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Part 3. Submission Processing

Chapter 13. Campus Document Services

Section 12. Exempt Organization Account Numbers (Cont. 5)

3.13.12  Exempt Organization Account Numbers (Cont. 5)

3.13.12.18 
Form 1128

3.13.12.18.9  (01-01-2009)
Necessary Conditions

  1. Examine the form for timeliness, eligibility and completeness.

3.13.12.18.9.1  (01-01-2009)
Timeliness

  1. The application must be filed on or before the 15th day of the 5th month following the ending of the short period indicated in Part 1, item 3.

3.13.12.18.9.2  (01-01-2009)
Eligibility

  1. Maintain the same exempt status for both the short period and the preceding year. Verify by research.

  2. The filing requirements must be 990–01, 990–02, 990–03, or 990–06; 990–01 and 990-T–1; 990–02 and 990-T–1; 990–03 and 990-T–1; 990–06 and 990-T–1.

  3. For FRC 990–03, attach a letter signed by the principle officer of the central organization and include the following:

    • A list of the name, EIN, mailing address and Zip code of each subordinate included in the request. If all subordinates are included, a statement to that effect is sufficient.

    • Information to verify the fact the subordinates are exempt on a group basis (including a copy of identification of its group exemption letter). A valid group exemption number (GEN) is acceptable.

    • A statement each subordinate has given written authorization to the control organization to include it in this application.

    • A statement each subordinate has given written certification to the central organization it is not disqualified under Section 8 of Revenue Procedure 78-10 from being included in this application. Organizations disqualified by this section would be Form 990-C/ 1120-C filers, Form 990-PF filers, and certain Form 990-T filers. The disqualified Form 990-T filers are those would not meet the special criteria on taxable income listed in Section 8.

3.13.12.18.9.3  (01-01-2009)
Completeness

  1. To be complete the application should be identified by "tax exempt organization" checked in the heading and contain the following:

    1. Signature of an official of the organization. If an agent is designated, a power of attorney must be attached. Forward the POA of the CAF unit only if other returns are indicated. Annotate the case file "POA to CAF" . Correspondence should be directed to the POA in accordance with the information on the POA form.

    2. All applicants must complete Parts I and II.

3.13.12.18.10  (01-01-2009)
Revenue Procedure 88–41

  1. This revenue procedure relates to estates and trusts.

  2. Generally, trust must use a calendar years, with the exception of trust exempt under 501(a) or trusts described in 4947(a)(1); i.e., Form 990/990-PF filers, not Form 5227 filers.

  3. Examine Form 1128 for the following information:

    1. Timeliness - The application must be filed on or before the 15th day of the 2nd month following the ending of the short period indicated in Part 1, item 3.

    2. Eligibility - The taxpayer must be requesting a change from a fiscal month year end to a calendar year.

    3. Completeness - Section A, Part III, must be completed, and the application must be signed. If an agent is designated, a Power of Attorney must be attached. Forward the POA to the CAF Unit only if other returns are indicated. Correspondence should be directed to the POA in accordance with the information on the POA form.

3.13.12.18.11  (01-01-2009)
Processing Accepted Form 1128

  1. If all of the required conditions are met, accept the application by doing the following:

    1. Stamp "Accepted" on all copies of the application.

    2. Using CC ENREQ/CC BRCHG, Doc. Code 63, input TC 053, the FYM and sequence number. Files will be associating the IDRS Transactions Record with Form 1128 by the sequence number. Each record should be annotated with the date of input, the employee IDRS number, and the sequence number. Remarks must begin with the alpha's SD to alert Files the IDRS transaction action record must be associated with a source document.

    3. Send FTDs via CC FTDRQ, when applicable.

  2. If the FYM is changed, transfer any credits to the new tax period for any TC 05X. Instructions can be found in IRM 2.4, IDRS Terminal Input, Credit Transfer.

  3. A researcher can request Form 1128 by the DLN of the TC 053.

3.13.12.18.12  (01-01-2009)
Processing Rejected Form 1128

  1. If one or more of the required conditions is not met, the application should not be accepted.

  2. Process rejected Forms 1128 as follows:

    1. Using CC ENREQ/CC BRCHG, Doc. Code 63, research to ensure it is the correct amount. Input TC 059 with the appropriate Paragraph Selection Code.

      Paragraph Selection Code Definition
      PSA Informs the organization they did not provide us with the Internal Revenue Ruling which supports their request to adopt, change, or retain a tax year.
      PSB Notifies the organization a partner or an authorized corporate officer must sign the Form 1128; if an agent is designated, a power of attorney must accompany the application.
      PSC Tells the organization their application was filed late.
      PSC Notifies the organization they failed to complete Part 1 of the Form 1128.

    2. Each record should be annotated with the date of input, the employee IDRS number, and the sequence number. The Remarks section must begin with the alpha's SD to alert Files the IDRS input record must be associated with a source document.

    3. Stamp the top of the Form 1128 "REJECTED" .

    4. Use the rejected Form 1128 and any other pertinent document; e.g., postmarked envelope as the source document(s) with TC 059. Send the source document folder Files.

3.13.12.18.13  (01-01-2009)
Processing Approved or Disapproved National Office Requests

  1. Process approved Form 1128 as follows:

    1. Update the FYM via CCs ENREQ/BRCHG, TC 053.

    2. Send FTDs via CC FTDRQI, as applicable.

  2. Process disapproved Form 1128 as follows:

    1. Associate the copy of the ruling letter with Form 1128.

    2. Reject Form 1128 with TC 059.

3.13.12.18.14  (01-01-2009)
Processing Form 8921

  1. Form 8921, Transaction Involving a Pool of Applicable Insurance Contracts, is filed to report information about structured transactions made by either an exempt organization or government entity.

  2. Form 8921 will post to the appropriate tax period with a TC 971 ac 371 and will be input using CCs REQ77/FRM77.

  3. The type of filers required to file a Form 8921 are:

    • Exempt organizations filing Form 990 (MFT 67)

    • Exempt organizations filing Form 990PF (MFT 44)

    • Government entities filing Form 941 (MFT 01)

    • Government entities filing Form 944 (MFT 14)

  4. The posting of a Form 8921 is part of a special study mandated by congress that will determine whether the exempt organization or government entity acquired direct or indirect interest from an applicable insurance contract after August 17, 2006 and on or before August 17, 2008.

  5. The tax period is determined by the Structured Transaction Date which is found on Line 1 of the Form 8921.

  6. Use the following table to determine the tax period for exempt organizations (MFTs 44 and 67):

    Tax Period MFT 44/67 Structured Transaction Date
    200608 8/17/2006 to 8/31/2006
    200609 9/1/2006 to 9/30/2006
    200610 10/1/2006 to 10/31/2006
    200611 11/1/2006 to 11/30/2006
    200612 12/1/2006 to 12/31/2006
    200701 1/1/2007 to 1/31/2007
    200702 2/1/2007 to 2/28/2007
    200703 3/1/2007 to 3/31/2007
    200704 4/1/2007 to 4/30/2007
    200705 5/1/2007 to 5/31/2007
    200706 6/1/2007 to 6/30/2007
    200707 7/1/2007 to 7/31/2007
    200708 8/17/2007 to 8/31/2007
    200709 9/1/2007 to 9/30/2007
    200710 10/1/2007 to 10/31/2007
    200711 11/1/2007 to 11/30/2007
    200712 12/1/2007 to 12/31/2007
    200801 1/1/2008 to 1/31/2008
    200802 2/1/2008 to 2/28/2008
    200803 3/1/2008 to 3/31/2008
    200804 4/1/2008 to 4/30/2008
    200805 5/1/2008 to 5/31/2008
    200806 6/1/2008 to 6/30/2008
    200807 7/1/2008 to 7/31/2008
    200808 8/1/2008 to 8/17/2008

  7. Use the following tables to determine the tax period for government entities (MFTs 01 and 14):

    Tax Period MFT 01 Structured Transaction Date
    200609 8/17/2006 to 9/30/2006
    200612 10/1/2006 to 12/31/2006
    200703 1/1/2007 to 3/31/2007
    200706 4/1/2007 to 6/30/2007
    200709 7/1/2007 to 9/30/2007
    200712 10/1/2007 to 12/31/2007
    200803 1/1/2008 to 3/31/2008
    200806 4/1/2008 to 6/30/2008
    200809 7/1/2008 to 8/17/2008

    Tax Period MFT 14 Structured Transaction Date
    200612 8/17/2006 to 12/31/2006
    200712 1/1/2007 to 12/31/2007
    200812 1/1/2008 to 8/17/2008

  8. If the Form 8921 does not contain an EIN, assign an EIN per procedures found in IRM 21.7.13.

  9. There can be multiple postings of a TC 971 ac 371 to a tax period.

  10. The TC 971 ac 371 can be reversed with a TC 972.

  11. To input a TC 971 ac 371, use the following procedures:

    • Access CC ENMOD.

    • Access CC REQ77 with the EIN NN-NNNNNNN on the first line, MFT NN and tax period YYYYMM on the second line and Name Control XXXX on the third line.

    • On the FRM77 screen, input TC>971.

    • Input TRANS-DT>MMDDYYYY.

    • Input SECONDARY-DT>MMDDYYYY (Structured Transaction Date).

    • Input TC 971/151-CD>371.

    • Input Remarks>SC#### Form 8921.

  12. To reverse a TC 971 ac 371 with a TC 972, use the following procedures:

    • Access CC ENMOD.

    • Access CC REQ77 with the EIN NN-NNNNNNN on the first line, MFT NN and tax period YYYYMM on the second line and Name Control XXXX on the third line.

    • On the FRM77 screen, input TC>972.

    • Input TRANS-DT>MMDDYYYY.

    • Input TC 971/151-CD>371.

    • Input Remarks.NSD reverse TC 971 ac 371.

  13. After the TC 971 is input, prepare a Source Doc. Folder. Label the folder with your IDRS number, date and program code. Put the Forms 8921 in the Source Doc. Folder and forward to SOI.

3.13.12.19  (01-01-2009)
Form 8886T

  1. Form 8886T, Disclosure by Tax Exempt Entity Regarding Prohibited Tax Shelter, is filed to disclose a prohibited tax shelter and the identity of any other party to the prohibited transaction.

  2. The Form 8886T will post to the appropriate tax period with a TC 971 ac 370 and input using CCs REQ77/FRM77.

  3. The type of filers which are required to file a Form 8886 T are:

    • Exempt organizations filing Form 990 (MFT 67)

    • Exempt organization filing Form 990-PF (MFT 44)

    • Government entities filing Form 941 (MFT 01)

    • Government entities filing Form 944 (MFT 14)

    • Employee plan entities filing Form 5330 (MFT 76)

  4. Use the following tax period by type of filer:

    1. If the normally file a Form 990 or Form 990-PF, the tax period will be YYYY12.

    2. If the normally is a government entity, the tax period will be YYYY06 for a Form 941 filer and YYYY12 for a Form 944 filer.

    3. If the organization is a Form 5330 filer, the tax period will be YYYY12.

  5. There can be multiple postings of a TC 971 ac 370 to a tax period.

  6. The TC 971 ac 370 can be reversed with a TC 972.

  7. To input a TC 971 ac 370, use the following procedures:

    • Access CC ENMOD.

    • Access CC REQ77 with the EIN NN-NNNNNNNon the first line, MFT NN and tax period YYYYMM on the second line, and Name Control XXXXon the third line.

    • On the FRM77 screen, input TC>971.

    • Input TRANS-DT>MMDDYYYY.

    • Input TC 971/151-CD>370.

    • Input Remarks>SC#### Form 8886T.

  8. To reverse a TC 971 ac 370 with a TC 972, use the following procedures:

    • Access CC ENMOD.

    • Access CC REQ77 with the EIN NN-NNNNNNN on the first line, MFT NN and tax period YYYYMM on the second line, and Name Control XXXXon the third line.

    • On the FRM77 screen, input TC>972.

    • Input TRANS-DT>MMDDYYYY.

    • Input TC 971/151-CD>370.

    • Input Remarks>NSD reverse TC 971 ac 370.

  9. After the TC 971 is input, prepare a Source Doc. Folder. Label the folder with your IDRS number, date, and program code. Put the Forms 8886T in the Source Doc. Folder and forward to SOI.

3.13.12.20  (01-01-2009)
Notices and Transcripts

  1. This sections gives processing instructions for the Master Files notices CPs CP 172, and CP 192.

3.13.12.20.1  (01-01-2009)
CP 172

  1. A CP 172 is a follow-up action on an entity established as an exempt organization.

  2. In every case where an entity is established with a Form 941/944 FRC of 01 and an Employment Code of W, a CP 172 is generated nine months after the EIN is issued. The CP 172 is sent to Entity Control for processing. The purpose of this notice is to allow Entity Control to verify the exempt status and, if necessary, correct the FUTA filing requirement and employment code.

  3. If the CP 172 is for the American Red Cross or the National Ski Patrol, exempt status as a 501(c)(3) organization was granted by an Act of Congress. Correct the Form 941 filing requirement, if necessary.

  4. If the CP 172 is for a church, or church-controlled organization, take no action on the account, except to ensure there is no Form 940 FRC.

    Exception:

    If the account has an EO Status of 71, update the Form 940 FRC to 1, if a Form 941/944 FRC is present.

  5. If the CP 172 is not for a church or religious organization, continue processing.

  6. Check EDS to determine if they have applied for an exemption:

    If Then
    They have applied under IRC 501(c)(3), 501(e), 501(f), 501(k), and the case is closed on EDS with Status Code 01 or 06:

    1. The Form 941/944 FRC of 01 and the Employment Code W are correct.

    2. Delete the 940 FR if present.

    3. Destroy the notice per local procedures.
    They have applied under 501(c)(3), 501(e), 501(f), 501(k) and the case is closed on EDS with a status code other than 01 or 06, or an application is not pending on EDS:

    1. Add a Form 940 FR of 1.

    2. Delete the Employment code of W.

    3. Research for a prior Form 940 liability.

    4. If no prior liability is indicated, destroy the notices per local procedures.

    5. If a prior liability is indicated, initiate a TDI by determining when the taxpayer became liable for filing Form 940 and inputting TC 474 via REQ77 for 3 cycles for each tax period.

      Exception:

      Do not input TC 474 unless the current cycle is more than 20 cycles after the tax period ending date, if the tax account for each specific period shows MF Status 02 or 03, and if a tax return has already been filed.

    6. If the 941/944 filing requirement code indicates an "03" or "51", check CC BMFOLI. If there is a money amount on the final Form 941/944, add the Form 940 filing requirement. If there is no money amount on the final Form 941/944, delete the Employment Code "W" and do not add either the Form 941 or Form 940 filing requirements.

    The IRC is 501(c)(3), 501(e), 501(f), 501(k), but the case is still open on EDS. Destroy the notice per local campus procedures.
    The EDS Status Code is 11,

    1. Update the EO Status Code on master file to 71 with a TC 016 Doc. Code 80, Definer Code B.

    2. Destroy the notice per local campus procedures.
    The IRC is other than 501(c)(3), 501(e), 501(f) or 501(k):

    1. Add a Form 940 FR of 1.

    2. Delete the Employment Code of W.

    3. Research for a prior Form 940 liability.

    4. If no prior liability is indicated, destroy the notice per local procedures.

    5. If prior liability is indicated, determine when the taxpayer became liable for filing Form 940. Input TC 474 via REQ77 for 3 cycles for each tax period unless the current cycle is more than 20 cycles after the tax period ending date, the tax account for each specific period shows MF Status of 02 or 03, or a tax return has already been filed.

    6. If money has posted to Form 940 and the organization is not liable, prepare a Form 3465 to request a manual refund for one or multiple tax periods and send to BMF Accounts.

    You find no record of the entity as an exempt organization after checking EDS and the BMF:

    1. Delete Employment W, add Form 940 FR of 1, and add Form 941 FR of 1 (if necessary) with CCs ENREQ/BNCHG.

    2. If no prior liability is indicated, destroy the notice per local procedures.

    3. If prior liability is indicated, determine when the taxpayer became liable for filing Form 940. Input TC 474 via REQ77 for 3 cycles for each tax period unless the current cycle is more than 20 cycles after the tax period ending date, the tax account for each specific period shows MF Status of 02 or 03, or a tax return has already been filed.

    A state or local government instrumentality receives an exemption under Section 501(c)(3) or the IRC:

    1. Do not assign FUTA taxes, for Employment Code T entities.

    2. Do not change the Employment Code to W or assign an Employment Code W to this entity. The Employment code must be G or T as applicable.

  7. When corresponding with the organization to tell them they are not required to file a Form 940 and/or if a refund is being issued, use the 3997C Letter.

    Caution:

    The IRS Received Date on the CP 172 is incorrect. Do not use this date in the 3997C Letter. Use the Received Date on CC TXMOD instead.

3.13.12.20.2  (01-01-2009)
CP 192

  1. The CP 192 notice is generated:

    • When a Form 941 return with FICA wages reported posts to a master file account and the entity reflects an Employment Code of G, or

    • When a Form 940 return reporting FUTA tax posts and the account has an Employment Code of F, W or T.

  2. Process FUTA filers with EC of F, W, C, or G as follows:

    1. Determine if the return posted to the correct entity. If not, forward the notice and the research information to Adjustments for disposition.

    2. Determine if the employment code on the BMF is correct. See IRM 3.13.6.29 employment code instructions.

      Note:

      The American Red Cross and the National Ski Patrol were granted 501(c)(3) exempt status by an Act of Congress. Delete the Form 940 filing requirement for these organizations.

    If Then
    IDRS indicates the organization is no longer exempt under Subsection 501(c)(3), there is no EO section, or the EO section has an EO Status Code of 41/70-72:

    1. Research EDS for a pending application. If there is a pending application and there is an open status code (50 and greater), attempt to determine the subsection code on the application for exemption.

    2. If the organization is applying under 501(c)(3), they are exempt from paying FUTA taxes during the application process. Remove the Form 940 FR with a TC 016.

    3. If the organization is applying under a subsection other than 501(c)(3). input a TC 016 to delete the EC and add a Form 940 FR if necessary. Destroy the notice per local procedures.

    4. Based on EDS research, make corrections to master file if necessary.
    IDRS indicates the organization is no longer exempt under Subsection 501(c)(3) because the EO Status Code is 20 or 28, Delete EC W and add a Form 940 FR with CC ENREQ/BNCHG.
    The EC is incorrect, Input the correct EC or delete the EC as applicable and destroy the notice per local procedures.
    The EC is correct, indicating the entity is not liable for FUTA and the CP notice shows a taxable wages amount:

    1. Research CC BMFOLI and CC BMFOLT for FUTA (MFT 10) payments on future tax periods.

    2. Research for any module with an outstanding balance. If there are modules with outstanding balances, contact the taxpayer and inform them the money will be applied to the tax period with a balance due before the refund is issued.

    3. Prepare a Form 3465 requesting BMF Accounts to refund the FUTA tax. Attach the CP 192 and any organization correspondence to the Form 3465 and route to BMF Accounts. Also request a manual refund for any credits on any tax periods if present using Form 3465 for one or multiple tax periods per form.

    4. Input TC 016 to correct the filing requirement, if necessary.

      Note:

      If the CP 192 indicates "No Liability" , input Letter 3997C and destroy the notice.

    You are unable to determine if the EC is correct:

    1. Correspond with the organization to clarify the type of organization.

    2. Suspend the case for thirty days.

    3. If at the end of 30 days, you have not received a reply, delete the EC and destroy the notice per local procedures.

    4. When the reply is received, process as above.

  3. When corresponding with the organization to tell them they are not required to file a Form 940 and/or if a refund is being issued, use the 3997C Letter.

    Caution:

    The IRS Received Date on the CP 192 is incorrect. Do not use this date in the 3997C Letter. Use the Received Date on CC TXMOD instead.

3.13.12.21  (01-01-2009)
Undeliverable Mail

  1. This section covers undeliverable notices, undeliverable correspondence, and undeliverable SGRIs.

  2. When undeliverable mail is received in Entity, stamp with IRS/Entity Received Date. If the mail is returned with the information/forms/returns to be worked, stamp with a new IRS/Entity Received Date and X out the previous received date.

3.13.12.21.1  (01-01-2009)
Undelivered Notices

  1. Undelivered CP 57X notices (Notices of EIN Assigned) will be returned to EO Entity for research and correction of entity data. Process as follows:

    Note:

    Do not update a Master File address based on researching other sources or command codes. It is acceptable to mail a notice to another address using Letter 2475C. Enclose Form 8822.

    1. Research the last three years on CC IRPTR, Definer Code L, for a better address. CC INOLE can give you alternatives to locating the organization.

    2. If no new address can be found, contact the organization via telephone. Address changes can be input with oral testimony.

    3. If organization can be reached, hand address an envelope and re-mail the notice. "X" out the IRS received date on the undelivered notice.

    4. If unable to contact the organization, destroy the notice. Input CC ESIGNU if the EIN was assigned from a return or the Tele-TIN program.

  2. Undelivered CP 259A - 259G and CP 42X (Delinquency Notices) will be returned to EO Entity for research and correction of entity data. Process as follows:

    1. Destroy all notices which are received too late to stop the next notice from being generated.

    2. ASGNB all delinquency notices upon receipt to prevent second notice being mailed to an incorrect address.

    3. Check BMFOLI to determine if the return listed on the CP 259A - G or 42X has posted. If the return has posted, X the CP out and destroy per local campus procedures.

    4. For the rest of the notices, research for a better address. Research INOLE, BMFOLO, BMFOLI for prior year filings and the filing pattern, BRTVU for a better address on recent prior year filings, IRPTR for a better address on recent W-2 filings, and BMFOLE for actions taken on the account, if necessary. If the organization is a 527 political organization, check all the available internet and intranet filings for a better address.

    If Then
    A new address is found, Send notice to the new address with Letter 2475C. "X" out the IRS received date stamped on the undeliverable notice. Enclose Form 8822. Delay the next delinquency notice until the change has posted.
    A new address is not found and the organization is not a parent of a group, Input TC 593 cc 82 and destroy the notice per local campus procedures.

  3. Process undeliverable CP259A - 259G and 42X for parents of a group (AF 6 or 8) as follows:

    1. See IRM 3.13.12.21.3(1) for research procedures.

    2. If a better address is found from research, contact the organization to see why no return was filed and to inform them they could lose their exemption for failure to file the required annual information return as required by IRC 6033, using Letter 1224C or 3064C.

    3. If a new address is still not located, contact at least three active subordinate organizations informing them we are unable to locate the parent and are requesting they provide the current address of the parent. If the subordinate responds with a better address, contact the organization to see why no return was filed and to inform them they could lose their exemption for failure to file the required annual information return as required by IRC 6033, using Letter 1224C or 3064C.

    4. If the above attempts to contact the parent fail, have the Lead determine is the parent should be updated to Status 29.

    5. If the group ruling is dissolved, update the parent to an individual ruling with AF 3 and Status 21.

  4. CPs 299 are taxpayer information notices which explain to exempt organizations with a Form 990 filing requirement of 02 their new requirements are based on the Pension Act of 2006. Beginning in 2008, these organizations are required to file an electronic Form 990-N through the IRS web site. Failure to file this yearly electronic notification will result in loss of their exempt status. If you receive undeliverable CPs 299 from Receipt & Control, take the following actions:

    1. Research master file to determine the EO Status Code. If the EO Status Code is 21 or 32, destroy the notice.

    2. Use these tools to research for a better address. Research CCs INOLE or BMFOLO for a very recent change of address. Research CC BMFOLI for filing patterns or recent prior year filings. Research IRPTR for a better address on W-2 filings. Research the web for the organization’s web site. Research the telephone directory.

    3. If a better address is found, re-send the notice to the new address.

    4. d. If a better address is not found, update the EO Status Code to 21 with a TC 016 Doc. Code 80 Definer Code B. Destroy the notice.

3.13.12.21.2  (01-01-2009)
Undelivered Correspondence

  1. Undelivered correspondence initiated by entity will be returned to entity for research and correction of entity data. Process as follows:

    1. If a different address is found, on CC IRPTR, Definer Code L, send the undelivered correspondence back to the taxpayer using Letter 2475C. "X" out the IRS received date on the undelivered correspondence.

    2. If a different address is not located, destroy the correspondence.

    Exception:

    If the correspondence is part of a case being held in suspense, associate the correspondence with the document.

3.13.12.21.3  (01-01-2009)
Undeliverable SGRIs

  1. Undeliverable SGRIs will be returned to EO Entity for research and correction of entity data. Use any of the following research tools to determine the correct address, preferably in order:

    1. Research INOLE or BMFOLO for a better address.

    2. Research IRPTR for a better address on the W-2.

    3. Research BMFOLI for prior year MFT 67 filings for the parent. Research BRTVU for prior year Form 990 filings to determine correct address of parent. There may be duplicate returns posted. Search both records to find the correct address.

    4. If a better address is found from research, suspend the case and send a 2475C letter with a copy of the SGRI and Form 8822.

  2. Whether or not a better address is found for the parent, at the same time contact at least three subordinate organizations informing them we are unable to locate the parent and are requesting they provide the current address of the parent. If the subordinate responds with a better address, send a 2475C letter with a copy of the SGRI and Form 8822 to the parent.

    Note:

    RICS research may be used to find subordinate organizations which are filing Form 990 returns.

  3. If the above attempts to contact the parent fail, update the EO Status to 29 with the approval of the Manager or Lead. The Manager or Lead will verify the proper research was done and three subordinate organizations were contacted before giving the approval to update the EO Status to 29.

  4. Update the parent to an individual ruling with AF 3 and Status of 01.

    Caution:

    Please follow the instructions carefully in IRM 3.13.12.6.18.17 to update the parent from Status 29 to 01.

  5. Update the pilot voucher to indicate "Account put in Status 29 per EO Lead (date)" . File correspondence in SGRI folder for permanent record.

3.13.12.22  (01-01-2009)
EO Delinquency Notices

  1. The Entity Function will receive and process (CPs 259A - 259G and 425 - 430) EO delinquency notices. This will involve analyzing, researching, and processing notice responses and inputting corrective actions. TYD–14 notices are processed by SCCB.

  2. Exempt Organization returns (Forms 990, 990-N, 990-PF, 990-T and 5227) are delinquency checked 16 to 20 cycles after the return due date when the filing requirement is equal to a 01 for Form 990 and 1 or 2 for Forms 990-T, 990-PF and 5227.

3.13.12.22.1  (01-01-2009)
Background

  1. The information which follows will provide background information on which EO returns are taxable and subject to delinquency checks. It will also provide background on how Taxpayer Delinquent Investigations (TDI) notices issued.

3.13.12.22.1.1  (01-01-2009)
Form 1120 Delinquent Notices

  1. EO Entity will receive copies of Form 1120 Delinquent Notices from the Collection function, when the organization states they are filing an EO return in lieu of Form 1120.

  2. If the organization is filing a Form 1120C/990-C/1120-C, see IRM 3.13.2.

  3. For all other EO returns:

    1. Research EDS to see if an application is pending, or if exempt status was granted.

    2. If exempt status has not been granted, delete the Form 1120 FRC and put the account in Status 40. Process the EO return as usual.

    3. If exempt status was granted, update the account with TC 016, Doc. Code 80, Status 01, and the appropriate FRCs. Delete the Form 1120 FRC. Process the EO return as usual.

    4. Input FRM49, TC 590 cc 75 on the MFT 02 for the tax period indicated on the notice.

    5. Attach the notice to the back of the return. "X" out the notice.

    6. If the EO Status on master file is Status 41, 70–72, and there is no application pending on EDS, correspond with the organization, using Letter 1224C or 3064C, requesting a determination letter, or inform them they must file a Form 1120. Suspend the case and CC ASGNB to delay any further notices. If the organization responds with a letter of determination, update the account accordingly. Input TC 591 cc 75 on the Form 1120 module, for the tax period on the notice. If the organization files Form 1120, process as usual. If no reply or insufficient response, see IRM 3.13.12.22.8.15 to continue processing.

3.13.12.22.1.2  (01-01-2009)
Forms 990/990-EZ

  1. Forms 990 or Forms 990-EZ are not taxable returns. The only assessment is for Daily Delinquency Penalty when the return is filed late without reasonable cause.

  2. Effective January 1, 2008 organizations with gross receipts of $25,000 or less must file a Form 990–N (also called an ePostcard) electronically.

  3. An organization who normally files a Form 990 may not file for a specific tax period because they:

    • The 527 political organization is not required to file a Form 990 .

    • Ceased operations (terminated, dissolved, etc.).

    • Filed as part of group return.

    • Form a 1120 [501(c)(12) and 501(c)(15) organizations only].

3.13.12.22.1.3  (01-01-2009)
Form 990-C/1120-C

  1. See IRM 3.13.2.

3.13.12.22.1.4  (01-01-2009)
Form 990-PF

  1. Form 990-PF is a taxable return and is required to be filed every year. Gross receipt limitation does not apply to Form 990-PF filers.

  2. An organization who normally files a Form 990-PF may not file for a specific tax period because they:

    • Ceased operations (terminated, dissolved, etc.).

    • Terminated under section 507(b)(1)(A).

  3. An organization who has a presumptive Form 990-PF filing requirement may not file for a specific tax period or file a different return because they:

    • Ceased operations (terminated, dissolved, etc.).

    • Received a determination letter dated after the expiration of the advance ruling period stating the organization is not a private foundation.

    • Received a letter dated after the expiration of the advance ruling period stating the organization is liable for Forms 990-PF for periods subsequent to the period shown on this notice.

3.13.12.22.1.5  (01-01-2009)
Form 990-T

  1. Form 990-T is a taxable return and is required when the organization has unrelated trade or business income of $1,000 or more.

  2. An organization who normally files a Form 990-T may not file for a specific tax period because they:

    • Ceased operations (terminated, dissolved, etc.)

    • Had gross income from unrelated trade or business was less than $1,000.

3.13.12.22.1.6  (01-01-2009)
Form 5227

  1. Form 5227 is normally not a taxable return; however, it may be taxable if question F is answered "yes" . A Form 1041 should be attached. Never detach the Form 1041 from the Form 5227 in these cases.

  2. An organization who normally files a Form 5227 may not file for a specific tax period because they:

    • Ceased operations (terminated, dissolved, etc.).

    • Filed a Form 990-PF under section 4947(a)(1).

    • Filed a Form 990 under section 509(a)(3)(A) – requires an IRS determination letter.

3.13.12.22.1.7  (01-01-2009)
TDI Notices

  1. Delinquent cases are placed on a TDI Notice File (TDINF) and each case is retained on the file until the module is satisfied (except Primary Code "B" ). A Primary Code "B" (no TDI potential) is currently only issuing one notice. Primary Code A cases are currently being issued two notices. The TDI file is updated weekly with notice delays and satisfying transactions processed through the terminal during the week.

  2. Taxpayer Delinquent Returns Notices and Taxpayer Delinquent Investigations (TDIs) are issued for TIF accounts on the following schedule during weekly analysis:

    • CPs 259A - 259G - First Notice. Issued when the account is established on the TIF.

    • CPs 425-430 - Fourth Notice. Issued 12 weeks after the first notice is issued. (Other than Primary Code B Cases).

    • Form TYD–14–TDI - Routine TDIs are issued 6 weeks after the second notice. These Notices are processed by the SCCB see the

3.13.12.22.2  (01-01-2009)
Glossary of Terms

  1. Accounts Maintenance Transcripts - Master file generates Accounts Maintenance Transcripts for resolution when a frozen or unresolved condition exists.

  2. Automated Collection System (ACS) is an internal paperless system which maintains on computers most delinquent accounts and delinquency investigations formerly handled in paper form in the Area Office Collection function. ACS Call Sites will concentrate on telephone contact, particularly outgoing telephone calls.

  3. Credit Balance - Denotes credit in module at time of delinquency check.

  4. Compatible Filing Requirements for EO - See IRM 3.13.12.8.3.3.

  5. Critical Response - A response is considered critical if a notice or Form TYD – 14, Taxpayer Delinquency Investigation (TDI), will be issued in the next cycle.

  6. Definer Codes - See IRM 3.13.12.6.3.

  7. EC–TDI–RES TRANSCRIPT - An IDRS notification of unreversed TCs 594 and 599 generated weekly on Form 4869 for those EO tax modules posted 30 weeks earlier with TCs 594 or 599 on which no satisfying or reversing transaction code was input.

  8. EO/BMF Entity Module - See IRM 3.13.12.6.

  9. EO Entity Status Code - See IRM 3.13.12.6.18.

  10. EO Section on the BMF— See IRM 3.13.12.6.

  11. Form 3499–EO Information Transmittal - See IRM 3.13.12.10.1.

  12. Group Rulings - See IRM 3.13.12.12.

  13. MFT - Master File Tax Code

    Form MFT
    990/990-EZ/990N 67
    990-PF 44
    990-T 34
    5227 37
    1041-A 36

  14. Service Center Collection Branch (SCCB) resolves collection related items at the earliest possible time to prevent the issuance of area investigations. This is the collection area an the campus.

  15. Taxpayer Delinquency Investigation (TDI) - If the organization fails to respond to the second notice (CPs 425-430), the account will go into TDI status.

  16. TDI Return - Return received for the tax period on the delinquent Notice.

  17. TDI Indicator Code - Indicates the taxpayer's current delinquency status. There is a status indicator in the entity module of the taxpayer's account and one in each tax module on IDRS.

    • "0" indicates no delinquency investigation.

    • "1" indicates an open delinquency investigation.

      Note:

      The tax period of an open tax module is printed on the TDI.

    • "2" indicates closed delinquency investigation.

    • "3" is reserved.

    • "4" indicates first TDI notice was issued.

    • "7" indicates fourth TDI notice was issued.

    • "8" indicates closed TDI notice status.

    • "9" indicates an account consolidation is in process.

    • "T" indicates investigation was transferred out of the campus

    • "X" indicates TDI issuance action pending

    • "Y" indicates a merged account which was re-sequenced.

  18. TDI Status Indicators– Appear in the Status History Section of TXMOD when the MF Status is 02 or 03.

    Indicator Associated Status Explanation
    1 02 IDRS has sent 1st delinquency notice (CPs 259A - 259G)
    4 02 2nd notice sent (CP 425-430)
    5 03 IDRS in TDI status, issued with this module included on TDI (Form TYD-14)
    6 03 IDRS TDI status, this module does not appear TDY-4 because a TYD-14 was previously issued for other modules
    7 03 IDRS is TDI status - ACS TDI issued for this notice
    8 03 IDRS in TDI status - Module resides in a queue to be ordered out individually or by RWMS score
    9 03 TDI status to be issued for SCCB only

  19. Transaction Codes (TC) - A three-digit number which defines the precise nature of the transaction on IDRS or master file.

  20. MF and IDRS Status Codes–Designates the current collection status of the module.

    Status Code Explanation
    00 Module is established but return is not filed
    02 Return not posted; letter of inquiry mailed
    03 IDRS in delinquency status
    04 Extension of time for filing granted
    05 7004 filed, underpaid installment notice sent (990-C/1120-C, 990-T, 1120 only)
    06 Delinquent return not filed
    10 Return is filed or assessed

3.13.12.22.3  (01-01-2009)
Processing Timeliness of EO Delinquency Notices

  1. Control and perform initial processing on all cases within 15 calendar days of the IRS received date.

  2. When correspondence with the organization is necessary, do not suspend the case but delay the issuance of the next notice by at least eight cycles.

  3. Critical date notice responses will require input action prior to the weekend update to prevent issuance of a subsequent notice. A response is considered critical if a notice of Form TYD–14, Taxpayer Delinquency Investigation (TDI), will be issued in the next cycle.

  4. Use the guidelines in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates, for timely processing for Collection-related work except for the specific instances listed above. In addition, use Adjustment controls for the IDRS status codes, definitions and aging criteria for all Collection related work done by Entity.

3.13.12.22.4  (01-01-2009)
Command Codes

  1. CC FRM49 is used to input transactions resulting from the analysis of taxpayer responses to CPs 259A - 259G and 425 - 430. These notice responses are used to input transaction codes 590-599 to update tax modules on the TIF. Transaction Codes 59X need closing codes (cc) except TC 592. See IRM 2.4, IDRS Terminal Input, for detailed explanation for input.

  2. Refer to the table below for transaction and closing codes:

    Responses Transaction Code Closing Code
    Filed as a subordinate with Group Return. GEN must be present and Group Return EIN must be known 590 14
    Not liable for return for this period only. Business has no employees or no activity at this time 590 75
    No longer required to file a return 591 75
    Undeliverable notices 593 82
    Return previously filed - input blocking series indicate "BB" 594 83
    Examination referrals 595 82
    Unprocessable returns 599 17
    Taxable return secured. Coded final by Document Perfection 599 94
    Taxable final return secured. Coded final by Document Perfection 599 94
    Non-taxable return secured. Form 990, 990-EZ or 5227 only. 599 96
    Non-taxable final return secured. Coded final by Document perfection 599 96

  3. CC ASGNB is used to post notices codes and alpha case codes to BMF accounts. See IRM 2.4, IDRS Terminal Input. Definer Code L with N number of cycles is used to delay issuance of next notice or TDI for the account for N number of cycles. This can be a single or batch input. See IRM 2.4, IDRS Terminal Input, for detailed explanation for input. Remote access capability is now available on CC ASGNB.

  4. Command Code TXMOD is used to request a display of all tax module information for a specific tax period on the TIF. The display consists of entity data, posted returns, posted transactions, pending transactions, and reject data and is available on IDRS TIF. Transaction DLNs are shown if Command Code Definer D or L is input. For TXMOD a command code definer is required. Definer A will display most tax module information present on the TIF.

3.13.12.22.5  (01-01-2009)
IDRS Controls

  1. Cases are controlled by various IDRS Command Codes. Each control base contains several elements of data which are fully explained in IRM 3.16.31.0, Adjustment Controls.

  2. An open control base will cause a tax module to remain on IDRS indefinitely. Once the IDRS control base is closed, it will be removed from the IDRS data base provided no other criteria exists for retaining the tax module.

  3. If an open control already exists for another service employee, contact the other employee before taking any action.

    Caution:

    If a control case is closed, contact is not necessary. The exception to this concept is a case controlled with Status Code B (Background) which allows more than one examiner to have open case controls.

  4. If more than one control is established for one TIN, it appears on the IDRS Multiple Case Control report. The report is produced weekly and should be distributed and processed.

  5. The following control categories will be used for controlling EO Delinquency Notice cases by Entity:

    • ENTC - Entity Change Case

    • EXOR - Exempt Organization

    • OTHE - Other Adjustments (no Form 3870). Use for controlling all other adjustments.

    • PRP - Problem Resolution Program (campus initiated). Use when controlling all initiated PRP cases.

    • STAT - Statute Cases. Use when controlling statute cases received in Entity.

    • TDI - Campus TDI Cases. Use when controlling TC "594/599 Research Transcript" cases.

    • TDIA (Definer Code A). The following category code with appropriate definer will be used when controlling other return delinquency cases:

      Type Description
      TDIC Correspondence and insufficient responses
      TDID Taxpayer promised to file case
      TDIE Entity problem cases
      TDIF Fiscal year month problem case
      TDIH Credit
      TDIO Other: Use when controlling return delinquency notice responses and correspondence received and initial processing not completed
      TDIU Return Delinquency Unpostables

    • TPCI - Taxpayer Correspondence Inquiry. Use when controlling taxpayer initiated correspondence.

    • TPRQ - Taxpayer Requests. Use when controlling Forms 3870 Collection Adjustments for an EO account.

3.13.12.22.6  (01-01-2009)
Notices and Forms

  1. The following are delinquency notices and forms:

    • CP 259A, Request for Information about Form 990 - first notice.

    • CP 259B, Request for Information about Form 990-PF - first notice.

    • CP 259C, Request for Information about Presumptive Form 990-PF - first notice.

    • CP 259D, Request for Information about Form 990-T - first notice.

    • CP 259E Request for Information about Form 990-N - ePostcard.

    • CP 259F, Request for Information about Form 5227 - first notice.

    • CP 259G Request for Information about Form 1120-POL - first notice.

    • CP 425, Your Form 990 is Overdue - Let Us Hear From You Now—Last Notice before TDI (Other than Primary Code B Cases).

    • CP 426, Your Form 990-PF is Overdue - Let Us Hear From You Now - Last Notice before TDI (Other than Primary Code B Cases).

    • CP 427, Your Presumptive Form 990-PF is Overdue - Let Us Hear From You Now - Last Notice before TDI (Other than Primary Code B Cases).

    • CP 428, Your Form 990-T is Overdue - Let Us Hear From You Now - Last Notice before TDI (Other than Primary Code B Cases).

    • CP 429, Your Form 5227 is Overdue - Let Us Hear From You Now - Last Notice before TDI (Other than Primary Code B Cases).

    • CP 430 Your Form 1120-POL is Overdue - Let Us Hear From You Now - Last Notice before TDI.

3.13.12.22.7  (01-01-2009)
Batching Return Delinquency Responses

  1. Sort all incoming work by critical and noncritical dates. A response is considered critical if a notice or Form TYD–14, Taxpayer Delinquency Investigation (TDI), will be issued in the next cycle.

    Note:

    Each response contains the cycle for which the next notice will be issued.

  2. Also, batch as critical items the following:

    • Notice Response received after the TDI (TYD–14) was issued

    • Any response to a letter written from analysis of a notice response

  3. Input a CC ASGNB L15 on all critical cases immediately after batching.

  4. Batch all other notices as noncritical. Create and expedite a sub-batch of notices responses with returns. Input a CC ASGNB L15 on non-critical cases after batching.

  5. It may be preferable to batch all critical work in a colored folder and noncritical in manila folders to differentiate between the two and ensure the proper time restraints are adhered to.

  6. Batch all work. During period of high volume receipts, do an additional sort of noncritical work prior to batching. Identify and batch work which will be critical the next week. This will prevent having to do an additional sort each week of all work which was batched as noncritical and processing was not completed the same week it was batched. Label each batch of work with the volume, the batch number, and the IRS received date.

3.13.12.22.8  (01-01-2009)
Processing of EO Return Delinquency Notice Responses

  1. EO Delinquency notices are printed and responses are processed at the Ogden Submission Processing Center.

  2. Process and resolve responses to return delinquency notices.

  3. Notice processing is done in two phases: analysis and research. Analyze a batch for a quick closure and annotate each notice which falls into this category with the transaction code needed. Control insufficient responses, entity problems, etc., which require contact and research for further action.

  4. In the instructions which follow, the term "input" is used to sum up the coding, batching, and general preparation required prior to actual input to the system.

    1. Examine the organization response.

    2. Verify the response is for the same tax return and tax period as EO TDI notice.

    3. If the response is for the same tax return and tax period, analyze the response to determine if sufficient information is available for input of a transaction code.

    4. If the response refers to a tax return other than one on the notice, treat as an insufficient response and process as such. See IRM 3.13.12.22.8.16, Insufficient Responses.

    5. If the organization response furnishes proof by an attached copy of a balance due notice, and if information on this notice matches the EO TDI notice information (same name, TIN, tax period, MFT), destroy the notice. If a copy of a bill or notice furnished by the organization is for a different MFT or tax period, contact the organization via a phone call or correspondence. If the bill or notice is for a different name or TIN, process the case as an entity problem. See IRM 3.13.12.22.8.18.

    6. If the case cannot be resolved or if research is necessary, input a delay unless the next notice was issued.

    7. Destroy the notice after resolving the TDI account.

3.13.12.22.8.1  (01-01-2009)
Responses With Original Returns

  1. Compare the notice EIN and name with the EIN and name shown on the return. If different, process as an entity problem. See IRM 3.13.12.22.8.18. If MFT (type of return) and tax period do not agree with the notice information, process as an insufficient response. See IRM 3.13.12.22.8.16.

    Form MFT
    990/990-EZ/990-N 67
    990-PF 44
    990-T 34
    5227 37

  2. If everything agrees, process as follows:

    1. Annotate the notice with TC 599 cc 94 for Forms 990-C/1120-C, 990-T and 990-PF or TC 599 cc 96 for Forms 990 and 5227 as appropriate. Input CC FRM49.

    2. Detach the return and put a circled D on the bottom center margin of the first page. This D code represents a return secured by Entity. Put TC 59X cc on the left side margin of the return. Edit from the notice Entity data missing from the tax return before routing the return for processing. If the received date is not stamped on the return, transcribe it from the notice. The format of the received date is month (MM), day (DD), and year (YYYY); i.e., "Rec'd EC MMDDYYYY."

    3. If the notice gives a reason why the return was late, attach the reasonable cause response to the tax return. Route the return for processing.

      Note:

      If the return has not been stamped by the Imaging Unit, route the return to Imaging after completing all entity actions. If the return was previously stamped by Imaging, route the return for processing.

    4. If the return is a Form 990 and the gross receipts are $25,000 or less, it is not necessary to look for reasonable cause as it will not apply. Follow the instructions in c. above.

    5. If the return is not signed and the notice is, be sure to attach the notice to the return.

3.13.12.22.8.2  (01-01-2009)
Responses With Copies of Original Returns

  1. Compare the notice EIN and name with the EIN and name on the return. If different, process as an entity problem. See IRM 3.13.12.22.8.18. If the MFT or tax period are different, process the notice as an insufficient response. See IRM 3.13.12.22.8.16.

  2. If the return has already posted with a TC 150, destroy the copy per local campus procedures.

  3. If the same return is found as a rejected or unpostable return, code the notice for input of TC 599 cc 17. Do not input a TC 599 cc 17 on a return with a different MFT than the copy attached to the TDI.

  4. If the organization responds with a copy of their return stating they have previously filed, make sure everything is correct and research for a TC 150 posting. If a TC 150 is found, destroy the copy per local campus procedures. If no TC 150 has posted, input TC 594 cc 83 for either a taxable or non-taxable EO return; process the return as an original. Annotate "Process as Original" in the left margin of the return.

  5. If the organization responds with an amended return, send the return through for processing. Destroy the notice per local campus procedures.

3.13.12.22.8.3  (01-01-2009)
Responses With No Return Attached

  1. Compare the EIN on the notice with the EIN the organization says they filed under. If these agree, proceed as follows. If not, see IRM 3.13.12.22.8.18.

  2. If the organization states they filed the return, research for a pending or posted TC 150. If a posted or pending TC 150 is found, take no action. If one is not found, input a TC 594 cc 83 with blocking series indicator BB.

    Note:

    If a copy of the return is not attached, use Blocking Series Indicator BB. With this indicator, the BMF will also generate a CP 169 along with the TDI Research transcript if the return does not post. Input the Blocking Series Indicator BB with CC FRM49. See IRM 102.4.

  3. If the organization indicates the return will be filed, check when the initial CC ASGNB was input for 15 cycles. If necessary input a second CC ASGNB for an additional 8 cycles.

  4. If a return with the same MFT and tax period is found as a rejected or unpostable return, code the notice for input of TC 599 cc 17. Do not input a TC 599 cc 17 on a return with a different MFT than the type of return indicated on the TDI.

  5. If the organization indicates the return will be filed and it is a Primary Code B case, take no action.

  6. If the organization claims it was included in a group return or makes a similar statement, check for a GEN on the notice. If there is a GEN, research for the group return EIN. See IRM 3.13.12.22.8.7.

    1. If there is a GEN on the notice or the subordinate provides a GEN, research CC BRTVU to determine the Group Return code. If the Group Return code is 7 or 8, input the TC 590 cc 14 to satisfy the module. If there is no TC 150, TC 460, TC 594 or TC 599 posted, pending, or unpostable, send a 3064C Letter requesting the subordinate provide us with a copy of the group return. Check to see when the initial CC ASGNB for 15 cycles was input. To receive the response to correspondence before the generation of the next notice, it may be necessary to input another CC ASGNB for 8 cycles.

    2. If there is no GEN on the notice and the subordinate does not provide the GEN, treat as an insufficient response. See 3.13.12.22.8.16.

  7. If the group return is found as a rejected or unpostable return, code the notice for input of TC 599 cc 17.

3.13.12.22.8.4  (01-01-2009)
Responses Indicating Not Required to File

  1. A notice response indicates a Form 990-PF filer is not required to file:

    1. Under 507(b)(1)(A), a Form 990-PF filer which has transferred all its assets to a 501(c)(3) entity must file a 990-PF for the year the transfer was made, but it does not have to file again until it has assets once more (assuming it does not choose to terminate). The organization does not have to notify the Service it has made the transfer unless it also has chosen to terminate its existence.

    2. If the Form 990-PF filer responds indicating they are not required to file under Section 507(b)(1)(A), input a TC 590 cc 75 and destroy the notice per local campus procedures.

  2. If the delinquency notice is for a Form 990-T and the response indicates the unrelated business income was less than $1,000 or the notice simply indicates "NO LIABILITY" , input TC 590 cc 75. Destroy the notice per local campus procedures.

    Caution:

    This procedure is only valid for Form 990-T.

  3. If the response is for a Form 990, which indicates gross receipts were $25,000 or less and the organization is not a private foundation, send correspondence to the filer using 3064C letter to tell them all organizations regardless of gross receipts are required to file to maintain tax exempt status..

  4. If a notice response clearly indicates the organization is defunct, terminated, or out of business, or indicates cessation rather than temporary suspension of the organizational activities, input TC 591 cc 75.

    1. If the organization has a 501(c)(3) exemption and a Form 990 FR, route a copy of the notice and any pertinent information to Cincinnati if total assets are greater than $100,000. To determine if the end of year assets are greater than $100,000, research CC BRTVU on the final return filed (R3 last line). If the gross receipts are less than $100,000, destroy the notice per local campus procedures.

    2. Follow procedures in (3) above if the organization indicates a "Temporary suspension of organizational activities" statement. This statement is not an indicator to terminate tax exempt status via use of TC `591.

3.13.12.22.8.5  (01-01-2009)
Responses With Different Form of Return

  1. An organization states it filed another return (Form 1120, Form 1041). Use the list below to determine if another return may be filed in lieu of the return shown on the notice. For quick reference see below.

  2. If the MFT on the notice is 44 (Form 990-PF), proceed as follows:

    If Then
    The BMF FRC is Form 990-PF of 2 and the EO Entity Status is 19, The organization must file both a Form 1120 and a Form 990-PF for the same tax period.
    The EO Entity Status is 18, The organization must file both a Form 1041 and Form 990-PF for the same tax period.
    The EO Entity Status is 19, The organization must file both a Form 1120 and Form 990-PF for the same tax period.
    The organization responded with a Form 990 and a copy of a 1050 IRS determination letter:

    1. Check the BMF to determine if the information from EDS has rolled to the BMF. If master file was updated, input a TC 590 cc 75 to satisfy the Form 990-PF module.

    2. If EDS did not update the BMF, input a TC 016 Doc. Code 80 Definer Code A to correct the EO section.

    3. Send the Form 990 through for processing.

  3. If the MFT on the notice is 67 (Form 990), proceed as follows:

    If Then
    The Subsection Code is 12, A Form 1120 or 1120L may be filed in lieu of Form 990, when the gross income for the year is less than 85% from members (the organization may file Form 1120 one year and Form 990 the next).
    The Subsection Code is 15, A Form 1120PC may be filed in lieu of Form 990 if the income for the year exceeds $100,000 (the organization may file a Form 1120 one year and Form 990 the next).

  4. If the MFT on the notice is 37 (Form 5227), process as follows:

    If Then
    The organization filed a Form 1041 instead of Form 5227, Analyze the correspondence and the account to determine if it was incorrectly set up with a Form 5227 filing requirement; if so, input a TC 590 cc 75 to satisfy the TDI and remove the EO section with a TC 022.
    The organization files a Form 990-PF as a 4947(a)(1) as a non-exempt charitable trust:

    1. Update the EO section with a TC 016 Doc. Code 80 Definer Codes AB; change the EO Status Code from 12 to 01, zero out the Form 5227 FR and add a Form 990-PF FR.

    2. Send the Form 990-PF through for processing.
    The organization files a Form 990 with an IRS determination letter attached indicating exemption under 509(a)(3)(A):

    1. Update the EO section with a TC 016 Doc. Code 80 Definer Codes AB: change the EO Status Code from 12 to 01; zero out the Form 5227 FR and add a Form 990 FR.

    2. Send the Form 990 through for processing.
    The organization will no longer be required to file a Form 5227, Input a TC 591 cc 75 to update the EO Status Code to 20 and remove the filing requirement for the master file.

  5. IF the MFT on the notice is 33 (Form 990-C/1120-C) see IRM 3.13.2.

  6. If the subsection code on the BMF is 90, 91 or 92, a Form 1041 can never be filed in lieu of Forms 990, 990-PF or 5227.

  7. If another return can be filed in lieu of the form on the notice, process as follows:

    1. Verify the return was filed.

    2. If the return was filed, input TC 590 cc 75 for the MFT on the notice.

    3. If the return was not filed, contact the taxpayer for a copy of the return which was filed. Input a delay until the copy is received. Do not close out the MFT on the notice until you are sure the organization will file or has filed the other return.

  8. If another return is filed in lieu of the return on the notice, process as follows:

    If Then
    Organization files a Form 990 return but the MFT on the notice is 44,

    1. Research EDS to determine if foundation follow-up ("F" case) was done by Cincinnati.

    2. If there is no "F" case on EDS and Cincinnati updated the filing requirement to Form 990-PF (CC BMFOLE), assume the organization was issued a 1048 letter (presumptive PF).

    3. Correspond with the organization informing them they filed the wrong return. If the organization responds with a good determination letter, update master file with the correct EO section information and post the return. If the organization responds with a Form 990-PF, mark "DO NOT PROCESS" to the left of the DLN on the Form 990. Attach the Form 990 to the back of the Form 990-PF and forward the return for processing. If the organization does not supply documentation of exempt status as a Form 990 filer or does not reply, have the lead determine the disposition of the case.

    4. If the foundation follow-up was done and EDS shows a 1050 Letter (Form 990 filer) was sent, update master file with the EDS EO section information for a Form 990 filer.

    5. If the foundation follow-up was done and EDS shows 1048 or 1075 Letter (Form 990-PF) was sent OR if there is no case on EDS, correspond with the organization informing them they filed the wrong return. If the organization responds with a good determination letter, update master file with the correct EO section information and post the return. If the organization responds with a Form 990-PF, mark "DO NOT PROCESS" to the left of the DLN on the Form 990. Attach the Form 990 to the back of the Form 990-PF and forward the return for processing. If the organization does not supply documentation of exempt status as a Form 990 filer or does not reply, have the Lead determine the disposition of the case.

      Exception:

      If the assets are $0 or the organization gives some indication they are inactive on the Form 990, post the Form 990 and send the case to Cincinnati as a potential T case.

    Organization files a Form 990-PF but the MFT on the notice is 67,

    1. Change the Foundation Status to 04 (Private Non-Operating) and update the FR to Form 990-PF with a TC 016 Doc. Code 80 Definer Codes AB to allow the Form 990-PF to post.

    2. Correspond, using Letter 3064C, informing the organization even though we posted their return (and money), they do not have approved PF status and must file a Form 990. Send forms with the letter.

    Organization files a Form 990-T,

    1. Determine the type of Form 990-T filer.

    2. Update the Form 990-T FR to 1 or 2 with a TC 016 Doc. Code 80 Definer Code A and send the return through for processing.
    Organization files a 4720, Send the return through for processing.

3.13.12.22.8.6  (01-01-2009)
Responses Indicating Merger With Another Organization

  1. An organization states it merged with another organization and filed accordingly:

    1. Input a TC 590 cc 75.

    2. Input a TC 016 to update the EO Entity Status Code to 26.

    3. Annotate the action taken, and route it to Cincinnati.

    Note:

    These instructions apply to Affiliation Code 3 or 6 mergers only.

3.13.12.22.8.7  (01-01-2009)
Responses Indicating Part of a Group Return

  1. An organization claims it was included in a group return or makes a similar statement:

    1. If there is a GEN on the notice or the subordinate provides a GEN, research CC BRTVU to determine the group return code. If the Group Return Code is 7 or 8, input TC 590 cc 14 to satisfy the module. If there is no TC 150, TC 460 TC 594 or TC 599 posted, pending, or unpostable, send Letter 3064C requesting the subordinate provide us a copy of the group return. Check to determine when the initial CC ASGNB was input. In order to receive the response to correspondence before the generation of the next notice, it may be necessary to input a second CC ASGNB for 8 cycles.

    2. If there is no GEN on the notice and the subordinate does not provide the GEN, treat an as insufficient response. See IRM 3.13.12.22.8.16.

    3. If the group return is found as a rejected or unpostable return, code the notice for the input of a TC 599 cc 17.

3.13.12.22.8.8  (01-01-2009)
Responses Requesting a Form for Filing

  1. If an organization requests a form for filing: Pre-address the return as the entity appears on the BMF and mail it to the organization.

3.13.12.22.8.9  (01-01-2009)
Responses Indicating Incorrect Accounting

  1. If an organization indicates the accounting period (FYM) is incorrect, proceed as follows:

    Note:

    If returns were processed previously to the wrong FYM, update to the correct FYM.

    1. The organization must file a tax return every year (full 12 months). If the notice is for the full 12 months and the organization is giving a different FYM, determine if it is either for a past change or future change.

    2. Use CC TXMOD for MFT and look for UPC 307. If UPC 307 is found, input TC 599 cc 17.

      Note:

      Do not forget the notice tax period must be satisfied if the return will not post to the MFT of the notice using TC 590 cc 75.

    3. If no UPC 307, use CC BMFOL for the MFT on the notice and proceed as follows:

    If Then
    The organization is filing for the FYM as stated on the notice, Input TC 590 cc 75 for the notice tax period and correct the BMF FYM if necessary.
    The organization has not been filing for the FYM as stated on the notice, and now they do:

    1. The return becomes a short period return.

    2. Research the Form 1128 file to see if a Form 1128 is on file for the FYM the organization stated. If so, input TC 590 cc 75 for notice period. Correct the BMF FYM.

    3. If a Form 1128 is not on file, contact the organization. If the organization replies they have conformed with IR regulation 1.442.1(c) or 1.1502–76(a) and the FYM is as they have stated, follow procedures above. If the organization replies they have conformed with Revenue Procedure 76–9, 76–10 or 85–58 and the FYM is as stated, follow procedures above.

3.13.12.22.8.10  (01-01-2009)
Responses Indicating Not Required to File-Church or Religious Organization

  1. An organization states it is a church exempt under IRC Section 6033(a)(2)(A)(i) or 170(b)(1)(A)(i):

    1. Research EDS and the BMF for the status code, or subsection, foundation code, classification code and Form 990 FR.

    2. If research shows the Status is 07 (church filing a Form 990-T) or 10 (pre-examination of a church), or the Subsection Code is 03 and Type of Foundation is 10 and the Classification Code is 7, update the Form 990 FRC to 06 (church, not required to file) if necessary and input TC 590 cc 75.

    3. If the organization is a school below college level affiliated with a church or operated by a religious order. The subsection code is 03, type of foundation is 11, and classification code is 2. Input a TC 590 CC 75 and zero out the filing requirement.

    4. If research show the Subsection Code is 03, Foundation Code of 10-15, Classification Code of 7 and Form 990 FR of 13 (religious organization, not required to file), update the filing requirement if necessary and input TC 590 cc 75.

      Note:

      A ministry will have a Subsection of 03, Foundation Code of 15 or 16, Classification Code of 7 and a Form 990 FR of 01. Ministries are required to file a return.

    5. If the above does not apply or the EDS information can not be determined, treat the notice as an insufficient response and contact the organization to explain our records do not indicate it is a church. Request a return for the tax period on the notice. See IRM 3.13.12.22.8.16.

3.13.12.22.8.11  (01-01-2009)
Responses Indicating Exempt Under IRC Section 501(c)(1)

  1. An organization states it is exempt under IRC Section 501(c)(1), or they are an instrumentality of a state government or similar statement:

    1. Research for the subsection code.

    2. If the Subsection Code is 01, update the Form 990 FRC to 07 and input TC 590 cc 75.

    3. If the Subsection is 03, verify the instrumentality is a state government, input a TC 590 cc 75, and zero out the filing requirement.

    4. If not already present on the BMF, update the Employment Code to G.

    5. If you cannot verify it is a state governmental instrumentality, request a return for the tax period on the notice.

3.13.12.22.8.12  (01-01-2009)
Responses With Different EO Return

  1. A notice is for a particular EO return and the response indicates another type of EO return(s) was filed which fully satisfies the filing requirement:

    1. Research INOLE for the current filing requirements. If INOLE indicates a different FR from the notice, check for a pending or posted TC 150.

    2. If a TC 150 is found, input a TC 590 cc 75 for the MFT on the notices.

    3. If a TC 150 is not found, treat as an insufficient response.

3.13.12.22.8.13  (01-01-2009)
Responses Indicating No Liability to File

  1. A notice response indicates an exempt organization ruling letter was issued prior to 1969, and there is no liability to file:

    1. Inform the organization under the 1969 Tax Reform Act, a return is due.

    2. Do not input TC 590. Process as an insufficient response. See IRM 3.13.12.22.8.16.

3.13.12.22.8.14  (01-01-2009)
Responses Indicating Exemption Under IRC 6033(a)(2)(C)(ii) or 170(b)(1)(A)(ii)

  1. An organization states it is a church exempt under IRC Section 6033(a)(2)(A)(i) or 170(b)(1)(A)(i):

    1. Research EDS and the BMF for the status code, or subsection, foundation code, classification code and Form 990 FR.

    2. If research shows the Status is 07 (church filing a Form 990-T) or 10 (pre-examination of a church), or the Subsection Code is 03 and Type of Foundation is 10 and the Classification Code is 7, update the Form 990 FRC to 6 (church, not required to file) if necessary and input TC 590 cc 75.

    3. If the organization is a school below college level affiliated with a church or operated by a religious order. The Subsection Code is 03, Type of Foundation is 11, and Classification Code is 2. Input a TC 590 CC 75 and zero out the filing requirement.

    4. If research show the Subsection Code is 03, Foundation Code of 10-15, Classification Code of 7 and Form 990 FR of 13 (religious organization, not required to file), update the filing requirement if necessary and input TC 590 cc 75. NOTE: A ministry will have a Subsection of 03, Foundation Code of 15 or 16, Classification Code of 7 and a Form 990 FR of 01. Ministries are required to file a return.

    5. If the above does not apply or the EDS information can not be determined, treat the notice as an insufficient response and contact the organization to explain our records do not indicate it is a church. Request a return for the tax period on the notice.

3.13.12.22.8.15  (01-01-2009)
Miscellaneous Responses

  1. If the notice is for a Form 990-PF and the taxpayer responds it is not a private foundation and is not required to file Form 990 because its gross receipts are less than the amount required for filing, proceed as follows:

    1. Research IDRS and EDS for the current subsection and type of foundation.

    2. If research shows the BMF is now a SS 03 with a TF of 10-18, input a TC 590 cc 75 for the MFT on the notice. Also, input TC 590 cc 75 for MFT 67 and the Tax Period on the notice.

    3. If research shows EDS and BMF is still SS 03 with a TF of 03 or 04, contact the organization and request the return or determination letter.

      Note:

      Specific information for processing determination letters is provided in IRM 3.12.278.19.12, Exempt Organization Unpostable Resolution. Input a delay of 8 cycles if the organization agrees to send the information.

    4. If unable to resolve the case through research and organization contact, destroy the notice and allow the TDI process to continue.

    5. If the organization responds to the TDI and requests a penalty abatement, research CC BMFOLI for the money amount or research CC TXMOD or CC SUMRY for a TC 238 and the money amount. If the TC 238 is found, look for an associated TC 235 for same amount on CC TXMOD or CC SUMRY. If the TC 235 is found, notify the organization the penalty was abated with a 3064C Letter. If no TC 235 is found, do a CC STAUP and send an 86C Letter to the organization telling them the case was transferred to another office. Forward the case to EO Accounts.

  2. If the EO TDI notice is for a Form 990 or Form 990-PF and the organization responds the return was filed with the Virgin Islands, input a TC 590 cc 75 to satisfy the module. Revenue Ruling 88-91 states an exempt organization has to file a Form 990 or Form 990-PF only if they have other than Virgin Island income. If they have multiple sources of non-Virgin Island income, they only have to file two returns per year.

  3. This is not an all inclusive list of responses. Some judgment will be needed to determine the proper action and if necessary, contact with organization should be made.

  4. If the organization can substantiate a valid extension, and there’s no TC 460 on master file, input a TC 460.

  5. If the organization requests an extension and gives sufficient explanation, check to determine when the initial CC ASGNB was input. It may be necessary to input a second CC ASGNB for 8 cycles to allow sufficient time for the organization to file before the generation of the next notice.

3.13.12.22.8.16  (01-01-2009)
Insufficient Responses

  1. If the organization response is insufficient, determine if correspondence or telephone contact could result in additional information to resolve the issue.

  2. Attempt to reach the organization by telephone whenever possible. If the organization cannot be reached by telephone, and it appears additional information could result in the input of a closing transaction code or a return:

    1. Initiate correspondence using Letter 282C or other appropriate letters. Check to determine when the initial CC ASGNB for 15 cycles was input. In order to receive a response to correspondence before the generation of the next notice, it may be necessary to input a second CC ASGNB for 8 cycles.

    2. If the notice is a Primary Code B second notice, it is not necessary to input a delay.

  3. When an organization claims it was included on a group return but there was no GEN on the notice:

    1. Perform applicable research to determine to which group it belongs.

    2. If a GEN is located, research CC BRTVU to determine if the group return code is 7 or 8. If the group code is 8, input TC 590 cc 14. If the group return code is 7, input TC 590 cc 14 to satisfy the module. If there is no TC 150, TC 460, TC 594 or TC 599 posted, pending, or unpostable, send Letter 3064C requesting the subordinate provide us a copy of the group return. Check to see when the initial CC ASGNB for 15 cycles was input. It may be necessary to input a second CC ASGNB for 8 cycles in order to receive the correspondence back before the generation of the next notice.

    3. If a GEN is not found, correspond with the subordinate organization, using Letter 3064C, requesting verification they belong to the group. They must provide the GEN and a copy of the group return. Check to see when the initial CC ASGNB for 15 cycles was input. It may be necessary to input a second CC ASGNB for 8 cycles in order to receive the correspondence back before the generation of the next notice.

    4. If the organization responds indicating they are a subordinate of a group, and provides the GEN, add the GEN to the account, and input TC 590 cc 14 to satisfy the module.

    5. If the organization responds with a return, process as usual.

    6. If the organization is not part of a group, and does not send a return, inform the organization they are required to file. Send appropriate forms.

  4. If the response from the parent indicates the subordinate was included in the parent's return and there is no GEN number, correspond, using Letter 3064C, telling the parent they must file Form 1023 to obtain a group exemption. Pending the application for group exemption, the subordinate must file their own return. The parent must amend their return to remove the subordinates.

  5. If the response from the subordinate indicates they were included in the group return and there is no GEN number, correspond using Letter 3064C, telling them they must file their own return because we have no record of a group exemption. Check to see when the initial CC ASGNB for 15 cycles was input. It may be necessary to input a second CC ASGNB for 8 cycles in order to receive the correspondence back before the generation of the next notice.

  6. Destroy the notice per local campus procedures and let the TDI process continue.

3.13.12.22.8.17  (01-01-2009)
Third Party Responses

  1. If a third party indicates the organization has moved, but does not specify the exact address, process as an undelivered response.

  2. If a third party indicates the organization has moved and provides a current address, research the CAF file using CC CFINK. If a proper authorization is not found, send Letter 135C (Selective C). Do not update the address.

  3. If a third party with proper authorization found on CAF indicates the organization has moved, and provides a current address:

    1. Update the address with a TC 014.

    2. Check to see when the initial CC ASGNB for 15 cycles was input. It may be necessary to input a second CC ASGNB for 8 cycles before the generation of the next notice.

  4. If a third party indicates a change in the person (or persons) who handles the account, treat as an insufficient response.

3.13.12.22.8.18  (01-01-2009)
Responses Indicating EIN Change or Entity Problems

  1. If the organization indicates it is filing under a different EIN, process per instructions in IRM 3.13.12.11.

  2. If the organization indicates a name change, process per instructions in IRM 3.13.12.6.2.2.

  3. If the organization indicates a c/o name, sort name or location address change, input CC ENREQ/CC BNCHG with Doc. Code 63.

  4. Input any address change on the notice, including foreign address, with CC ENREQ/CC BNCHG.

3.13.12.22.8.19  (01-01-2009)
Credit Balance

  1. Whenever there is a credit balance on a notice, and a return for the tax period shown on the notice will not be filed, the credits must be moved before the notice can be closed. Otherwise, an Account Maintenance transcript will be generated.

    1. If the credits have already been moved no action is necessary.

    2. If there was an FYM change, move the credits to the correct tax period.

  2. If (1) above does not apply, proceed as follows.

    1. Request all payment posting documents (FTD, payment etc.) to verify the credit belongs to the organization. Accept a TC 716 as verified.

    2. If you have verified the credit and there is an outstanding balance on a module, move the money. There are three IDRS Command Codes to use: ADD24, ADD34, or ADD48. See IRM 2.4, IDRS Terminal Input.

    3. If you have verified the credit and there are no outstanding balances on other modules, contact the organization. If possible, telephone before writing. Letter 112C can be used.

    4. If the response reveals the organization wishes the credit refunded, inform the organization a signed return must be filed within 3 years from the due date to get a refund of prepaid tax or refundable credits. If the amount of credit was adjusted to settle a debit balance(s), notify the organization a refund will be issued based on the liability return, unless other taxes are owed.

    5. If the organizations response indicates disposition of credit, take the necessary action to dispose of the credit. If another TIN is involved, research and resolve the entity problem, if applicable, prior to transfer of credit.

    6. If the letter is undeliverable, the organization's response is inconclusive, or if there is no response within 30 days, transfer the credit from the master file to Excess Collections on a Form 8758. When transferring a credit to Excess Collections (6800 account), payments must be over 1 year old. Prepare Form 8758 for each credit being transferred. Complete Form 8758 in accordance with procedures in IRM 3.17.220.

    7. If a late reply is received from the organization indicating the disposition of the credit, take the necessary action to transfer the credit from the Excess Collection to the appropriate module using Form 8765. Refer to IRM 3.17.220 for detail procedures in completing Form 8765.

3.13.12.22.8.20  (01-01-2009)
Easy Reference for Processing Form 990/990-EZ TDI Responses

  1. Original return:

    • See IRM 3.13.12.22.8.1

    • TC 599 cc 96

    • "D" Code and Received Date

    • Processing

    • Reasonable cause

  2. Copy of return

    • See IRM 3.13.12.22.8.2

    • TC 594 cc 83

    • "D" Code and Received Date

    • Processing

  3. Filed with group return

    • See IRM 3.13.12.22.8.7

    • TC 590 cc 14

  4. No longer in business

    • See IRM 3.13.12.22.8.4

    • TC 591 cc 75

    • Notify TEGE Cincinnati

  5. Organization says return was filed

    • See IRM 3.13.12.22.8.3

    • TC 594 cc 83 BB

  6. Different EIN

    • See IRM 3.13.12.22.8.2

    • Consolidate if needed

    • TC 590 cc 75

  7. Return will be filed

    • See IRM 3.13.12.22.8.3

  8. Module shows reject or unpostable

    • Research CCs ENMOD/UPTIN

    • TC 599 cc 17

  9. Filed Form 990-PF

    • TC 590 cc 75

    • Notify TEGE Cincinnati

  10. Organization is a church

    • See IRM 3.13.12.22.8.10

    • SS 03, TF 10, CL 7

    • TC 590 cc 75

    • Update FR

  11. Organization is 501(c)(3)

    • EC G or 501(c)(1)

    • TC 590 cc 75

    • Update FR

  12. Undeliverable

    • See IRM 3.13.12.21.1

    • TC 593 cc 82

  13. Different FY

    • UPC 307, IRM 3.12.278

    • TC 590 cc 75

  14. Filed Form 1120L/1120M

    • See IRM 3.13.12.22.8.5

    • SS 12/SS 15

    • TC 590 cc 75

  15. Insufficient information

    • See IRM 3.13.12.22.8.16

    • Correspond with organization

  16. Rev. Proc 95-48

    • TC 590 cc 75

  17. Additional information

    1. If a Form 990/990-EZ is a reject or unpostable, input a TC 599 cc 17. Do not input a TC 599 cc 17 on a different MFT than the MFT on the EO TDI notice.

    2. If the organization filed as a part of a group return and the group return is a reject or unpostable, input a TC 599 cc 17.

    3. If CPs 259A - 259G are undeliverable, do not input a TC 593 cc 82; destroy the notice. If CPs 425- 430 are undeliverable, input a TC 593 cc 82 and destroy the notice.

    4. Refer to IRM 3.13.2 when processing notice responses for Form 990-C/1120-C.

3.13.12.22.8.21  (01-01-2009)
Easy Reference for Processing Form 990-PF TDI Responses

  1. Original return:

    • See IRM 3.13.12.22.8.1

    • TC 599 cc 94

    • "D" Code and Received Date

    • Processing

    • Reasonable cause

  2. Copy of return

    • See IRM 3.13.12.22.8.2

    • TC 594 cc 83

    • "D" Code and Received Date

    • Processing

  3. Organization filed Form 990 with determination letter

    • See IRM 3.13.12.22.8.5

    • TC 599 cc 94

    • "D" Code and Received Date

    • Processing

  4. Organization filed Form - no determination letter

    • TC 590 cc 75

    • Notify TEGE Cincinnati

  5. No longer in business

    • See IRM 3.13.12.22.8.4

    • TC 591 cc 75

    • Notify TEGE Cincinnati

  6. Terminating under section 507(b)(1)(A)

    • See IRM 3.13.12.22.8.4

    • TC 590 cc 75

  7. Organization says return filed

    • See IRM 3.13.12.22.8.3

    • TC 594 cc 83 BB

  8. Different EIN

    • See IRM 3.13.12.22.8.2

    • Consolidate if needed

    • TC 590 cc 75

  9. Return will be filed

    • See IRM 3.13.12.22.8.3

  10. Undeliverable

    • See IRM 3.13.12.21.1

    • TC 593 cc 82

  11. Different FY

    • UPC 307, IRM 3.12.278

    • TC 590 cc 75

  12. Module shows reject or unpostable

    • Research CCs ENMOD/UPTIN

    • TC 599 cc 17

  13. Insufficient information

    • See IRM 3.13.12.22.8.16

    • Correspond with organization

  14. Additional information: If a Form 990-PF is a reject or unpostable, input a TC 599 cc 17. Do not input a TC 599 cc 17 on a different MFT than the type of return indicated on the TDI.

3.13.12.22.8.22  (01-01-2009)
Easy Reference for Processing Form 990-T TDI Responses

  1. Original return:

    • See IRM 3.13.12.22.8.1

    • TC 599 cc 94

    • "D" Code and Received Date

    • Processing

    • Reasonable cause

  2. Copy of return

    • See IRM 3.13.12.22.8.2

    • TC 594 cc 83

    • "D" Code and Received Date

    • Processing

  3. No unrelated business income

    • See IRM 3.13.12.22.8.4

    • TC 590 cc 75

  4. Under $1,000 unrelated business income

    • See IRM 3.13.12.22.8.4

    • TC 590 cc 75

  5. No longer in business

    • See IRM 3.13.12.22.8.4

    • TC 591 cc 75

    • Notify TEGE Cincinnati

  6. Undeliverable

    • See IRM 3.13.12.21.1

    • TC 593 cc 82

  7. Different FY

    • UPC 307, IRM 3.12.278

    • TC 590 cc 75

  8. Different EIN

    • See IRM 3.13.12.22.8.2

    • Consolidate if needed

    • TC 590 cc 75

  9. Return will be filed

    • See IRM 3.13.12.22.8.3

  10. Organization says return filed

    • See IRM 3.13.12.22.8.3

    • TC 594 cc 83 BB

  11. Module shows reject or unpostable

    • Research CCs ENMOD/UPTIN

    • TC 599 cc 17

  12. Insufficient information

    • See IRM 3.13.12.22.8.16

    • Correspond with organization

  13. Additional information: If a Form 990-T is a reject or unpostable, input a TC 599 cc 17. Do not input a TC 599 cc 17 on a different MFT than the type of return indicated on the TDI.

3.13.12.22.8.23  (01-01-2009)
Easy Reference for Processing Form 5227 TDI Responses

  1. Original return:

    • See IRM 3.13.12.22.8.1

    • TC 599 cc 96

    • "D" Code and Received Date

    • Processing

    • Reasonable cause

  2. Copy of return

    • See IRM 3.13.12.22.8.2

    • TC 594 cc 83

    • "D" Code and Received Date

    • Processing

  3. No longer in business

    • See IRM 3.13.12.22.8.4

    • TC 591 cc 75

  4. Organization says return filed

    • See IRM 3.13.12.22.8.3

    • TC 594 cc 83 BB

  5. Different EIN

    • See IRM 3.13.12.22.8.2

    • Consolidate if needed

    • TC 590 cc 75

  6. Return will be filed

    • See IRM 3.13.12.22.8.3

  7. Undeliverable

    • See IRM 3.13.12.21.1

    • TC 593 cc 82

  8. Different FY

    • UPC 307, IRM 3.12.278

    • TC 590 cc 75

  9. Module shows reject or unpostable

    • Research CCs ENMOD/UPTIN

    • TC 599 cc 17

  10. Insufficient information

    • See IRM 3.13.12.22.8.16

    • Correspond with organization

  11. Additional information: If a Form 5227 is a reject or unpostable, input a TC 599 cc 17. Do not input a TC 599 cc 17 on a different MFT than the type of return indicated on the TDI.

3.13.12.22.9  (01-01-2005)
2050 Letters

  1. A 2050 Letter is sent to the exempt organization by Automated Collections (ACS) if there is no response to the second notice (CPs 425-430). Any 2050 Letter received by the campus will be worked in EO Entity using the EO TDI instructions.

    Exception:

    No CC ASGNB is required.

3.13.12.22.10  (01-01-2009)
EC TDI Res Transcripts

  1. If a TCs 150, 590, 591, 593, 595, 597, 599, 610, 914 or 976 has not posted after 20 cycles to a module with a posted TCs 594 or 599, a transcript is generated of all tax modules for the immediate preceding 12 months which match the MFT.

  2. EO Entity will receive a transcript titled EC–TDI–RES. This is a complete transcript and will include BMF information to be used for research.

  3. A CP 169 will be generated if TC 594 was input with Blocking Series indicator BB. See IRM 2.4, IDRS Terminal Input for input of Blocking Series. The notice will be sent directly to the organization. Also a TDI case control card and transcripts for all tax modules with the same MFT will be generated if the tax period is within 13 months prior to the tax period of the TCs 594 or 599.

  4. Processing TDI Research transcripts. Any EC–TDI–RES Transcript with the TC 59X Closing Code of 25-73 must be routed to SCCB or if the BMF tax module status was in 03 at any time.

    1. Research for a TC 150 already posted. If the TC 150 posted, destroy the case.

    2. If IDRS shows the TC 150 is in reject or unpostable status, destroy the transcript.

    3. Research IDRS CC ENMOD to determine if correspondence was initiated by Document Perfection (Code & Edit, Rejects, Unpostables). If IDRS letters 2696C-2699C were issued any time within 60 days of the current date for the tax period shown on the transcript, destroy the transcript.

    4. Review the entity filing requirements and EO Status:

      If Then
      The filing requirement was removed, Input TC 590 cc 75 and destroy the transcript.
      The Status is 20, 21, 26, 28, 40 or 41, Input TC 590 cc 75 and destroy the transcript.
      The EO Section was removed, Input TC 590 cc 75 and destroy the transcript.

    5. Review the tax module for a return posted to a different tax period, but for the same tax year (same tax year is tax periods 9512-9611). If it appears the return has posted for a different tax year month than on the transcript, input a TC 590 cc 75 and destroy the transcript. Also, be sure the FYM on the BMF is correct for the return posted.

    6. Research CC NAMEE for another EIN:

      If Then
      Another EIN is found:

      1. Process per consolidation instructions in IRM 3.13.12.8.

      2. Input TC 590 cc 75 and destroy the transcript.
      Another EIN is not found, Continue with (5) below.

    7. Research unpostable with CC UPTIN. If the TC 150 is unpostable, resolve the case accordingly.

    8. When research fails to resolve the EC–TDI–RES transcript, correspond with Letter 145C or 3064C.

  5. After 45 days process as follows:

    1. If a copy of the return is attached, route the return for processing.

    2. If the original notice was coded incorrectly, input the correct transaction code.

      Note:

      If a 145C or 3064C Letter has already been sent, give case to the tax examiner who sent the original suspense letter to wait for resolution.

  6. If the organization fails to respond or correspondence is inconclusive, input TC 592. Route the case to SCCB, Mail Stop 5500.

  7. Refer to the table below when processing notice responses for Unreversed TCs 594 and TC 599 Transcripts.

    Note:

    This table is to be used along with any related text.

    Action Destroy Transcript TC 590-75 Consolidate 590-75 Correspond Route SC CB Input TC 592
    TC 150 Posted X          
    TC 150 in reject or unp status X          
    2696 C or 2699 C sent for TXPD in the last 60 days X          
    Filing Req. removed   X        
    990-06 FR Form 990 only   X        
    Status 20-26 28 40 41   X        
    FYM is incorrect   X        
    Another EIN found     X      
    TC 594-83       X    
    TC 599 CC 25-73         X  
    Unable to resolve         X X

3.13.12.23  (01-01-2009)
LATDEP-FED Transcripts

  1. These transcripts will generate on accounts with Employment Code F and the FTDs (TC 650/660) are attempting to post.

  2. Research master file to determine if a TC 150 has posted for Form 941 (MFT 01) for the amount listed on the transcript. If so, close the account and no further research is necessary.

  3. If no TC 150 is present, research the entity module to find a better EIN. If a better EIN is found, move the credits using CC ADD34 to the appropriate module.

  4. If no TC 150 is present and no better EIN can be found, discard the transcript.


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