Correspondence issues relating to Form 4720 may include any of the following:

The following penalties apply to public charities, private foundations, foundation managers, and self-dealers required to file Form 4720.

EO Accounts tax examiners may abate penalties related to Form 4720. However, if both a tax decrease and penalty abatement are requested, refer the case to the field. Do not adjust the penalties.

Form 4720-A is used to assess initial taxes on managers, self-dealers, disqualified persons, donors, donor advisors, and related persons.

Form 4720-A is processed NMF as MFT 66. It is not a standard form and is created by converting and/or photocopying Form 4720 and inserting a printed "A" in red ink to the right of the form number 4720.

Form 4720, Part Il-A, is used as the source of information to create Form 4720-A. Part Il-A consists of all persons who owe tax in connection with the foundation or organization, whether as managers, self-dealers, disqualified persons, donors or related persons. It is prepared for each name entered in Part Il-A of Form 4720.

If an amended, corrected, or supplemental Form 5768 is received, follow the procedures outlined below:

All written inquiries or correspondence relating to the following issues must be routed to the TE/GE Adjustment unit at the address shown below. Telephone inquiries on the issues listed below can be referred to the TE/GE CAS telephone operations toll free number 1-877-829-5500.

The mailing address for TE/GE Adjustment unit is:

The following issues are routed to the Cincinnati Submission Processing Campus (CSPC):

CSPC addresses for mailing applications or user fees are shown below:

For internal routing of application issues (i.e., copies or a response to a letter that was generated by an EO agent), forward to the following address.

Form 8849 or claims for refund of communications excise tax by exempt users are worked in the CSPC, Excise Tax unit. Route all Forms 8849, attachments and claims to the following address:

Route the following issues to OSPC's EO Entity Control, MS: 6273:

When MF indicates a different accounting period than the one indicated in correspondence from the organization, inform the organization to elect the change by timely filing the applicable information return (for example, Form 990, Form 990-EZ, Form 990-PF, Form 990-T, Form 990-BL, or Form 1065) for the short period for which the return is required. Indicate on the return that a change in accounting period is being made ( Rev. Proc. 85–58). If the organization has already changed its FYM within the last ten years, it must submit a Form 1128.

Route third-party correspondence or any Service prepared document which alleges potential noncompliance with a tax law on the part of an exempt organization (e.g., taxpayer informant letters, information items, referrals) to the address shown below. Form 13909, TE/GE Referral Information Report, may be used for referrals.

Do not establish an AIMS account. If an examination is warranted, EO Classification will establish an AIMS account.

OAMC EO Accounts unit tax examiners may allow or disallow claim/reconsideration requests ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (excluding EP Form 990-T) with the exception of the following:

OAMC EO tax examiner may forward any claim for refund or reconsideration requests, regardless of amount, to the Field if they are not sure whether to allow or disallow the issue.

Claims or reconsiderations ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ are forwarded directly to the Field. Prior to routing, a complete claims package must be compiled which includes the following items.

Refer to the routing procedures outlined in IRM 21.7.7.4.15.

Claims or amended returns based on expected changes in any of the following areas are considered protective claims:

Refer all protective claims to the Field for resolution.

Form 4136 (or a statement showing the computation of tax) is used by state and local governments or nonprofit educational organizations not liable for excise tax on gasoline or special fuels. Form 4136 can be filed with Form 990-T and Form 1120-POL.

Government or tax exempt organizations cannot file a claim for payment or refund if it is known another person is entitled to file a claim for the same fuel.

Verify and compute the amount to be refunded. Follow the table below:

See IRM 21.5.3 for more information on claims. See IRM 21.6.3.4.2.6 for additional information on fuel tax claims.

HR 4520, the American Jobs Creation Act of 2004, created five new credits that can be claimed on Form 4136, effective for tax years ending after December 31, 2004. See IRM 21.7.7.4.18.1 for additional information and list of credits.

If a claim or amended return is received requesting credit or refund of Windfall Profit Tax, route to Austin Compliance Center. Send letter 86C to taxpayer.

Delegation Order No. 237 (Rev. 2), dated November 14, 1997, does not authorize Directors, Submission Processing or Accounts Management Campuses to abate qualified first tier excise tax amounts imposed by Chapter 42 of the Internal Revenue Code. All IRC 4962 requests or claims for abatement of first or second tier Chapter 42 taxes are sent directly to the field.

Prior to routing the case to the field, a TC 150 must be posted to Master File and the following items must be attached to the claim or correspondence request.

Send an 86c letter to the taxpayer and route case to clerks for AIMS establishment.

An Employee Plans Trust is a trust opened to hold the money from a retirement plan. The money in the trust is put into various accounts such as Savings Accounts, Certificate of Deposits, Stocks or Limited Partnerships. The money is invested in hopes of receiving interest, dividends or a return of the partnership's income. When a trust invests in a partnership that generates income from a trade or business that is not substantially related to the exempt organization's purpose, it is considered Unrelated Business Income (UBI). The Unrelated Business Income and related tax is reported and paid on Form 990-T.

Schedule(s) K-1 substantiates the amount reported on Line 30 of Form 990-T and should be attached to the return. However, if Schedule(s) K-1 is not attached to the original return during initial processing, the Form 990-T will still post to MF. No correspondence is issued requesting the missing K-1.

Form 990-T EP accounts can be identified by researching the entity portion of the module. EP Form 990-T filers are required to apply and enter an EIN assigned to the 401(a) Trust. EP Form 990-T has a filing requirement code 02 and no EO subsection. Form 990-T is required to be filed by the 15th day of the fourth month following the end of the tax period.

Effective September 2004, the local tolerance level for Form 990-T EP claims was increased to ≡ ≡ ≡ ≡ ≡ ≡ . This new tolerance amount allows the Ogden Accounts Management Campus (EO Accounts) to resolve all Form 990-T EP claims/reconsiderations, NOLs, RINTs, TENTs and amended returns of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . EP Form 990-T claims/reconsideration, NOLs, RINTs and amended returns, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , are routed directly to the field for resolution. Refer to IRM 21.7.7.4.14.7.3 for procedures relating to resolution of Form 990-T EP TENT claims.

If TC 150 is processed at the OSPC, request a copy of the loss year return (or any other year the tax examiner deems necessary) from OL-SEIN to verify the adjustment. If the return is not available on OL-SEIN, request the original return from Files (two attempts must be made).

If the original loss year return is unavailable, attach a complete TXMODA and BRTVU prints, along with Form 4251 (charge out document) if the original return is unavailable.

Apply claims dollar threshold criteria:

Prior to routing amended gain year returns or claims over the ≡ ≡ ≡ ≡ dollar threshold, the following action must be taken:

Refer to IRM 21.5.9 for detailed information regarding the processing of BMF Restricted Interest Claims.

Exempt organizations may file for a Tentative Refund of Tax. These requests for refund, called "TENTs" , must be filed within 1 year from the end of the loss year and are filed on Form 1139, Corporate Application for Tentative Refund.

Form 1139 has a 90-day processing requirement, so input the adjustment within the later of:

TENTs have a 45-day interest free period (see IRM 21.5.9.5.32).

Unique processing codes identify a TENT:

TENT adjustments require input of an interest start date (INT-COMPTN-DT) and carryback received date (TCB-DT). The INT-COMPTN-DT determines the date that credit interest begins on the overpayment. The TCB-DT determines the expiration date of the 45-day interest free period (see IRM 21.5.9.5.32).

Refer to the following procedures for resolving Form 990-T (EO) TENTs.

When referring TENTs to the Field that are ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ follow the procedures outlined below.

Refer to IRM 21.7.7.4.16.7.3 for Form 990-T EP TENT procedures.

Additional information regarding Carryback procedures are provided in IRM 21.5.9.

Effective May 01, 2007, on-site EO classification is no longer available. All related issues that were formerly routed to the on-site classifier must now be sent to the Field for resolution. This includes:

Upon determination by the tax examiner that the case meets EO CATA criteria, the tax examiner will compile a complete claim package. This includes:

Route all EO claims to the address shown below.

A refundable credit is a credit to reduce a tax liability. If the tax is reduced to zero (or reported as zero) and the credit remains, it is refundable.

Refundable credits can be claimed on Form 990-T or certain Form 1120 series returns. The taxpayer is required to submit various forms or schedules to substantiate credits applicable to the return. Refer to Document 6209 for the appropriate CRNs to adjust refundable credits.

The following refundable credits are applicable to Form 990-T (unless otherwise annotated):

HR 4520, the American Jobs Creation Act of 2004, created five new excise credits that can be claimed on Form 4136, effective for tax years ending after December 31, 2004. Fiscal year taxpayers may claim these credits for tax periods ending January 31, 2005 (200501). The new credit reference numbers and description is shown below. Refer to IRM 21.7.4.4.9, for additional information on refundable credits.

Use CFOL, EUP, OL-SEIN or secure the original return (when absolutely necessary) from Files.

Determine correct entity on original and duplicate returns.

Examine both returns for following similarities and differences:

When a return is filed marked "amended" , "corrected" , "supplemental" , or "superseding" (an amended return filed on or before return due date is a superseding return), etc., Code and Edit (C&E) inputs CCC "G" . IDRS does not record any information except the amount paid with return. It does not math verify "G" coded returns. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

When working CP 193s involving income tax, particularly Form 990-T and Form 1120-POL, be sure to check for possible Form 4136 adjustments. Even though no tax change may be indicated, the amended return could be filed to claim a refund for fuel taxes on Form 4136. If a Form 4136 adjustment is required, refer to IRM 21.6.3.4.2.6. and IRM 21.7.4.4.9.1.

All duplicate filing cases must be controlled on IDRS and not closed until action has been taken to resolve the -A freeze or the case has been referred to another appropriate area.

If a letter of explanation stating why the amended return is being filed is not included, additional research will be necessary in order to determine what is being amended. This can be accomplished by accessing CC BRTVU and viewing a copy of the original return via OL-SEIN. If the original return is not available on OL-SEIN, if may be necessary to secure the original return from Files.

Exempt organization returns marked "amended" or "corrected" are sorted by Receipt and Control (R&C) and forwarded to the Imaging unit to be imaged. After the return has been imaged, it is routed to Code & Edit where the return is "G" coded and continues through processing.

EO returns must be controlled on IDRS with category code "EDUP" .

Follow table below to make adjustments.

Amended Form 990 or Form 990-EZ returns requesting an adjustment to the "Total Gross Receipts" or "End of Year Assets" fields can be corrected by entering the corresponding Reference Code for each item. The applicable Reference Codes are:

In order to compute the total gross receipts on Form 990 or Form 990-EZ refer to the guidelines below.

Reference Code 889 is used to adjust the "End Of Year Assets" field. Refer to the table below for the specific line number of the EOY assets and where it is located on the return.

Input a TC 290 .00, with the applicable Reference Code to adjust the account based on the information provided on the amended return. Either one or both Reference Codes may be input.

It may be necessary to manually re-compute or adjust the DDP if the penalty was calculated on the original gross receipts amount.

When a CP 193 is received without the duplicate return, attempt to determine if it is a true duplicate using CC BRTVU.

When unable to secure a return from OL-SEIN or Files (after two attempts or within 40 days):

If there is no reply and:

If a reply is received (fax or mail) and the document must be processed to another account, edit the DLN of the TC 976 on the form, and follow local reprocessing procedures.

On cases involving multiple EINs, determine if either account needs to be deleted.

If necessary, contact the organization and/or Entity Control for purpose of deleting accounts, filing requirements, and/or input of appropriate TC 59X.

In May 2007, the Ogden Submission Processing and Account Management teams agreed to the following process in order to by-pass the Unpostable 350 condition associated with EO statute period amended returns. The new process allows all amended statute period EO returns to be identified, statute cleared, imaged and routed to EO Accounts for resolution in the least amount of time.

The following is a list of EO returns that are imaged.

R&C will route all statute period amended returns to the Statute unit (MS: 6741) to be cleared. After the document has been cleared, Statutes will input a TC 971–010 on the applicable module(s) in order to generate a TC 976. This action is necessary in order to provide an audit trail for the Field. After the return(s) have been cleared, Statutes will also attach Form 12547-A and route the cases to the Imaging unit (MS: 6058) to be scanned. Form 12547-A must included the following information:

After the Imaging unit has scanned the documents, they will route them (via Form 12547-A) to EO Accounts (MS: 6710) for resolution.

EO Accounts will resolve the amended return condition based on existing amended/duplicate return procedures.

When a return must be reprocessed (via Form 13596), refer to IRM 21.5.2.4.23, for procedures.

When a dummy return is reprocessed in place of original or duplicate return, use the same received date as original or duplicate, respectively.

If the module is in MF Status 02/03, input a TC 599 CC 18 via CC FRM49 on the module to which the return is being processed.

Input TC 971 with the appropriate action code on the incorrect module (to identify cross reference TIN/tax period data) whenever an original or amended/duplicate return posts to an incorrect TIN/tax period and is being reprocessed to the correct module. Input TC 971 AC 017 on the module you are reprocessing the return to regardless of MF status. When inputting TC 971 use the correct TRANS-DT on REQ 77:

If a TC 971 with one of the action codes listed in paragraph (4) above is incorrectly input on an account, reverse it with a TC 972 using the same action code.

Do not input TC 290 .00 to release an -A freeze if other unresolved freeze conditions would be incorrectly released simultaneously. (See IRM 21.7.1.4.6.2 for conditions under which an excess credit ("Q-" freeze) is released. A TC 290 .00 only does not release the "Q-" freeze).

Determine and resolve duplicate filing conditions by examining and comparing information on the CP 193. Use CP 193, duplicate return, CFOL command codes, and OL-SEIN (or secure original return if absolutely necessary) to resolve case. Compare the items listed below:

Check CCs ENMOD, NAMEE, EOGEN, and INOLE when the EIN is circled out and a new EIN written in.

Some of the most common reasons for filing duplicate or amended returns include:

A CP 293 is generated when a duplicate return posts to an account with open TC 420 present.

Be sure to consider the open TC 42X when adjusting account. Refer to the EO CATA guidelines in IRM 21.7.7.4.15 prior to adjusting accounts.

CP 190 is generated within four cycles after a "G" coded TC 976 return posts to a module which does not contain an original return (TC 150).

CP 190 is associated with TC 976 return and forwarded to EO Accounts for resolution.

"E-" freeze is generated along with CP 193. The "E-" freeze must be released before CP 190 case is closed by either posting:

Follow procedures outlined in IRM 21.7.9.4.14 for resolution of CP 190 accounts.

A church has a 501(c)(3) status but does not officially have to file an application for exemption. If the name of the organization contains any of the following word(s) in relationship to a religious organization, an EC " W " is assigned.

A ministry is not necessarily considered a church and must generally apply for exemption. If the name of the organization contains the word "ministry," do not assign EC "W" .

Refer to the procedures outlined below for resolving FUTA tax discrepancies that involve religious organizations when the organization's name contains any of the words shown above (in relationship to a religious organization) and the conditions in IRM 21.7.7.4.21(3) above are not present.