. This will cause Form 7004 to go UPC 329.

  7. If it is necessary to correspond with the taxpayer on a Form 7004, send the letter to the address on Master File and inform the taxpayer of any address discrepancy. The address on Master File must never be updated from an extension.

  8. The MFT for this extension is determined by the type of return for which it is filed. See Figure 3.13.2-30.

    Figure 3.13.2-30

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Form 8868, Application for Extension of Time to File an Exempt Organization Return
  1. This form is filed to request a 6-month extension to file.

  2. Returns requesting an extension are:

    • Form 990

    • Form 990-EZ

    • Form 990-PF

    • Form 990-T

    • Form 1041-A

    • Form 4720

    • Form 5227

    • Form 6069

    • Form 8870

  3. The MFT for this extension is determined by the type of return for which it is filed.

Form 1042 Annual Withholding Tax Return for U.S. Source Income of Foreign Persons and Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding

  1. Form 1042 is generally filed by a domestic withholding agent that will often be filing other BMF returns and therefore should already have an EIN.

  2. Form 1042-S is the recipient's account and will be a foreign resident or a non-resident alien. The taxpayer may have an EIN, SSN or an ITIN. See IRM 3.13.2.10.6 (5), Requests for ITINs.

  3. Whenever Entity Control receives a Form 1042 which does not show an EIN (including a Form 1042 return identifying the Filer by Social Security Number), it will research to see if a number has already been assigned. If none is found, Entity will assign an EIN and notify the filer in accordance with established procedure.

  4. Form 1042 filers may no longer be identified by a social security number. All returns forwarded by Document Perfection, which identify the filer by SSN will be treated as new filers, and an EIN will be assigned as in (1) above. Circle out the SSN and enter the EIN above it.

  5. Qualified Intermediaries (Foreign Entities) - Any Form SS-4 received indicating "Qualified Intermediary" , Withholding Foreign Partnership, Withholding Foreign Trust or Form 1042 Filer on Line 8a or 9 with the other box checked, establish a 1042 filing requirement. DO NOT establish a 1120-F filing requirement.

  6. If the filing requirement is not present, use the information in the table below to establish the filing requirement for Form 1042. Use CC BNCHG to make the change.

    FORM 1042
    Tax Class Doc. Code MFT Code BOD WPD FYM FRC
    1 25 12 No No Yes 0 - Not required to be filed
    1 - Return required to be filed
    8 - Account Inactive
    Incompatible Filing Requirements: ......................None

Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return

  1. This return is filed to report the income, deductions, and gains and losses from the operation of a Real Estate Mortgage Investment Conduit (REMIC). In addition, the form is filed by the REMIC to report and pay tax on net income from prohibited transactions, net income from foreclosure property, and contributions after the startup day. This return is filed under a separate EIN than the owner's primary EIN.

  2. When researching for an EIN, a new EIN must be assigned if the account found has a Form 1041, Form 1065, Form 1120, etc., filing requirement code. A partnership, corporation, trust, etc., cannot file a REMIC return with their partnership, corporation, etc., EIN. A new EIN must be assigned.

  3. Any entity that elects to be treated as a REMIC for its first tax year and meets the requirements of IRC 860D(a) must file Form 1066.

  4. If a REMIC EIN is located and it does not contain the acronym "REMIC" , add the acronym "REMIC" to the end of the primary name line.

  5. For Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return, name control the first four characters of the REMIC name.

    • Striped Tree Mortgage Pass-Through Certificate Series REMIC

    • Daisy Asset Investors TR 1 REMIC

    • Rose TR 1, Series A REMIC

  6. This return is generally filed by March 15th. However, if a "final" Form 1066 is being filed, the form is due by the 15th day of the 3rd month following the date the REMIC ceased to exist. All taxpayers filing this return must have a calendar year tax year. See Figure 3.13.2–31.

    Figure 3.13.2-31

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Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts (OSPC Only)

  1. Form 3520 will be forwarded to Entity for research of a valid TIN for Item 1b of Form 3520.

  2. If the "Individual" box is checked in Item B, Entity will research for an SSN. Use CC INOLE'T' to determine if SSN has already been established on the BMF. If the SSN is on the 'V' tape, it is considered valid. An SSN* on the 'W' tape is considered invalid.

  3. If an SSN cannot be found, assign an IRSN with CC TMSSN, then establish the IRSN on the 'W' tape of the BMF. CC INOLE'S' will provide all of the information from the SSN needed to establish the SSN on the BMF. Always assign the IRSN to the individual’s/beneficiary’s name.

  4. Access CC ENMOD with the SSN followed by a 'V' (or 'W'). Overlay ENMOD with ENREQ to receive BNCHG. Complete the following fields of CC BNCHG to establish the SSN on the BMF:

    • Enter "000" in the TC>field.

    • The NEW-NAME-CTRL> field will be completed with the taxpayer's name control.

    • Enter the taxpayer's name and address in the appropriate fields. Include a comma behind the state abbreviation.

    • The MFT> field will contain "68" .

    • Enter "PER F3520 FOR (TAX PERIOD)" in the REMARKS> field.

  5. If the box for Partnership, Corporation, Trust or Executor is marked in Item B, the taxpayer will use an EIN in line 1b. If line 1b is blank, research for an EIN. If unable to locate a valid EIN, use CC ESIGN to assign an EIN, with NIC D and send 147C letter - paragraphs P, s.

  6. An EIN must be entered on line 2b. If EIN listed on 2b is invalid or 2b is blank, then follow procedures below:

    If... And... Then...
    A) The first, second, or third box under Check all applicable boxes: is checked, Line 2b is blank or EIN is invalid, Research for an EIN. If unable to locate a valid EIN, use CC ESIGN to assign an EIN. Use prefix "98" with NIC D, Always assign to individual’s/beneficiary’s name with trust descriptors following.
    B) The fourth box is checked under Check all applicable boxes: Line 2b is blank or EIN is invalid, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. A separate extension of time to file Form 3520 is not needed. An extension for the taxpayer's annual return covers Form 3520.

    Form 3520
    Tax Class Doc. Code MFT Code BOD WPD FY FRC
    3 83 68 No No Yes 1 - Return required to be filed
    Incompatible Filing Requirement: .......................None

Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner (OSPC Only)

  1. Form 3520-A will be forwarded to Entity for research of an EIN.

  2. If the correct EIN is present on Line 1b of Form 3520-A, Entity will update the account with a 3520-A FRC.

  3. If an EIN is found, send Letter 147C (paragraphs P and s) to both the Foreign Trust on line 1a and the US owner shown on page 3, items 6a through 6g, informing them of their EIN.

  4. If an EIN cannot be found, use CC ESIGN to assign an EIN with prefix "98" using NIC A and Return Identity Code (RIC) 42. CC CMODE to Philadelphia will be used to assign an EIN with prefix 98. Always assign to the trust’s name with trust descriptors following. Enter the U.S. owner’s name on the sort name line with ‘Owner’ following the name. If multiple owners are listed, the first owner will be entered on IDRS. If the owner’s name is not entered, research page 3 Item 6a. Ensure the first four letters of the last name are the name control. After assigning an EIN, input a TC 016, PDC 1 to add the 3520-A FRC. Send additional Letter 147C (paragraphs P and s) to the US owner listed on page 3, items 6a through 6g, informing them of the new EIN assigned.

  5. The following terms and acronyms are commonly seen in the processing of Form 3520-A. The acronyms will be used to reduce keystrokes.

    • CIBC - Canadian Imperial Bank of Commerce.

    • FDCO - Fidecomiso (Spanish word for ‘trust’).

    • RESP - Registered Education Savings Plan.

    • TFSA - Tax Free Savings Account.

    • RBC - Royal Bank of Canada.

    • SIPP - Self Invested Personal Pension.

  6. If a valid EIN is present in line 3b, add 3520-A FRC. Entity will also perfect the name/name control on Master File. Often these taxpayers have had their EIN assigned to the trust descriptors, not the taxpayer’s name. Ensure the EIN is researchable post assignment.
    For example, if Tax Free Savings Account 123456 is entered, 1234 will be the name control.

  7. If EIN is not present, research for a valid EIN and edit to line. Ensure 3520-A FRC is present. If EIN is not present and not found, enter ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ without adding the FRC. If an SSN is present, take no action.

  8. If a valid EIN is present in line 4b, add 3520-A FRC. Entity will also perfect the name/name control on Master File. Often these taxpayers have had their EIN assigned to the trust descriptors, not the taxpayer’s name. Ensure the EIN is researchable post assignment.

  9. If EIN is not present, research for a valid EIN and edit to line. Ensure 3520-A FRC is present. If EIN is not present and not found, enter ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ without adding the FRC. If an SSN is present, take no action.

    Form 3520-A
    Tax Class Doc. Code MFT Code BOD WPD FY FRC
    3 82 42 No No Yes 1 - Return required to be filed
    Incompatible Filing Requirement: ....................... None
  10. Form 7004 is used to request an extension of time to file for the taxpayer's annual return. Form 3520-A "rides" with the annual return.

  11. If an unnumbered Form 3520-A is received with a statement the Mexican Land Trust arrangement (MLT) owns a single piece of property or is not liable per Revenue Ruling 2013-14, pull the return from processing and destroy per destruction/burn box procedures. Input TC 591-020 on the tax period of the return.

Form CT-1, Employer's Annual Railroad Retirement Tax Return

  1. This return is filed by a railroad employer. See Figure 3.13.2–32.

  2. Form CT-1 is processed only in the Ogden Submission Processing Center.

  3. This return is filed annually and is due by February 28th.

  4. All employers filing this return are on a calendar year end.

  5. There is no Form 940 filing requirement for these filers. See the Instructions to Form CT-1 for specifics.

  6. See IRM 3.11.13, Returns and Document Analysis - Employment Tax Returns, for more information on Form CT–1 filers.

    Figure 3.13.2-32

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    Please click here for the text description of the image.

Form 8752, Required Payment or Refund Under IRC 7519

  1. This return is filed by partnerships or Subchapter S corporations that filed and received approval of Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, and their election is still in effect for the tax year in question.

  2. The return must be filed by May 15th of the year following any tax year in which the election is effective. Personal Service Corporations that have made an IRC Section 444 election will not file Form 8752. If the legal due date falls on a Saturday, Sunday, or Legal holiday, the document is considered to be timely if it is postmarked by the first workday thereafter.
    For example, S-election is effective 7-1-2023, FYM 09: Form 8752 is due May 15, 2024.

  3. Taxpayers can submit correspondence requesting an extension of time to file Form 8752. These requests must go to the Director or District Director for approval. Partnerships and S corporations are required to file Form 8752 the first year of their IRC Section 444 election even if their deferred income is under $500. See IRC 7519(a) . The taxpayer is not required to make a payment, but they must file a zero Form 8752.

  4. When a taxpayer is required to file a Form 8752, the initial return must be filed for the first tax year the Form 8716 is effective.

    • If an existing C corporation with an FYM of 10 made an S-election effective Nov. 1, 2023, and received approval on Form 8716 to use FYM 10, Form 8752 is required to be filed for November and December of 2023 and is due May 15, 2024. The initial Form 8752 will post to tax period ending 202312, MFT 15.

    • If a new corporation electing S status elects to have FYM 09 (Sept. 30th), the Form 8752 is due to be filed for the first year the IRC Section 444 is in effect. If the TC 090 is effective Oct. 1, 2023, with FYM 09 (and TC 055 is for FYM 09), the Form 8752 is due May 15, 2024. The Form 8752 will be applied to the tax year ending Dec. 31, 2023 (202312 MFT 15).

  5. Error Resolution (ERS) may send Forms 8752 to BMF Entity so Entity can determine the deferral period of the IRC Section 444 election. Once determined and annotated, return Form 8752 to ERS.

Form 8875, Taxable REIT Subsidiaries (OSPC)

  1. Form 8875 is used by an eligible corporation (other than a REIT) and a REIT to jointly elect to treat the corporation as a taxable REIT subsidiary (TRS) under IRC 856(l). The election can be made for tax years beginning after December 31, 2000. The election does not require IRS consent. The election can be made at any time during the tax year. However, the effective date cannot be more than:

    1. Two months and 15 days prior to the date of filing the election; or

    2. Twelve months after the date of filing the election.

  2. Forms 8875 must be signed by an officer of the taxable REIT subsidiary and by an officer of the electing REIT. If either signature is missing, return Form 8875 to the taxable REIT subsidiary requesting the missing signature(s). Letter 143C may be used with the following open paragraphs:

    • Your Form 8875 does not have the signature of the officer of the taxable REIT subsidiary. Please have the appropriate officer sign the attached Form 8875 and return it to our office.

    • Your Form 8875 does not have the signature of the officer of the electing REIT. Please have the appropriate officer sign the attached Form 8875 and return it to our office.

    • Your Form 8875 does not have the signatures of the officer of the taxable REIT subsidiary or the officer of the electing REIT. Please have the appropriate officers sign the attached Form 8875 and return it to our office.

  3. If Form 8875, Part I or Part II are incomplete, research IDRS for the missing information. If IDRS does not reveal the needed information, return the incomplete Form 8875 to the taxable REIT subsidiary. Below is suggested language for the letter to the taxpayer:

    • The EIN of the taxable REIT subsidiary is missing. Please complete the attached Form 8875 and return it to our office.

    • The EIN of the electing REIT is missing. Please complete the attached Form 8875 and return it to our office.

  4. If a Form 8875 is received with an attachment showing a list of taxable REIT subsidiaries, correspond with the taxpayer for additional information as follows:

    1. Inform the taxpayer that a separate Form 8875 must be submitted for each Taxable REIT Subsidiary (TRS) and that all portions of Form 8875 must be complete.

    2. Inform the taxpayer that each Form 8875 must be signed by persons authorized to sign the tax returns of the TRS and the electing REIT. The Form 8875 must contain the signatures of an officer of the taxable REIT subsidiary and an officer of the electing REIT.

    3. If Form 8875 is returned unsigned, return the Form 8875 to the taxpayer with a letter of explanation.

  5. On the EIN of the taxable REIT subsidiary, input a fact of filing (TC 971) on CC ENMOD with CC FRM77 using Action Code 360 with the following components:

    MFT>00
    TX-PRD>000000
    NM-CTRL>Name Control of REIT - Item 1 of Form 8875.
    TC>971
    TRANS-DT>MMDDYYYY (Current Date)
    SECONDARY-DT>Item 11 of Form 8875.
    TC971/151-CD>360
    XREF-TIN>EIN of electing REIT - Item 6 of Form 8875.
    XREF-NM-CTRL Name Control of electing REIT - Item 5 of Form 8875.
    REMARKS>Form 8875

  6. If words such as Protective Election, Automatic Election, Amended, etc. are present, research CC ENMOD for a TC 971 AC 360. If posted, do not process Form 8875, file per local procedures. If a TC 971 AC 360 is not posted, continue processing Form 8875.

  7. Taxpayer inquiries regarding Form 8875 will be routed to Accounts Management.

  8. If it appears that information/correspondence related to Form 8875 was detached from Form 8875 and routed to Entity, research CC ENMOD with the taxable REIT subsidiary's EIN for TC 971 AC 360. If not present, input per (5) above.

  9. If "Revocation" is indicated on Form 8875, input TC 972 AC 360. Enter "T/P revoked Form 8875" in the Remarks field.

Disposition of Form 8875
  1. Forms 8875 are held in Entity for one year and are sent to the Lenexa Federal Records Center (FRC) biannually in January and July.

  2. Forms are filed in Entity in numerical order and must be checked for the following:

    • Original Form 8875 with TE stamp

    • Photocopy of Form 8875

  3. Coordination must be made with Records Specialist in PGLD before routing to the Lenexa FRC.

  4. In January, original Forms 8875 received from January to June in the prior year are sent to the FRC.

  5. In July, original Forms 8875 received from July to December of the prior year are sent to the FRC.

  6. Once original Forms 8875 are shipped, all photocopies can be destroyed.

Miscellaneous Forms

  1. Substitute for Return (SFR) cases (Form 940 and Form 941) - State Audit leads processed in the Collection Function require the establishment of an EIN if not present.

    • Perform all necessary research to determine if an EIN was previously assigned.

    • If an EIN is found, notate the EIN on the SFR and return it to the Collection Function.

    • If an EIN is not found, assign an EIN via CC ESIGN with NIC D. Do not assign any filing requirements.

  2. Schedule H (Form 1040 or Form 1041). Schedule H replaced Form 942. This schedule is filed to report household employee Social Security, Medicare and FUTA tax payments. This schedule may be routed to Entity attached to Form 1040, Form 1041 or may be a loose schedule from Document Perfection or AM/Adjustments. When schedule is received in Entity, the following actions will be taken:

    1. Perform the preliminary research to ensure that the taxpayer does not have an EIN.

    2. If an EIN is located, edit it on the EIN block of Schedule H and return to the originating function.

    3. If no EIN is located, assign an EIN using CC ESIGN, NIC A, Return ID ZZ and the tax period of the return involved.

  3. Form 1040-NR, U.S. Non-resident Alien Income Tax Return, that lists something other than an individual’s name will be forwarded to Entity from Code & Edit (or Accounting) for assignment of EIN’s with the prefix of 98.

    1. IDRS CC CMODE will be used with the definer PH to access the international Master File at Austin Service Center.

    2. Master File Indicator "‘O’" will be used with Location code "98." NIC D will be used to stop notices to the taxpayer.

    3. Upon completion of the EIN assignment and audit trail, the document will be returned to the originator (Code & Edit or Accounting).

  4. Form 1120-IC-DISC, Interest Charge Domestic International Sales Corporation Return, without EINs may be forwarded to Entity from Code and Edit. Perform all preliminary research to ensure the taxpayer does not have an EIN.

    1. If an EIN is located, enter it on the return and forward to the Document Perfection Operation/Code & Edit Department.

    2. If an EIN is not located, assign one using CC ESIGN, MFI "O" , (alpha).

  5. Form 1725, Routing Slip, is utilized by many customers, specifically Compliance Revenue Agents and Officers, to notify Entity that a FRC change is needed on an EIN that has been examined. These requests will be honored if legible and valid. If the request is not valid, (for example an LLC asking to have FRC for an 1120 added to account) return the request to the originator explaining why you cannot honor their request.

  6. Form 2363, Master File Entity Change. This document is used to request an Entity change by IRS personnel that do not have access to IDRS. These are worked under OFP 391-10001 and have their own descriptor. Entity TEs will ensure the Form 2363 is complete, specifically the "Prepared By" box, then evaluate the request and update the Master File if the request is valid. If the request is incomplete, return to the requestor for additional information.

    • Forms 2363 will reflect the taxpayer's name, name control and TIN on the FROM side of Form 2363. The taxpayer's XREF TIN will be in the TO side of Form 2363. Across the body of Form 2363 (in FIRST NAME LINE and SECOND NAME LINE fields) the words ADD XREF TIN will be handwritten.

    • Forms 2363 will be submitted by Examination Agents to update Filing Requirement Codes for entities under examination.

    • Field agents will submit Forms 2363 when FRCs need updated, specifically the Form 941/Form 944 relationship. Since April 1st is the deadline each year for a taxpayer to switch from a Form 941 filer to a Form 944 filer and vice versa, any Forms 2363 received that indicate the taxpayer will be changing from one of the two forms in the next calendar year will be held until the end of the year. The Control Team will establish a file in which the Forms 2363 will be held. The file will be purged and processed during dead cycles. If you receive a request from a Field Agent to correct the FRC after the deadline, please refer to your P & A analyst for determination.


    Once the action on the account is taken, please respond to the requestor that the action has been taken.

  7. Form 4219, Statement of Liability of Lender, Surety, or other Person for Withholding Taxes. This form will be received from RCO when an EIN needs to be assigned/found. Perform all necessary research to determine if an EIN exists before assigning a new one. NIC D will be used to suppress generation of a CP 57X. Send Letter 147C notifying taxpayer of EIN assignment and request completion of Form SS-4.

  8. Form 4442, Inquiry Referral

    If... Then....
    A) Form 4442, Inquiry Referral is received,
    • The case must be completed within 20 days of the date stamped by the fax machine.

    • Process the taxpayer inquiry, Section B according to your IRM procedures.

    • Complete Section C, Response/Final Resolution in blue or black ink according to the actions taken.

    • Track and keep an inventory of the work.

    B) A fax number is present, Fax the Form 4442 back to the originating office.

    Note:

    If the issue is an EIN consolidation, retain the Form 4442 as part of your consolidation case. It is not necessary to return Form 4442 to originator.

    C) Form 4442 is received by Entity and the inquiry is not an Entity related issue, This is considered an erroneous referral. Send the Form 4442 to your campus transshipping coordinator. The coordinator will alert the originating transshipping site of their error. The case must be processed in the receiving site to avoid delay. If the referral is received from a call site or Taxpayer Assistance Center (TAC), please refer the case to the Form 4442 Erroneous Referral Coordinator at the particular site. Please see Form 4442 Erroneous Referral Coordinators.
    D) Form 4442 will be received from AM asking Entity to establish an SSN on the V/W tape for MFT 17 (Form 8288) or MFT 68 (Form 3520), Entity TEs will input TC 000 to establish the SSN on the V/W tape as requested. Enter an audit trail on Form 4442 and route to originator.

    If a Form 4442 is received in BMF Entity and there is an open BMF Entity unpostable on CC UPTIN, expeditiously forward the 4442 to BMF Entity Unpostables.

  9. Copies of Form 4876-A, Election to be Treated as an Interest Charge DISC, will be forwarded to KCSPC Entity from Code and Edit for processing.

    • If the EIN on document belongs to a Subchapter S corporation (TC 090 posted), input TC 096, effective for the date entered in Part I, Item E of Form 4876-A. Edit complete audit trail on Form 4876-A and associate a copy with posted TC 090 DLN.

    • If EIN on copy of document is valid, remove the 1120-01 FRC.

    • If EIN on copy of document is not valid, research for valid EIN. If found, edit on document and remove 1120-01 FRC.

    • If valid EIN cannot be located, assign one on the "O" tape via CC ESIGN without an 1120-01 FRC. Use NIC D. Send Letter 147C instructing taxpayer to complete and return Form SS-4. Edit the EIN on the copy of Form 4876-A.

    Process the copy of Form 4876-A by removing the Form 1120 Filing Requirement. Input a TC 016 into CC BNCHG and 00 out the Form 1120 Filing Requirement to keep the taxpayer's account from being delinquent. After processing the copy of Form 4876-A, it will be destroyed as secure trash in the Entity Control team after Quality Review.

  10. Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. This form may be routed to BMF Entity for an EIN to be assigned. However, if this form is being filed, the taxpayer was in business the year of the return, therefore, should have an EIN. Be sure to research the name entered on the fourth line of the return as this is the liable entity. If this line is blank:

    • ESIGN an EIN on the "O" tape.

    • Assign to the name on the fourth line of Form 8027. It is labeled: Employer’s name (name as shown on Form 941). If the fourth line is blank, ESIGN to the name on the first line, Name of establishment.

    • Use NIC D.

    • Send Letter 147C instructing taxpayer to complete and return Form SS-4.

    • Edit the EIN on Form 8027 and complete your audit trail.


    This return is filed by the owner of the establishment; therefore, it is possible for one EIN to file multiple Forms 8027.

  11. Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business—These forms will be sent directly to the Detroit Computing Center. No action is to be taken in Entity.

  12. Form 8329, Lender's Information Return for Mortgage Credit Certificates (MCCs), and
    Form 8330, Issuer's Quarterly Information Return for Mortgage Credit Certificates (MCCs).

    • Generally, these forms are non-remit. However, payment may be received for penalty payment. If so, apply to the 20-2325, Miscellaneous Forfeiture Receipts account.

    • These forms have a signature area but are not required to be signed.

    • The address on Master File will never be updated from these forms unless a Form 8822-B is attached.

    • Never update the name on Master File from one of these forms. It is possible several entities share an EIN for bond issuing purposes. Edit the name control from Master File onto the form.

    • It is also possible that two entities will file the form together. If so, circle out the second name and EIN entered. Name control the form per Master File.

    • If an EIN is not on form and you are unable to locate an EIN through IDRS research, contact the organization by phone for their EIN.

    • If an EIN must be assigned, use NIC D and send a Letter 147C requesting the organization to complete and return Form SS-4.

    • These forms are maintained in Files by TIN and calendar year.

  13. Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships. Do not process Form 8865: route to Accounts Management-Correspondence.

  14. Form 8873, Extraterritorial Income Exclusion. Do not process Form 8873 as a stand-alone form. Form 8873 will be attached to a partnership, corporation or some other primary return. If Form 8873 is submitted as a stand-alone form, return the form back to the taxpayer, so it can be associated and filed with a primary return.

  15. Form 8941, Credit for Small Employer Health Insurance Premiums. This form was first processed in year 2011. These documents may be received in Entity for EIN research and/or Name (control) verification. Perform necessary research, perfect document, and enter audit trail in lower left corner of document.

  16. Form 9956, Request for Temporary IRSN (Internal Revenue Service Number). This form is routed to Entity by other areas of the IRS when an IRSN is needed. See IRM 3.13.5, Individual Master File (IMF) Account Numbers.

  17. Form 12575, Notice of Fiduciary Relationship-Illinois Land Trust, was obsoleted in 2000. No area of the IRS uses this form, therefore, if received in BMF Entity, the document will be destroyed as classified waste per local procedures.

"Funny Box" Returns

  1. Compliance has asked Submission Processing (SP) for assistance in identifying returns that are out of the ordinary, or "funny" . Entity TEs that work returns will assist both Examination (Exam) and Criminal Investigation (CI) in identifying questionable returns. A "Funny Box" has been created and placed in a central location for the deposit of questionable returns. At the end of each business day, the control team will retrieve the documents that have been placed in the Funny Box and route to CI - Frivolous Return Program:
    Internal Revenue Service
    Mail Stop 4450
    1973 Rulon White Blvd
    Ogden, UT 84404

  2. Identifying returns for Exam promotes the highest degree of voluntary compliance. Exam will provide support and assist SP during processing.

  3. CI investigates potential criminal violations of the Internal Revenue Code (IRC) and related financial crimes. Criminal violations of the IRC are defined as willful and deliberate attempts to evade or defeat the income tax.

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

  5. Unnumbered returns can be placed directly in the Funny Box.

  6. See below for specific attributes of a return:

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

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

Re-Processing Previously Cancelled Returns

  1. There will be occasions where a previously cancelled DLN needs to be processed as originally filed. This usually occurs when relief has been granted on a late filed Subchapter S-election.

  2. If the cancelled return was a paper return:

    • Request the DLN from Files (The DLN is usually available on CC TRDBV).

    • When received, underline the original IRS received date.

    • Line through the original DLN.

    • Across the top of the return enter: Process as original.

    • Enter new, legible audit trail.

    • If ERS Action Code 347 is present on the return, circle it out.

  3. If the cancelled return was e-filed:

    • Pull DLN from EUP and print return.

    • Edit out the phrases referring to copy and Do Not Process.

    • In the signature field enter: Do Not Correspond for Signature.

    • Across the top of the return enter: Process as Original.

    • Enter new, legible audit trail.

    .

  4. Prepare Form 3893, Re-Entry Document Control, and route to Batching in Receipt and Control Operation.

    • Mark BMF in the File Type box.

    • Complete box 2 with the original DLN.

    • Enter one in box 4.

    • Complete either box 5 or box 6.

    • Enter 150 in box 7.

    • Enter the IRS received date in box 8.

    • Enter the MFT of the return in box 9.

    • In box 11, mark the center box labeled: N – Reinput of Unpostable Document.

    • In box 12 enter the last digit of the DLN.

    • Check box 13 if needed.

    • Box 14 must contain a description of the return, for example: "Form 1120-S DLN previously cancelled - late election relief granted - return is now valid for posting" .

    • In box 15, check the box labeled: Non-Remittance.

    • In box 16, enter the 12th and 13th numbers of the DLN.

    • Box 17 must contain your entire 10-digit IDRS number, full phone number, and current date.

    • Box 18 will be marked as follows: If the return was a reject when the DLN was cancelled, mark the box labeled: SC reject. If the return was an unpostable when the DLN was cancelled, mark the box labeled Other and write "Unpostable" .

    • In box 19, mark the box labeled: Corrected to original return, or another applicable box.

International Returns and Documents

  1. This subsection provides instructions for working unprocessable international returns.

  2. All international returns are processed at Ogden Submission Processing Center.

  3. If it is necessary to assign an EIN to an international taxpayer, the prefix 98 will be used along with CC CMODE to the Philadelphia Campus (28). The prefix 66 will be used for taxpayers residing in Puerto Rico, Guam, Virgin Islands, American Samoa, Northern Mariana Islands and Palau. CC CMODE to the Philadelphia Campus (28) is necessary.

Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

  1. This return is filed to report a foreign corporation's income, deductions, credits and tax to the United States.

  2. This return must be filed by any foreign corporation that:

    1. Has income from any U.S. source subject to U.S. withholding tax that was not paid to the U.S. government and reported on a U.S. withholding tax return by a withholding agent.

    2. Is engaged in a trade or business in the U.S.

    3. Has overpaid income tax that it wants refunded.

    4. Is no longer engaged in a U.S. trade or business but has deferred income from that US trade or business or has gain from the disposition of property that ceased to be used in a U.S. trade or business within the last 10 years.

    5. Or concludes that its U.S. activities do not give rise to gross income which is effectively connected with the conduct of a trade or business within the U.S. but wishes to preserve its right to claim deductions and credits attributable to such gross income by filing a protective return. See Treasury Regulation 1.882-4(a)(3)(vi).

    6. Claims the benefits of an income tax treaty with the U.S.

  3. An agent in the U.S. must file the return if the foreign corporation has no office or place of business in the U.S.

  4. For foreign corporations with no office or place of business in the U.S., this return is due no later than the 15th day of the 6th month after the end of the tax year.

  5. For foreign corporations with an office or place of business in the U.S., this return is due no later than the 15th day of the 4th month after the end of the tax year. However, a foreign corporation with a fiscal year ending June 30 must file by the 15th of the third month after the end of its tax year.

Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation

  1. This return is filed to report the income, deductions, credits, and tax of a foreign sales corporation (FSC) or small FSC..

  2. This return is filed by corporations that have elected (by filing Form 8279) to be taxed as a FSC or small FSC. Form 8279 is no longer valid. If Form 8279 is filed, stamp on the Form 8279 "DENIED" and return to taxpayer and explain to the taxpayer that this form is no longer a valid form.

  3. Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, for which no EIN is located will be researched and processed as follows:

    1. If... And... Then...
      A)The EIN is not on the BMF,   Research to ensure the EIN is for that taxpayer and establish on the BMF via CC BNCHG with a TC 060.
      B)The EIN is on the BMF, IDRS does not have a TC 060 posted, 1. Input a TC 060.
      2. Transcribe the EIN from the letter to the Form 1120-FSC and route the Form 1120-FSC for processing.
      3. If applicable, annotate the Form 1120-FSC "Form 8279 received, approved and input."

  4. If a taxpayer terminates its existing FSC election, input TC 065 - Notification of Revocation received.

  5. If an existing FSC is terminated, input TC 061 - Revocation of a FSC or Small FSC election.

U.S. Real Property Holding Corporation under Foreign Investment Real Property Tax Act (FIRPTA) for Corporation Filing Election Under IRC 897(i)

  1. Remittances may be received when an electing foreign corporation requests to be treated as a domestic corporation for the purpose of FIRPTA as prescribed by Treas. Reg. 1.897–3(c).

  2. These remittances may be routed to Entity for the assignment of an EIN.

  3. EINs will be assigned to these entities on the BMF, MFI "O" .

  4. Use NIC D when assigning the EIN to this type of entity.

Captive Insurance Elections

  1. Remittances may be received when an electing foreign insurance corporation requests to be treated as a domestic corporation as prescribed by IRC 953(d).

  2. All information needed to establish the entity will be on the first page of the election.

  3. Establish the account with either a Form 1120–PC or 1120-L filing requirement. This will be indicated on the election.

  4. Use NIC A when assigning the EIN to this type of entity.

Form 8804, Annual Return for Partnership Withholding Tax (Section 1446)

  1. This return is filed to report the total amount of effectively connected taxable income allocable to foreign partners and liability under IRC 1446(a) for the partnership tax year.

  2. This return is also a transmittal form for Form 8805.

  3. Refer to Form 8805 for processing procedures.

Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax

  1. This form is filed to show the amount of effectively connected taxable income and tax payments allocated to the foreign partner for the partnership's tax year.

  2. A separate Form 8805 must be filed for each foreign partner. Process as follows:

    If... Then...
    A) The partner is a foreign corporation, Establish on the BMF with a Form 1120–FRC of 06.
    B) The partner is a foreign partnership, Establish on the BMF with a Form 1065 FRC of 1.
    C) The partner is a foreign trust or estate, Establish on the BMF with a Form 1041 FRC of 1.

Form 8813, Partnership Withholding Tax Payment (IRC 1446)

  1. This form is filed to make payment to the Internal Revenue Service of withholding tax under IRC 1446(a).

  2. Establish on the BMF with MFI "O" .

Form 8288, U.S. Withholding Tax Return for Disposition by Foreign Persons of U.S. Real Property Interests (OSPC Only)

  1. The following forms are used for reporting and paying the taxes due to the acquisition of U.S. real property interests and interests in partnerships engaged in the conduct of a U.S. trade or business that are non-publicly traded:

    • Form 8288, U.S. Withholding Tax Return for Certain Dispositions by Foreign Persons.

    • Form 8288-A, Statement of Withholding on Certain Dispositions by Foreign Persons.

    • Form 8288-B, Application for Withholding Certificate for Dispositions by Foreign Persons of U.S. Real Property Interests.

    • Form 8288-C, Statement of Withholding Under Section 1446(f)(4) on Dispositions by Foreign Persons of Partnership Interests.

  2. The transferees (aka buyer or withholding agent) use the forms to report and pay any tax withheld on the acquisition of U.S. real property interests and interests in partnerships engaged in the conduct of a U.S. trade or business that are non-publicly traded. These forms are used by individuals, corporations, partnerships, estates, and trusts to withhold tax from a foreign seller on distributions and other transactions involving U.S. real property interests and interests in partnerships engaged in the conduct of a U.S. trade or business that are publicly traded.

  3. The transferee and entity subject to withholding must have a TIN (SSN/EIN/ITIN) or an IRSN to post the payments and to process the income tax withholding returns.

  4. When the Form 8288/Form 8288-A/Form 8288-B/Form 8288-C is received take the following actions:

    1. Verify the U.S. TIN entered is correct. If not correct, verify it does not belong to another taxpayer.

    2. Establish the account on the BMF using CC BNCHG (TC 000 on "V" tape) under MFT 17.

    Note:

    There is not a Filing Requirement Code (FRC) for the Form 8288 family.

  5. BMF Entity will verify and perfect the name and U.S. TIN in the following locations for the specified form:

    • Form 8288 - Item 1 (Name and SSN) and Item 3 (Date of Transfer).

    • Form 8288-A - Withholding Agent's Name, Item 1 (Date of Transfer), and Withholding Agent's U.S. TIN.

    • Form 8288-B - Item 4a (Name of Withholding Agent), Item 4b (Identification Number of Withholding Agent), and Item 6a (Date of Transfer).

    • Form 8288-C - Withholding Agent’s (Partnership’s) Name and Withholding Agent’s (Partnership’s) U.S. EIN

  6. If the SSN is missing, research using the name of the buyer/transferee. If found, establish the SSN on BMF.

  7. If you cannot locate the missing SSN by research, assign an IRSN (9NN-29-NNNN or 9NN-04-NNNN) with CC TMSSN. The IRSN is an invalid number and will be established on the BMF (MFT 17) with a Definer "W" at the end of the IRSN.

  8. After the account has been established, send the Form 8288/Form 8288-A/Form 8288-B/Form 8288-C back to the originator.

  9. The words Kabushiki Kaisha or Gaisha are the Japanese translation of the words "stock company" or "corporation" Therefore, if these words appear in a name line, they will be moved to the end of the name where the word "corporation" would normally appear.
    For example:
    Form 8288 shows the name as "Kabushiki Kaisha Green Door" . When name controlling and/or assigning an EIN, the name will be formatted "Green Door Kabushiki Kaisha" .

  10. When Accounts Management/International team (IMF or BMF) requests an IRSN be assigned/established, then merged into another SSN’V’, this request will be expedited.

Correspondence Received

  1. Timeliness guidelines for acknowledging and processing taxpayer correspondence are outlined in IRM 3.30.123, Processing Timeliness Cycles, Criteria and Critical Dates. Correspondence can be defined as follows:

    1. All written communications from a taxpayer whether solicited or unsolicited.

    2. Written communication in response to IRS requests for information or data.

    3. Written communication which requests information, including that which may accompany tax returns.

    4. Written communication, including annotated notice responses, that provide additional information or dispute a notice.

    5. A statement that explains if the taxpayer needs to contact the IRS, they will return a copy of the letter with their name, telephone number and the best time to call.

    6. Correspondence pertaining to assignments of EINs, name changes, address changes (that involve other entity changes), differences in filing requirements, terminations, and mergers will be forwarded to Entity Control Team for necessary action.

    7. Correspondence received from the taxpayer or other area of the campus where the action requested has already been taken will be destroyed per local procedures.

  2. If a Form 8821 or Form 2848 is attached to correspondence and it indicates any form other than the immediate issue, make a photocopy and attach the photocopy to your case. Route the original Form 8821/Form 2848 to the CAF team.

    Reminder:

    The representative will receive a copy of any correspondence that is part of the case resolution if the box in line 2 is checked on the Form 8821/Form 2848. This is achieved by inserting the MFT and Tax Period when initiating CC LPAGE and a Y in the CAF> field of CC LPAGE. This allows the information present on the CAF to be shared with CC LPAGE.

  3. Before taking action on any piece of correspondence you must verify the taxpayer’s EIN via CCs INOLE, ENMOD and BMFOL. If the EIN is not present, CCs NAMEE and NAMEB will be utilized. If unable to locate the taxpayer’s correct EIN, return the correspondence with a Letter 6800sce, marking the appropriate box(s), or Correspondex Letter 45C.

  4. When a taxpayer replies to an IRS notice or letter and requests an Entity change, it is not necessary that the taxpayer sign the request. This is IRS initiated clarification.

  5. If a mis-routed taxpayer reply to IRS correspondence is discovered in a batch of documents, and/or contains a non-Entity issue, do not process the reply. Route the reply or issue to the appropriate functional area. If correspondence, route based on the IDRS number located in the "In reply refer to:" area of the IRS generated letter. If the IDRS number is from Accounts Management, route to Image Control Team (ICT) for scanning to CII. If, however, there is an Entity issue, it will be addressed and an interim letter sent.

  6. Correspondence received from taxpayers requesting an action must be answered and the following statement or similar reference must also be included in the reply: "This is in reply to your correspondence of (date)" and explain the action taken, even if the action was exactly what the taxpayer requested.
    EXCEPTION: Correspondence requesting an address change will only be acknowledged if there is a direct demand from the taxpayer for confirmation. This direction applies to Mod IEINs also.

    Note:

    If the taxpayer's correspondence is not dated, use the postmark date. If that date is unknown, use the date three days prior to the earliest IRS received date.

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

  8. If the words Federal Deposit Insurance Corporation (FDIC) are on any of the name lines, do not change the name or address on Master File. Truly, you should never receive this type of correspondence.

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

  10. When corresponding with the taxpayer, use the appropriate letter that accurately addresses the taxpayer's situation and always use the selective paragraphs that are available in the correspondex letters before using open paragraphs. For example, do not use a Letter 385C to inform the taxpayer of their valid EIN or denied/rejected election. Do not use a Letter 147C on any election issues. Before sending the letter, ensure the same letter has not been sent to the taxpayer within the last 45 days. If so, do not send the same message to the taxpayer. If the taxpayer specifically requests a Letter 147C, send a Letter 147C.

  11. When using CC LETER, you must determine the taxpayer's correct address. If the address on the correspondence matches Master File (mailing or location), use that address. If the address on the correspondence does not match Master File use the address on Master File and direct the taxpayer to complete and return Form 8822–B (or Form 8822 for Estate and Gift taxpayers).

  12. When using CC LETER, do not select the paragraph codes for blank forms/documents. Every Correspondex letter has a hard-coded paragraph instructing taxpayers to call 800-TAX-FORM if forms/documents are needed. If a blank form must be sent to the taxpayer, print and enclose as an attachment to the Correspondex letter.

  13. If correspondence is received from an unauthorized representative (no POA attached or on CC CFINK), a letter must be sent to the taxpayer explaining the action we cannot take. The letter must begin with: "This is in response to the inquiry of (date), from (representative). We have no record that you authorized (representative) to act for you in this matter. Please notify (representative) that we have replied directly to you."

  14. If the correspondence cannot be resolved within thirty days, an interim letter (2645C) will be sent explaining the reason and when final action can be expected. The interim reply will include the appropriate toll-free number.

  15. Signatures will be accepted prima facie, see IRM 3.13.2.2(10), BMF Entity - General. If the signature is below a perjury statement, the validity of the signature will not be questioned.

  16. A CP 576A is issued when an EIN is assigned from a return or document. CP 576A requests a Form SS-4 from the taxpayer. When the SS-4 is received, input additional data from the SS-4 to IDRS, use CC ESIGN modifier U to update the NIC. Dispose of the Form SS-4 per IRM 21.7.13.3.2.11, Assigning Employer Identification Numbers-Disposition of Form SS-4 and Supporting Documentation.

  17. If correspondence is received concerning a trust filing under IRC 645, refer to IRM 3.13.2.29, Form 8855, Election To Treat a Qualified Revocable Trust as Part of an Estate.

  18. When you correspond, examine the case completely so that all the conditions can be included in the same correspondence. If additional information is needed, the second correspondence must include a paragraph of apology for any inconvenience.

  19. If the taxpayer's inquiry can be resolved over the phone and the taxpayer does not want a written response, annotate the facts of the phone conversation on the taxpayer's correspondence.
    Add the following history item to IDRS with CC ACTON:
    CALL2TP
    RE: ENTITY

  20. Use the chart below when providing a phone number for the taxpayer to contact various Business Operating Divisions (BODs) within IRS:

    T/P - BOD Number
    IMF w/ W&I Indicator 800-829-0922 or 800-829-1040
    IMF w/ SBSE Indicator 800-829-8374
    International IMF and BMF 1-267-941-1000
    BMF 800-829-0115 or 800-829-4933
    NMF (Non-Master File) 833-972-8965
    Estate and Gift 866-699-4083
    Excise 866-699-4096
    TE/GE 877-829-5500
    PPS (Practitioner Priority Service) 866-860-4259
    TAS
    Teletype (TTY)/Telephone Device for the Deaf (TDD)
    877-777-4778
    800-829-4059

Request for EINs

  1. Follow the procedures below, when the correspondence reveals that the taxpayer will file a return and the correspondence is received 30 days or more prior to the due date of that return:

    If... And... Then...
    A) The correspondence reveals that the taxpayer will file a return, The correspondence is received within 30 days of the due date of the return, Perform all necessary research to determine if an EIN was previously assigned.
    B) No EIN is located, The taxpayer states they need to make a payment, Assign an EIN. Use the CC ESIGN procedures located in IRM 21.7.13, Assigning Employer Identification Numbers.
    C) The EIN is changed from the one the taxpayer entered,   Issue Letter 147C as a non-suspense letter to the address on Master File.
    D) Sufficient information is not available to assign an EIN with the proper filing requirements, fiscal year month, etc.,   Acknowledge the taxpayer's correspondence with Letter 45C. Instruct the taxpayer to secure Form SS–4 from for completion. All Correspondex letters contain a hard-coded paragraph directing taxpayers to IRS.gov for forms.

  2. If the taxpayer states "CCR PLEASE EXPEDITE" or "GOVERNMENT CONTRACTOR" on their correspondence or envelope, this case must be given expeditious treatment.

  3. An EIN is only assigned from correspondence when the required return due date is within 30 days or the correspondence accompanies a payment.

  4. If correspondence is received from a representative of a pension trust (or multiple pension trusts) requesting assignment of an EIN to comply with the withholding requirement of the Tax Equity and Fiscal Responsibility Act (TEFRA), see IRM 3.13.2.10.2(4), Form SS-4 Issues.

Form SS-4 Issues

  1. If correspondence is received stating Form SS-4 has not been processed, process as follows:

    If... And... Then...
    A) Previously assigned EIN is located on IDRS, Your research does not match the address on the correspondence, Send Letter 147C to address on correspondence requesting previous addresses and business names the T/P may have used.
    B) No previously assigned EIN was located,   Send Letter 45C to the taxpayer including instructions on obtaining a Form SS-4.

  2. If a CP 57X or Letter 147C was sent within the last 45 days, do not send another Letter 147C unless the taxpayer’s name or address has changed.

  3. Instructions for processing requests for copies of Forms SS-4 by taxpayers can be found in IRM 21.7.13.3.2.12, Form SS-4 Retention (Past and Present) and Requests for Copies of Form SS-4. These requests will be routed to AM:EIN Function quoting IRM 21.7.13.3.2.12.

  4. If an EIN request is received for a TEFRA account, work as follows:

    If... And... Then...
    A) The correspondence is not clear as to the taxpayer's intent, The representative is acting as payer for multiple plans, Correspond to inform the representative that the withholding may be reported on their Form 945 filed under their previously assigned EIN unless they want an individual EIN assigned specifically for use in reporting withholding for multiple pension trusts under their control.
    B) Individual EINs are requested,   Inform taxpayer that individual Forms SS–4 must be submitted for each pension trust. Refer taxpayer to Modernized Internet EIN application at www.irs.gov.
    C) An EIN is requested solely for use in reporting for TEFRA, An EIN is not located with all available research, Advise the taxpayer to fax their request to the AM/EIN function (855-215-1627) or apply via Mod IEIN (internet EIN application).
    D) The taxpayer has changed their EIN, The EIN is on the BMF, 1. Issue Letter 147C as a non-suspense letter to the address on Master File.
    2. Do not issue Letter 147C if the taxpayer transposes 3 or less characters of the EIN or the taxpayer fails to include the EIN.
    E) Employees are indicated, The EIN is on the BMF, 1. Update the account to reflect a Form 945 FRC of 01.
    2. Supply the taxpayer with the telephone number and website to request forms, 800-TAX-FORM (800-829-3676) and www.irs.gov/formspubs.
    F) An EIN is located on another MF, The EIN is on the BMF, Notify the taxpayer of the previously assigned EIN (Letter 147C).

  5. Field Agents often require an EIN to open assessments for non-compliant taxpayers. The agents will complete Form SS-4 and sign the document. The Forms SS-4 will be faxed to BMF Entity, Attention: Lead TE: Kansas City 855-887-7734 or Ogden 855-214-7520. Assign the EIN completing as many fields of CC ESIGN as possible. Item 10 will always be Other. Notice Indicator Code "D" will be used.

Retaining Previously Assigned EIN

  1. If a taxpayer indicates they had a previous EIN and are requesting retention of the number, research NAMEE/NAMEB/INOLE/FINDE'D' to determine if the taxpayer can retain the previous EIN.

    If... And... Then...
    A) Research indicates the EIN is Valid, 1) The EIN is not on the BMF, Input a TC 000 with the taxpayer's current information.
    A) Research indicates the EIN is Valid, 2) The EIN is on the BMF, Update the account with the current information and notify the taxpayer appropriately.
    B) Research cannot verify the EIN is valid, 1) It can be determined the EIN is a 6, 7, 8 million number assigned from a group/block of EINs, Input a TC 000 and notify the taxpayer appropriately.
    B) Research cannot verify the EIN is valid, 2) The EIN is within a valid range and the taxpayer has proof of applying through a state program, Input a TC 000 and notify the taxpayer appropriately.
    B) Research cannot verify the EIN is valid, 3) The taxpayer provides a copy of a CP notice, Input a TC 000 with the current information and notify the taxpayer appropriately.
    B) Research cannot verify the EIN is valid, 4) The taxpayer does not have verification of the EIN, Correspond requesting verification or a completed Form SS-4.

  2. If the taxpayer is notified of the assignment of a new EIN, but insists on retaining the "old" EIN,

    1. Research other EINs thoroughly. Research all information utilizing IDRS.

    2. Determine from the information if the taxpayer can retain the "old" EIN. Elevate for coordination with the Office of Chief Counsel as necessary.

    3. Update the account if needed.

    4. Consolidate the accounts (TC 011) if necessary.

    5. A CP 209 is generated notifying the taxpayer of the actions taken. CP 209 can be suppressed on the TC 011 input with Paragraph Select Code "Z."

    6. If the taxpayer cannot retain the EIN requested, correspond informing the taxpayer the reasons the new EIN must be used.

Modernized Internet EIN (Mod IEIN)

  1. EINs assigned over the Internet begin with prefixes 20, 26, 27, 45, 46, 47, 81, 82, 83, 84, 85, 86, 87, 88, 92 or 93. Prefixes 45, 46, and 47 were determined to be the least used of all established prefixes. Therefore, Master File currently contains EINs with these prefixes. Pay close attention to the TC 000 date to determine correct origin of EINs beginning with 45, 46, or 47, as these prefixes were briefly used prior to the creation of Mod IEIN in 2007.

  2. Always research CCs NAMEE, NAMEB, ENMOD, FINDE and INOLE to verify the EIN.

  3. If taxpayer's correspondence or Form SS-4 indicates the EIN was assigned over the Internet; process as follows:

    If... And... Then...
    A) Mod IEIN is not on Master File, 1) Form SS-4 is received, Fax Form SS-4 to Cincinnati AM EIN department at 855-641-6935. Hold documents for one week monitoring IDRS for EIN assignment. If not assigned after seven workings days, ESIGN new EIN with appropriate Notice Information Code.
    A) Mod IEIN is not on Master File, 2) BMF return or form is received, ESIGN new EIN on the BMF with appropriate Notice Information Code.
    A) Mod IEIN is not on Master File, 3) Correspondence and/or calls are received, Refer taxpayer to the Accounts Management EIN function at fax number 855-641-6935.
    B) EIN is on Master File and belongs to a different taxpayer, 1) Form SS-4 is received, Fax the form to:
    AM:EIN in Cincinnati - 855-641-6935
    B) EIN is on Master File and belongs to a different taxpayer, 2) BMF return or form is received, Assign a new EIN with NIC A.
    B) EIN is on Master File and belongs to a different taxpayer, 3) Correspondence is received, Correspond with the taxpayer telling them the EIN does not belong to them and they must apply for a new EIN.

Correspondence Referred from Accounts Management/EIN Function

  1. Accounts Management/EIN Function has limited tax examining skills; therefore, EIN Function will transfer correspondence and/or /taxpayer inquiries to BMF Entity for processing, specifically EINs with account activity.

  2. See IRM 21.7.13.7.2.2, Cases Forwarded to Submission Processing BMF Entity, for categories transferred to Entity.

  3. Below are the specific categories:

    • Form 8716 and Form 1128 Issues/FYM Changes with Account Activity. See IRM 3.13.2.22, Form 8716 - Election to Have a Tax Year Other Than a Required Tax Year, for Form 8716 processing instructions. See IRM 3.13.2.21, Form 1128 - Application to Adopt, Change or Retain a Tax Year, for processing Form 1128 issues.

    • Consolidations Regardless of Account Activity. See IRM 3.13.2.14, Multiple EINs.

    • Closing an Account Regardless of Account Activity. See IRM 3.13.2.10.7, Going Out of Business, No Longer Liable, or Not Liable.

    • Estates claiming No Liability for Form 1041. See IRM 3.13.2.10.12, Relief from Filing.

    • Change in Corporate Officers, General Partners, or Members. See IRM 3.13.2.10.9, Change in Ownership or Change in Officers, Partners, or Members.

    • EIN Verification for Backup Withholding; see IRM 3.13.2.10.14, Verification of EINs for TIN Penalty/Backup Withholding Purposes/EINs No Longer on Master File.

    • Changes to BOD and/or Wages Paid Date (WPD). See IRM 3.13.2.10.10, Change in Fiscal Year Month (FYM), Business Operational Date (BOD), Wages Paid Date (WPD).

    • Changes to Primary Name Line. See IRM 3.13.2.10.24, Changes to Primary Name Line.

  4. The Affordable Care Act (ACA) requires international insurance companies providing health care coverage to Americans living abroad to report this coverage to the IRS. The foreign entities will file Forms 1095, which require an EIN. This does not equate to a domestic BMF filing requirement code. At the onset of the program, several foreign entities received EINs with BMF filing requirement codes, mostly Form 1065. BMF Entity will receive correspondence from the taxpayer or AM. These accounts will be updated with TCs 591 CC 020 on tax periods that relate to the WPD and BOD to show the taxpayer is not liable.

Requests for ITINs

  1. Non-Resident Aliens may have a reason to file a federal tax return. To do this, they will need an Individual Taxpayer Identification Number (ITIN).

  2. Form W-7 is filed to request an ITIN from the Austin Submission Processing Center. Taxpayers may obtain Form W-7 via:

    • IRS walk in Centers worldwide,

    • 800-TAX-FORM (800-829-3676),

    • www.irs.gov, and

    • acceptance agents (may charge taxpayer a fee).

  3. Completed Forms W-7 will be mailed to:
    Internal Revenue Service
    ITIN Operation
    PO Box 149342
    Austin, TX 78714-9342

  4. For packages being sent overnight express, the following address will be used:
    Internal Revenue Service
    AUSPC-ITIN Team
    3651 S. Interregional Hwy 35
    ATTN: ITIN Clerical Manager
    Austin, TX 78741

  5. ITIN ranges are 9NN-70-NNNN through 9NN-88-NNNN,
    9NN-90-NNNN through 9NN-92-NNNN,
    9NN-94-NNNN through 9NN-99-NNNN, and
    9NN-50-NNNN through 9NN-65-NNNN.

Going Out of Business, No Longer Liable, or Not Liable

  1. Any correspondence which indicates the taxpayer will be going out of business or is no longer liable for tax returns will be thoroughly researched. For Form 1120-F procedures, see IRM 3.13.2.10.7(7). For all other 1120 forms, follow the procedures below:

    If... Then...
    A) There are no FRCs or they have been closed out,
    • Update DT-WG-L-PD> and DT-BUS-CLD> fields of CC BNCHG. See IRM 2.4.9, IDRS Terminal Input - Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

    • If the taxpayer does not supply the specific date, use the date of the correspondence when entering DT-WG-L-PD> and DT-BUS-CLD> fields.

    • Acknowledge taxpayer's letter with Letter 696C.

    B) It can be determined that the taxpayer has filed their final returns,

    Example:

    Final return indicated on document, letter from taxpayer stating final return has been filed, etc. (These are not all inclusive.)

    • Close the filing requirements using TC 591 CC 020.

    • Update DT-WG-L-PD> and DT-BUS-CLD> fields of CC BNCHG. See IRM 2.4.9, IDRS Terminal Input, Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

    • If the taxpayer does not supply the specific date, use the date of the correspondence when entering DT-WG-L-PD> and DT-BUS-CLD> fields.

    • Send Letter 696C.

    C) It can be determined that the taxpayer has not filed their final returns (including Form 2290 filers),
    • Send Letter 696C to request a final return.

    • Inform the taxpayer to mark "final" on the return.

    D) The taxpayer states the business never opened, conducted any business, or made a mistake in applying for an EIN,
    • Input TC 020 to remove the EIN from Master File.

      Reminder:

      TCs 020 must be approved by manager or lead TE.

    • Send a Letter 696C to the address on Master File to notify the taxpayer their account has been removed from our records. Disregard any address differences.

      Note:

      If there are any tax modules present, the TC 020 will not "complete" and all the FRCs will become "8."

  2. If correspondence is received stating the taxpayer is not liable for Form 3520-A because the Mexican Land Trust (MLT) owns a single piece of property or is not liable per Revenue Ruling 2013-14, input TC 591-020 on the last tax period.

  3. Correspondence may be received from the taxpayer stating any one of several issues. Verify the initiator is the taxpayer/owner of the EIN. See below:

    If... Then...
    A) The taxpayer indicates no liability for the period indicated, Input TC 590 CC 020 for the tax period specified. Send Letter 696C.
    B) The taxpayer indicates possible future liability, Input TC 590 CC 020 up to the present quarter or the date that may be indicated. Send appropriate letter.
    C) The taxpayer indicates no employees and never will have employees, Input TC 591 CC 020 for all employment tax filing requirements. TC 591 will be input on the first period of no liability. Send Letter 696C.
    D) The taxpayer indicates they are not a Form 941 filer but a Form 943 filer, Establish a Form 943 FRC and input TC 591 CC 020 on first quarter Form 941. Make sure they have a Form 940 FRC (repeat this transaction whenever a new employment tax FRC is added). Send appropriate letter informing taxpayer we have taken the necessary action.
    E) The original tax returns are attached, Input TC 599 CC 024 on all returns secured, edit CCC F on the return and route the returns for processing.
    F) Copies of the tax returns are attached, Input TC 594 CC 022 on appropriate modules.
    G) The taxpayer indicates they have 2 EINs, Research both numbers. Consolidate if appropriate. CP 209 will generate to the taxpayer.
    H) The taxpayer stated they filed an extension, Send Letter 696C asking taxpayer to indicate FINAL on their final return.
    I) The taxpayer attaches a return and shows no liability and the document is not signed, Input TC 590 CC 020 and destroy the document.
    J) The taxpayer attaches a return and shows no liability and the document is signed, Edit CCC "F" on the return and route to Code & Edit for processing.
    K) The taxpayer changes their name and/or address (and acts in accordance with Rev. Proc. 2010-16 for an address change), and the correspondence is signed, Make the name and address changes.
    L) The taxpayer receives a notice for current liability and sends the notice back stating the return is not yet due, Take no action.
    M) The taxpayer states they are an exempt organization that doesn't have to file Form 1023 and has no FRCs, Send Letter 2645C to taxpayer. Forward correspondence to EO Entity at Ogden Submission Processing Center.
    N) A consolidated return is filed and an original return is filed with the notice under the wrong EIN,
    • Check to see if TC 150 posted. If so, send the return to BMF AM/Adjustments.

    • If a copy of the return is submitted and a TC 150 posted, send the copy to BMF AM/Adjustments.

    O) A consolidated return is filed and an original return is filed with the notice under the wrong EIN, If TC 150 is not posted, correct the EIN and send for processing. If a copy of the return is submitted and no TC 150 posted, route return for processing.
    P) The taxpayer does not write a message, simply returning the notice, Take no action.
    Q) The taxpayer states the business has discontinued,
    • Update DT-WG-L-PD> and DT-BUS-CLD> fields of CC BNCHG. See IRM 2.4.9, IDRS Terminal Input - Command Codes ENREQ, INCHG, IRCHG, BNCHG and BRCHG.

    • If the taxpayer does not supply the specific date, use the date of the correspondence when entering DT-WG-L-PD> and DT-BUS-CLD> fields.

    R) The taxpayer states they filed the return and it has been less than 10 weeks, Take no action.
    S) The taxpayer states they filed the return and it is more than 10 weeks, Contact the taxpayer. Tell them we have no record of their return and to send us a copy of what was submitted.
    T) There is an open TDI status, Send a copy of the correspondence to Service Center Compliance Operation.
    U) Taxpayer states an incorrect BOD or WPD was entered on Form SS-4,
    • Input TC 016 to update MF with correct date.

    • Input TCs 590/591 to satisfy appropriate modules, if present, and stop erroneous notices.

    • Send appropriate letter informing taxpayer we have taken the necessary action.

    V) Any information on the EIN needs updated/revised/corrected, Input appropriate TCs to correct EIN as Entity maintains the integrity of the information on EINs.
    W) Taxpayer states they did not request EIN, Input TC 020 to remove EIN from Master File. Send Letter 696C.

  4. You must correspond with the taxpayer acknowledging the action taken. However, address changes do not require an acknowledgement letter unless the taxpayer specifically requests one.

  5. If a relationship between the initiator and the entity cannot be verified, send the case to the Fraud Detection Center via the "Funny Box" . Entity TEs can remove the Form 944 FRC in this situation.

  6. For partnership taxable years beginning after December 31, 2017, TEFRA is no longer in effect. Under repealed IRC 6231(a)(1)(B)(i), small partnerships were excepted from the TEFRA partnership provisions unless a valid election was made under IRC 6231(a)(1)(B)(ii). However, IRC 6231(a)(1)(B)(i) did not exempt those small partnerships from the requirement to file a Form 1065. If a taxpayer claims they have no obligation to file a Form 1065 and quotes IRC 6231(a)(1)(B)(i), respond to the taxpayer that IRC 6231 might except the taxpayer from the TEFRA partnership provisions for tax years beginning before January 1, 2018, but it has no effect on the taxpayer’s filing obligation.

    Note:

    A partnership considered to have met the reasonable cause test will not be subject to the penalty imposed by IRC 6698 for the failure to file a complete or timely partnership return. Rev. Proc. 84-35 sets forth criteria under which the Internal Revenue Service will agree that a small partnership meets the reasonable cause test of IRC 6698. See IRM 20.1.2.4.3.1, Rev. Proc. 84-35, for detailed procedures for applying Rev. Proc. 84-35.

  7. In 2016, Large Business & International (LB & I) division sent soft notices to all taxpayers reflecting a Form 1120-F FRC. The notices instructed the taxpayers to re-evaluate their filing requirement. BMF Entity is receiving taxpayer responses to this notice. LB & I asked SP to create a specific letter to use when responding to these taxpayer replies. Correspondex Letter 6098C was created for this purpose. Initiate the Letter 6098C to all taxpayers writing us regarding Form 1120-F FRC.

Resuming Business after Being Inactive or Change from Non-Employing to Employer

  1. If correspondence is received requesting an EIN be re-activated and the taxpayer failed to supply the EIN, research IDRS for EIN. If EIN is found, see (3) below. If EIN cannot be located, send Letter 45C requesting verification of EIN assignment and/or Form SS-4.

  2. If correspondence is received requesting an EIN be re-activated, research IDRS for another EIN. If second EIN is located, process as needed, see IRM 3.13.2.10, Correspondence Received, or IRM 3.13.2.14, Multiple EINs.

  3. If correspondence is received requesting an EIN be re-activated and IDRS research does not locate an additional EIN, see below:

    If... And.. Then...
    A) EIN is inactive due to posting of TC 020, EIN is valid, Input TC 012, activating the FRCs requested by the taxpayer. Send Letter 147C if T/P sent correspondence.
    B) EIN is on Master File, 1) Reflects the FRCs requested by the taxpayer, Input TCs 590-020 as needed. Update address as indicated by taxpayer. Send Letter 147C.
    B) EIN is on Master File, 2) Does not reflect the FRCs requested by the taxpayer, Update IDRS to reflect the FRCs and address indicated by the taxpayer. Send Letter 147C.

  4. Entity TEs can add a Form 944 FRC in this situation.

Change in Ownership or Change in Officers, Partners, or Members

  1. Determine from the appropriate research if the new entity has an EIN.

    If... And... Then...
    Correspondence is received, It indicates a change in organization and no new EIN has been assigned, Send Letter 45C requesting Form SS-4.
    Correspondence is received, It indicates purchased an existing business and no new EIN has been assigned, Send Letter 45C requesting Form SS-4.
    Correspondence is received, It indicates purchased existing corporate charter, Do not assign a new EIN. Send Letter 147C.
    Correspondence is received, It indicates a merger, See IRM 3.13.2.10.11, Corporation Merger and Exempt Organization Mergers.
    Correspondence is received, It indicates a new owner/Responsible Party See IRM 3.13.2.10.20, Updating “XREF-TIN-ITIN” Field - Responsible Party.
  2. If no EIN for the new entity is found, send Letter 45C. If the notification is a return or is associated with a return, assign an EIN using CC ESIGN. If it can be determined from the response, the EIN of the previous owner was used when filing the return, route a copy of the response to BMF AM/Adjustments so the mis-applied returns can be moved to the correct EIN.

  3. If it can be determined that the previous entity filed a return for the final period, but it posted without the condition code "F" , input a TC 591 CC 020. If the final return has not posted, send Letter 696C to previous owner requesting their final return(s).

  4. Use the following table to determine if the taxpayer needs a new EIN. An EIN will not be assigned to correspondence unless you are processing a return, payment, or completed Form SS-4.

    If... And... Then...
    A) Entity does not already have an EIN, but is required to show an EIN on any return, payment, or an SS-4 is present, Return's due date has passed, Assign EIN with NIC D. Send Letter 147C requesting a completed Form SS-4.
    B)Taxpayer Started a New Business, 1) T/P is a corporation or sole proprietor, and opened an additional DBA, Send Letter 147C explaining the same EIN will be used for all businesses operated under one corporation or sole proprietorship.
    B)Taxpayer Started a New Business, 2) T/P is a partnership or LLC, Send Letter 147C asking if new DBA is part of original partnership/LLC agreement. Action taken will be determined by taxpayer's response.
    C)Taxpayer hired (or will hire) employees, including household employees, Does not already have an EIN, Send Letter 147C instructing taxpayer to review Publication 15, (Circular E), Employer’s Tax Guide and if necessary, apply for an EIN.
    D) Taxpayer opened a bank account for his business, Needs an EIN for banking purposes only, Send Letter 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    E) Taxpayer changed type of organization, Either the legal character of the organization or its ownership changed (for example, a sole proprietorship incorporated or forms a partnership),
    • Research "old" entity. If FRCs present, send Letter 696C asking for Final return(s).

    • Research for EIN of new entity based on taxpayer's letter.

    • If found, send Letter 147C to new entity.

    • If new EIN is not found, send Letter 45C instructing taxpayer to apply for new EIN via Form SS-4 or www.irs.gov.

    F) Taxpayer purchased an existing business but not the corporate charter, Does not already have an EIN, Send Letter 45C instructing taxpayer to apply for EIN via Form SS-4 or www.irs.gov. Also tell taxpayer he can not use the EIN of the previous owner.
    G) Taxpayer is a qualified intermediary, withholding foreign partnership or withholding foreign trust, Needs an EIN when it has a filing requirement, is claiming tax-treaty benefits (may not be required for actively traded securities or if foreign person provides a foreign TIN), or has its own withholding responsibilities, Entities applying to be a Qualified Intermediary (QI) need a QI-EIN even if they already have an EIN. Send Letter 45C explaining this requirement. See IRM 21.7.13.3.2.7.3, Business Tax Returns and Non-Master File Accounts - Qualified Intermediaries - Requirement for a Second EIN.
    H) Taxpayer created a Trust, The trust is other than a grantor trust or an IRA trust, Send Letter 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    I) Taxpayer created a pension plan as a plan administrator. A plan administrator is the person or group of persons specified as the administrator by the instrument under which the plan is operated, Needs an EIN for reporting purposes, Send Letter 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    J) Taxpayer is administering an estate, Needs an EIN to report estate Income on Form 1041, Send Letter 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    K) Taxpayer is a withholding agent for taxes on non-wage income paid to an alien (for example, individual, corporation, or partnership, etc.), Needs an EIN for reporting purposes, Send Letter 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    L) Taxpayer is a state, local, or health and welfare agency, Serves as a tax reporting agent for public assistance recipients under Rev. Proc. 80–4, 1980–1 C.B. 581. State and local agencies may need an EIN for other reasons, for example, hired employees, Send Letter 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    M) Taxpayer is a domestic single member LLC; it generally does not need an EIN and will not file a Form SS-4. The LLC will use the name and SSN/EIN of its owner for all tax purposes unless the LLC has employment tax and certain excise tax obligations. For wages paid after January 1, 2009, the single member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes. A single-member LLC is also required to use its name and EIN to register for excise tax activities on Form 637; pay and report excise taxes reported on Forms 720, 730, 2290, and 11-C; and claim any refunds, credits and payments on Form 8849. Needs an EIN to file employment or excise tax returns, Send Letter 45C instructing taxpayer to apply for an EIN via Form SS-4 or www.irs.gov.
    N) Taxpayer is an S corporation, TC 090 (approved Form 2553) is posted, An existing corporation that is electing or revoking S corporation status will use its previously assigned EIN. If a new corporation, an EIN will be assigned from Form 2553. Research for EIN. If CP 575 series, CP 576A or CP 261 has generated within the last six cycles, take no action.

  5. If correspondence or notification from the taxpayer is received informing us of new officers/partners/members, ensure this is not a change in ownership. Add the names, title, and SSN via CC BRCHG. Acknowledge the taxpayer's correspondence including the phrase: we have updated our records accordingly.

  6. Correspondence will be received notifying us of new LLC members. LLCs can change owners without acquiring a new EIN if the LLC remains structurally unchanged. Update IDRS accordingly. If needed, update the XREF-TIN-ITIN-IND> and XREF-TIN-ITIN> fields on the Entity module. See IRM 3.13.2.10.20, Updating “XREF-TIN-ITIN” Field - Responsible Party.

  7. Correspondence will be received asking for a member’s name to be removed from the Entity module. If the member is not the same as the XREF-TIN-ITIN>, delete the member’s name. If the member is the same as the XREF-TIN-ITIN>, send Letter 147C to the taxpayer stating:
    We cannot remove your name from the account until you provide updated information, including the name and identification number (SSN or ITIN), for the Responsible Party for [name of entity] on Form 8822-B. For more information, see Form 8822-B and its instructions.

Change in Fiscal Year Month (FYM), Business Operational Date (BOD), Wages Paid Date (WPD)

  1. Correspondence may be received from the taxpayer indicating his Fiscal Year Month (FYM) was erroneously changed to December during Form SS–4 processing.

    • All trusts must use a December FYM except IRC 501(a) trusts, IRC 4947(a)(1) charitable trusts and grantor trusts.

    • Generally, Partnerships, Personal Service Corporations, and Subchapter S corporations must use a required tax year. A required tax year is a tax year that is required under the Internal Revenue Code and Income Tax Regulations. A partnership must conform its tax year to its partners’ tax year. S corporations and PSCs must use the calendar year. The entity does not have to use the required tax year if it receives IRS approval to use another permitted tax year or makes an election under Section 444 of the Internal Revenue Code. If the taxpayer indicates he would like to make an IRC Section 444 election, ensure they qualify before referring their Form 8716.


    If the taxpayer is not required to use a specific tax year ending, input a TC 016 to update their FYM. Correspond with the taxpayer stating our records have been updated to show the requested FYM.
    If the taxpayer is required to use a particular FYM, refer them to Form 1128.
    If the taxpayer has already filed an annual return, refer them to Form 1128.

    Note:

    In September 2015, a Generalized IDRS Interface (GII) tool was created to process a mass amount of address changes. A MeF programming error on the second quarter Forms 941 caused an error in the mailing address fields. In addition to updating the EIN’s mailing address, the tool erroneously updated the EIN’s FYM to 12. Therefore, the IRS may see an increased number of “incorrect FYM issues.” If research of the account shows a TC 014 posted between 9/17/2015 and 9/21/2015 in Ogden AND the FYM was updated to 12, take the necessary actions to correct the account. This includes TCs 016 to return correct/historical FYM and TCs 590/591 on tax modules, if needed.

  2. If correspondence or notification is received from a taxpayer and the taxpayer is informing us of a change in BOD:

    • If the "new" BOD is later than that on Master File (CCs ENMOD and BMFOL'E'), input TCs 590-020 on all necessary MFTs and modules, if present. Input TC 016 to update the BOD.

    • If the "new" BOD is earlier than the date on Master File, input TC 016 to update BOD.

  3. When correspondence from the taxpayer is received notifying us of a change in their WPD:

    • If the "new" WPD is later than that on Master File (CCs ENMOD and BMFOL'E'), input TCs 590-020 on all intervening MFTs and modules, if present. Input TC 016 to update the WPD.

    • If the "new" WPD is earlier than that on Master File, input TC 016 to update WPD.

Corporation, LLC, and Exempt Organization Mergers

  1. Mergers involve two different entities.

  2. Determine from appropriate research if entity data for the surviving corporation is correct. If not, correct the entity as required.

  3. Input Letter 3008C, Corporate Return Filing Requirements. In the outgoing letter to the surviving corporation, there must be a statement to notify the merged corporation to file its "Final Return" if correspondence doesn't indicate taxpayer's intent to do so.

  4. Closeout the merged corporations' filing requirements (TC 591 CC 020), if specific dates are given and FINAL returns have posted.

  5. Associate the correspondence with the last return filed by the dissolving corporation. Please see IRM 3.13.2.2.10 , Associating Documents to an E-Filed Return, if TC 150 is an E-Filed return.

  6. DO NOT INPUT TC 011.

Relief from Filing

  1. If a corporation has received a charter but has never perfected its organization and has transacted no business and has no income from any source, it may, upon presentation of the facts to the IRS, be relieved from the necessity of making a return. In the absence of a proper showing of such facts, a corporation will be required to make a return. See Treasury Regulation Section 1.6012-2(a)(2). Process "Relief from Filing" requests as follows:

    1. Research the entity using IDRS.

    2. If research shows the entity has been established on the BMF, input TC 591 CC 020 on the tax period of the BOD. Enter "Section 1.6012" in the remarks field.

    3. Send Letter 696C to the taxpayer to inform the taxpayer that they are not required to file a return under IRC 1.6012.

  2. An executor/administrator of an estate is required to file Form 1041 if the estate has gross income of $600 or more in a tax year. Correspondence or Forms 1041 are regularly received indicating "No Liability" . If received, input TC 591-020 for the tax period(s) involved. If an estate shows more than $600 of income and the author requests relief from filing, ensure an active 1041-1 FRC is on the EIN.

  3. Grantor trusts are not required to file Form 1041. This type of trust does not become liable for Form 1041 until the trust no longer qualifies as a grantor trust. When correspondence or Forms 1041 are received indicating "Grantor Trust-Not Liable" , input TC 591-020 for the tax period(s) involved.

Verification of EIN

  1. Non-Service organizations may request verification of EINs by submitting a list of names and EINs. You can only provide verification of their EIN listing with proper authorization. Authorization is a signed and dated Form 8821/Form 2848 or an Oral Disclosure Consent. See IRM 21.1.3, Accounts Management and Compliance Services Operations - Operational Guidelines Overview, for additional procedures on an Oral Disclosure Consent.

  2. Individuals may request verification of EINs. Most of these requests will be in the form of a letter with the taxpayer’s name and EIN. If the individual is a third party, you can only provide verification of their EIN with proper authorization. Authorization is a signed and dated Form 8821/Form 2848 or an Oral Disclosure Consent. See IRM 21.1.3, Operational Guidelines Overview, for additional procedures on an Oral Disclosure Consent. If the taxpayer asks for a duplicate CP 575, send a Letter 147C explaining that the original notice of EIN assignment cannot be duplicated. Process requests as follows:

    1. Perform necessary research to verify the EIN(s).

    2. For organizations, indicate opposite each name on the list whether the number is valid or invalid.