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Part 3. Submission Processing

Chapter 12. Error Resolution

Section 278. Exempt Organization Unpostable Resolution (Cont. 3)

3.12.278  Exempt Organization Unpostable Resolution (Cont. 3)

3.12.278.27 
UPC 358 Incompatible EO Status

3.12.278.27.2  (01-01-2009)
UPC 358 Resolution

  1. Review the unpostable document and the current EO status.

    1. If the EO status still needs updating, re-input the transaction using the correct status and subsection codes along with any other required elements. See IRM 3.13.12.6.2.4 for more information on required elements.

    2. If no updating is required, destroy the unpostable document using local procedures.

  2. If you did not input the unpostable transaction and cannot determine the originator's intent, contact the originator.

    1. If the originator still needs the status updated, re-input the transaction using the correct status and subsection codes along with any other required elements. See IRM 3.13.12.6.2.4 for more information on required elements.

    2. If no updating is required or you cannot contact the originator, destroy the unpostable document using local campus procedures.

3.12.278.28  (01-01-2009)
UPC 359 TC 020/022

  1. RC 1 - A TC 020 attempts to post to the BMF and the entity EO Status is 01–03, 06, 07, 10–12, 18, 19, 25.

  2. RC 2 - A TC 022 attempts to post and the Affiliation Code is either 6 or 8 (parent of a group).

  3. RC 3 - A TC 022 attempts to post and a tax module for MFT 34/37/44/50/67 has:

    • An unreversed TC 424 or 420, or

    • A TC 427 not followed by a subsequent TC 421.

  4. RC 4 - A TC 022 attempts to post and:

    • There is a –T freeze on the account; or

    • Any MFT 34/37/44/50/67 tax module contains one or more of the following freezes: –A, E–, –F, J–, –J, N–, O–, P–, –R, –S, T–, –U, –V, W–, –W, X–, –X, –Y, –Z.

  5. RC 5 - A TC 420/424 addressing MFT 34/37/44/50/67 attempts to post and a TC 022 is previously posted (no EO section).

    Note:

    This condition is bypassed if the input MFT is 34 and the Form 990T FRC is 2.

  6. RC 6 - A TC 022 is input to delete the EO Subsection and the account does not contain an EO Subsection.

3.12.278.28.1  (01-01-2009)
UPC 359 Resolution All RC - Unpostables

  1. All UPC 359 cases are closed by GUF using URC 2 and routed to Entity Control. If you receive any UPC 359 cases you should reassign them to Entity control for resolution.

3.12.278.28.2  (01-01-2009)
UPC 359 Resolution RC 1 – 5

  1. Review the unpostable document and the current EO status.

    1. If there is no reason to re-input the unpostable transaction, no further action is required.

    2. If the unpostable transaction needs to be re-input, you must resolve the unpostable condition prior to re-inputting the transaction.

  2. Caution must be used when resolving the unpostable condition. Keep the following items in mind:

    • EO accounts are normally terminated by Cincinnati with EO Status 20, 22, 23, 24, or 26 when they become inactive.

    • Processing of final returns, EO Delinquency Notices (CP 420-429), and CP 140/144 Notices sometimes result in the input or generation of EO Status 20.

    • Parents of Group Rulings, through the submission of their annual SGRI data, identify subordinates which are terminated. EO Status 28 is input to these accounts.

  3. Destroy the unpostable document following local procedures.

3.12.278.28.3  (01-01-2009)
UPC 359 Resolution RC 6

  1. If you were the originator of the unpostable transaction, destroy the document following local procedures.

  2. If the originator of the transaction is other than yourself, route the unpostable document to the originator. Explain there is no EO section to be deleted.

3.12.278.29  (01-01-2009)
UPC 363 Missing Schedule A

  1. RC 1 - A TC 150 for MFT 67 attempts to post with an Asset Code of 1–9, a Type of Organization Code other than 9, the Form 990 FRC is not 03, the Audit Indicator Code is 0, the Non-PF Reason Code is blank, and the Correspondence Code is 0 on the input return, and either:

    • The Entity Subsection Code is 50, 60, 70, 71, or 91; or

    • The Entity Subsection Code is 03 and the Type of Foundation Code is 09–18.

  2. RC 2 - A TC 150 for MFT 67/34/10/01 attempts to post with a change of address on an account with a significant GEN and the Affiliation Code is 6 or 8.

3.12.278.29.1  (01-01-2009)
UPC 363 Resolution RC 1 - Unpostables

  1. All cases are assigned to Unpostables by GUF. If the unpostable is found to have a subsection other than 03, reassign the unpostable to EO Entity Unpostables.

  2. For unpostables assigned to the EO Entity Unpostables Unit, check item "J" on Form 990 or item "J" on Form 990EZ in the entity portion of the return. If the organization did not indicate a subsection of 501(c)(3), annotate "3" after the first box of Item "G" or "I" and circle out any incorrect subsection.

  3. If the return has an IRS mail label which indicates a TF of 11:

    1. Release the unpostable using URC 8;

    2. Enter 02 on line 18 of the edit sheet; and

    3. Ask Rejects add Non-PF Code 02 to the record.

  4. If the unpostable has a Form 990 FRC of 06, reassign the unpostable to EO Entity Unpostables.

  5. Since Schedule A contains Incomplete Return Items (IRI), the information must be corresponded for twice. Always check for any IRS correspondence attached to the unpostable.

    1. If Rejects has corresponded twice with the organization, there is no need to correspond again. URC 0 to release the unpostable.

    2. If there is no correspondence attached, follow the instructions in the succeeding paragraphs.

    3. When 8 coding the return to Rejects, ask them to enter the following IRI Code Values if there is still missing Schedule A information.

    Schedule A missing...... IRI Code Value
    Entire Schedule A 30
    Part IV 34
    Part IV-A 38
    Part V 35

  6. Use the following table to determine Non-PF code. This table should be used in conjunction with any text.

    If Box Checked on Schedule A is: Enter Non-PF Code
    5 01
    6 02
    7 03
    8 04
    9 05
    10 06
    11a 07
    11b 08
    12 09
    13 10
    14 00

  7. If the unpostable return has the Schedule A attached, check to see if Part IV, Reason for Non-Private Foundation Status was completed. If only one box in Part IV was checked, determine the box checked.

    If Then
    Box 6 was checked:

    1. Determine if Part V was completed. If Part V is complete, release the unpostable using URC 8. Enter the Non-PF Code 02 in the right margin of Schedule A, Part IV, by lines 5-6. Request that Rejects add the Schedule A, including the Non-PF Code to the record.

    2. If Part V was not completed, correspond twice if necessary with the taxpayer requesting a complete Part V of the Schedule A. Use the 2698C Letter for Form 990 or 2699C Letter for Form 990EZ. If the Schedule A is returned with a complete Part V, release the unpostable using URC 8. Enter the Non-PF Code 02 in the right margin of Schedule A, Part IV, by lines 5-6. Edit the Correspondence Received Date and Correspondence Code (11=response to first letter or 21=response to second letter) on the edit sheet. Request Rejects add all line items of the Schedule A, the Non-PF Code, the Correspondence Received Date, and Correspondence Code to the record.

    3. If the organization does not respond after corresponding twice, release the unpostable using URC 8. Edit a Correspondence Code of 24 (no reply to the second letter) and a Computer Condition Code of 3. Request Rejects add all line items of the Schedule A, the Non-PF Code, the IRI Code Value, the Computer Condition Code and the Correspondence Code to the record.

    Box 10, 11, 11a or 12 was checked:

    1. Determine if Part IV-A was completed. If Part IV-A is complete, release the unpostable using URC 8. Based on the box checked, enter the Non-PF Code in the right margin of Schedule A, Part IV, by lines 5-6. Request Rejects add the Schedule A, including the Non-PF Code to the record.

    2. If Part IV-A was not completed, correspond twice if necessary with the taxpayer requesting a complete Part IV-A of the Schedule A. Use the 2698C Letter for Form 990 or 2699C Letter for Form 990EZ. If the Schedule A is returned with a complete Part IV-A, release the unpostable using URC 8. Based on the box checked, enter the Non-PF Code in the right margin of Schedule A, Part IV, by lines 5-6 Edit the Correspondence Received Date and the Correspondence Code (11=response to first letter and 21=response to second letter) on the edit sheet. Request Rejects add all line items of the Schedule A, the Non-PF Code, the Correspondence Received Date and the Correspondence Code to the record. Correspond twice if necessary for Part IV-A.

    3. If the organization does not respond after corresponding twice, release the unpostable using URC 8. Edit a Correspondence Code of 24 (no reply to the second letter) and a Computer Condition Code of 3. Request the Rejects add all line items of the Schedule A, the Non-PF Code, the IRI Code Value, the Computer Condition Code and the Correspondence Code to the record.

    Box 5, 7, 8, 9, 13, or 14 is checked:

    1. Release the unpostable using URC 8

      Note:

      If the Box 13 is checked but the type of supporting organization box is not checked, correspond for the information. If the information is not received on the first correspondence, a second correspondence is required.

    2. Enter the Non-PF Code on the right hand margin of the Schedule A based on the box checked.

    3. Request Rejects add Schedule A, including the Non-PF Code to the record.

  8. If the unpostable return has the Schedule A attached but Part IV is not complete or more than one box is checked:

    1. Correspond with the organization using Letter 2698C if they file a Form 990 or Letter 2699C if they filed a Form 990EZ. Explain Part IV must be completed correctly and if necessary Part IV-A or Part V. See paragraph (5) above. If necessary, correspond twice to obtain all the required information.

    2. If the organization responds with the necessary information, release the unpostable using URC 8. Based on the box checked, enter the Non-PF Code in the right margin of Schedule A, Part IV, by lines 5-6. Edit the Correspondence Received Date and Correspondence Code 11 (response to first letter) or 21 (response to second letter) on the edit sheet. Request Rejects add all line items of the Schedule A, the Non-PF Code, the Correspondence Received Date and the Correspondence Code to the record.

    3. If the organization has Subsection 03 and does not reply after corresponding twice, research CC INOLE to determine the foundation code. Using the list below, edit the Non-PF Code on the edit sheet. Edit a Correspondence Code of 24 (no reply to second letter) and a Computer Condition Code of 3. Release the unpostable using URC 8. Request Rejects add all line items on the Schedule A, the Non-PF Code, the IRI Code Value, Correspondence Code 24 , Computer Condition Code 3, and Audit Code 2 to the record.

      Note:

      If the entity is a church (SS=03, TF=10, CL=7), do not request Rejects add Audit Code 2.

      If Foundation Code = Then Non-PF Code =
      10 01
      11 02
      12 03 if organization name includes "hospital," "clinic," etc.
      12 05 if organization name includes "research," "laboratory," etc. or the name of a hospital is entered on Line 9
      13 06
      14 04
      15 08 (SS=03)
      15 15 (SS=03) if organization name includes "trust"
      16 09
      17 10
      18 00

      Note:

      If the Foundation Code is 09, follow the instructions in paragraph (8) below.

    4. If the organization has Subsection 50/60/70/71/91 and does not reply after corresponding twice, use the list below to edit the Non-PF Code on the edit sheet. Edit a Correspondence Code of 24 (no reply to second letter) and a Computer Condition Code of 3. Release the unpostable using URC 8. Request Rejects add all line items on the Schedule A, the Non-PF Code, the IRI Code Value, Correspondence Code 24 , Computer Condition Code 3, and Audit Code 2 to the record.

      Subsection Code Non-PF Code
      50 03
      60 10
      70 09
      71 10
      91 10

  9. If there is no Schedule A attached to the unpostable return and the Subsection is 03, or the Foundation Code is 09, correspond twice if necessary for the Schedule A using the 2698C Letter for Form 990, or the 2699C Letter for Form 990EZ. Explain to the organization Part IV must be completed as well as Part IV-A or Part V depending on their Foundation Code. See Paragraph (5) above.

    If Then
    The organization responds with the Schedule A Part IV and Part IV-A or Part V (if necessary) properly completed:

    1. Release the unpostable using URC 8.

    2. Edit the proper Non-PF Code in the right margin of Schedule A, Part IV, by lines 5-6. Edit the Correspondence Received Date and Correspondence Code 11 (response to the first letter) or 21 (response to the second letter) on the edit sheet. Request Rejects add the Non-PF Code, the Correspondence Received Date, the Correspondence Code as well as all line items on the Schedule A to the record.

    The Schedule A is returned incomplete:

    1. Release the unpostable using URC 8.

    2. If Part IV was not completed, edit the proper Non-PF Code in the right margin of Schedule A, Part IV, by lines 5-6.

    3. Edit a Computer Condition Code of 3 and the Correspondence Received Date on the edit sheet

    4. Edit a Correspondence Code of 12 (part of the information requested was included in the response to the first letter) or 13 (none of the information was included in the response to the first letter), or 22 (part of the information requested was included in the response to the second letter) or 23 (none of the information was included in the response to the second letter) on the edit sheet.

    5. Request Rejects add all the line items of the Schedule A, the Non-PF Code, the IRI Code Value, the Correspondence Received Date, the Correspondence Code and the Computer Condition Code to the record.

    The organization does not respond after corresponding twice:

    1. Release the unpostable using URC 8.

    2. b. Using Form 13271, request Rejects add the proper Non-PF Code, Correspondence Code of 24 (no reply to the second letter), Computer Condition Code of 3, and an Audit Code of 2 to the record.

      Note:

      If the Foundation Code = 09, release the unpostable with URC 0. There will be no Non-PF Code to add to the edit sheet.
    The organization replies with the requested Schedule A after the return has posted, Forward the Schedule A to EO Accounts using Form 13271.

    Note:

    The Non-PF Code 00 is changed to an "11" prior to posting at master file.

  10. If there is no Schedule A attached to the unpostable return and the Subsection is 50/60/70/71/91, correspond twice if necessary for the Schedule A using the 2698C Letter for Form 990, or the 2699C Letter for Form 990EZ. Use the instructions in paragraph 8. Use the following table to determine the Non-PF Code.

    Subsection Code Line in Part IV Non-PF Code
    50 7 03
    60 13 10
    70 12 09
    71 13 10
    91 13 10

  11. If a Schedule A is secured, whether complete or incomplete, attach a Doc. 7214 to the Schedule A and instruct Rejects send it to Imaging after their actions are complete.

3.12.278.29.2  (01-01-2009)
UPC 363 Resolution RC 2

  1. UPC 363 RC 2 will generate if there is an address change on the parent of a group. This unpostable is attempting to stop subordinates from using the parent's EIN.

  2. Determine if a subordinate of a group is using the parent's EIN by researching the following:

    1. Check the organization name to see if it appears to be a subordinate's name.

    2. Check to see if another return has posted for the same tax period.

    3. If the unpostable return is a Form 990, determine if the prior year ending assets match the assets on the unpostable Form 990.

    4. If the unpostable return is a Form 941/944, 940, or 990, determine if the prior period liability is similar to the unpostable return's liability.

    5. If the unpostable is a Form 990N, check the "DBA" on Form 990N to determine if it appears to be for the subordinate. If no "DBA" is present on Form 990N, research for another EIN by using the name and address provided on the 990N. If address matches a subordinate's address on Master File, follow procedures listed in (4) below.

      Note:

      Thorough research utilizing all available information found on the 990N should be done before"0" coding a 990N return to the parent organization.

  3. If the unpostable return belongs to the parent organization, URC 0 and post the return. Change the address if applicable.

  4. If the unpostable return belongs to a subordinate of the group:

    1. Determine the correct EIN.

    2. Line through the EIN on the return and write the correct EIN above it

    3. URC 6 to update the EIN and post the return.

    4. Change the address if applicable.

3.12.278.29.3  (01-01-2009)
UPC 363 RC 4 - Unpostables

  1. UPC 363 RC 4 will generate if TC 150 MFT 47 or 49, EO Subsection is other than 82 and EO Status is not 34.

  2. Use the following table to correct UPC 363 RC 4:

    IF THEN
    The EIN has an EO Subsection other than 82 and EO Status 34 Research for another EIN. If found, 6 code the unpostable to the correct EIN.
    The EIN has an EO Subsection other than 82 and EO Status 34 and another EIN cannot be located, correspond with the organization using 3710C asking why a 8871 was filed. Explain 501(c) organizations cannot be a 527 organization also. Include a Form SS-4 with the 3710C letter.
    The organization responds with a completed SS-4, assign an EIN per IRM 21.7.13. Establish the EO Subsection using EOREQ/EOCHG Doc Code 80, TC016, Definer AB, Subsection 82, Classification Code 1, EO Status Code 34/date add 1120-09 and 990 filing requirements. Close unpostable with URC 6 to the new EIN cycling 2 cycles to allow establishment of the new account.
    If the organization does not respond, assign an EIN and follow procedures in the row above.

3.12.278.30  (01-01-2009)
UPC 365 TC 591/593 on Parent Organizations

  1. RC 1 - A TC 591/593 for MFT 67 attempts to post and the Affiliation Code in the EO Section is a 6 or 8.

3.12.278.30.1  (01-01-2009)
UPC 365 Resolution RC 1 - Unpostables

  1. All UPC 365 cases are closed by GUF using URC 2 and routed to Entity Control. If you receive any UPC 365 cases, you should reassign them to Entity Control for resolution.

3.12.278.30.2  (01-01-2009)
UPC 365 Resolution RC 1

  1. Group rulings cannot be dissolved by a TC 591/593. See IRM 3.13.12.12 for more information on Group Rulings.

  2. UPC 365 cases are closed by GUF without charge outs being generated. Entity Control will receive a listing of closed UPC 365 cases each cycle.

  3. Research the tax modules addressed by the TC 591/593.

    1. If the TC 591/593 was input satisfy an open module, input a TC 590 cc 75.

    2. If the TC 591/593 addressed a module not in an open status, no action is necessary.

3.12.278.31  (01-01-2009)
UPC 366 No EO Section Present

  1. RC 1 - An input transaction attempts to establish a tax module for MFT 34, 37, 44, 47, 49, 50, or 67 and there is no EO Subsection present in the entity.

    Note:

    A TC 150 for MFT 34 containing a Type of Organization Code 3 will bypass this check. Any module establishing TC input for MFT 34 when the Form 990T FRC is 2 will bypass this check.

3.12.278.31.1  (01-01-2009)
UPC 366 Resolution RC 1 - Unpostables

  1. All TC 150 and TC 157 cases along with FTD (TC 650/660) cases are assigned by GUF to Entity Control. If you should receive any of these cases, reassign them to Entity.

  2. All other cases are worked by Entity Control. When you receive these cases, send them to the Entity Control Unit.

3.12.278.31.2  (01-01-2009)
UPC 366 Resolution RC 1 - (All Cases but FTD)

  1. Research the BMF to verify the EIN on the unpostable document belongs to the organization.

  2. If the EIN belongs to the organization and there are no other EINs which belong to the organization, research EDS to see if the organization has applied for an exemption.

    If Then
    There is an open case on EDS:

    1. Input TC 016 Doc. Code 80 Definer Code B to establish the EO section and put the EO Status in 40.

      Note:

      this instruction applies to returns with any subsection or no subsection.

    2. URC 0 and cycle to post after the TC 016.
    There is an approved closed case on EDS (EDS Status Code 01, 06 or 09):

    1. Input TC 016 Doc. Code 80 Definer Codes ABC to establish the EO section with all the appropriate information from EDS.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.
    There is a disapproved closed case on EDS:

    1. Correspond with the taxpayer with Letter 3909C or 3877C informing them their recent application was disapproved and request additional information.

    2. If they respond with a letter of determination, establish the EO section with TC 016 Doc. 80 Definer Codes ABC with all the appropriate information from the determination letter.

    3. If they respond with documentation indicating reapplication, establish the EO section with EO Status 40 using TC 016 Doc. Code 80 Definer Codes B. Release the unpostable with URC 0 and cycle to post after the TC 016.

      Note:

      This instruction applies to returns with any subsection or no subsection.

    4. If the organization does not respond, place the account in Status 99. Release the unpostable with URC 0 and cycle to post after the TC 016.

    There is a disapproved closed case on EDS and the subsection on the return is different from the subsection on EDS, Treat the return as if there is no case on EDS and follow the instructions below.
    There is no case on EDS:

    1. Check for a GEN on the return. If a GEN is present, use the pilot voucher information to set up the EO section with a TC 016 Doc. Code 80 Definer codes ABC.

    2. If there is no subsection on the unpostable return, correspond with the organization for the subsection and list of activities (if not present). If there is no reply, have the Lead determine the disposition of the case.

    3. If the subsection on the return is 03/09/17/20, establish the EO section in EO Status 40 with a TC 016 Doc. Code 80 Definer Codes B.

    4. If the subsection on the return is other than 03/09/17/20, establish the EO section with a Form 990 FR of 01, EO Status Code 36 using the current month and year as the status date, FYM, subsection code as indicated on the return, and classification code (see Document 6379 ) with a TC 016 Doc. Code 80 Definer Codes AB.

    5. Release the unpostable with URC 0 and cycle to post after the TC 016.
    The return is a Form 5227 add an EO subsection Doc Code 80, TC 016, Definer Codes AB, Subsection Code 90, classification code, status code date (FYM must be 12) 12YYYYDD, check line F on the Form 5227 to determine filing requirements:

    • If line F indicates the trust has unrelated business income, input 5227-2 and 1041 filing requirements.

    • If line F indicates the trust has no unrelated business income, input 5227-1 and delete any Form 1041 filing requirements if present.

    The return is a Form 990–T Refer to IRM 3.13.12 for complete instructions for posting Form 990-T.

  3. If the EIN belongs to the organization but you find another EIN with an EO section for the organization:

    1. Use CC BRCHG Doc. Code 63 to input a TC 011 and consolidate the two EINs.

    2. See IRM 3.13.12.7 for instructions on consolidation of EINs and IRM 3.13.12.7.2 for instructions on resolving potential no-merge conditions prior to the consolidation.

    3. Perfect the document with the correct EIN and release the unpostable using URC 6 and cycle to post after the TC 016.

  4. If the EIN does not belong to the organization, process as follows:

    1. If the proper EIN is found and has an EO section, perfect the document and release using URC 6 with the correct EIN. Send a 3910C letter with correct EIN.

    2. If the proper EIN is found but does not have an EO section, research for a pending TC 016 Doc. Code 80 which will establish the EO section. If the pending TC 016 is found, perfect the return with the correct EIN, release the unpostable using URC 6, and cycle to post after the TC 016. If there is no pending TC 016, research EDS and follow the instructions in paragraph (2) above to establish the EO section with a TC 016; perfect the return with the correct EIN, release the unpostable using URC 6 and cycle to post after the TC 016.

  5. If the EIN does not belong to the organization and you do not find the correct EIN already established:

    1. Assign a new EIN using CC ESIGN and MFI O.

    2. Input a TC 016 Doc. Code 80 to add the EO section per instructions in paragraph (2) above. Cycle the TC 016 to post after the establishment of the EIN.

    3. Perfect the return with the new EIN and release the unpostable using URC 6. Cycle to post after the TC 016.

  6. If the unpostable is a church filing a Form 990 without an official exemption:

    1. Establish the EO section with an EO Status 30 using a TC 016 Doc. Code 80 Definer Code B.

    2. If the return is received timely, release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the return is received late, release the unpostable with URC 8 and request Rejects input CCC R and V to reverse any penalties.

  7. If the unpostable is an organization filing a Form 990 according to IRC 501(c)(1), (3) or (8) without an official exemption and with gross receipts less than $5,000:

    1. Establish the EO section with an EO Status 31 using TC 016 Doc. Code 80 Definer Code B.

    2. If the return is received timely, release the unpostable with URC 0 and cycle to post after the TC 016.

    3. If the return is received late, release the unpostable with URC8 and request Rejects input CCC R and V to reverse any penalties.

  8. If the unpostable is a Form 8871 (MFT 47), establish an EO section on Master File with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code AB, Status Code 34/date, Form 990 FR of 01, a Form 1120 FR of 09, and remarks. Release the unpostable with a URC 0 and cycle to post after the TC 016.

  9. If the unpostable is a foreign private foundation described in IRC 4948(b) which is not required to apply for exemption but is required to file a Form 990PF to pay 4% tax on gross investment income derived from sources within the United States:

    1. Establish the EO section with EO Status 33 using a TC 016 Doc. Code 80 Definer Code B.

    2. Release the unpostable with URC 0 and cycle to post after the TC 016.

  10. If the organization is a subordinate of the National Credit Union Administration (GEN 0697), do not add the subordinate to the GEN because they are not required to file. Process the return as follows:

    1. Establish the EO section with an EO Status 36 and a Form 990 FR using TC 016 Doc. Code 80 Definer Codes AB.

    2. URC 0 to release the unpostable and cycle to post after the TC 016. Remove the EO section with a TC 022 and cycle to post after the TC 150.

    3. Send a 3064C Letter to the organization explaining they are not required to file because they are exempt under 501(c)(1).

  11. If the unpostable is a revenue receipt (TC 610, TC 670, etc.) other than an FTD (TC 650, TC 660):

    If Then
    An RPS TC 610 case is unpostable (return should also be unpostable):

    1. Research IDRS to locate the TC 150.

    2. If the TC 150 was resolved, take the necessary actions to ensure the RPS TC 610 is posted to the same location as the TC 150.

    3. If the TC 150 has not been resolved, reassign the case so the TC 150 and the RPS TC 610 can be resolved together.
    An unpostable TC 670 is a payment with an extension, Resolve it together with the extension per the instructions above.
    Other payments:

    1. Research to determine proper location for posting by using the background information on EO payments found in the table below. If you determine the proper location for the payment, resolve the unpostable with the appropriate resolution code to post the payment.

    2. If still unable the post the payment, research CC BMFOLI and the corresponding CC BMFOLT to determine if there is another MFT to post the money; for example, MFT 01 (Form 941), MFT 02 (Form 1120), MFT 10 (Form 940), MFT 11 (Form 943), or MFT 14 (Form 944). If you can determine a location for the payment, resolve the unpostable with the appropriate resolution code to post the payment.

    3. If you are still unable to determine proper location, contact the organization. Post the payment and resolve the unpostable per the organization's instructions.

    MFT Background Information
    33 Form 990-C or 1120-C is filed by Farmer's cooperatives, both taxable and exempt. It can be a taxable return and FTDs must be used for estimated taxes.
    34 Form 990-T is filed by organizations with unrelated business income or trusts filing under IRC Section 401(2) and Section 408. It can be a taxable form, and payments can be made with the return, an extension or as estimated taxes.
    37 Form 5227 is filed by charitable trusts and pooled income funds to report financial activities of a split-interest trust. The return is not taxable; however, filers of this form may need to file Form 4720 (see below) to report their tax liability.
    44 Form 990-PF is filed by private foundation. It can be a taxable form, and payments can be made with the return, an extension or as estimated payments. FTDs must be used for estimated taxes.
    50 Form 4720 is filed by organizations and individuals liable for certain excise taxes, The payments are made with the form itself. No FTDs required.
    67 Form 990/990-EZ/990-N is filed by organizations exempt from income tax. It is a non-taxable form; however, organizations may pay a daily delinquency penalty with the return when it is filed late.

  12. If the unpostable is an extension (TC 460, 620):

    1. Research EDS to determine if the organization has applied for exemption. If there is an "I" case on EDS, or if there is a disapproved closed case on EDS, establish an EO section on master file with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 42 date and remarks. If the organization has an exemption, update master file with the information on EDS using a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Codes ABC. Release the unpostable with URC 0 and cycle to post after the TC 016.

    2. If there is no case on EDS, research master file.

    3. If the entity on the extension matches the entity on master file and the name indicates the organization is a political organization, establish an EO section on master file with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code AB, Status Code 34/date, Form 990 FR of 01, a Form 1120 FR of 09, and remarks. Change the name of the political organization using the instructions in IRM 3.13.12.6.5(6). Release the unpostable with a URC 0 and cycle to post after the TC 016.

    4. If the entity on the extension matches the entity on master file and the name indicates the organization is a church, establish an EO section on master file with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 30/date, and remarks. Release the unpostable with URC 0 and cycle to post after the TC 016.

      Note:

      The organization is a church if the name contains the following word(s): Church, Assembly or Assembly of God, Chapel, Fellowship, Jehovah's Witness, Monastery, Seventh Day Adventist, Synagogue, Temple, Worship Center, or Iglesia

    5. If the entity on the extension matches the entity on master file and the organization indicates a GEN on the extension, use the pilot voucher to set up the EO section using a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Codes ABC, status code/date, Form 990 filing requirement, GEN, Affiliation Code, and remarks. Release the unpostable with URC 0 and cycle to post after the TC 016.

    6. If the entity on the extension matches the entity on master file and does not fit the criteria in c. through e. above, establish an EO section on master file with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 42/date and remarks. Release the unpostable with URC 0 and cycle to post after the TC 016.

    7. If the entity on the extension does not match the entity on master file, research for a correct EIN. If the correct EIN is found, make the necessary corrections and post the extension using URC 6. If the correct EIN can not be found, assign an EIN and post the extension using the instructions above. Cycle the unpostable to post after the TC 000.

    8. If the organization checked the incorrect box , edit the correct MFT and filing requirement on the extension. Release the unpostable using URC 6.

    9. If the organization filed the incorrect extension form (Form 7004), edit the correct form number on the extension, cross out the DLN, release the unpostable with URC 8, attach Form 12634, and request Rejects cancel the DLN and renumber for the correct MFT.

3.12.278.31.3  (01-01-2009)
UPC 366 Resolution RC 1 - (FTD)

  1. Verify the box checked on the FTD matches the MFT of the unpostable.

    1. If the box checked is for other than MFT 34 or 44, release the unpostable using URC 6 and the correct MFT.

    2. If the box checked is correct, continue processing.

  2. If the unpostable is MFT 33 and the BMF Form 1120 FRC is 07, see IRM 3.13.222.103.

  3. If the unpostable FTD is for Form 990T (MFT 34) or Form 990PF (MFT 44):

    1. Research EDS to determine if the organization has applied for exemption. If there is an "I" case on EDS, establish an EO section on master file with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 42/date and remarks. If the organization has an exemption, update master file with the information EDS using a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Codes ABC. Release the unpostable with URC 0 and cycle to post after the TC 016.

      Note:

      For campuses which do not have EDS access, follow the instructions in b. and c. below.

    2. If there is no case on EDS, research master file.

    3. If the entity on the FTD matches the entity on master file and it appears the organization could be an exempt organization, establish an EO section on master file with a CC EOREQ/EOCHG, TC 016 Doc. Code 80 Definer Code B, Status Code 42/date and remarks. Release the unpostable with URC 0 and cycle to post after the TC 016.

      Note:

      For campuses other than Ogden, assume the organization could be exempt and update the EO Status Code to 42. If the entities do not match, continue processing using the instructions in e. below.

    4. If the entity on the FTD matches the entity on master file but the organization does not appear to be exempt, research the organization's filing requirements. If there is a Form 941 (MFT 01), Form 1120 (MFT 02), Form 940 (MFT 10), Form 943 (MFT 11), or Form 944 (MFT 14) filing requirement on the module, attempt to determine a location for the FTD payment. If you are unable to determine the proper location, contact the organization and post the FTD per the organization's instructions.

    5. If the entity on the FTD does not match the entity on master file, research for a correct EIN. If the correct EIN is found, make the necessary corrections and post the payment using the instructions in c. and d. above, if necessary. If the correct EIN can not be found, assign an EIN and post the FTD payment using the instructions in c. and d. above.

3.12.278.32  (01-01-2009)
UPC 369 TC 01X with Employment Code W

  1. RC 1 - TC 01X with Employment Code W addressing an account with an EO section where the Subsection Code is not 00/03/50/60/70.

  2. RC 2 - TC 01X with Employment Code W addressing an account with an EO section where the Subsection Code is 00/03/50/60/70 and the current EO Status is other than 01/02/03/07/10/11.

3.12.278.32.1  (01-01-2009)
UPC 369 Resolution RC 1 & 2 - Unpostables

  1. All UPC 369 cases are closed by GUF using URC 2 and routed to the initiator.

  2. These cases are closed by GUF without charge outs being generated. The initiating area will receive a listing of closed UPC 369 cases each cycle.

  3. Verify the TC 01X is addressing the correct account.

    1. If the wrong account was addressed, re-input the TC 01X to the proper account.

    2. If the proper account was addressed, correct the EO section to allow the TC 01X to post.

    Note:

    Do not update the subsection code or the status without performing research on EDS.

3.12.278.33  (01-01-2009)
UPC 370 GEN File Transactions (GEN File Unpostables)

  1. RC 1 - A TC 000 or TC 016 Doc. Code 80 with an Affiliation Code of 6 or 8 attempts to create a parent record on the GEN file and the input NEW GEN is already on the GEN file.

  2. RC 2 - A TC 000 Doc. Code 81 with an Affiliation Code of 7 or 9 attempts to create a subordinate record on the GEN file and:

    • The input NEW GEN is not on the GEN file; or

    • The input NEW GEN matches a GEN already on the GEN file and the input (subordinate) TIN is already present on the GEN file; or

    • The NEW GEN is 0000.

  3. RC 3 - A TC 000 Doc. Code 80 with an Affiliation Code of 7 or 9 is input to establish a subordinate account on the GEN file and the input NEW GEN is not already on the GEN file.

  4. RC 4

    • TC 000 Doc. Code 80 input with a NEW GEN and no affiliation code; or

    • A TC 016 Doc. Code 80 input with an Affiliation Code other than 6, 7, 8 or 9 and NEW GEN other than 9999; or

    • A TC 016 Doc. Code 80 input with a NEW GEN equal to 9999 and the Affiliation Code is not equal to 1, 2, or 3.

  5. RC 5 - A TC 016 Doc. Code 81 (group change) input to change the GEN file and:

    • The parent TIN of the TC 016 do not match the TIN on the GEN file; or

    • The TC 016 GEN is not on the GEN file; or

    • The TC 016 GEN is on the GEN file and the TIN and name control match those of the parent, but:

    • The TC 016 was input without Definer Code D and the NEW GEN on The TC 016 matches a GEN already on the GEN file; or

    • The TC 016 was input with Definer Code D and there are no subordinates on the GEN file with the new subordinate indicator on; or

    • The TC 016 was input the Definer Code E and the NEW GEN input on the TC 016 is not on the GEN file; or

    • The TC 016 was input the Definer Code E and there are no subordinates on the GEN file; and

    • The FROM GEN is 0000.

  6. RC 6 - A TC 016 Doc. Code 80 with an Affiliation Code 7 or 9 is input with a NEW GEN present and the NEW GEN (other than 9999) is not on the GEN file.

  7. RC 7 - A TC 016 Doc. Code 80 with Definer Code F is input to change the GEN file and:

    • The TC 016 GEN is on the GEN file with the TIN matching the parent, but the change is for an Affiliation Code of other than 6 or 8; or the change is for an Affiliation Code of 7 or 9 and another TC 016 for the GEN with a different TIN with an Affiliation Code of 6 or 8 did not post the same cycle or the next 3 cycles.

    • The TC 016 GEN is on the GEN file with the TIN matching a subordinate but the change is of an Affiliation Code of 6 or 8 and another TC 016 for the GEN with a TIN matching the parent did not post the same cycle or the next 3 cycles.

    • There is an indication on the GEN file which a TC 016 with Definer Code F is awaiting update from the BMF.

  8. RC 8 - A TC 016 Doc. Code 80 with a Definer Code C and Affiliation Code 6 or 8 with TIN not matching the parent TIN for the GEN.

  9. RC 9 - A TC 016 Doc. Code 80 with a Definer Code G, Affiliation Code 1, 2, or 3, the New GEN = 9999, and the From GEN already exists on the GEN File.

3.12.278.33.1  (01-01-2009)
UPC 370 Resolution - Unpostables

  1. All UPC 370 cases are closed by the GUF system using URC 2 and routed to Unpostable Unit . If you receive any UPC 370 cases you should reassign them to Unpostable Unit for resolution.

3.12.278.33.2  (01-01-2009)
UPC 370 Resolution All RC

  1. GUF generates a control base for all UPC 370 cases to Entity Control after they are closed with URC 2. GUF also generates a charge out for each UPC 370 case.

  2. Use these documents to determine the intent of the initiator (if it is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:

    1. See IRM 3.13.12.12.6 for information on group rulings and the proper use of definer codes when inputting GEN file changes.

    2. Re-input the transaction using CC EOCHG and the appropriate date.

    3. Destroy the document using local procedures.

3.12.278.34  (01-01-2009)
UPC 371 GEN File Transactions (BMF Unpostables)

  1. RC O - A TC 000/016 Doc. Code 80 with a NEW GEN and Affiliation Code of 6 or 8 and the entity memo freeze is significant.

  2. RC 1 - A TC 016 Doc. Code 81 with a FROM GEN which does not match the BMF account GEN.

  3. RC 2

    • A TC 016 Doc. Code 80 with a significant NEW GEN and the FROM GEN does not match the entity GEN.

    • A TC 016 Doc. Code 80 when the FROM GEN does not match the BMF GEN and either the Definer Code is F or the Definer Code is C and the affiliation code is significant.

  4. RC 3 - A TC 016 Doc. Code 80 or 81 with Affiliation Code 1, 2 or 3 and:

    • The NEW GEN is other than 0000 or 9999; or

    • The NEW GEN is 0000 and the entity GEN is not 0000.

  5. RC 4 - A TC 016 Doc. Code 80 without Definer Code F attempts to update the affiliation code from parent (6 or 8) to subordinate (7 or 9) or vice versa.

  6. RC 5 - A TC 016 Doc. Code 80 with all of the following:

    • The input Affiliation Code is not 0, 6 or 8; and

    • The BMF Affiliation Code is 6 or 8; and

    • The Definer Code is not C, F, or G.

  7. RC 6 - A TC 020 attempts to post and the BMF Affiliation Code is 6 or 8.

  8. RC 7 - A TC 016 Doc. Code 80 attempts to post and the input subsection code or status code is significant and different from the BMF subsection code or subsection code respectively and the BMF Affiliation Code is 6 or 8 and the FROM GEN is zero or the FROM GEN does not equal the BMF GEN.

  9. RC 8 - A TC 016 Doc. Code 80/81 attempts to post with all of the following:

    • The NEW GEN is significant; and

    • The Definer Code is not E; and

    • The BMF Affiliation Code is 6 or 8; and

    • The BMF EO Status is other than 22, 26 or 29.

  10. RC 9 - A TC 016 Doc. Code 80 attempts to update the EO Status to 20, 24, 25 or 26 and the BMF Affiliation Code is 6 or 8.

3.12.278.34.1  (01-01-2009)
UPC 371 Resolution All RC - Unpostables

  1. All UPC 371 cases are closed by GUF using URC 2 and routed to Entity Control. If you receive any UPC 371 cases you should reassign them to Entity Control for resolution.

3.12.278.34.2  (01-01-2009)
UPC 371 Resolution All RC

  1. GUF generates a control base for all UPC 371 cases to Entity Control after they are closed with URC 2. GUF also generates a charge out for each UPC 371 case.

  2. Use these documents to determine the intent of the initiator (if it is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:

    1. See IRM 3.13.12.22 for information on group rulings and the proper use of definer codes when inputting GEN file changes.

    2. Re-input the transaction using CC EOCHG and the appropriate data.

    3. Destroy the document using local procedures.

3.12.278.35  (01-01-2009)
UPC 372 Generated TC 590 (GEN File)

  1. RC 1 - A TC 590 Closing Code (cc) 14 generated from the posting of a Form 990 group return with Group Indicator of 7 either fails to match a GEN on the GEN file, or the TC 590 EIN fails to match the GEN of a parent record (with subordinate records) or a subordinate record on the GEN file.

3.12.278.35.1  (01-01-2009)
UPC 372 Resolution - Unpostables

  1. All UPC 372 cases are assigned to Entity Control by the GUF system. If you receive any UPC 372 cases you should reassign them to Entity Control for resolution.

3.12.278.35.2  (01-01-2009)
UPC 372 General Resolution Procedures

  1. Whenever a Form 990 with a Group Code of 7 posts to the BMF, a TC 590 cc 14 is generated for every subordinate of the group. The TC 590 cc 14 is a transaction containing the GEN from the entity section of the parent account, not the GEN on the return.

  2. When resolving these unpostables, keep in mind any change to the EIN of the posted return necessitates reprocessing of the return. The TC 590 is unposted, not the TC 150.

3.12.278.35.3  (01-01-2009)
UPC 372 Specific Resolution Procedures

  1. GUF sends a charge out to Files for the group return from which the unpostable TC 590 generated.

  2. Verify the return is a group return by the following:

    1. The entity section or label should contain the words "Group Return" .

    2. Box H(a) on the Form 990 should be checked "yes" and box H(b) should contain the number of affiliates for which the group return was filed. Box I should contain the GEN for the group.

    3. Attached to the group return should be either a list of the subordinates included in this group return or a statement indicating all of the subordinates of the group ruling are included in this group return.

  3. Verify the entity on the group return matches the BMF.

  4. Verify the BMF is set up for a group return by the following:

    1. The continuation-of-primary-name line will contain the words "Group Return" .

    2. The Form 990 FRC will be 03.

    3. The Affiliation Code should be a 9.

    Exception:

    State chartered credit union group returns may have an Affiliation Code of 6. See IRM 3.13.12.12.13 for more information.

3.12.278.35.3.1  (01-01-2009)
UPC 372 Return Entity Does Not Match BMF Entity

  1. If the entity on the return does not match the BMF and the return is not a group return, research for a better EIN.

    If Then
    A better EIN is found:

    1. Perfect the document with the correct EIN.

    2. Place an X to the left of the group code on the edit sheet.

    3. Prepare Form 3893, attach it to the Form 990 and reprocess the return.

    4. Release the unpostable TC 590 using URC D.
    No EIN can be found:

    1. Use CC ESIGN to assign a new EIN to the entity.

    2. Perfect the document with the correct EIN.

    3. Place an X to the left of the group code on the edit sheet.

    4. Prepare Form 3893, attach it to the Form 990 and reprocess the return.

    5. Release the unpostable TC 590 using URC D.

  2. If the entity on the return does not match the BMF but the return is a group return, research for a better EIN.

    Note:

    CC EOGEN should be used to research the GEN shown in box 1 of the return.

    If Then
    A better EIN is found:

    1. Perfect the document with the correct EIN.

    2. Prepare Form 3893, attach it to the Form 990 and reprocess the return.

    3. Release the unpostable TC 590 using URC D.
    No EIN can be found:

    1. Use CC ESIGN to assign a new EIN to the entity.

    2. Perfect the document with the correct EIN.

    3. Prepare Form 3893, attach it to the Form 990 and reprocess the return.

    4. Release the unpostable TC 590 using URC D.

3.12.278.35.3.2  (01-01-2009)
UPC 372 Return Entity Matches BMF Entity

  1. If the entity on the return matches the BMF but the return is not a group return:

    1. Input TC 016 Doc. Code 80 to update the EO section of the BMF, if needed.

    2. Release the unpostable using URC D.

  2. If the entity on the return matches the BMF and the return is a group return:

    If Then
    The GEN on the return does not match the GEN on the BMF:

    1. Use CC EOGEN to determine the correct GEN.

    2. Perfect the document with the correct GEN.
    The GEN on the return is correct and the GEN on the BMF is correct:

    1. Use CC EOGEN to determine the proper EIN of the group return for the correct GEN.

    2. Perfect the document with the correct EIN.

    3. Prepare From 3893, attach it to the Form 990 and reprocess the return.

    4. Release the unpostable using URC D.

  3. If the entity on the return matches the BMF, the return is a group return and the GEN on the return matches the BMF, verify the status of the account to which the unpostable TC 590 is directed:

    If Then
    The current status is 20 or 28, Release the unpostable using URC D.
    The current status is other than 20 or 28, verify the GEN agrees with the return GEN:

    1. If the GEN agrees, release the unpostable using URC D.

    2. If the GEN does not agree, input TC 016 Doc. Code 80 and correct the GEN, release the unpostable using URC 0 and cycle to post after the TC 016.

3.12.278.36  (01-01-2009)
UPC 373 TC 016 with Status 28/29

  1. RC 1 - Unpost a TC 016 Doc. Code 80 with Status 28 unless the input GEN matches the BMF GEN and the BMF Affiliation Code is 7 or 9 and the EO Status is 01–03, 20 or 21.

  2. RC 2 - Unpost a TC 016 Doc. Code 81 with Status 29 unless the input GEN matches the BMF GEN and the BMF Affiliation Code is 6/7/8/9 and the EO Status is 01–03, 20 or 21.

3.12.278.36.1  (01-01-2009)
UPC 373 Resolution - Unpostables

  1. All UPC 373 cases are closed by GUF using URC 2 and routed to Entity Control. If you receive any UPC 373 cases you should reassign them to Entity Control for resolution.

3.12.278.36.2  (01-01-2009)
UPC 373 Resolution

  1. GUF generates a control base for all UPC 373 cases to Entity Control after they are closed with URC 2. GUF also generates a charge out for each UPC 373 case.

  2. Use these documents to determine the intent of the initiator (if it is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:

    1. See IRM 3.13.12.6.18 for information on status codes.

    2. Re-input the transaction after making any changes to the BMF to allow the transaction to post.

    3. Destroy the document using local procedures.

3.12.278.37  (01-01-2009)
UPC 379 Various EO Conditions

  1. RC 1 - Any transaction with Doc. Code 80/81 attempts to post to an account without an EO section unless any of the following conditions are true:

    • The transaction is a TC 000 with Doc. Code 80/81; or

    • The transaction is a TC 016 with Doc. Code 80; or

    • The transaction is a corrected unpostable TC 013 which was previously or originally UPC 302.

  2. RC 2 - TC 016 Doc. Code 80 attempts to post to an account:

    • Without an EO section and the TC 016 does not have a status code; or

    • With an EO section which does not have a status code and the TC 016 does not have a status code.

  3. RC 3 - TC 016 Doc. Code 81 attempts to post to an account:

    • Without an EO section; or

    • With an EO section which does not have a status code and the TC 016 does not have a status code.

  4. RC 4 - Any Doc. Code 80/81 transaction input with a Foundation Code of 99 and either of the following conditions are true:

    • The Subsection Code on input is 03; or

    • The Subsection Code on input is 00 and the BMF Subsection Code is 03.

  5. RC 5 - Any Doc. Code 80/81 transaction input with Subsection Code 99 and either of the following conditions are true:

    • The current Status on input is other than 00, 06, 07, 10, 11, 40 or 41; or

    • The current Status on input is 00 and the BMF Status is other than 06, 07, 10, 11, 40 or 41.

  6. RC 6 - TC 016 Doc. Code 80 attempts to post with a significant EO FRC and an input EO Status of zero, 20 or greater and the BMF EO Status is 20 or greater.

  7. RC 7 - TC 016 Doc. Code 80 attempts to post with a significant EO FRC, a significant subsection code and an EO Status of other than 01–02 and the BMF EO Status is 06, 07, 10 or 11.

  8. RC 8 - TC 016 Doc. Code 80 attempts to post with a Form 990PF or Form 5227 FRC and the BMF EO section has a non-zero GEN, unless the input NEW GEN is 9999.

  9. RC 9 - TC 016 Doc. Code 80 attempts to post with a Status Code of 01–19 and the BMF has no active EO FRC or Form 1065 FRC, unless the input TC 016 has a significant EO FRC.

3.12.278.37.1  (01-01-2009)
UPC 379 Resolution - Unpostables

  1. All UPC 379 cases are closed by GUF using URC 2 and routed to Entity Control. If you receive any UPC 379 cases you should reassign them to Entity Control for resolution.

3.12.278.37.2  (01-01-2009)
UPC 379 Resolution All RC

  1. GUF generates a control base for all UPC 379 cases to Entity Control after they are closed with URC 2. GUF also generates a charge out to Files for routing of the document to Entity Control for each UPC 379 case.

  2. Use these documents to determine the intent of the initiator (if the initiator is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:

    1. See IRM 3.13.12 for information on status codes, FRCs, subsection codes, etc.

    2. Re-input the transaction after making any changes to the BMF to allow the transaction to post.

    3. Destroy the document using local procedures.

3.12.278.38  (01-01-2009)
UPC 382 Foundation Code Update

  1. RC 1 - Any Doc. Code 80 transaction input with Subsection Code 03 and Foundation Code 02 unless the BMF Subsection Code is 03, the Foundation Code is 03/04 and the current EO Status is 01–03.

3.12.278.38.1  (01-01-2009)
UPC 382 Resolution - Unpostables

  1. All UPC 382 cases are closed by GUF using URC 2 and assigned to Entity Control. If you receive any UPC 382 cases you should reassign them to Entity Control for resolution.

3.12.278.38.2  (01-01-2009)
UPC 382 Resolution

  1. GUF generates a control base for all UPC 382 cases to Entity Control after they are closed with URC 2. GUF also generates a charge out to Files for routing of the document to Entity Control for each UPC 382 case.

  2. Use these documents to determine the intent of the initiator (if the initiator is someone other than yourself).

    If Then
    The transaction does not need to be re-input, Destroy the document using local procedures.
    The transaction needs to be re-input:

    1. See IRM 3.13.12 for information on status codes FRCs, subsection codes, etc.

    2. Re-input the transaction after making any changes to the BMF to allow the transaction to post.

    3. Destroy the document using local procedures.

3.12.278.39  (01-01-2009)
UPC 383 Group Returns

  1. RC 1 - Any transaction with an MFT other than 67 attempting to post to an account with a BMF Form 990 FRC of 3.

  2. RC 2 - An MFT 67 TC 150 with a Group Code other than 7/8 attempting to post to an account with a BMF Form 990 FRC of 3.

  3. RC 3 - An MFT 67 TC 150 with a Group Code of 7/8 attempting to post to an account with a BMF Form 990 FRC other than 3.

3.12.278.39.1  (01-01-2009)
UPC 383 Resolution - Unpostables

  1. All UPC 383 cases are assigned to Entity Control by the GUF system. If you receive any UPC 383 cases you should reassign them to Entity Control for resolution.

3.12.278.39.2  (01-01-2009)
UPC 383 Form 990EZ

  1. If the group return filed is a Form 990EZ:

    1. Call the organization using the number on the return or send Letter 2699C to the organization informing them they can not file a Form 990EZ.

    2. If the organization responds with the correct return, edit cancel DLN on the Form 990-EZ, release the unpostable with URC 8 requesting Rejects cancel the DLN. Attach the unpostable behind the Form 990 and send the Form 990 through for processing.

    3. If the organization does not respond, Release the unpostable with URC 8 requesting Rejects cancel the DLN and convert the 990-EZ to a Form 990 for processing.

3.12.278.39.3  (01-01-2009)
UPC 383 Resolution RC 1

  1. Research IDRS to determine if the unpostable transaction should post to the account of the parent or one of the subordinates of the group return to which it is directed.

    1. Be careful when making this determination. Many times subordinates erroneously use the EIN of the parent when filing their own returns.

    2. Do not correct the filing requirements of the parent unless you are sure the return is for the parent.

  2. If the transaction belongs to the parent or one of the subordinates of the group, check the filing requirements for compatibility per UPC 329 in IRM 3.12.278.19.

    If Then
    The filing requirements are compatible:

    1. Perfect the document with the proper EIN.

    2. Release the unpostable using URC 6.

    3. Send the organization a 3910C letter informing them of their correct EIN.
    The filing requirements are not compatible:

    1. Input TC 016 Doc. Code 80 Definer Code A to correct the filing requirements.

    2. Perfect the document with the proper EIN.

    3. Release the unpostable using URC 6 and cycle to post after the TC 016.

    4. Send the organization a 3910C letter informing them of their correct EIN.

  3. If the transaction does not belong to the parent or one of the subordinates of the group, research for a better EIN.

    If Then
    A better EIN is found:

    1. Check the filing requirements for compatibility per in IRM 3.12.278.19.

    2. If the filing requirements are compatible, perfect the document with the proper EIN and release the unpostable using URC 6.

    3. If the filing requirements are not compatible, input TC 016 Doc. Code 80 Definer Code A to correct the filing requirements, perfect the document with the proper EIN, and release the unpostable using URC 6 and cycle to post after the TC 016.

    4. Send the organization a 3910C letter informing them of their correct EIN.
    A better EIN cannot be found:

    1. Use CC ESIGN with MFI O to assign a new EIN.

    2. Input TC 016 Doc. Code 80 Definer Code A to add the EO section with the proper filing requirement using the appropriate posting delay code to post the TC 016 after the establishment of the EIN.

    3. Release the unpostable using URC 6 and cycle to post after the TC 016.

3.12.278.39.4  (01-01-2009)
UPC 383 Resolution RC 2

  1. Check the return to see if it is truly a group return.

    1. The entity section or label should contain the words "Group Return" .

    2. Box H(a) on the Form 990 should be checked "yes" and box H(b) should contain the number of affiliates for which the group return was filed.

    3. Box I should contain the GEN for the group.

    4. Attached to the group return should be either a list of the subordinates included in this group return or a statement indicating all of the subordinates of the group ruling are included in this group return.

  2. If the return is a group return and contains a list of the subordinates included in the group return, research CC EOGEN to see if the attached list includes all of the subordinates.

    If Then
    Your research indicates the list does include all the subordinates:

    1. Perfect the document by editing a Group Code 7 in the right hand margin of the return Section H.

    2. Release the unpostable using URC 8 and have Rejects reprocess the return.
    Your research indicates the list does not contain all the subordinates:

    1. Use CC FRM49 to input a TC 590 cc 14 on each account on the attached list.

    2. If there are missing EINs, use CC EOGEN with Definer Code S to find them.

    3. If you cannot find an EIN for one of the subordinates, do not assign a new EIN.

    4. Perfect the document by editing an a Group Code 8 in the right hand margin of the return Section H.

    5. Release the unpostable using URC 8 and request Rejects add the group code to the record.

  3. If the return is a group return and contains a statement indicating all of the subordinates of the group ruling are included in this group return:

    1. Perfect the document by editing a Group Code 7 in the right hand margin of the return Section H.

    2. Release the unpostable using URC 8 and request Rejects add the group code to the record.

  4. If the return is a group return but does not include a statement indicating all or part of the subordinates of the group ruling are included in this group return, process as follows:

    1. If the telephone number of the parent is included on the group return, call the parent to ask if all or part of the subordinates are to be included in the group return. If a phone number is not on the return or the parent does not answer the phone, correspond to request a partial list of subordinates or a letter indicating all subordinates are to be included on the return.

    2. If the parent replies all subordinates are to be included, edit a Group Code 7 in the right hand margin of the return Section H. Release the unpostable with URC 8, requesting Rejects reprocess the return.

    3. If the parent replies with a partial list of subordinates, use CC FRM49 to input a TC 590 cc 14 on each account on the list. If there are missing EINs, do not assign a new EIN. Edit a Group Code 8 in the right hand margin of the return Section H. Release the unpostable with URC 8, requesting Rejects add the group code to the account.

    4. If the parent does not reply, edit a Group Code 7 in the right hand margin of the return Section H. Release the unpostable with URC 8, requesting Rejects reprocess the return.

  5. If the return is not a group return, research for a better EIN.

    Note:

    Quite often a subordinate will file a return using the EIN of the parent of the group return. Research of the parent and subordinate accounts with CC EOGEN will help determine if this is the case.

    If Then
    A better EIN is found:

    1. Perfect the document with the correct EIN.

    2. Release the unpostable using URC 6.
    You cannot locate an EIN for the unpostable:

    1. Use CC ESIGN MFI O to assign a new EIN.

    2. Input a TC 016 Doc. Code 80 to establish the EO section and the proper filing requirement, using the appropriate posting delay code to post the TC 016 after the establishment of the EIN.

    3. Perfect the document with the new EIN.

    4. Release the unpostable using URC 6 and cycle to post after the TC 016.

3.12.278.39.5  (01-01-2009)
UPC 383 Resolution RC 3

  1. Check the return to see if it is truly a group return.

    1. The entity section or label should contain the words "Group Return" .

    2. Box H(a) on the Form 990 should be checked "yes" and box H(b) should contain the number of affiliates for which the group return was filed.

    3. Box I should contain the GEN for the group.

    4. Attached to the group return should be either a list of the subordinates included in this group return or a statement indicating all of the subordinates of the group ruling are included in this group return.

  2. If the return is not a group return:

    1. Circle out the group code (box 16) on the return.

    2. Release the unpostable using URC 8 and request Rejects remove the group code from the record.

  3. If the return is truly a group return, research to determine if the BMF account is correct. If the BMF account has group return in its name but the Form 990 FRC is incorrect:

    1. Input TC 016 Doc. Code 80 to update the Form 990 FRC to 3; and

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

  4. If the return is truly a group return and the BMF account is not the group return account, research for a better group return EIN. Process as follows:

    If Then
    A better group return EIN is found, Perfect the document with the correct EIN and release the unpostable using URC 6.
    You cannot locate a group return EIN:

    1. Use CC ESIGN MFI O to assign a new EIN for the Group Return.

    2. Input TC 016 Doc. Code 80 to establish the EO section and the Form 990 FRC of 03, using the appropriate posting delay code to post the TC 016 after the establishment of the new EIN.

    3. Perfect the document with the new EIN.

    4. Release the unpostable using URC 6 and cycle to post after the TC 016.

3.12.278.40  (01-01-2009)
UPC 399 RPS Return

  1. For resolution instructions, see IRM 3.12.279.182, 3.12.279.183 and 3.12.279.184.

    Note:

    If there is a payment on Form 4720A (MFT 50) and Code & Edit did not edit CCC X, release the unpostable with URC 8 and request Rejects add the CCC X.

3.12.278.41  (01-01-2009)
UPC 431 Location Address and State Code

  1. RC 1 - A transaction attempting to update the Location Address 1 & 2 and the Location Address 2 does not contain 2 and only 2 commas, and/or a U.S. state code is present is other than 2 characters.

3.12.278.41.1  (01-01-2009)
UPC 431 - Unpostables

  1. If you receive any UPC 431 unpostables, URC 2 them back to the originator.

3.12.278.41.2  (01-01-2009)
UPC 431

  1. Re-input the transaction.

  2. When entering the location address, use a comma after the city and a comma after the state.

  3. Use only two characters for the state code.

3.12.278.42  (01-01-2009)
UPC 490 Transaction Posting to an Invalid Field

  1. RC 1 - Generally, any input transaction attempting to post with an invalid field. Examples include:

    • Undefined value such as an invalid MFT

    • Value out of range such as month of 13

    • Wrong type such as an alpha character in a numeric field

    • Wrong sign for a money amount

  2. RC 2 - Input non F-coded Form 5227 TC 150 with a tax period later than 198712 and the input tax period does not end in YYYY12 (calendar year filer).

3.12.278.42.1  (01-01-2009)
UPC 490 Resolution RC 1 - Unpostables

  1. Research to determine which field is invalid.

    1. If able to correct the invalid data on the document, close with URC 6 or 8, as appropriate.

    2. If unable to determine the invalid field, notify the National Office TEGE Entity Analyst.

3.12.278.42.2  (01-01-2009)
UPC 490 Resolution RC 2 - Unpostables

  1. Research to determine if the unpostable FYM agrees with the BMF FYM.

  2. If the unpostable FYM is 12 and differs from the BMF FYM:

    1. Input TC 016 to correct the BMF FYM to 12.

    2. Release the unpostable using URC 0 and cycle to post after the TC 016.

  3. If the unpostable FYM and the BMF FYM agree but are not 12:

    1. Input TC 016 to change the BMF FYM to 12.

    2. Release the unpostable using URC 6 with FYM 12 and cycle to post after the TC 016.

    3. If the unpostable FYM is not 12 and differs from the BMF FYM, release the unpostable using URC 6 and FYM 12.


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