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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 12. Exempt Organization Returns (Cont. 4)

3.11.12  Exempt Organization Returns (Cont. 4)

3.11.12.8 
Form 990–PF

3.11.12.8.36  (01-01-2009)
Part XVII
Correspondence

  1. Correspond for Line 1d, Columns (a)-(d), if they are blank and any of Lines 1a through 1c are "yes" .

  2. Correspond for Line 2b, Columns (a)-(c), if they are blank and Line 2a is "yes" .

3.11.12.8.37  (01-01-2009)
♦Paid Preparer SSN or PTIN♦

  1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature at the bottom-right corner of Page 13.

  2. No action is required on amended returns.

  3. The Preparer's SSN must be a nine-digit alpha-numeric number. The SSN cannot be all zeroes or all nines.

  4. A Preparer Tax Identification Number (PTIN) is a valid entry in the Preparer's Social Security Number area at the bottom of Form 990–PF. The PTIN is nine-digits beginning with the alpha "P" (e.g., PXXXXXXXXX).

  5. Circle-out the Preparer's SSN or PTIN if it is invalid.

3.11.12.8.38  (01-01-2009)
♦Paid Preparer EIN♦

  1. The Preparer's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 13.

  2. No action is required on amended returns.

  3. The Preparer's EIN must be a nine-digit numeric number. The EIN cannot be all zeroes or all nines.

  4. Circle-out the Preparer's EIN if it is invalid.

3.11.12.8.39  (01-01-2009)
Schedule B

  1. See Exhibit 3.11.12-3 for Schedule B.

  2. For tax periods 200112 and subsequent, all Form 990–PF filers must file Schedule B if the amount on Form 990–PF, Part I, Line 1, is $5,000 or more. Organizations not required to file a Schedule B must certify they are not required by checking the box on Part I, Line 2, of Form 990–PF, or by checking the third box on the Schedule B, under "Special Rules and entering an amount on that line" .

    Exception:

    If a statement is attached indicating contributions from any one contributor did NOT exceed $5,000 or more during the year, a Schedule B or substitute Schedule B is not required.

  3. Substitute Schedule B: Organizations may attach a substitute Schedule B. An acceptable substitution must include:

    1. Name of each contributor, and

    2. Aggregate amount of contributions for each contributor.

3.11.12.8.40  (01-01-2009)
Schedule B
Correspondence

  1. Correspond for Schedule B (Form 990–PF) if all of the following apply:

    1. Schedule B is one of the following:

      Note:

      Contributor information means at least one name and amount for the same contributor is present.

      Schedule B is But And
      Missing    
      Present Does not contain contributor information (name(s) / amount(s)), or "anonymous" , "N/A" , "none" "zero" , "dash" in Parts I, II, or III and or
      		 1. The third box under "Special Rules" , page 1 is not checked; or
      2. The third box under "Special Rules" , page 1 is checked, but an amount is not present on that line.

    2. Part I, Line 1, Form 990–PF, is $5,000 or more.

    3. The box in Part I, Line 2 is not checked

    4. The tax period is 200112 or subsequent.

  2. Do not correspond for Schedule B if an acceptable substitute Schedule B is attached as described in 3.11.12.8.39(3).

3.11.12.9  (01-01-2009)
Form 990–T

  1. Form 990–T is filed by the following organizations:

    1. Organizations exempt under IRC 501(c), 501(e), 501(f), and 501(k), when the organization has unrelated taxable business income

    2. Trusts filing under IRC 401(a)

    3. Section 408 IRA Trusts

    Note:

    All Forms 990–T (except "TETR only" ) must be scanned through the imaging process. See IRM 3.11.12.1.25.

3.11.12.9.1  (01-01-2009)
General Instructions

  1. Always convert prior years. SeeExhibit 3.11.12-34.

  2. Always follow the instructions for a "special return" .

  3. Exhibits 3.11.12–18, 3.11.12-19, 3.11.12-20, 3.11.12–21, 3.11.12-22, 3.11.12-23, 3.11.12-24, and 3.11.12–25 indicate the transcribed lines (T-lines) for Forms 990–T, Schedule D (Form 1041), Schedule I (Form 1041), 2220, 4136, 4626, 4952, and 8913.

  4. Perfect all T-lines as follows:

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave the T-line blank only if it cannot be perfected in the steps above.

  5. Put Form 990–T in the following order:

    1. Form 990–T, pages 1- 4

    2. Schedule I (Form 1041), Alternative Minimum Tax

    3. Schedule D (Form 1041), Capital Gains and Losses

    4. Form 4952, Investment Interest Expense Deduction

    5. Form 4136, Credit for Federal Tax Paid on Fuels

    6. Form 4626, Alternative Minimum Tax for Corporations

    7. Form 8913, Credit for Federal Telephone Excise Tax Paid

3.11.12.9.2  (01-01-2009)
Filers Defined

  1. Form 990–T is filed by organizations that are exempt under IRC §501(c), §501(e), §501(f), or §501(k) when they have unrelated taxable business income, or trusts filing under IRC §401(a) and Section 408 Individual Retirement Account (IRA) Trusts.

  2. Form 990–T may be filed by any exempt organization.

  3. Form 990–T is subject to:

    1. Corporate income tax

    2. Alternative Minimum Tax

    3. Failure to file penalty

    4. Failure to pay penalty

    5. Estimated tax penalty

    6. Failure to Deposit (FTD) Penalty

      Note:

      Route any correspondence stating a valid reasonable cause for failing to deposit along with a photocopy of the first page of the return to OAMC, EO Accounts.

3.11.12.9.3  (01-01-2009)
Special Returns

  1. Form 990–T special returns are:

    1. Consolidated Returns, see IRM 3.11.12.9.4

    2. Telephone Excise Tax Refund Returns, see IRM 3.11.12.9.5


3.11.12.9.4  (01-01-2009)
Consolidated Return

  1. A consolidated Form 990–T combines the tax information of an exempt organization and its title holding corporation(s).

  2. Identify a consolidated return by one or more of the following:

    1. The return is marked "Consolidated" .

    2. Form 851, "Affiliations Schedule," is attached with the name, address, EIN, and prepaid credits of each organization included on Form 851.

    3. One or more Form(s) 1122, "Return of Information, Authorization, and Consent of Subsidiary Corporation in a Consolidated Return," are attached.

    4. A list of title holding corporations is attached.

  3. Correspond for Form 851 if Form 851 or a list is not attached to the return.

  4. Do both of the following if Form 851 or a list is attached:

    1. Request NAMEE/NAMEB research for the affiliate's EIN if it is missing.

    2. Request TC 590–14 input for the corporations included on the numbered or unnumbered consolidated return.

3.11.12.9.5  (01-01-2009)
Telephone Excise Tax Refund (TETR) Return
(Form 990-T with Form 8913)
2006 Form 990–T Revision

  1. Taxpayers may be entitled to request credit or a refund of excise taxes paid on long distance services. The credit/refund is claimed using a 2006 Form 990–T revision.

    Caution:

    TETR only returns are not imaged. TETR only returns received without the word "scanned" stamped on the left margin of the return should not be returned to the Imaging function.

  2. Identify a TETR return by one or more of the following:

    1. "Telephone Excise Tax Refund" (or similar wording) or "Notice 2006–50" is written on Form 990-T or attachment.

    2. Form 8913 is attached.

    3. Line 44f (2006 form revision) contains a dollar entry.

  3. Taxpayers may file a Form 990-T to claim only the TETR credit, or may file a 990-T to claim the TETR credit in conjunction with their normal annual filing.

  4. See IRM 3.11.12.9.19 for Line 44f instructions.

3.11.12.9.6  (01-01-2009)
"TETR Only" Tax Return
2006 Form 990–T Revision

  1. Taxpayers not liable to file a tax return may file to claim the Telephone Excise Tax Refund (TETR) only. These are considered "TETR only" returns and can be identified by having no significant entries on Lines 1–43.

    Exception:

    If Line 33 has an entry of $1,000, and no other significant entries are present on Lines 1-43, delete the entry on Line 33 and process as a TETR only return.

  2. The following data must be edited on all "TETR only" returns:

    1. Name Control (unless Check Digits are present)

    2. EIN

    3. Tax Period

    4. Computer Condition Code "Q"

      Note:

      Other CCC's may still apply and need to be edited e.g., "R" .

    5. Subsection Code

    6. Type of Organization Code

    7. IRS Received Date

    8. Signature

    9. Paid Preparer Information (if present)

    10. Form 8913

  3. Do not correspond for missing information other than:

    1. Missing signature

    2. Missing Form 8913 when a 2006 revision of Form 990-T, Line 44f is ≡ ≡ ≡ ≡ ≡ ≡ .

3.11.12.9.7  (01-01-2009)
Perfection, Editing, and Correspondence

  1. Attach edit sheet to Form 990–T if necessary.

  2. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.1.10

    2. Computer Condition Codes, (A, B, D, F, G, I, L, O, Q, R, T, W, X, Y, 3, 5, 7, 8, and 9), IRM 3.11.12.1.13

    3. Entity Perfection, IRM 3.11.12.1.20 through 3.11.12.1.20.6

    4. Penalty and Interest Code, IRM 3.11.12.1.26

    5. Received Date, IRM 3.11.12.1.28

    6. Tax Period, IRM 3.11.12.1.38

3.11.12.9.8  (01-01-2009)
Subsection Code

  1. Edit a two-digit Subsection Code in Item B of the entity section.

  2. Determine the Subsection Code from the list below:

    1. IRS label

    2. INOLES research

    3. Item B of the entity section. If using the entry in Item B, perfect as follows:

      Box Checked Subsection
      501( )( ) XX (subsection taxpayer entered)
      408(e), 408A, 529(a), 220(e), 530(a) 00

  3. If the taxpayer has entered a two digit subsection in the 501( )( ) box, underline the taxpayer's numeric entry.

    Example:

    If the taxpayer entered "(03)" in the Item B 501( )( ) area, underline "03" .

  4. If the taxpayer entered a one-digit subsection in the Item B, 501( )( ) box, edit the number to a two-digit entry.

    Example:

    If the taxpayer entered "(c)" "3" , edit to "03" .

  5. If the Subsection Codes conflict (e.g., preprinted label or INOLES shows SS03, but the taxpayer indicates otherwise in Item B), always use the Subsection on the preprinted label or INOLES.

  6. If you are unable to determine the Subsection Code, edit "00" as the Subsection Code.

3.11.12.9.9  (01-01-2009)
Type of Organization Code

  1. Edit the Type of Organization Code in the right margin of Form 990-T, page 1, next to items F and G of the entity section.

  2. The Type of Organization Code is determined from the boxes checked in Items B and G of the entity section.

  3. Edit a Type of Organization Code as follows:

    Type of Organization Code Description
    1 501(c) trust box checked with a U.S. address, or a trust with a U.S. address and SS90-SS92.
    2 501(c) trust box checked with a foreign address, or a trust with a foreign address and SS90-SS92.
    3 401(a), 408A, 408(e), 220(e), 530(a), 529(a), or the "other trust" box is checked, or a trust with no Subsection Code. The organization name may contain words similar to "pension" , "welfare" , "benefit" , "profit sharing" , "IRA" , or "retirement" .
    4 501(c) corporation box checked with a U. S. address, or a corporation with a U.S. address and SS02-27, 50, 60, 70, or no box is checked and research shows SS00 and the organization name may contain words indicating it is a state university.
    5 501(c) corporation box checked with a foreign address, or a corporation with a foreign address and SS02-27, 50, 60, or 70.
    3 If after research, the filing requirement is 990–T-02, or if unable to determine the Type of Organization Code (e.g., INOLES is SS00).

3.11.12.9.10  (01-01-2009)
Installment Sale Indicator
Edit Sheet, Box 7

  1. An Installment Sale Indicator is used to report the sale of property on the installment plan.

  2. Codes are based solely on taxpayer response to Question 3 of Form 6252.

  3. Edit the Installment Sale Indicator code which corresponds with the answer to Form 6252, Question 3:

    1. Code 1 — "yes" .

    2. Code 2 — "no" .

    3. Code 3 — other than "yes" or "no."

  4. Edit CCC "B" if there is an indication on the return or attachment that the organization is opting out of the installment plan (e.g., "final lump sum payment" written across the top of Form 6252).

3.11.12.9.11  (01-01-2009)

Missing Schedule Codes
Edit Sheet, Box 8

  1. Edit a Missing Schedule Code in Box 8 of the edit sheet, if the supporting schedule is missing and all of the following apply:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. You are not corresponding for any other item.

    3. Only one required credit form is missing.

  2. A list of required schedules and Missing Schedule Codes are listed in IRM 3.11.12.9.19.

3.11.12.9.12  (01-01-2009)
Part I
Perfection

  1. Item G: Edit CCC "5" if editing a Type of Organization Code of "3" .

  2. Item I: If checked "yes" , do both of the following:

    1. Underline the name control or edit "XXXX" if name is missing and not on an attachment.

    2. Perfect the EIN if illegible, or edit "12–9999999" if missing and cannot be perfected.

  3. Line 1c, Column (A): If blank, do one of the following:

    1. Line 1a minus 1b.

    2. Add Lines 2 and 3.

  4. Line 2, Column (A): If blank, edit from Schedule A, Line 7.

  5. Line 9, Column (C): If blank, do one of the following:

    1. Line 9, Column (A) minus Column (B).

    2. Form 990–T, Schedule G, Column (2) total minus Column (5) total.

  6. Line 13, Column (A): If blank, do one of the following:

    1. Add Lines 3-12.

    2. Add Line 13, Columns (B) and (C).

    3. Double arrow Line 13, Column (C) to Column (A) if Column (B) has no dollar entries.

  7. Line 13, Column (B): If blank, do one of the following:

    1. Add Lines 6-11.

    2. Line 13, Column (A) minus Column (C).

  8. Line 13, Column (C): If blank, do one of the following:

    1. Add Lines 3-12.

    2. Line 13, Column (A) minus Column (B).

    3. Double arrow Line 13(A) to (C) if (B) has no dollar entries.

    4. Double arrow Line 13(B) to (C) if Column (A) has no dollar entries.

3.11.12.9.13  (01-01-2009)
Part II
Perfection

  1. Line 29: If blank, add Lines 14-28.

  2. Line 31: Perfect. Do not bracket.

  3. Line 34: Perfect for legibility.

    Caution:

    If Line 34 is blank, do not compute. Leave Line 34 blank.

3.11.12.9.14  (01-01-2009)
Part II
Correspondence

  1. Line 33: If the amount on Line 33 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , a detailed schedule must be attached in support of Line 33. If the information is not attached, correspond.

3.11.12.9.15  (01-01-2009)
Part III
Line 35
Perfection

  1. Edit "1" to the right of the box on Line 35 if all of the following apply:

    1. Part II, Line 34, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    2. The Type of Organization Code is "4" or "5" .

    3. A Controlled Group Plan is attached with the organization’s portion of the group’s allocation.

3.11.12.9.16  (01-01-2009)
Part III
Lines 35a(1)–35b(2)
Perfection

  1. "X" Lines 35a(1)-35b(2) if Line 35 has not been edited with "1" and there are dollar entries.

3.11.12.9.17  (01-01-2009)
Part III
Lines 35c–39
Perfection

  1. Caution: For prior year returns, see Exhibit 3.11.12-34.

  2. Lines 35c or 36: Perfect for legibility.

  3. Line 37: Always edit CCC "8" if a dollar entry is present.

  4. Line 38, if blank:

    If the Type of Organization Code is a And the tax period is Then
    "1" , "2" , or "3"   edit from Schedule I (Form 1041) Line 56.
    "4" or "5" 1995 and prior edit from Form 4626, Line 14 to the dotted portion of Line 38.
    "4" or "5" 1996 and subsequent edit from Form 4626, Line 14 .

  5. Line 39: If blank, add Line 37 and Line 38 to either Line 35c or Line 36, whichever is present.

3.11.12.9.18  (01-01-2009)
Part III
Correspondence

  1. Line 36: If an amount is present and the Schedule D, Form 1041 box is checked, a Schedule D, Form 1041 must be attached. If missing, correspond.

  2. Line 37: If an amount is present, a schedule showing the Line 37 computation must be attached. If missing, correspond.

    Exception:

    Do not correspond if the Subsection is 03.

    Note:

    Always edit CCC "8" if an amount is present on Line 37.

  3. Line 38: If an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present, and the Organization Code is:

    • 1, 2, or 3, Schedule I, Form 1041 must be attached. If missing, correspond.

    • 4 or 5, Form 4626 must be attached. If missing, correspond.

3.11.12.9.19  (01-01-2009)
Part IV
Perfection

  1. If the organization has no taxable income, or there is an indication the organization is electing to carry forward an allowable credit, do not perfect or edit the credit amount to the credit line on the return or the edit sheet.

  2. Always perfect the dollar entry of the credit claimed on Form 990-T from the line on the form/schedule listed in (4) - (16) below.

  3. Lines 40a - 40d: Perfect for legibility. Never bracket. If the dollar entries can be determined to be misplaced entries, "X" the entry and edit to the correct T-line. Recompute Line 43.

    Example:

    If the filer has entered an amount on Line 40c for Form 4136, subtract the Form 4136 amount from Line 40c and recompute Line 43.

  4. Line 40a:

    1. Form 1116, Foreign Tax Cr, Trust
      Pt IV, Line 29 — MSC 30

    2. Form 1118, Foreign Tax Cr, Corp
      Pt III, Sch B, Ln 6 — MSC 29

  5. Line 40b:

    1. Form 5735, Possessions Cr./American Samoa Economic Cr.
      Pt III, Ln 17 (2003 revision) or Pt II, Ln 12 (2007) revision) — MSC 37

      Note:

      Always move the Form 5735 credit to Box 10 of the edit sheet. Edit the credit in dollars only.

    2. Form 8834, Qualified Elect. Vehicle Cr.
      Ln 11 — MSC (none)

    3. Form 8912, Clean Renewable Energy and Gulf Tax Bond Cr.
      Ln 15 — MSC (none)

  6. Line 40c (Corporations (Org 1, 2, 4, and 5)):

    1. Form 3800, General Business Cr.
      Ln 19c — MSC 43

    2. Form 6478, Credit and Cellulosic Biofuel Fuels Credit
      Ln 21 — MSC 39

    3. Form 8835, Renewable Electricity, Refined Coal Prod.
      Section A, Ln 10, or Section B, Ln 23. If both lines have an amount, total the amounts. — MSC 50

  7. Line 40c (Trusts (Org 3)):

    1. Form 3800, General Business Cr.
      Ln 19c — MSC 43

    2. Form 6478, Credit and Cellulosic Biofuel Fuels Credit
      Ln 21 — MSC 39

    3. Form 6765, Research Cr.
      Ln 63 — MSC 40

    4. Form 8586, Low Housing Cr.
      Ln 7 or Form 3800, Ln 1d — MSC 44

      Note:

      Always move the Form 8586 credit to Box 11 of the edit sheet. Edit the credit in dollars only.

    5. Form 8820, Orphan Drug Cr.
      Ln 6 — MSC 42

    6. Form 8835, Renewable Elec. Cr. and Refined Coal Prod.
      Section A, Line 12, or Section B, Line 25. If both lines have an amount, total the amounts. — MSC 50

    7. Form 8882, Empl. Child Care Cr.
      Ln 9 — MSC 59

    8. Form 8907, Non-conventional Source Fuel Cr.
      Ln 16 — MSC (none)

    9. Form 8909, Energy Efficient Appliance Cr.
      Ln 21 — MSC (none)

  8. Line 40d:

    1. Form 8801, PY Min Tax.
      Ln 15 — MSC 46

    2. Form 8827, PY Min Tax.
      Ln 8b — MSC 46

  9. Line 40e: If blank, add Lines 40a-40d.

  10. Line 42: If blank, and Form 4255, 8611, 8697, 8866 or 8902 is attached, edit from:

    1. Form(s) 4255, Line 13.

    2. Form(s) 8611, Line 14. If Line 14 has an amount, edit CCC "9" .

    3. Form(s) 8697, Part I, Line 10 or Part II, Line 11.

    4. Form(s) 8866, Line 10.

    5. Form(s) 8902, Line 30.

  11. Line 43: If blank, add Lines 41 and 42. If Lines 41 and 42 are blank, edit Line 39 minus Line 40e.

  12. Lines 44a, 44b, and 44c: Perfect. Do not bracket.

  13. Line 44d: If blank, edit from Form 1042–S, Line 7 or similar statement.

  14. Line 44e: Perfect.

  15. Line 44f (2006 form revision):

    1. Edit the amount on Line 44f to the space to the right of Line 44e.

    2. "X" Line 44f.

    3. Renumber Line 44g to 44f.

  16. Line 44f:"X" any credit claimed on Line 44f if the credit is from Form 2439, or Form 4136. Recompute Line 44f to include amounts for other credits claimed on Line 44f.

    Note:

    Always move the Form 2439 credit to Box 9 of the edit sheet. Edit the credit in dollars only.

  17. Line 46: If blank, do one or more of the following:

    1. Edit from Form 2220, Line 38 (penalty line). If Line 38 is blank, and there are entries on Line 37, Columns (a)-(d), compute the total amount and enter on Part IV, Line 46 of Form 990-T. If Lines 37 and 38 are blank, and there is an entry below Line 38 that appears to be the penalty amount, edit the amount below Line 38 to Part VI, Line 46 of Form 990-T. If Form 2220, page 2 is missing, enter the amount from Part III, Line 17, Columns (a)-(d).

  18. Line 47:"X" (or subtract) any penalty or interest other than the estimated tax penalty from Line 46.

  19. Lines 47 and 48: If blank, do both of the following:

    1. Add Lines 43 and 46 and subtract Lines 44a-44f.

    2. Edit the positive result on Line 47, or the negative result on Line 48.

      Caution:

      For refunds of $1,000,000 million or more, edit Action Code 341 per IRM 3.11.12.1.29.

      Note:

      If pre-computed penalty, interest or other additional charge is evident, ensure that it has not been included on Line 43 or 47, or reduced Line 48.

  20. Line 49: Do not edit CCC "F" if Line 49 credit elect amount is present.

3.11.12.9.20  (01-01-2009)
Part IV
Correspondence

  1. Lines 40a - 40d and 44d - 44e: Correspond if the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , and the required supporting form(s) or supporting schedules are missing.

  2. Line 44f (2006 form revision only):

    1. Correspond for Form 8913 if the credit claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Line 44f:

    If Then
    Credit claimed is for Form 4136 and Form 4136 is missing, Correspond for Form 4136.
    Credit claimed is for Form 2439 and Form 2439 is missing, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Credit claimed is for any other credit, No correspondence is required.

3.11.12.9.21  (01-01-2009)
♦Paid Preparer Checkbox Indicator♦

  1. The Paid Preparer Checkbox is located next to the taxpayer signature area. It indicates whether the taxpayer has elected, or not elected, to allow the Paid Preparer to represent them in order to answer questions about the return as it is processed.

  2. No action is required on amended returns.

  3. Take the following actions when present:

    If Then
    Only the "Yes" box is checked Take no action.
    The "No" box is checked,
    Neither of the boxes are checked, or
    Both boxes are checked     		Circle the Paid Preparer's Telephone Number.

3.11.12.9.22  (01-01-2009)
♦Paid Preparer SSN or PTIN♦

  1. The Preparer's SSN or PTIN is located to the right of the Preparer's Signature at the bottom-right corner of Page 2.

  2. No action is required on amended returns.

  3. The Preparer's SSN must be a nine-digit number. The SSN cannot be all zeroes or all nines.

  4. A Preparer Tax Identification Number (PTIN) is a valid entry in the Preparer's Social Security Number area at the bottom of Form 990–T. The PTIN is a nine-digit alpha-number beginning with the alpha "P" (e.g., PXXXXXXXXX).

  5. Circle-out the Preparer's SSN or PTIN if it is invalid.

3.11.12.9.23  (01-01-2009)
♦Paid Preparer EIN♦

  1. The Preparer's EIN is located below the Preparer's SSN/PTIN at the bottom-right corner of Page 2.

  2. No action is required on amended returns.

  3. The Preparer's EIN must be a nine-digit numeric number. The EIN cannot be all zeroes or all nines.

  4. Circle-out the Preparer's EIN if it is invalid.

3.11.12.9.24  (01-01-2009)
♦Paid Preparer Telephone Number♦

  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN at the bottom right hand corner.

  2. No action is required on Amended returns.

  3. If a complete Paid Preparer's Telephone Number is on the Preparer Telephone Number line, no editing of this line is necessary.

    Note:

    If more than 10 digits are present continue processing. ISRP will input the first 10 digits only.

  4. If the return is for a tax period prior to 2001, circle the telephone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10–digits, review the return and all attachments.

    If Then
    A complete Paid Preparer's Phone Number is located Edit to the "Phone No." line.
    A complete Paid Preparer's Telephone Number is not located or the number is illegible Circle the incomplete or illegible phone number.

3.11.12.9.25  (01-01-2009)
Schedule I
Form 1041
Alternative Minimum Tax

  1. "X" Schedule I, Form 1041, if the Organization Code is "4" or "5" .

  2. Lines 24 and 25: Perfect. Bracket only Line 24 if negative and the form does not reflect the line as a negative amount (-) or < . SeeExhibit 3.11.12-22.

    Note:

    For returns 2001 and prior, convert Line 7 to Line 24, and Line 8 to Line 25.

3.11.12.9.26  (01-01-2009)
Schedule D (1041)
Capital Gains and Losses

  1. Part III, Lines 13–15, Column (2):

    1. Line 13:Perfect.

    2. Line 14a:Perfect.

    3. Line 14b: Perfect.

    4. Line 14c:Perfect.

    5. Line 15: If blank, add Lines 13 and 14a.

  2. Part V:

    1. Line 19: Perfect.

    2. Line 34:If blank, edit the smaller of Line 32 or 33. Do not bracket if negative.

  3. If "Alternative Minimum Tax" is indicated in the margin of Schedule D (1041), "X" Schedule D. See Exhibit 3.11.12-23.

  4. For prior years, see Exhibit 3.11.12-40.

3.11.12.9.27  (01-01-2009)
Form 4952
Perfection

  1. Perfect Part II, Net Investment Income, as follows:

    1. Line 4e: Perfect. Do not bracket if negative.

    2. Line 4g:Perfect. Do not bracket if negative.

  2. For prior years, see Exhibit 3.11.12–41.

3.11.12.9.28  (01-01-2009)
Form 4136
Perfection

  1. If Fuel Tax Credit is claimed on Form 990-T, Line 44f, Form 4136 must be attached.

  2. No editing is required for Form 4136 for TY2001 and subsequent.

  3. Conversion of CRN's is required when a significant amount is present for TY2000 and prior. For prior year CRN conversions, seeExhibit 3.11.12-36.

3.11.12.9.29  (01-01-2009)
Form 4626
Perfection

  1. "X" Form 4626 if the Organization Code is "1" , "2" , or "3" .

  2. Lines 3, 4e, 6, and 12: Perfect. Bracket only Lines 3 and 4e if negative and the form does not reflect the line as a negative amount (-) or < . See Exhibit 3.11.12-19.

  3. For Prior Years, see Exhibit 3.11.12-37.

3.11.12.10  (01-01-2009)
Form 5578

  1. Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax. Every 501(c)(3) organization which operates, supervises, or controls a private school must file a certification of racial nondiscrimination.

3.11.12.10.1  (01-01-2009)
Instructions

  1. A 501(c)(3) organization which operates, supervises, or controls a private school must file a certification of nondiscrimination on Form 990/990–EZ, Schedule A, or Form 5578 if the school is a zero filer.

  2. See Exhibit 3.11.12-26 for Form 5578.

  3. Perfect Form 5578 as follows:

    1. Underline the name control on Line 1a.

    2. Perfect the EIN on Line 1b.

    3. Edit the tax period as shown unless current year.

      Note:

      This includes future tax periods. If the tax period is 18 months or more from today's date, edit CCC "U" and correspond for a future tax period using a Correspondence Action Sheet.

    4. Edit CCC "U" in the upper right corner of Form 5578 if you are required to correspond for a missing signature.

    Note:

    A received date is not required on this form.

3.11.12.11  (01-01-2009)
Form 5768

  1. Form 5768 is an Election/Revocation of election by an eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation.

  2. Section 501(c)(3) provides that an organization exempt under that section will lose its tax-exempt status and its qualification to receive deductible charitable contributions if a substantial part of its activities are carried on to influence legislation.

3.11.12.11.1  (01-01-2009)
Instructions

  1. IRC §501(h) allows a §501(c)(3) organization (SS03) to elect or revoke an election to make limited expenditures to influence legislation.

  2. SeeExhibit 3.11.12-27 for Form 5768.

  3. Correspond with the organization if any of the following apply:

    1. Lines 1 and 2 have no date.

    2. Lines 1 and 2 both have a date.

    3. Signature is missing.

  4. Perfect Form 5768 as follows:

    Note:

    A tax period is not required on this form.

    1. Edit CCC "U" in the upper right corner of Form 5768 if you are required to correspond.

    2. Underline the first four characters of the name control.

    3. Perfect the EIN.

    4. Edit the earliest received date.

    5. Edit TC 024 to the left of Line 1 and underline the YY if an election date is entered, or edit TC 023 to the left of Line 2 and underline the YY if a revocation date is entered.

3.11.12.12  (01-01-2009)
Form 990–BL
(CSPC Only)

  1. Route all Forms 990-BL to CSPC for NMF processing.

  2. Form 990-BL is an information and excise tax return for Black Lung Benefit Trusts and Certain Related Persons.

  3. Form 990-BL is subject to:

    1. The Daily Delinquency Penalty on a black lung benefit trust using only Parts I, II, III, and IV for their annual information return.

    2. IRC §4951 and §4952 excise tax "penalties" on the trust and its trustees, self-dealers and disqualified persons using Schedule A.

    3. Failure to file penalty.

    4. Estimated tax penalty.

3.11.12.12.1  (01-01-2009)
Instructions

  1. Perfect Form 990-BL as follows:

    1. Perfect for dollar entries only

    2. Always perfect for legibility.

    3. Always perfect from attachments if available.

    4. Follow the stated instructions for the line.

    5. Leave the line blank only if it cannot be perfected.

  2. Put Form 990-BL in the following order:

    1. Form 990-BL, pages 1 and 2

    2. Schedule A.

3.11.12.12.2  (01-01-2009)
Perfection

  1. Place a check next to the "Name of the Trust" and the "Trust" box if the "Name of the Trust" line and any Part I - Part IV are complete.

  2. Place a check next to the "Name of Other Person Filing Return" line and the "Trustee" box if the "Name of Other Person Filing Return" line and Schedule A, Part I, Column (h) is complete.

  3. Place a check next to the "Name of Other Person Filing Return" line and the "Disqualified Person" box if Schedule A, Part I, Column (g) is complete.

  4. Math verify Form 990-BL, Part I, Lines 3 and 12, and Part II, Lines 18 and 21 (both BOY and EOY columns). Place a check mark to the right of the line if your amount agrees with the taxpayer's entry. Place an "X" to the right of the taxpayer's entry if your amount does not agree with the taxpayer's entry, and edit the correct amount to the left of the line being verified. Do not continue to math verify the remaining lines. Flag the return to notify non-Master File of a math error.

  5. Perfect Form 990-BL, Schedule A, Part II, Lines 1-5 from corresponding lines in Schedule A, Part I.

  6. Math Verify Form 990-BL, Schedule A, Part II, Lines 1-5. Place a check mark to the right of the line if your amount agrees with the taxpayer's entry. If your amount does not agree with the taxpayer's entry, place an "X" to the right of the taxpayer's entry and edit the correct amount to the left of the line being verified. Flag the return to notify non-Master File of a math error.

3.11.12.13  (01-01-2009)
Form 6069
(CSPC Only)

  1. Effective July 2002, all non-Master File forms will be processed at CSPC. Form 6069 is a non-Master File return.

  2. Route all Forms 6069 to CSPC for processing.

  3. Form 6069 is filed by coal mine operators to compute the IRC §192 deduction and the IRC §4953 taxes on excess contributions made to a Black Lung Benefit Trust (IRC §502(c)(21) trust).

  4. Form 6069 is subject to delinquency penalties unless the filer submits a valid reasonable cause for delinquency.

3.11.12.13.1  (01-01-2009)
Instructions

  1. Effective July 2002, all non-Master File forms will be processed at CSPC. Form 6069 is a non-Master File return.

  2. Route all Forms 6069 to CSPC for processing.

3.11.12.13.2  (01-01-2009)
Perfection

  1. Perfect Form 6069 as follows:

    1. Perfect the name, address, and EIN of the mine operator.

    2. Math verify Form 6069, Schedules A and B. Place a check mark to the right of the amount if it agrees with the taxpayer's entry. Place an "X" to the right of the taxpayer's entry if the amount does not agree, and edit the correct amount to the left of the line being verified. Do not continue to math verify the remaining lines.

  2. Perfect Schedule A as follows:

    1. Line 1d: The smaller of Line 1a or 1b.

    2. Line 1e: The larger of Line 1c or 1d.

    3. Line 2c: Line 2a minus Line 2b.

      Note:

      Line 2c cannot be negative.

    4. Line 3: The larger of Line 1e or 2c.

  3. Perfect Schedule B as follows:

    1. Line 1b: Schedule A, Line 3.

    2. Line 1c: Line 1a minus Line 1b.

      Note:

      Line 2c cannot be negative.

    3. Line 3: Line 1c plus Line 2.

    4. Line 4: Line 1b minus Line 1a.

      Note:

      Line 4 cannot be negative.

    5. Line 6: Line 4 plus Line 5.

    6. Line 7: Line 3 minus Line 6.

      Note:

      Line 7 cannot be negative.

    7. Line 8: Line 7 multiplied by 0.05. Place an "X" to the right of the taxpayer's entry if your amount does not agree with the taxpayer's entry and edit the correct amount to the left of Schedule B, Line 8. Flag the return to notify non-Master File of a math error.

3.11.12.14  (01-01-2009)
Form 1120-POL

  1. Form 1120-POL is filed and processed at OSPC only. Transship to OSPC if received in any other office.

  2. Form 1120-POL is filed by the following organizations:

    1. A political organization, whether or not it is tax exempt, must file Form 1120-POL if it has any political organization taxable income.

    2. An exempt organization that is not a political organization must file Form 1120-POL if it is treated as having political organization taxable income under section 527(f)(1).

3.11.12.14.1  (01-01-2009)
Special Returns

  1. A Form 1120-POL special return is a Telephone Excise Tax Refund Return.

3.11.12.14.2  (01-01-2009)
Telephone Excise Tax Refund (TETR) Return
(Form 1120-POL with Form 8913) 2006 Form 1120–POL Revision

  1. Taxpayers may be entitled to request credit or a refund of excise taxes paid on long distance services. The credit/refund is claimed using a 2006 Form 1120–POL revision.

  2. Identify a TETR return by one or more of the following:

    1. "Telephone Excise Tax Refund" (or similar wording) or "Notice 2006–50" is written on Form 1120–POL or attachment.

    2. Form 8913 is attached.

    3. Line 23d (2006 form revision) contains a dollar entry.

  3. Taxpayers may file a Form 1120–POL to claim only the TETR credit, or may file a 1120–POL to claim the TETR credit in conjunction with their normal annual filing.

  4. See IRM 3.11.12.14.12 for Line 23d instructions.

3.11.12.14.3  (01-01-2009)
"TETR Only" Tax Return
2006 Form 1120-POL Revision

  1. Taxpayers not liable to file a tax return may file to claim the Telephone Excise Tax Refund (TETR) only. These are considered "TETR only" returns and can be identified by having no significant entries on Lines 1–18.

  2. The following data must be edited on all "TETR only" returns:

    1. Name Control (unless Check Digits are present)

    2. EIN

    3. Tax Period

    4. Computer Condition Code "Q"

      Note:

      Other CCC's may still apply and need to be edited, e.g., "R" .

    5. IRS Received Date

    6. Signature

    7. Paid Preparer Information (if present)

    8. Form 8913

  3. Do not correspond for missing information other than:

    1. Missing signature

    2. Missing Form 8913 when a 2006 revision of Form 1120–POL, Line 23d is ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

3.11.12.14.4  (01-01-2009)
General Instructions

  1. Perfect all T-lines as follows (see Exhibit 3.11.12-28):

    1. Always perfect for legibility.

    2. Always perfect from attachments, if available.

    3. Correspond if the conditions are met.

    4. Follow the stated instruction for the line.

    5. Leave the T-line blank only if it cannot be perfected in the steps above.

  2. Put Form 1120-POL in the following order:

    1. Form 1120-POL

    2. Form 4136, Computation of Credit for Federal Tax Paid on Fuels

    3. Form 8913, Credit for Federal Telephone Excise Tax Paid.

3.11.12.14.5  (01-01-2009)
Filers Defined

  1. Form 1120-POL is filed by political organizations, principal campaign committees, or organizations with political organization taxable income.

  2. Form 1120-POL is subject to:

    1. Corporate income tax

    2. Failure to file penalty

    3. Failure to pay penalty

    4. Failure to Deposit (FTD) Penalty

      Note:

      Route any correspondence stating a valid reasonable cause for failing to deposit along with a photocopy of the first page of the return to OAMC, EO Accounts.

3.11.12.14.6  (01-01-2009)
Perfection, Editing, and Correspondence

  1. Attach Form 5800, Exempt Organization Return Forms Edit Sheet, to Form 1120-POL, if necessary. Edit Form 1120-POL data on the right side of the edit sheet. SeeExhibit 3.11.12-28.

  2. Refer to the following instructions to perfect the generic items:

    1. Action Codes (ERS), IRM 3.11.12.1.10

    2. Computer Condition Codes (D, F, G, O, Q, R, W, X, Y, 3, or 7), IRM 3.11.12.1.13,

    3. Entity Perfection, IRM 3.11.12.1.20 through 3.11.12.1.20.6

    4. Penalty and Interest Code, IRM 3.11.12.1.26

    5. Received Date, IRM 3.11.12.1.28

    6. Tax Period, IRM 3.11.12.1.38

3.11.12.14.7  (01-01-2009)
Audit Code
Edit Sheet, Line 2

  1. Edit Audit Code 2 on Line 2 of the Edit sheet if:

    1. Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualifying Electing Fund, is attached and Part IV, Line 10a has an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    2. Form 1120-POL. Page 1, Question 2, under "Additional Information" is answered "yes" .

    3. Form 5713, International Boycott Report, is attached and both Questions on Line 7(f) are answered"yes" .

3.11.12.14.8  (01-01-2009)

Missing Schedule Code
Edit Sheet, Line 8

  1. Edit a Missing Schedule Code of 43 (Form 3800) if both of the following apply:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. You are not corresponding for any other item.

3.11.12.14.9  (01-01-2009)

Candidate for U.S. Congress Only Box

  1. Edit a "1" to the right of "Candidate for U.S. Congress Only" , if the first box is checked.

  2. Edit a "2" to the right of "Candidate for U.S. Congress Only" , if the second box is checked.

  3. Edit a "3" to the right of "Candidate for U.S. Congress Only" , if neither box is checked.

  4. Correspond if the second box is checked and a signed statement containing all of the following is not attached:

    1. Name and address of the candidate for Congress

    2. Taxpayer identification number

    3. Party affiliation and office sought

    4. District and State in which the office is sought

    5. Name and address of the principal campaign committee. If the designation was made in a prior year, a copy of the earlier designation must be attached.

3.11.12.14.10  (01-01-2009)
EOMF Code

  1. Edit EOMF Code "1" in the right top margin of Form 1120-POL next to the year if the organization has indicated it is a section 501(c) or section 527(f)(3) by checking the box below the tax year ending line.

3.11.12.14.11  (01-01-2009)
Lines 1-18
Perfection

  1. Lines 1-7: Perfect. If Lines 1-7 are blank, and Line 8 has an entry, double arrow the amount from Line 8 to Line 7.

  2. Line 8: If blank, add Lines 1-7. Circle brackets if present.

  3. Lines 9-15: Perfect. If Lines 9-15 are blank, and Line 16 has an entry, double arrow the amount from Line 16 to Line 15.

  4. Line 16: If blank, add Lines 9-15. Circle brackets if present.

  5. Line 17c: Perfect.

  6. Line 18: If blank, add Lines 16 & 17c. Circle brackets if present.

3.11.12.14.12  (01-01-2009)
Lines 21-25
Perfection and Correspondence

  1. Line 21: Perfect. Circle brackets if present. Correspond if Line 21 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the required supporting form(s) are missing and you are not corresponding for another item.

  2. Line 22: If blank, subtract Line 21 from Line 20. Circle brackets if present.

  3. Line 23a: Perfect from attachments if necessary. Circle brackets if present.

  4. Line 23b: If an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present, Form 2439 must be attached. Circle brackets if present. Correspond for Form 2439 if missing and the credit claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Line 23c: If an amount is present, Form 4136 must be attached. Correspond for Form 4136 if missing.

  6. Line 23d (2006 form revision): If an amount of ≡ ≡ ≡ ≡ ≡ ≡ ≡ is present, Form 8913 must be attached. Correspond for Form 8913 if missing and the credit claimed is ≡ ≡ ≡ ≡ ≡ ≡ ≡ . See IRM 3.11.12.14.3.

    1. Edit the amount on Line 23d to the space to the right of Line 23c.

    2. "X" Line 23d.

  7. Line 24 or 25: If blank, do both of the following:

    1. Line 22 minus Line 23d.

    2. Edit the positive result on Line 24, or the negative result on Line 25.

      Caution:

      For refunds of $1,000,000 or more, edit ERS Action Code 341 per IRM 3.11.12.1.29.


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