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Part 3. Submission Processing

Chapter 13. Campus Document Services

Section 12. Exempt Organization Account Numbers (Cont. 2)

3.13.12  Exempt Organization Account Numbers (Cont. 2)

3.13.12.6 
Entity Changes for an EO/BMF Account

3.13.12.6.32  (01-01-2009)
Remarks

  1. When inputting the Remarks (RM) with CC EOREQ/EOCHG and the Document Code is 80 or 81, it is:

    • A required field for all EOCHG transactions.

    • Variable; i.e., it must be at least 10 but not more than 35 characters in length.

  2. Remarks should be written to leave a history for future reference.

3.13.12.6.33  (01-01-2009)
Filing Requirements

  1. Use TC 000, 012 or 016, Document 80, to add a positive FRC to the BMF. The validity and consistency checks will be performed when the input FRC is positive; i.e., greater than zero.

  2. To delete an EO FRC, use Document Code 80 or 63. If the input is only to delete a BMF FRC, use CC BNCHG. No definer code is necessary as long as the only change being made is to delete the FRC. However, if you are using CC EOCHG and the only action is to delete a FRC, the input must be as follows:

    1. Document Code must be 80.

    2. TC must be 016.

    3. Remarks must be input.

    4. Input zero in FRC being deleted

    Note:

    Never use CC EOCHG to delete or update a Form 990-T, or a non-EO FRC, unless there is an EO Section already on the BMF, or you are adding an EO Section for the first time.

  3. Always input the fiscal year month if the FRC is for Forms 990, 990-C/1120-C, 990-PF, 990-T, 5227, 1041, 1065 or 1120.

3.13.12.6.33.1  (01-01-2009)
Form 941 FRC

  1. The validity and consistency checks for 941 FRC are as follows:

    1. Valid input codes are 00, 01 or 07.

    2. If Document Code is 80, the TC must be 000, 012 or 016.

3.13.12.6.33.2  (01-01-2009)
Form 940 FRC

  1. The validity and consistency checks for Form 940 FRC are as follows:

    1. Valid input codes are 0, 1, 2, or 7.

    2. If Document Code is 80, the TC may be 000, 012, or 016.

    3. If the FRC is 1 or 2, than a 941 FRC of 01 or a 943 FRC of 7 must be input.

    4. The Employment Code must NOT be W.

3.13.12.6.33.3  (01-01-2009)
Form 942 FRC

  1. If a Form 942 FRC is input, it must be 0.

3.13.12.6.33.4  (01-01-2009)
Form 943 FRC

  1. The validity and consistency checks for Form 943 FRC are as follows:

    1. Valid input codes are 0, 1, or 7.

    2. If the Document Code is 80, the TC may be 000, 012, or 016.

3.13.12.6.33.5  (01-01-2009)
Form 1120 FRC

  1. The validity and consistency checks for Form 1120 FRC are as follows:

    1. Valid input codes are 01, 03, 07, or 09.

    2. Fiscal year month must be input.

    3. If Form 1120 FR is 01, 03, 04, 07, or 09, then the TC must be 012 or 016.

    4. If the Status Code is not 41 or 70-72, then Transaction Definer Code A must be input.

    5. The subsection code must be input. The chart below shows the valid combinations of Form 1120 FRs. and subsection codes as well as any additional consistency checks.

    1120 FR SS CD 990 FR 990-PF FR 990-C FR TF CD
    01 03   1   03 or 04
    01 12 01      
    03 12 01      
    04 15 01      
              09 or 18
    09 01, 02, 04-23, 50, 60, or 70        

3.13.12.6.33.6  (01-01-2009)
Form 1065 FRC

  1. The validity and consistency checks for Form 1065 FRC are as follows:

    1. Valid input codes are 0 or 1.

    2. If Form 1065 FR is 1, then the Doc. Code must be 80.

    3. The TC must be 000, 012, or 016.

    4. If TC is 012 or 016 and SS is 02-23, 50, 60, or 70, then Transaction Definer Code A must be input.

    5. If the SS is 99, or is not entered, than the Status Code must be 07, 10 or 11.

3.13.12.6.33.7  (01-01-2009)
Form 1041 FRC

  1. The validity and consistency checks for Form 1041 FRC are as follows:

    1. Valid input codes are 0, 1, or 2.

    2. If Form 1041 FRC is 1 or 2, then the Document Code must be 80.

    3. Fiscal year month must be input.

    4. If the Status Code is not 41 or 70-72, then the Transaction Definer Code A must be input.

    5. If SS is 90, then the Form 5227 FR must be 1 or 2.

    6. If SS is 91, then the Form 990 FR must be 01 or 02.

    7. If SS is 92, then the Form 990-PF must be 1.

3.13.12.6.33.8  (01-01-2009)
Form 5227 FRC

  1. The validity and consistency checks for Form 5227 FRC are as follows:

    1. Valid input codes are 0, 1, or 2

    2. The Document Code must be 80.

    3. The Subsection Code must be 90.

    4. Fiscal year month must be 12.

    5. The TC must be 000, 012, or 016.

    6. If the TC is 012 or 016, the Definer Code A must be input.

3.13.12.6.33.9  (01-01-2009)
Form 990 FRC

  1. The validity and consistency checks for Form 990 FRC are as follows:

    1. Valid input codes are 01, 02, 03, 04, 06, 07, 13 or 14.

    2. If Form 990 FR is 01, 02, 03, 04, 06, 07 or 13, then the Document Code must be 80 or 81.

    3. If the Document Code is 81, the TC must be 016 and Definer Code must be D.

    4. If the Document Code is 80, the TC must be 000, 012 or 016.

    5. If the TC is 012 or 016, the Definer Code A must be input.

    6. The subsection code must be consistent with the 990 FR. The chart below shows the valid combinations of Form 990 FR and subsection codes as well as any additional consistency checks.

    990 FR SS Code Status Code Found Code Class Code
    01 02, 04-20, 22, 23, 24, 25, 50, 60, 70 or 91      
    01 03   09-18  
    02 02, 04-20, 22, 23, 24, 25, 50, 60, or 91      
    02 03   09-18  
    03 02, 04-20, 23, or 70      
    03 03   09-18  
    04 21      
    06 03   10  
    06 Must be in 99 or not input 07, 10 or 11    
    07 01 11    
    13 03   09-18 7
    14 01, 04-20, 22-25, 50, 60      
    14 03   09-18  

3.13.12.6.33.10  (01-01-2009)
Form 990-C/1120-C FRC

  1. See IRM 3.13.2.

3.13.12.6.33.11  (01-01-2009)
Form 990-PF FRC

  1. The validity and consistency checks for Form 990-PF FRC are as follows:

    1. Valid input codes are 0 and 1, 2, or 3.

    2. Fiscal year month must be input.

    3. The SS must be 03 or 92.

    4. If the SS is 03, then the Foundation Code must be 03 or 04.

    5. The TC must be 000, 012 or 016.

    6. If the TC is 012 or 016, then Definer Code A must be input.

3.13.12.6.33.12  (01-01-2009)
Form 990-T FRC

  1. The validity and consistency checks for Form 990-T FRC are as follows:

    1. Valid input codes are 0 and 1.

    2. Fiscal year month must be input.

    3. Document code will be 80 and the TC may be 000, 012, or 016.

    4. If a Form 990 FR is input, it must be 01, 02, 04, 06, 13 or 14.

    5. If the 990 FR is 00 or not input, then the 990-PF FR must be 1 or the Status Code must be 06.

    6. If TC is 000 and is the SS is input, it must be 02-25, 50 or 60.

    7. If TC is 000 and the SS in not input, then the Status Code must be 06, 07, 10 or 11.

    8. If TC is 012 or 016 and if the SS is 02-25, 50, 60 or 70, then Transaction Definer Code A must be entered.

    9. If TC is 012 or 016 and if the SS is 99, then the Status Code must be 06, 07, 10 or 11.

    10. If TC is 012 or 016 and if the SS is not entered, then the Status Code must be 06, 07, 10 or 11.

3.13.12.6.33.13  (01-01-2009)
FRC – Not Required

  1. The validity and consistency checks for FRC - Not Required are as follows:

    1. Valid input codes are 0 or 1.

    2. NR is valid with Document Code 80 for TC 000, 012 or 016.

    3. If the TC is 016, then the Transaction Definer Code must be A.

3.13.12.6.34  (01-01-2009)
BOD Code and BOD Client Code Changes

  1. Research CC INOLE or CC ENMOD to verify the Employment Code (EC) is correct. If the EC is not correct, make the necessary change using CC BNCHG.

    Note:

    The EC must be correct before a change to the BOD Code and BOD Client Code can be made.

  2. There are currently six BOD Client Codes (BCC).

    • B - Tax Exempt Bond (MFT 46 module only)

    • F - Federal/State/Local Government (F/S/L)

    • I - Indian Tribal Government (ITG)

    • 1 - Bond issued by ITG

    • 2 - Bond issued by F/S/L

    • 3 - Bond issued by an exempt organization

  3. The following table shows which BCC can be used with each EC:

    If the EC is Then the BCC can be
    C Blank
    I I or 1
    F F or 2
    G F or 2
    T F or 2
    W B or 3 or Blank
    Blank B or 3 or Blank

    Note:

    Numeric BCCs are systematically updated when an MFT 46 is posted to the account.

  4. To change the BOD Code or BOD Client Code:

    1. Input CC REQ77 with the EIN on the first line, MFT, plan number and tax period on the second line and the name control on the third line. For example:
      REQ77 12-3456789
      00 0000 000000
      ABCD

      Note:

      Since there is no MFT, plan number or tax period, zeros are entered on the second line.

    2. When the FRM77 screen appears, input data in the following fields:
      TC>971
      TRANS-DT>MMDDYYYY (current date)
      BOD-CD>TE
      BCC-CD>X (can be either alpha or numeric
      TC 971/151>050
      REMARKS>BOD BCC CHANGE

      Note:

      Both the BOD Code and the BCC must be entered on the same TC 971 even though the BOD Code may not need to be updated. A blank BCC is an exception.

3.13.12.7  (01-01-2009)
EO Consolidation of EINs

  1. This section contains procedures for consolidating accounts when an organization has more than one EIN and one or more of the EINs has an EO section on the BMF. These procedures must be followed whenever it is determined a taxpayer has more than one EIN.

3.13.12.7.1  (01-01-2009)
EIN Consolidation Procedures

  1. Entity Control will receive research, correspondence, returns, unpostables, etc. from various areas within the Service which indicate a taxpayer has more than one EIN.

  2. To consolidate two EINs, use CCs ENREQ/BRCHG, Document Code 63 and TC 011. Remarks must begin with the alpha’s SD to alert Files the IDRS transaction record must be associated with a source document. Use correspondence or prints as source documents.

  3. Before any account can be consolidated, perform complete research and HAVE THE LEAD SIGN OFF ON THE TC011 BEFORE THE TRANSACTION IS INPUT.

  4. When determining which EIN to retain ("TO" number), use the following preference in this order:

    1. Retain the EIN preferred by the organization.

    2. If no preference is indicated, retain the lower EIN, unless one has a Form 941/944 FR.

    3. If both EINs have a 941/944 FRC, retain the lower EIN.

    4. If one EIN is not on the BMF, and the BMF EIN is still active, retain the BMF EIN.

    5. If the lower EIN is not active, retain the EIN which has active filing requirements.

    6. If neither EIN is active, retain the lower EIN.

  5. Always send the organization new FTDs, if appropriate.

  6. A CP 209 will generate to notify the organization of the correct number if the full consolidation was successful.

  7. Send a 139C letter to the organization only if requested.

  8. When reviewing BMFOL or ENMOD, use the following table to determine if a previous consolidation was initiated or if the account is inactive.

    Key to Generated Consolidated Transaction Codes
    Key to Input Consolidation Transaction Codes
    TC 001 Carries complete account of the old (FROM) TIN to the new TIN
    TC 002 Posts on the old (FROM) TIN and carries complete contents of the TC 001 carrier back to the original (FROM) TIN if name controls mismatch.
    TC 003 Posts on the old (FROM) TIN and carries the duplicate tax modules only back to the original (FROM) TIN and changes all filing requirements to 8's. Shows INACTIVE account on IDRS.
    TC 004 Posts on good (TO) TIN indicating duplicate module condition in attempted consolidation.
    TC 005 Posts on the new (TO) TIN and posts as an 005/006 combination if consolidation is successful.
    TC 006 Posts on the good (TO) TIN without the 005 if consolidation attempt is unsuccessful.
    TC 008 Post on the good (TO) TIN indicating a complete consolidation was made to the good TIN above.
    TC 026 Posts on the old (FROM) TIN. Account deleted. TIN changed.
    TC 011 Posts to the old (FROM) TIN to change EIN of an account on Master File and prevents other postings except 002, 003 and 026.
    TC 012 Account Re-established -- Active
    TC 020 Account Deleted -- Inactive

  9. Notify Cincinnati of an EIN change on an exempt organization if necessary.

3.13.12.7.2  (01-01-2009)
Conditions for No Merge

  1. Figure 3.13.12-43 in IRM 3.13.12.8.1 shows the conditions which can cause a no merge transcript and should be used to determine if the two EINs can be consolidated.

    1. If any of the transactions listed on the chart are identified during review, do not input the TC 011 until the condition is corrected on the BMF.

    2. Correct either the EIN that is identified to be the "FROM" account or the EIN identified to be the "TO" account.

    3. Remember always correct the accounts so after the consolidation the "TO" account will have the proper organization identification of filing requirements, EO section, FYM, etc.

  2. If only one account has an EO section, the master file will retain the EO section from either number.

  3. If both accounts have an EO section, retain the "TO" account, unless the "TO" account does not have a subsection code greater than zero and the "FROM" account has a subsection code greater than zero; then retain the "FROM" account EO section.

  4. Notify Cincinnati of the EIN change if the EIN of the organization changes.

3.13.12.7.3  (01-01-2009)
Merge Checks

  1. If both accounts have an EO section with an EO status, the BMF will perform the following merge checks. If the checks fail, a "NOMRG EO" transcript will be generated.

  2. Merge checks on the subsection (SS):

    1. If both accounts have a subsection code, they must be the same, unless one account has a SS of 00. If one account has a SS of 00, then the master file will retain the EO section with the SS greater than zero.

    2. Before inputting a TC 011, correct the EO section that is wrong.

    3. A TC 022 may be input to delete the EO section on the account that is wrong. However, see UPC 359 in IRM 3.12.278 for TC 022 unpostable conditions. Before the TC 022 is done, print the current CC BMFOLO screen to attach as a source document for the transaction.

    Note:

    TC 022 MUST be input prior to TC 011 when the account reflects Status Code 40. Input of TC 022 will remove the account from the Status 40 Register.

  3. The following table shows the EO entity status which must be present so the accounts can be merged.

    Status Code"From" Module Status Code "TO" Module
    01 - 03 01 - 03
    7, 10, 11 7, 10, 11
    12 12
    18 18
    19 19
    20, 22 - 26 20, 22 - 26
    21 21
    28 28
    29 29
    30 30
    31 31
    32 32
    33 33
    34 34
    35 35
    36 36
    40 40
    42 42
    41, 70 - 72 41, 70 - 72

  4. Merge checks on the GEN:

    1. If both accounts have a GEN, they must be the same. Be sure the two accounts are the same before trying to correct the GEN.

      Examples:
      Account #1 has a GEN and Account #2 has an EO section with no GEN. These accounts will not merge because the GENs are not the same.
      Account #1 has a GEN and Account #2 has a different GEN. These accounts will not merge because the GENs are not the same.
      Account #1 has no GEN and Account #2 has no GEN. These accounts will merge because the GENs are the same.
      Account #1 has a GEN and Account #2 has the same GEN. These accounts will merge because the GENs are the same.

  5. Merge checks on the Affiliation Code:

    1. The only condition which will cause a merge to fail is when Account #1 has an AF of 7 or 9, and Account #2 has an AF of 6 or 8. You cannot merge a parent to a subordinate or a subordinate to a parent.

    2. Never input a TC 022 to the account with an AF of 6 or 8.

  6. Merge checks on the fiscal month: The fiscal months must agree. Correct the FYM on either account to agree with the posted return tax period month.

3.13.12.8  (01-01-2009)
EO Transcripts and Notices

  1. AMS uses Desktop Integration (DI) to electronically deliver Entity transcripts on a weekly or monthly basis replacing the printed paper forms. The data is extracted and sorted by a computer program and cases are loaded into the DI system as inventory items. The DI system will automatically assign inventory cases to employees based on their skill codes and the number of cases in inventory. The Entity manager, lead or clerk may also manually assign transcript inventory to employees in their unit.

  2. Assigned and unassigned cases will reside on DI. The reports to track Entity's transcript inventories are also available on DI.

  3. AMS allows authorized users to resolve various taxpayer issues by providing the IRS employee the ability to view and update taxpayer accounts and case information through a common user interface. AMS can be used for may taxpayer actions and can be used whether the taxpayer's account resides on IDRS or CADE.

  4. Entity tax examiners can complete the following actions using DI/AMS:

    • Research the taxpayer account

    • Activate up to 30 self-elected IDRS Command Codes

    • Launch into external IRS system without leaving DI

    • Electronically record, store and retrieve nationwide case history

    • Update taxpayer address and phone numbers

    • Order forms

    • Prepare specific forms and transcripts

    • create selected IDRS Correspondex letters

  5. AMS will become the remaining system/process (beginning in 2009) which will incorporate the capabilities of Desktop Integration and Correspondence Imaging System (CIS).

  6. The types of taxpayer information, correction methods, and research capabilities will continue to increase with each subsequent AMS and CADE enhancement. AMS is planning on replacing IDRS by 2012.

  7. Work all EO transcripts using the procedures outlined in IRM 3.13.12.

  8. All EO related transcripts include the following EO information. The inclusion of this information on the transcript will eliminate the need for additional EO research requests previously necessary to resolve the case.

    Title Print Format
    EO Entity Status EO–STAT–nn–YYYYMM
    Ruling Date RUL–YYYYMM
    Classification Code CLASS–nnnn
    Affiliation Code AFF–n
    Income Code INC–n
    Foundation Code FOUN–nn
    Group Exemption Number GEN–nnnn
    Type of Organization ORG–n
    Asset Code ASSET–n
    Subsection Code SUB–nn
    File Folder Number FFN–nn–nnnnnnn

3.13.12.8.1  (01-01-2009)
General Instructions for EO Transcripts

  1. General Instructions for EO related transcripts. The table below shows EO NO MERGE Conditions.

    Name Reason Code Definition
    Name Control 30 Different Name Controls will not merge. A CP 201 will generate
    Filing Requirements 33 Incompatible FRs will not merge. A CP 202 will generate. If the "TO" account is all 8s (Inactive account), a CP 200 will generate.
    EIN NOMRG - FYM   Different FYMs will merge on a BMF merge, but entities with EO submodules require them to be the same MCC Transcripts are generated.
    Subsection NOMRG - SS 22 Different subsections will not merge. However, if one entity has a subsection and the other is blank, they will merge. MCC Transcripts are generated.
    GEN NOMRG - GEN 24 Different GENs will not merge. If one module has a GEN, the other module mush have the same GEN. MCC Transcripts are generated.
    STATUS NOMRG - STAT 23 All status conditions will not merge. An information table on status merges is shown in 3.13.12.7.3(3). MCC Transcripts are generated.
    Affiliation Codes NOMRG - AF 25 Parents and subordinates should not be consolidated. An affiliation code of 6/8 will not merge with a 7/9. MCC Transcripts are generated.

    1. Perform research on all cases to determine if a true error was made, or if an error was made in transcribing the information.

    2. If the error was in transcription, make the necessary entity change following normal procedures.

    3. If a true error exists, research EDS for an open case. If there is an open case, telephone the determination agent assigned to the case. Inform the agent of the discrepancy. If necessary, forward the case to the agent assigned to the case. Notify the organization of the transfer of the case.

    4. If there is no open case on EDS, research IDRS (CC INOLE, CC BMFOLO, CC BMFOLE). If the amended organizing documents were submitted.

    5. If the amended organizing documents were submitted, send the documentation to Cincinnati campus. The notation on the Form 3499 should state "Establish as a T (termination) or A (amendment) case."

    6. If the amended organizing documents were not submitted, advise the organization of the information needed to merge the account. Request the organization send the documents to Cincinnati campus.

3.13.12.8.2  (01-01-2009)
EO No Merge Transcripts

  1. The following transcripts are generated when an attempt to merge accounts containing EO data fails:

    • NOMRG - SS

    • NOMRG - STAT

    • NOMRG - GEN

    • NOMRG - AF

    • NOMRG - FYM

3.13.12.8.2.1  (01-01-2009)
NOMRG - SS

  1. NOMRG - SS transcript is generated when the current subsection codes are different. (RC22)

    1. Research EDS to determine if the subsection code was recently changed. If the SS was changed, request the source document to determine if the change was made correctly. If the "FROM" and "TO" accounts are the same entity, input a TC 016, Doc. Code 80, to update the subsection code and re-input the merge transaction.

    2. If it appears each account has a valid subsection code, follow the general instructions above.

3.13.12.8.2.2  (01-01-2009)
NOMRG - STAT

  1. NOMRG - STAT transcript is generated when the "FROM" and "TO" accounts have incompatible EO status codes. (RC23)

    1. For incompatible status codes, see UPC 358 in IRM 3.12.278.19.

    2. Perform necessary research and make necessary changes as indicated in paragraph 12.17.2.1(1) above.

3.13.12.8.2.3  (01-01-2009)
NOMRG - GEN

  1. NOMRG - GEN transcript is generated when both accounts have EO status and an attempt is made to merge accounts with different GENs. (RC24)

    1. Research CC EOGEN to determine the correct GEN. Input a TC 016, Doc. Code 80 to change the GEN when the correct GEN can be determined.

    2. If the correct GEN cannot be determined, the accounts may be different entities. One entity could be a new parent that was being erroneously merged with a subordinate. Follow the general instructions above.

3.13.12.8.2.4  (01-01-2009)
NOMRG - AF

  1. NOMRG - AF transcript will generate when one account has an affiliation code of 6 or 8 (parent) and the other account has an affiliation code of 7 or 9 (subordinate). (RC25)

    1. Perform all necessary research on EDS or IDRS and make changes as required.

    2. If the NOMRG condition cannot be resolved, follow the general instructions given above.

3.13.12.8.2.5  (01-01-2009)
NOMRG - FYM

  1. NOMRG - FYM transcript generates when the fiscal month for the two accounts do not agree.

    1. Research the "TO" TIN to ensure the correct number was used.

    2. If the correct "TO" TIN was used, determine the correct FYM by examining the posted returns. Use the FYM of the latest posted return for the account FYM.

      Note:

      The FYM match is performed prior to the filing requirement match. Therefore, you must be sure the FRs. of each account are compatible.

    3. After determining the correct FYM, input TC 016, Doc. Code 63 to correct the inaccurate account.

    4. If the filing requirements are mismatched, refer to CP 202 instructions in IRM 3.13.12.8.3.3 and resolve accordingly.

    5. After the FYM (and FR, if necessary) is corrected, input TC 011, Doc. Code 63 to complete the consolidation.

    6. If the correct "TO" TIN was not used, research to determine if a good "TO" TIN exists.

    7. If the proper "TO" TIN is found ensure all items (FYM, FR) are compatible. Correct if necessary, then input TC 011, Doc. Code 63 to consolidate the accounts.

    8. If you cannot find a good "TO" TIN, destroy the transcript with no further action.

3.13.12.8.3  (01-01-2009)
No Merge Notices

  1. No Merge Notices (CPs 200, 201 and 202): Entity Control will receive these notices resulting from an attempted consolidation. These notices include the following EO information. The inclusion of this information on the notice will eliminate the need to research for EO information necessary for resolution of the case.

    Title Print Format
    EO Entity Status ST–nn–YYYYMM
    Ruling Date RUL–YYYYMM
    Affiliation Code AF–n
    Foundation Code TF–nn
    Group Exemption Number GEN–nnnn
    Subsection Code SS–nn
    File Folder Number FFN–nn–nnnnnnnn
    Classification Code CL–nnnn

3.13.12.8.3.1  (01-01-2009)
CP 200

  1. CP 200 "TIN CHANGE - INACTIVE ACCOUNT" is generated when a consolidation of accounts is attempted and the "TO" account is inactive; i.e., all filing requirements are "8" .

  2. Entity Control will receive these CP 200 notices and process as follows:

    1. Research the entity using CCs NAMEE/NAMEB and INOLE to verify the accounts are the same.

    2. If the accounts appear to be the same, request research using CCs BMFOL, MFTRA, MFTRD for an entity transcript of both the "FROM" and "TO" number.

    3. If research show the accounts are the same, determine why the account is inactive by the transactions posted to the entity module. A TC 020 and a partial merge TC 011 and 003 combination will place 8s in the FRCs.

    4. Do not reactivate an account when a TC 011 and 003 created the inactive status, unless telephone contact with the organization is made. Try to convince the organization the active number is correct. However, if the taxpayer insists on having the number which is inactive, take the necessary action to correct the BMF and redo the consolidation.

    5. To reopen the account, use TC 012 and the appropriate FRC.

    6. If the accounts are not the same, forward the case and all the research to the originator of the consolidation, if they can be determined. Explain the reason the case is being forwarded. If the originator cannot be determined, destroy the case.

3.13.12.8.3.2  (01-01-2009)
CP 201

  1. CP 201, TIN CHANGE - NAME CONTROL MISMATCH is generated when a consolidation of accounts is attempted and the Name Controls do not match. Entity will receive these notices and process as follows:

    1. Perform appropriate research to determine if these accounts are for the same entity. If an error was made in transcribing the data, initiate a TC 011, Doc. Code 63 with correct data.

    2. If no error was made and it is clearly determined the accounts should be consolidated, input a TC 013 to change the name control, as required. If it's a BMF account, use Doc. Code 63; if it's an EO account, use Doc. Code 80. Also, input a TC 011 to consolidate the accounts and delay one cycle.

    3. If one account has a temporary TIN and the accounts are the same, input TC 013 to correct the name of the account which is incorrect. If the accounts are BMF, use Doc. Code 63; if the accounts are EO/BMF, use Doc. Code 80. After the TC 013 has posted, input TC 011, Doc. Code 63. Use the account with the temporary number (00–2xxxxxx) as the "FROM" account.

    4. If one account has a temporary TIN and the accounts are not the same entity, research for another number (TIN). Be sure to include EDS in your research if EO is indicated. If another TIN is found, input TC 011 using the temporary TIN as the "From" number. If another TIN is not found, use CC ESIGN, MFI O, and NID to assign another (new) number to the account with the temporary TIN. If there is an open case on EDS, input the case control number. Input TC 011 with the temporary number as the "FROM" number.

    5. If it cannot be clearly determined how to consolidate the accounts, reject the Request for Consolidation (computer generated Form 5147 or Form 2363) with the CP 201 to the originator on a memo routing slip. Request additional information to verify the consolidation. If sufficient information is received, change the name (TC 013). Input TC 011 to consolidate the accounts.

    6. If consolidation cannot take place, destroy the notice.

3.13.12.8.3.3  (01-01-2009)
CP 202

  1. CP 202, E.I. NUMBER CHANGE - FILING REQUIREMENTS MISMATCH is generated when a consolidation of accounts is attempted and the accounts have conflicting filing requirements for income returns. For example, the consolidation would result in a combination of Form 1120-C and Form 990, Form 990-PF and Form 1041-A, or Form 1120 and Form 990-T filing requirements.

    1. Determine the correct filing requirements through IDRS and additional research as necessary.

    2. If a Form 1120S is involved (Form 1120 FR of 02), correspond with the organization if one account has an unreversed TC 090 present on BMFOLE and the other account has a Form 990 FR. It will be necessary to determine from the taxpayer which FR is correct.

    3. When information reveals the filing requirement on one of the accounts is erroneous and the consolidation of the accounts should be made, coordinate with BMF Entity to reverse the TC 090, and then input a TC 016 to correct the filing requirements. Also, input and cycle delay a TC 011 to consolidate the accounts and delay two cycles.

    4. When information reveals two different entities are involved and the consolidation should NOT be accomplished, review both accounts. Correct name lines as applicable.

  2. Refer to table below to determine incompatible filing requirements:

    Filing Requirement Code & MFT Incompatible Filing Requirements & Filing Requirement Code
    02 (1120) 1041, 1065, 706GS(T), 1041-A, 5227, 1066
    990-C/1120-C (FRC = 1 unless F1120 FRC = 07)
    990-T (FRC = 1 unless F1120 FRC = 03, 04 or 09)
    990-T (FRC = 2)
    990-PF (FRC = 1 unless EO Entity Status = 19 or 22)
    990 (FRC = 03 or 07)
    990 (FRC = 04, 06 or 13 unless F1120 FRC = 09)
    990 (FRC = 01 or 02 unless F1120 FRC = 01 and EO subsection = 12 or F1120 FRC = 03, 04 or 09)
    8752 (unless F1120 FRC = 02)
    05 (1041) 1120, 1065, 990-C, 1120-C 990-T, 1066, 8752
    990 (FRC = 03 - 07)
    990 (FRC = 01 - 02 unless EO Subsection = 91)
    990-PF (unless EO Subsection = 92)
    06 (1065) 1120, 1041, 1066, 990-C, 1120-C, 990–T, 1041-A, 5227, 4720 990-PF, 706GS(T)
    07 (1066) 1120, 1065, 1041, 8752, 990-C, 1120-C, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 942, 706GS(T)
    15 (8752) 1041, 1066, 990-C, 1120-C, 990-T, 1041-A, 5227, 706GS(T) & 1120 (unless FRC = 02)
    33 (990-C 1120-C) 1041, 1065, 1066, 8752, 990-T, 1041-A, 5227, 4720, 990-PF, 990, 942, 706GS(T), 1120 (unless FRC = 07 and 990-C 1120-C FRC = 1)
    34 (990-T) 1041, 1065, 1066, 8752, 990-C, 1120-C, 1041-A, 5227, 706GS(T), 990 (FRC = 03), 1120 (FRC = 01, 02, 06, 07, 10, 11 or 14 - 19)
    36 (1041-A) 1066, 8752, 1120, 1065, 990-C, 1120-C, 990-T, 990-PF, 990
    37 (5227) 1120, 1065, 1066, 8752, 990-C, 1120-C, 990-T, 990-PF, 990, 1041, 706GS(T) (unless EO Subsection = 90)
    44 (990-PF) 1065, 1066, 8752, 990-C, 1120-C, 1041-A, 5227 990
    1120 (FRC = 01 unless EO Entity Status = 19 or 22)
    1120 (FRC = 02, 06, 10, 11 14 - 19)
    1041/706GS(T) (unless EO Subsection = 92)
    990-T (FRC = 02)
    50 (4720) 1065, 1066, 8752, 990- C, 1120-C
    1120 (FRC = 02, 06, 07, 10 or 11)
    990 (FRC = 03)
    67 (990) 1065, 1066, 8752, 990-C, 1120-C, 1041-A, 5227, 990-PF
    1120 (FRC = 02, 06, 07, 10, 11, 14 -19)
    1120 (FRC = 09 and SS - 15)
    1041/706GS(T) (unless EO Subsection = 91)
    1120 (FRC = 01 unless 990 FRC = 01 or 02 and EO Subsection = 12)
    990-T (FRC = 02)
    990-T (Subsection = 91)
    77 (706GS(T)) 8752, 990-C, 1120-C, 990-T, 1066, 1120, 1065
    990 (FRC = 3, 04, 06, 07, 13)
    990 (FRC = 01 or 02 unless EO Subsection = 91)
    990-PF (unless EO Subsection = 92)

3.13.12.9  (01-01-2009)
EO Unprocessable Returns and Documents

  1. In order for a return or document to be processable, it must have:

    • A TIN,

    • A legible name or name control,

    • A valid tax year ending, and

    • legible tax data.

  2. Returns and documents which do not meet the above requirements are called unprocessable returns or documents. "Unprocessables" received by Entity Control do not have a TIN or show a changed TIN or name.

  3. See IRM 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates, for Entity Control's processing time frames for unprocessable returns. All Forms 990-T, 990-PF and 5227 not processed by Program Completion Date (PCD) must have a TC 599 cc 18 input to prevent return delinquency investigations. Input of this transaction code must be completed three weeks prior to each return's delinquency check. See the delinquency check schedule in IRM 3.30.123 - Exhibit 13 for the cycle of each form's delinquency check.

  4. All BMF returns and documents must be controlled for accountability. The Batch Profile Report is used to control and identify cases in Entity Control.

  5. Original returns and documents which are unprocessable will be received from:

    • Receipt and Control,

      Exception:

      A tax examiner from Entity will go to the Deposit Activity in Receipt and Control daily to assign EINs to returns with remittances or remittances with no return or document attached. This is to avoid sending the money to Unidentified in Accounting.

    • Document Perfection (unnumbered returns), and

    • Rejects (IDRS Control)

  6. Copies of page 1 of returns and documents that indicate a change in name or an address for EO accounts that affect the name lines will be received from:

    • Document Perfection,

    • Error Correction, and

    • Rejects.

  7. EO returns will error when the input name control does not match the name control on the Entity Index File (EIF). Error Correction or Rejects will perform research to determine if the organization is using the correct EIN.

  8. To make unprocessable returns processable, it may be necessary to edit entity information on the return. Refer to IRM 3.11.12 Exhibits for the placement of the edited information on each specific return.

    1. For Form 990, see Exhibit 3.11.12-1.

    2. For Schedule A, see Exhibit 3.11.12-2.

    3. For Form 990-EZ, see Exhibit 3.11.12-4.

    4. For Form 990-PF, see Exhibit 3.11.12-9.

    5. For Form 990-T, see Exhibit 3.11.12-12.

3.13.12.9.1  (01-01-2009)
General Instructions for Processing Documents from ERS or Rejects

  1. If Error Correction or Rejects determines the EIN is for the same organization, but the Exempt Organization is not name controlled properly, a copy of the first page of the return and any research will be forwarded to Entity Control. Process the photocopy of the return as follows:

    1. Compare the way the organization shows the name on the return with the name as shown on BMF.

    2. If the name control on the BMF is not according to acceptable name control procedures, input the correct name control to update the BMF.

    3. If the business name is not identified on the BMF as a sort name, input the sort name in the sort name field to correct the BMF.

    4. If there are misspelled names on the BMF, input the changes in the correct name line fields to correct the BMF.

    5. If it is obvious the BMF is correct, destroy the photocopy of the return and take no action.

    6. If appears a name change has occurred, correspond with the taxpayer, informing them documentation is required before we can make the name change. See IRM 3.13.12.6.2.2 for more details on what type of documentation is required for each type of organization. If the taxpayer responds with the required information, input TC 013, Doc. Code 63, and send the organization a 252C Letter acknowledging the change to its name. Send FTDs if applicable. If the taxpayer does not provide the necessary documentation or fails to respond, do not make the name change. Destroy the photocopy received from Error Correction or Rejects.

  2. If ERS is unable to determine the correct EIN to post a TC 610 payment from Form 3224E (RRPS Electronic Payment Voucher), research CC NAMEE and CC NAMEE/NAMEB. If the correct EIN is still not found, attempt to phone the bank or the organization based on the information given on the check. When the correct EIN is found, notate it on the document and send it back to ERS.

  3. Other reasons Rejects or ERS will refer copies of the return to Entity are:

    • 2 EINs

    • Missing EINs

    • Address changes

    • Incorrect subsection

    • Incorrect FYM

  4. After the changes are input, notify the Exempt Organization with FTDs, if applicable, and send a 252C letter if a change is made to the organization's name. If a correct EIN is found, notify the organization, using Letter 3910C.

    Note:

    Obvious transposed or missing digits can be excluded as criteria for sending the Letter 3910C.

3.13.12.9.2  (01-01-2009)
General Instructions for Processing Documents from Document Perfection

  1. Returns with no entity data; i.e., name, EIN, SSN, may be forwarded to Entity from Document Perfection.

    1. Review the form for a legible name on the signature line, schedules, or any attached correspondence.

    2. Use available resources to locate a valid telephone number for the name secured. Contact the organization, and, if sufficient information is provided, perfect the return and continue processing.

    3. If the return cannot be identified in any manner, see your Manager for disposition of the form.

  2. Process Forms 8872 as follows:

    If Then
    There is no EIN, Research for an existing EIN.
    An existing EIN is found,

    1. Send a 3910C Letter to the organization to notify them of their correct EIN.

    2. Send the Form 8872 to Imaging.

  3. Entity Control will receive EO returns and documents if they contain a change to "Organization Name" , have a missing EIN or do not have an EO section on the BMF (UPC 366). Each return will be treated separately within this section.

  4. Always input TC 599 cc 18 if return is past due. See the following chart for return due dates.

    Exception:

    Do not input TC 599 cc 18 if the account is in Status 40. Always input TC 599 cc 18 if the return is a Form 1120, regardless of the due date. Do not input TC 599 cc 18 on a final return if the return FY is different from the BMF FY.

    Statute Returns Date Due, or # of months due after the end of the accounting year
    990-BL, 990-C/1120-C, 990-PF, 990-T, (IRC 401/408) 990-T (all others) 1120-POL, 4720, 5227, 6069 4.5 months 8.5 months 4.5 months 3.5 months 4.5 months 2.5 months same as 990, 990-EZ, 990-PF April 15th 4.5 months
    Non-Statute Returns Date Due, or # of Months Due After the End of the Accounting Year
    990, 990-EZ, 990-BL w/o Sch A 1041-A, 5578, 5768, 8282 4.5 months 4.5 months 4.5 months April 15th 4.5 months any time within 125 days of disposition

3.13.12.9.3  (01-01-2009)
General Instructions for Processing Documents or Returns from Cincinnati

  1. The EO Entity Unit sends returns and documents to Cincinnati for resolution. When Cincinnati returns these documents to Entity with resolution instructions indicated, process as follows:

    1. Perform actions indicated by Cincinnati.

    2. If a return is unpostable and needs to be processed, prepare Form 3893 to recreate the original DLN on SCCF. Send the Form 3893 and the return to Data Control Unit in the Accounting Branch.

3.13.12.9.4  (01-01-2009)
Form 7004

  1. See IRM 3.13.2 for processing instructions.

3.13.12.9.5  (01-01-2009)
Form 2758

  1. See IRM 3.13.2 for processing instructions.

3.13.12.9.6  (01-01-2009)
Form 8868

  1. Form 8868, Application for Extension of Time to File an Exempt Organization Return, is used to request an extension for:

    • Form 990

    • Form 990BL

    • Form 990-EZ

    • Form 990-PF

    • Form 990-T (corporation)

    • Form 990-T (Sec. 401(a) or 408(a) trusts)

    • Form 990-T (501(c) trusts)

    • Form 1041-A

    • Form 4720

    • Form 5227

    • Form 6069

    • Form 8870

  2. The organization can use Form 8868 to request an automatic extension for 3 months (6 month for Form 990-T corporation) on the initial request. A second 3 month extension may be requested but is not automatic.

  3. The MFT for this extension is determined by the type of return for which Form 8868 was filed.

  4. Process Forms 8868 received in Entity as UPC 329 or UPC 366 using instructions in IRM 3.12.278.

  5. When a Form 8868 is received from Rejects because of a discrepancy with the name control, FYM, etc., and research indicates the TIN is without an EO section, make the necessary corrections and input Status 42 with CCs EOREQ/EOCHG, TC 016, Doc. Code 80, Definer Code B, Status 42/date, and Remarks for Forms 990, 990BL, 990-EZ, 990-PF, 990-T (corporation), 990-T (501(c) trusts), and 4720. For Status 42 information, see IRM 3.13.12.6.18.23(2). For Form 990-T (Sec. 401(a) or 408(a) trusts), update the filing requirement to 2. For Form 1041-A and Form 5227, update the EO Status to 12.

  6. When unnumbered Forms 8868 are received which do not contain an EIN:

    1. Research IDRS to get the EIN, edit the EIN onto the Form 8868 and forward for processing.

    2. If the account does not contain EO section data, input Status 42.

    3. If no EIN is located, assign the EIN in the usual manner and forward for processing.

    4. Always input Return ID Code of E8.

  7. Approved Forms 8868 for a group will be identified in Code & Edit and a TC 460 will be input on the group and each of the subordinates in the group if a listing of the names and EINs of the subordinates is attached to the Form 8868. If the Form 8868 is received in Entity from Code & Edit, research CC INOLE to determine if the extension is for a group return:

    If Then
    The Form 8868 is not for a group return, Circle out the GEN and return to Code & Edit.
    The Form 8868 is for a group return (the GEN is present and the Form 990 FR is 03), but the "whole group" or "partial group" box is not checked:

    1. Call the parent organization using the phone number on the SGRI listing.

    2. If contact by phone is made, ask the parent organization if the extension is for the "whole group" or "partial group." If the extension is for the "whole group," make a copy of the SGRI, mark the "whole group" box on the Form 8868 and return the extension to Code & Edit. If the extension is for a "partial group," request a list from the organization. When the list is received, attach the list to the extension, mark the "partial group" box on the Form 8868, and return the extension and list to Code & Edit. If the parent organization does not send in a list, make a copy of the SGRI, mark the "whole group" box on the Form 8868 and return the extension to Code & Edit.

    If the Form 8868 is for a group return, the "whole group" box is checked, but no listing is attached:

    1. Annotate Group Return across the top of the Form 8868.

    2. Pull the SGRI file and make a photocopy.

    3. Attach the copy of the SGRI to the Form 8868 and return both to Code & Edit.
    If the Form 8868 is for a group return, the "partial group" box is checked, but no listing is attached:

    1. Call the parent organization using the phone number on the SGRI listing.

    2. If contact with the parent organization is made, request a partial group list. When the list is received, attach the list to the Form 8868 and return both to Code & Edit. If no list is received, circle out the "partial group" box, mark the "whole group" box, copy the SGRI, attach the copy of the SGRI to the Form 8868, and return both to Code & Edit.

    Note:

    If there is no SGRI file available, ask the Lead to extract a list from RICS. If no RICS information is available, use CC EOGENS and print a list of the subordinates excluding those subordinates in Status 26 or Status 28.

3.13.12.9.7  (01-01-2009)
Form 990 and Form 990-EZ

  1. A new revision of Form 990 and 990 -EZ is available beginning January 1, 2009. In addition to the form, several new schedules will be included. They are:

    • Schedule A - Public Charity Status and Public Support

    • Schedule B - Schedule of Contributors

    • Schedule C - Political Campaign and Lobbying Activities

    • Schedule D - Supplemental Financial Statements

    • Schedule E - Schools

    • Schedule F - Statement of Activities Outside the US

    • Schedule G - Supplemental Information Regarding Fund Raising or Gaming Activities

    • Schedule H - Hospitals

    • Schedule I - Grants and other Assistance to Organizations, Governments, and Individuals in the US

    • Schedule J - Compensation Information

    • Schedule K - Supplemental Information on Tax Exempt Bonds

    • Schedule L - Transactions with Interested Persons

    • Schedule M - Non - Cash Contributors

    • Schedule N - Liquidation, Termination, Dissolution or Significant Disposition of Assets

    • Schedule R - Related Organizations and Unrelated Partnerships

  2. Form 990/Form 990-EZ is filed by an organization which is exempt under Section 501(c), or is a Nonexempt Charitable Trust under Section 4947(a)(1). The entity subsection code for these filers is as follows:

    Code SS Description
    02 501(c)(2) Title holding corporation
    03 501(c)(3) Charitable, educational, or literary organization, an organization to prevent cruelty to animals or children, an organization for public safety testing, a religious or scientific organization
    04 501(c)(4) Civil League, local association of employees’ social welfare organization, homeowner's association
    05 501(c)(5) Agriculture, horticulture or labor organization
    06 501(c)(6) Board of trade, business league, chamber of commerce or real estate board
    07 501(c)(7) Pleasure, recreational or social club
    08 501(c)(8) Fraternal beneficiary, society, order or association
    09 501(c)(9) Voluntary employee’s beneficiary association
    10 501(c)(10) Domestic fraternal societies and association
    11 501(c)(11) Teacher’s retirement fund association
    12 501(c)(12) Benevolent life insurance association, a mutual ditch or irrigation company, a mutual or cooperative telephone company
    13 501(c)(13) Burial association or cemetery company
    14 501(c)(14) Credit union, other mutual corporation or association
    15 501(c)(15) Mutual insurance company or association (other than life or marine)
    16 501(c)(16) Corporation financing crop operation
    17 501(c)(17) Supplemental unemployment compensation trust or plan
    18 501(c)(18) Employee funded pension trust (created before 6/25/59)
    19 501(c)(19) Post or organization of war veterans
    20 501(c)(20) Legal service
    22 501(c)(22) Multi-employer pension plan
    23 501(c)(23) Veterans Association founded prior to 1880
    25 501(c)(25) Title-holding Corporations or Trusts with multiple parents
    26 501(c)(26) State-sponsored high-risk health insurance organization
    27 501(c)(27) State-sponsored workers’ compensation reinsurance
    28 501(c)(28) National Railroad Retirement Investment Trust
    50 501(e) Cooperative hospital service organizations
    60 501(f) Cooperative service organizations of operating educational organizations
    70 501(k) Child care center
    71 501(n) Charitable risk pool
    82 527 Political organizations
    91 4947(a)(1) Non-exempt charitable trust under Section 4947(a)(1)

  3. Always edit the correct subsection from IDRS . If the account is in Status 40, leave the subsection on the return as indicated by the organization. If the subsection on the label is incorrect, circle it out.

  4. The subsection code, foundation code, annual returns and supplementary returns for Form 990 filers are as follows:

    Subsection Code Foundation Code Annual Return Supplementary Return IRC Section
    02   Form 990/990-EZ and Sch B Form 990-T 501(c)(2)
    03 10 Form 990/990-EZ and Sch A, B,C Form 990-T, 4720 501(c)(3)
    03 11 Form 990/990-EZ and Sch A, B Form 990-T, 4720 501(c)(3)
    03 12 Form 990/990-EZ and Sch A, B Form 990-T, 4720 501(c)(3)
    03 13 Form 990/990-EZ and Sch A, B Form 990-T, 4720 501(c)(3)
    03 14 Form 990/990-EZ and Sch A, B Form 990-T, 4720 501(c)(3)
    03 15 Form 990/990-EZ and Sch A, B Form 990-T, 4720 501(c)(3)
    03 16 Form 990/990-EZ and Sch A, B Form 990-T, 4720 501(c)(3)
    03 17 Form 990/990-EZ and Sch A, B Form 990-T, 4720 501(c)(3)
    03 18 Form 990/990-EZ and Sch A, B Form 990-T, 4720 501(c)(3)
    04   Form 990/990-EZ and Sch B, C Form 990-T, 4720 501(c)(4)
    05 thru 20   Form 990/990-EZ and Sch B Form 990-T 501(c)(5) thru (20)
    22 thru 27   Form 990/990-EZ and Sch B Form 990-T 510(c)(22) thru (27)
    28   Form 990/990-EZ Form 990-T 501(c)(28)
    40   Form 990/990-EZ and Sch B Form 990-T 501(d)
    50   Form 990/990-EZ and Sch A, B Form 990-T 501(e)
    60   Form 990/990-EZ and Sch A, B Form 990-T 501(f)
    70   Form 990/990-EZ and Sch A, B Form 990-T 501(k)
    71   Form 990/990-EZ and Sch A, B Form 990-T 501(n)
    82   Form 990/990-EZ and Sch B Form 1120POL, 8871, 8872 527
    91   Form 990/990-EZ and Sch A, B Form 990-T, 1041, 4720 4947(a)(1)

  5. The Type of Organization (TO) Codes for Forms 990/990-EZ are as follows:

    Type of Organization Definition
    1 SS = 02, 03, 04-20, 22-27, 50, 60, 70, or 71
    3

    1. The 4947(a)(1) box is checked in Item J of the entity section.

    2. SS=91
    4 The 527 box is checked in Item J of the entity section and the SS = 82.
    9 A non-group zero filer.

  6. If a group exemption number (GEN) is shown in item I on the return, always use the pilot voucher to create the EO/BMF entity or to add the EO section to the BMF entity.

  7. When the Form 990 FRC is 06 and the CL is not 7, input a TC 016, Doc. Code 80, Definer Code A and update the FRC to 01.

  8. When the Form 990 FRC is 06 and the TF is 10, check Schedule A, Part IV:

    If Then
    Box 5 (church) is checked, Take no action (document will unpost).
    Box 5 (church) is not checked, Take no action (document will unpost).

  9. If the Foundation Code is 09 for a 501(c)(3) Form 990 filer, this TF is incorrect. To determine the correct foundation code, check EDS, BMFOLO or Part IV on the Schedule A. Update the master file to correct the Foundation Code. The following list indicates what the TF is for each box checked in Part IV of the Schedule A:

    • Box 5 - TF 10

    • Box 6 - TF 11

    • Box 7 - TF 12

    • Box 8 - TF 14

    • Box 9 - TF 12

    • Box 10 - TF 13

    • Box 11a - TF 15

    • Box 12 - TF 16

    • Box 13 - TF 17

    • Box 14 - TF 18

  10. Every tax-exempt political organization and newsletter fund under section 527 must file Forms 990, 990-EZ or 990-N for the taxable year.

  11. If a response is received from an organization in Status 40 claiming to be a 501(c)(3) organization in Status 40 and they indicate they are exempt under the Tax Reform Act of 1969, notify the organization they still are required to file a Form 1023 per Rev. Proc. 76-34 and Rev. Rul. 73-504. If the organization does not file a Form 1023 after nine months in Status 40, update the filing requirement to Form 990-PF, Subsection 03, Foundation Code 04, FYM as indicated on the return, with a TC 016 Doc. Code 80 Definer Codes AB.

  12. See the tables below for 990 posting and filing requirement information:

    Form 990/990-EZ /990N Posting Information
    Transaction Code Tax Class Doc Code MFT Code FRC
    150 4 90/09/89/92/93 67 01,02.03.06,07,13,14

    Form 990/990-EZ/990N Filing Requirements
    Compatible Income Tax Returns FRC- 01 over $25,000 FRC - 02 Under $25,000 FRC-03 Group Return FRC-06 Church FRC-07 501(c)(1) Govt FRC-13 Religious CL Code 7 FRC-14 State or Political Sub
    Section 501 (c), (e), (f) 990-T-1,
    1120-POL,
    1120L-03
    1120M-04
    4720
    1120-01 (SS 12)
    706GS(T) (SS 91)     		990-T-1,
    1120-POL,
    1120L-03
    1120M-04
    4720
    1120-01 (SS 12)
    706GS(T) (SS 91)     		None 990-T-1 None None None

    Update IDRS for 990/990-EZ/990N Processing
    Type of Form Assign EIN "0" if EIN not found EOREQ TC 016 EOREQ TC 016 ST01
    EIN not on the BMF no exemption X Status 40  
    On the BMF no exemption   Status 40  
    Subordinate not on the BMF X   Pilot Voucher
    Subordinate on the BMF     Pilot Voucher
    Group Return not on the BMF X   Pilot Voucher 990-03 FR
    Group Return on the BMF     Pilot Voucher 990-03 FR
    Church NIA; hospital, school not on the BMF X Status 40 if unable to determine GEN With GEN: Pilot Voucher
    Church NIA; hospital school on the BMF   Status 40 if unable to determine GEN With GEN: Pilot Voucher
    Church not on the BMF no exemption X Status 30  
    Church on the BMF   Status 30  
    Church on the BMF exempt on the BMF     990-06 FR
    4947(a)(1) filer not on the BMF X Status 12  
    4947(2)(1) filer on the BMF no exemption   Status 12  
    Organizations with annual gross receipts less than $5,000   Status 31  
    527 Political Organizations X Status 34 Subsection 82  

    Note:

    If research shows the EIN on the return is correct but not on the BMF, you will input a TC 000 when applicable instead of a TC 016.

  13. If the name line indicates the word (VEBA) Voluntary Employee Beneficiary Association or the taxpayer has indicated a subsection of "9" and/or research shows the number is for a Corporation:

    1. Do not use the corporation EIN.

    2. Research for a different number for the VEBA using CCs NAMEB and NAMEE.

    3. If another number is not found, use CC ESIGN to assign a new number and put the account in Status 40.

3.13.12.9.8  (01-01-2009)
Form 990BL and Form 6069

  1. Form 990BL is titled Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons under Section 501(c)(21) of the IRC; the title of Form 6069 is Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust under Section 4953 and Computation of Section 192 Deduction.

  2. The entity will be on the BMF if an exemption is granted or an EIN assigned. However, the return does not post to the BMF. It is processed Non-Master File.

  3. See table below for Form 990BL and 6069 posting::

    Transaction Code Tax Class Doc Code FRC
    None 6 88 04

  4. If the return does not have an EIN research the BMF. See table below:

    IF AND THEN
    an EIN is found there is an EO Section with SS 21 enter the EIN on the return and release for processing.
    the SS is not 21   contact the taxpayer notifying them they have filed the wrong return. When a reply is received, process in accordance with taxpayer's request. If no reply is received, forward return to TEGE/CINC.
    an EIN is found without an EO section   enter the EIN on the return and release for processing.
    an EIN is not found   assign an EIN with MFI "0" , enter the EIN on the return and release for processing.

3.13.12.9.9  (01-01-2009)
Form 990-C/1120-C

  1. See IRM 3.13.2.

3.13.12.9.10  (01-01-2009)
Form 990-N, e-Postcard

  1. Beginning in 2008, small tax-exempt organizations that were previously not required to file returns may be required to file Form 990-N, Electronic Notice (e-Postcard) for Tax - Exempt Organizations not Required to File Form 990 or 990-EZ.

  2. The Ogden Campus will receive referrals from the Call Site for tax-exempt organizations when a sub-module is not established on Master File.

  3. All of the information to establish the account and EO sub-module (Status 01, 31, 36 or 40) must be present on the referral form received from the call site. If the referral does not provide the information needed to establish the sub-module and/or submit the 990-N refer the form to the Lead who will follow-up with the Call Site and obtain the missing or incomplete information.

  4. When a referral is received do the following:

    • Research Master File to ensure EIN is correct for the organization.

    • Using the information provided on the referral form, establish the subsection. For instructions to input the EO subsection refer to IRM 3.13.12.6.18.

    • Monitor the case until the subsection has posted to Master File.

    • If the referral form indicates the filer will submit their 990-N close the case following the posting of the sub-module. If the form indicates the filer wants the IRS to submit the Form 990-N on their behalf, follow the instructions below for submission of an e-Postcard.

3.13.12.9.10.1  (01-01-2009)
Submit an e-Postcard

  1. Take the following steps to submit the e-Postcard:

    1. Access the e-Postcard filing system at www.irs.gov/eo. Click "New Annual Electronic Filing Requirement…" and then click "File Form 990-N (e-Postcard)."

    2. On the home page of the filing system, click "Create your Form 990-N (e-Postcard)."

    3. Enter your assigned login ID and password and click "Log in."

    4. Enter the organization’s EIN and click "Submit EIN."

    5. You will see the first of two main screens for the e-Postcard. The first page will already contain the organization’s tax period, legal name and EIN. This is the information on Master File and you cannot change these fields. If you inadvertently entered the wrong EIN, click "Enter a Different EIN" to correct the EIN.

    6. The filer must answer two questions on the first page:
      "Has your organization terminated or gone out of business?" If the answer is ‘yes’ to this question, you will get a message that asks the filer to confirm that they no longer exist because a "yes" answer means that the IRS will no longer consider the organization to be tax-exempt. If the organization has terminated, you still complete the e-Postcard.
      "Are your gross receipts normally $25,000 or less?" The answer to this question must be "no" to file the e-Postcard. If the "yes" box is checked on the referral form, refer the case to the Lead for follow-up with the Call Site

    7. Click "Next Page."

    8. Enter the information requested on the second page.

    9. When you have completed both pages of the e-Postcard, click "Submit Filing to IRS." You will see a page that states the e-Postcard was submitted to the IRS and the filer will receive an email indicating whether the e-Postcard was accepted or rejected. EO will receive the email and mail it to the organization.

    10. In addition to the error message noted above, you may encounter the following error messages:
      "The employer identification number (EIN) ‘xx-xxxxxxx’ was not found. You may have entered the EIN incorrectly. Please re-enter the EIN and try again. If the EIN is correct, call IRS Customer Account Services at 877-829-5500 for assistance."
      If the EIN is correct, but the system is not allowing you to file the e-Postcard it is because an EO tax module does not exist. Field assistors should advise the customer to call the TE/GE CAS number and they will attempt to resolve the problem.

3.13.12.9.11  (01-01-2009)
Form 990-PF

  1. This return is filed by organizations which are private foundations, or are charitable trusts treated as a private foundations under Section 4947(a)(1).

  2. The entity subsection code for this type of filer is as follows:

    SS Description
    03 Charitable, educational or literary organizations to prevent cruelty to animals or children; organizations for public safety testing; religious or scientific organizations
    92 Non-exempt charitable trust under Section 4947(a)(1)

  3. The type of foundation code for a Subsection 03 organization must be as follows:

    Type of Foundation Description
    02 Private Operating Foundation with an election under Section 4940(d)(2)
    03 Private Operating Foundation
    04 Private Non-operating Foundation

  4. The Type of Organization (TO) Codes for Form 990-PF are as follows:

    Type of Organization Definition
    3 (U.S. Trust)
    6 (U.S. Foundation)     		If all of the following apply

    • the organization has a U.S. address.

    • Box D1 or D2 in the entity section is not checked.

      Note:

      Always edit Code 3 if the 4947(a)(1) box is checked or no box is checked and SS92 is indicated.

    4 (Foreign Trust)
    7 (Foreign Foundation)     		if all of the following apply

    • the organization has a foreign address.

    • Box D1 or D2 is checked.

      Note:

      Always edit Code 4 if the 4947(a)(1) box is checked or no box is checked and SS92 is indicated.

    5 Canadian Trust, or Code 8, Canadian Foundation, if the organization has a Canadian address or a treaty between the U.S. and Canada is referenced or attached.

    Note:

    Always edit Code 5 if the 4947(a)(1) box is checked or no box is checked and SS92 is indicated.

    6 All others

  5. The gross receipts limitation does not apply to Form 990-PF filers.

  6. Organizations classified as Private foundations must file a Form 990-PF every year.

  7. A Form 990-PF filer must pay estimated tax starting with tax periods beginning after 12-31-1986. The estimated tax will be paid on FTDs with a TC 660.

  8. For 990-PF posting and filing requirements, see table below:

    Transaction Code Tax Class Doc Code MFT Code FRC
    150 4 91 44 1- Form 990-PF required to be filed.
    2- Revocation of private foundation (Status 19)
    2 - Revocation of private foundation (Trust Status 18) Form 1041 and 990-PF required to be filed.
    3 - Presumptive PF; Form 990-PF required to be filed.

  9. The following is a list of compatible income tax returns for 990-PF FRC 1:

    • Form 990-T; SS 03 filers

    • Form 1041; ST 12 section 4947(a)(1) filers

    • Form 1041; ST 18 revocation of private foundation trust

    • Form 1120; ST 19 revocation of private foundation corporation

  10. The following is a list of compatible income tax returns for 990-PF FRC 2:

    • Form 1120 ST 19 revocation

    • Form 1041 ST 18 revocation

  11. Use the table below for updating IDRS for Form 990-PF processing:

    Type of 990-PF Assign EIN MFI 0 if an EIN is not found EOREQ TC 016 ST 40 EOREQ TC 016 ST 12
    EIN not on the BMF X X  
    EIN on the BMF no exemption   X  
    EIN not on the XBMF Section 4947(a)(1) filer X   X
    EIN on the BMF Sec 4947(a)(1) filer     X

    Note:

    If research shows the EIN indicated on the return is correct and not on the BMF, you will input a TC 000 instead of a TC 016.

  12. Foreign private foundations described in IRC 4948(b) are not required to apply for exemption, but are required to file Form 990-PF to pay a 4% tax on gross investment income derived from U.S. sources.

    Note:

    In the entity section of the 990-PF, these type of filers should check boxes C1 and 2 .

  13. If a Form 990-PF with the 60-month termination box checked is received from Code & Edit, see IRM 3.13.12.6.18.14 for EO Status 25 procedural instructions.

  14. Beginning January 2006, presumptive PFs will have a Form 990-PF FR of 3.

3.13.12.9.12  (01-01-2009)
Form 990-T

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

  2. See the instructions in IRM 3.13.12.9.11.4 whenever any of the following conditions exist:

    1. Form 990-T (1981 and subsequent) with Line G, Section 401(a) Trust box checked or Type of Organization edited on the Form 990-T is a 3.

    2. Form 990-T (1980 and prior) and Line 8 checked (Section 401(a) Trust) or Type of Organization edited on the Form 990-T is a 3.

    3. Form 990-T (1980 and prior) and Line 8 is not checked but the name contains the words "Pension," "Retirement," "Welfare," "Benefit," or "Profit Sharing Plan."

    4. If the "trust" box is checked and the name contains the words "Pension" , "Retirement" , "Welfare" , "Benefit" or "Profit Sharing Plan" , research the entity module using CCs BMFOL, ENMOD, or INOLE. If research shows the entity has an EO section, process the return as an exempt organization. If the entity does not have an EO section, process as a Section 401(a) trust.

  3. The organizations which file this return also file a Form 990 or Form 990-PF.

    Exception:

    Section 401(a) filers who also file a Form 5500 series return and Section 408 IRA trust filers.

  4. If a Group Exemption Number (GEN) is shown in item "F" on the return, always use the pilot voucher to create the EO/BMF entity or to add the EO section to the BMF entity.

  5. Verify the Type of Organization (TO) Code, Box 3, is correct. This action will help prevent unpostable conditions.

    1. The TO is determined from the box checked in Item B or G of the entity section.

    2. Research CC INOLES/T for the subsection code if more than one box is checked in Item B and/or G , or no box is checked in Item G .

    3. After research always edit on TO code as follows:

      Code Description
      1 501(c) trust box checked with a U.S. address and SS 90-92
      2 501(c) trust box checked with a foreign address and SS 90-92
      3 401(a), 408(a) 408(e), 220(d), 220(e), 530 (a) or other trust box is checked (no subsection)
      4 501(c) corporation box checked with a U.S. address and SS 02-27, 50, 60, or 70
      5 501(c) corporation box checked with a foreign address and SS 02-27, 50, 60, or 70

    4. If unable to determine the Type of Organization Code, i.e., CC INOLES indicates SS of 00, edit Code 4 on the Form 990-T.

  6. For tax year 2006 only, most ITG, GE, EP and EO entities may file a Form 990-T with a Form 8913 attached to claim a refund of the excise tax imposed on local and long-distance phone services by IRC section 4251. The Form 990-T may be filed for the telephone tax refund only, or a Form 990-T may be filed for other reasons as well as for the refund. For those organizations which normally do not file a Form 990-T, the return will be systematically force posted and no unpostables will generate. However, the Form 990-T will continue to unpost as UPC 301, UPC 303 and UPC 307.

  7. The Tax Technical Corrections Act of 2007, amended Section 6104(d)(1) to require Form 990–T and related schedules, filed by 501(c)(3) organizations, be made available for public inspection. This provision is effective for returns filed after August 17, 2006 the date of enactment of the Pension Protection Act of 2006.

  8. Entity will receive faxed Form 990-T from EOPC when a subsection discrepancy is identified between Master File and Form 990–T.

  9. When a Form 990-T is received from EOPC, take the following actions:

    If And Then
    Form 990-T, box B indicates a SS code 501(c)(3), but Master File shows a different SS code Status code is other than 06

    1. Complete all necessary research including EDS to determine correct SS code.

    2. If research indicates a different SS code than found on the Form 990-T, edit correct SS in box B.

    3. If research indicates the SS code is incorrect on Master File, make correction to Master File. Notify EOPC Master File was updated.

    4. Fax the completed Form 990-T to the EOPC unit 620–7869, within 5 days.
    Form 990-T, Box B indicates a SS code other than a 501(c)(3), but Master File indicates the SS code is a 501(c)(3) organization,  

    1. If research determines MF is correct, edit the correct SS in Box B, on Form 990-T.

    2. If research indicates MF is incorrect, update MF with the correct SS and indicate on Form 990-T, the SS was corrected on MF.

    3. Fax the completed Form 990-T to EOPC 620–7869 within 5 days of receipt.

3.13.12.9.12.1  (01-01-2009)
Form 990-T Church Filer

  1. When the name on the return indicates it is for a church, use Status Code 07 to add the EO Section to the BMF. f If the organization's name does not clearly indicate a church or you are in doubt whether the organization is a church, use Status Code 40.

3.13.12.9.12.2  (01-01-2009)
Form 990-T State-Operated University or College Filer

  1. If a State-operated university or college has unrelated business income, a Form 990-T should be filed. These organizations will not file for an exemption. Many of the Forms 990-T will be secured by Examination.

    1. The EO Status for this type of a filer is 06.

    2. If the return was not secured and the name does not indicate it is a State-operated university or college, use Status 40.

  2. Refer to the table below for 990-T filing requirements:

    Transaction Code Tax Class Doc Code MFT FRC
    150 3 93 34 1 - Form 990-T required to be filed.
    2 - Form 990-T for IRC Section 401(a) or 408 filers

  3. Form 990-T FRC 1 is compatible with the following forms:

    • Form 990 (unless Form 990 FRC = 03)

    • Form 990-PF

    • Form 1120-POL

    • Form 4720

  4. Form 990-T FRC 2 is compatible with the following forms:

    • Form 941

    • Form 945

  5. Use the following table to update IDRS for Form 990-T processing:

    Type of Form 990-T Assign EIN MFI 0 if an EIN is not found EOREQ TC016 ST 01 EOREQ TC016 ST 06 EOREQ TC016 ST 07 EOREQ TC016 ST 40 BNCHG TC016 990-T
    EIN not on the BMF no exemption X       X  
    EIN on the BMF no exemption         X  
    Subordinate not on the BMF X Pilot Voucher        
    Subordinate on the BMF   Pilot Voucher        
    NIA: Such as a hospital, school etc. not on the BMF X Pilot Voucher     If unable to determine GEN  
    NIA: Such as a hospital, school etc. on the BMF   Pilot Voucher     If unable to determine GEN  
    Church not on the BMF no exemption X     X    
    Church on the BMF no exemption       X    
    State University on the BMF no exemption     X      
    401(a) Trust or Sec 408 IRA not on the BMF X         X
    401(a) Trust or Sec 408 IRA on the BMF           X

    Note:

    If research shows the EIN indicated on the return is NOT on the BMF, you will input a TC 000 with applicable status instead of a TC 016.

3.13.12.9.12.3  (01-01-2009)
Erroneous Backup Withholding

  1. If a taxpayer files a Form 990-T to claim a refund of erroneous backup withholding:

    1. Use the pilot voucher to create an EO section and process the return if a GEN is given.

    2. Process the return as an exempt organization if research shows the entity has an exemption.

    3. Input a TC 016 with Form 990-T FR of 2 if the organization is not part of a group. If the EIN belongs to a corporation or has incompatible FRs, assign a new number.

      Note:

      Set up name with "for filing Form 990-T" on both the primary and sort name lines.

3.13.12.9.12.4  (01-01-2009)
Form 990-T (401(a) and 408 IRA Trust)

  1. The organizations who file Form 990-T (401(a) and 408 IRA Trust) are part of a pension plan trust and are not required to file for an exemption. 401(a) Trust filers are identified on the return when the 401(a) box in Block "G" is checked. A 408 IRA will check trust and may indicate on Line B, Sec. 408, or the name will have Individual Retirement Account (IRA). However, if the organization has not checked the 401(a) box in Block "G" but the words such as "Pension," "Retirement," "Profit Sharing," or "Welfare Plan" are part of the organization name, process as a 401(a) filer.

  2. Many of the organizations who file Form 990-T (401(a)) were assigned an EIN for the pension plan. Therefore, do not assign a new number for the trust until thorough research and organization correspondence, if necessary, is done. Remember: CC INOLE with Definer T will show the BMF and EPMF accounts for this EIN.

  3. A 408 Trust Individual Retirement Account (IRA) will normally not have received an EIN.

  4. Assign a Form 990-T FRC of 2 via CC ENREQ/CC BNCHG to a Form 990-T for an IRA. Identify Forms 990-T for an IRA as follows:

    • The name on the form has the words "IRA" or "Individual Retirement Account"

    • Lines B or G have the box "Section 408" checked.

    Note:

    When assigning EINs, see IRM 21.7.13.

  5. When a Form 990-T is unprocessable and the EIN is not on the BMF or the EIN does not appear to be the correct number for the organization, process as follows:

    1. If the number is not on the BMF and thorough research reveals the EIN was not assigned to another organization, input TC 000, Doc. Code 63 with a Form 990-T FRC of 2.

    2. On a 401(a) Trust: if the number belongs to the corporation (owner) of the pension plan, issue a new number via CC ESIGN MFI O. Use CC ENREQ or CC BNCHG with a TC 016, Doc. Code 63 and Form 990-T FRC of 2.

    3. If another EIN cannot be found or the number on the return appears to belong to another organization, issue a new number via CC ESIGN MFI O. Use CC ENREQ or CC BNCHG with Doc. Code 63, TC 016 and Form 990-T FRC of 2.

3.13.12.9.12.5  (01-01-2009)
Extension for Form 990-T

  1. Form 8868 is used to file an extension by the following types of Form 990-T filers:

    • Corporations

    • Sec. 401(a) or 408(a) trusts

    • Trusts other than the above

  2. A corporation filing a Form 990-T can receive an automatic 6 - month extension rather than the usual 3 - month extension of time to file.

3.13.12.9.13  (01-01-2009)
Form 56

  1. See IRM 3.13.2 for processing instructions.

3.13.12.9.14  (01-01-2009)
Forms 940, 941/944, and 945

  1. Use Circular E for resolving questions concerning Employer’s Tax for Forms 941/944, 940 and 945, employment returns for Exempt Organizations.

  2. For processing instructions, see IRM 3.13.2.

3.13.12.9.15  (01-01-2009)
Form 1120-H

  1. A homeowners' association which is not exempt under 501(c)(4) and is formed to make a profit will file a yearly Form 1120-H to take advantage of certain tax benefits. These benefits allow the association to exclude exempt function income from its gross income.

  2. If a homeowners' association is non-profit and has received an official exemption as a 501(c)(4), the organization will file a yearly Form 990.

  3. If the homeowners' association has not received its official exemption but claims to be a non-profit organization and files a Form 990, it should be set up on master file with an EO Status Code of 36 and Form 990 FR.

  4. A homeowners' association cannot switch back and forth from year to year, filing a Form 990 one year and a Form 1120-H the next year. They are either a non-profit which files a Form 990 or an association formed to make a profit and files a Form 1120-H. If a homeowners' association "switches" returns, process as follows:

    1. If the association has an official exemption, notify the organization they must file a Form 990. Force post the Form 1120-H and return the module to its original exemption.

    2. If the association does not have an official exemption, post the return. Correspond with the organization telling them they are either a profit or a non-profit organization and they can not switch back and forth from year to year. Since this situation will be hard to enforce because there is no official exemption, accept the return as filed.

3.13.12.9.16  (01-01-2009)
Form 1120-POL

  1. Form 1120-POL filing profile

    1. This return is filed by a political organization, which is, a party, committee, association, fund (including a separate segregated fund set up by IRC Section 501(c) tax exempt organizations), such as a political action committee.

    2. An IRC section 501(c) tax exempt organization generally will file a Form 990 if it files a Form 1120-POL.

    3. The Form 1120-POL is filed annually and is due on the 15th day of the 3rd month after the tax year ends.

    4. The exempt function of a political organization is generally the function of influencing or attempting to influence the selection, the nomination, election, or appointment of any individual to any Federal, state, local public office.

    5. Exempt function income is the total of all amounts received from contributions of money or other property, membership dues, fees, or assessments paid by a member of a political organization, proceeds from a political fund-raising or entertainment event, or proceeds from the sale of political campaign materials, which are not received in the ordinary course of a trade or business to the extent they are segregated for use in an exempt function of the political organization.

    6. Political organization taxable income is the income for the tax year (excluding exempt function income) after deductions directly connected with the earning of gross income. Taxable income is adjusted by a deduction of $100 (newsletter funds do not apply).

    7. A political organization, other than a newsletter fund, is not required to file Form 1120-POL if its taxable income is $100 or less before the specific deduction of $100. Newsletter funds cannot claim the specific deduction of $100.

  2. All Forms 1120-POL are not open to public inspection and will not be scanned.

  3. Refer to the table below for 1120 posting and filing requirements:

    Tax Class Doc Code MFT BO Date WP Date FY FRC
    3 10 02 Yes No Yes 03 - Life Insurance 1120L
    04 - Property & Casualty 1120PC
    09 - Political Organization 1120POL
    10 Home Owners Association 1120H

  4. Form 1120 filing requirements are incompatible with the following filing requirements:

    • 1041

    • 1065

    • 1066

    • All EO returns with few exceptions. See IRM 3.13.12.8.3.3(2) for exceptions.

  5. For processing instructions for other Form 1120 returns, see IRM 3.13.2.

3.13.12.9.17  (01-01-2009)
Form 1041-A

  1. This return is filed by Non-exempt Charitable Trust under IRC Section 4947(a)(2).

  2. This return does not require an EO section on the BMF. If an EO section is present, it must be in Status 12, with a Subsection Code of 90.

  3. This return is only filed as needed, and the FRC on the BMF is established by the posting of the return.

  4. This return never takes the place of the primary return, either the Form 1041 or Form 5227.

  5. This return is filed for the following reasons:

    • The taxpayer is a Form 5227 filer under 4947(a)(2), unless the income is distributed currently (income in and goes right back out).

    • The taxpayer is a Form 1041 regular trust and a charitable deduction is claimed on the Form 1041.

  6. A trust under 4947(a)(1) files a Form 990 or Form 990-PF and never files a Form 1041-A.

  7. To delete a 1041-A FR, input TC 591 cc 20 to the module of the last Form 1041-A filed. To recall a module form retention, if necessary, process as follows:

    1. If the module is on BMFOLV, input MFTRA specific with the EIN, MFT and tax period. This action will generate a transcript. Once the transcript is received, fill out a Form 5248 and attach it to the transcript. Send both to the Retention Clerk. After the Retention Clerk activates the module, input the TC 591 cc 20.

    2. If the module is on BMFOLI with an "R" indicator, input BMFOLB with the EIN, MFT and tax period. Wait a few days; then do a MFREQC to activate the module. Once the module is activated, input the TC 591 cc 20.

    3. If the module is not on BMFOLV or BMFOLI, order a transcript using ESTABMZ with the appropriate EIN, tax period and MFT 36. When the transcript is received, attach it to Form 5248, and route the Form 5248 to Accounting to recover the module from Retention. When a TC 370 has posted, input TC 591 cc 20.

  8. Refer to table below for 1041-A posting and filing requirements:

    Transaction Code Tax Class Doc Code MFT FRC
    150 4 81 36 Computer generated when the return posts.

  9. Refer to the table below for updating IDRS for Form 1041-A processing:

    Type of Form 1041-A Assign EIN with MFI "0" TC 000 without EO Section EO Section not required. If present must be status 12
    No EIN on return
    No EIN on EINAD     		X    
    EIN not on the BMF   X  
    EIN on the MF     X

  10. Form 1041-A is compatible with Forms 5227 and 1041.


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