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Part 3. Submission Processing

Chapter 20. Exempt Organizations Returns Processing

Section 12. Imaging and Perfecting Exempt Organization Returns for Public and Internal Viewing

3.20.12  Imaging and Perfecting Exempt Organization Returns for Public and Internal Viewing

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3.20.12.1  (02-19-2009)
Overview of Public Inspection Under IRC Section 6104

  1. Internal Revenue Code (IRC) IRC 6104(a)(1)(A) requires the Internal Revenue Service (IRS) to make available for public inspection:

    • The approved application for exemption of any organization or trust described in IRC 501(c) or IRC 501(d) determined by the IRS to be exempt from taxation under IRC 501(a) for any taxable year;

    • The approved notice of status of an organization under IRC 527(i);

    • Any documents filed in support of such application or notice; and

    • Any letter or other document issued by the IRS pertaining to the application or notice, if the application or notice was filed November 1, 1976, or thereafter.

    • In addition, the IRS must furnish, upon request, a statement indicating the subsection and paragraph of IRC 501 which describes the exempt organization or trust.

    • However, the disclosure of certain information relating to trade secrets, patents, processes, style of work or apparatus of an organization, or national defense information may be restricted. Refer to IRM 11.3.9, for a description of the documents available for disclosure and further explanation of disclosure limitations.

    • Public Law 106-230 requires IRS to make Forms 8871, Political Organization Notice of Section 527 Status, and Forms 8872, Political Organization Report of Contributions and Expenditures, (forms created as a result of the Law) available for public inspection.

  2. IRC 6104(a)(2) requires the IRS (pursuant to regulations) to disclose to congressional committees, described in IRC 6103(f), the approved application for tax exemption of any organization or trust described in IRC 501(c) or IRC 501(d), the notice of status of any political organization exempt from taxation under IRC 527, and any other papers which may have been gathered, received or developed by the IRS concerning such application. To the extent the requested information is not otherwise available for public inspection under IRC 6104, the requirements of IRC 6103(f) must be complied with prior to the release of information to a congressional committee. (See IRM 11.3.4, Congressional Inquiries.)

  3. IRC 6104(b) requires the IRS to make available for public inspection information required to be furnished by IRC 6033 and IRC 6034. Any annual return filed under section 6011 by a section 501(c)(3) organization after August 17, 2006, and which related to tax imposed on unrelated business income, shall also be required to be made available for public inspection. Certain contributor and coding information may, however, be withheld. (See IRM 11.3.9 for a description of documents commonly requested and further explanation of the disclosure limitations.)

  4. IRC 6104(c) requires the IRS to notify certain State officers regarding any adverse determinations specified in that section of the Code concerning organizations described in IRC 501(c)(3). It also requires the IRS to make other information available to these same officials, upon request, to the extent that it was used in arriving at the IRS’s determination and is related to a determination under State law. IRC 6104(c) disclosures are generally processed by designated TE/GE exempt organizations employees. Refer to IRM 11.3.33, Other Disclosures to State and Local Governments, and IRM 7.28.2, EO Disclosure Procedures, Disclosure of Information About Exempt Organizations to Appropriate State Officials as Described in IRC 6104(c).

  5. IRC 6104(d) requires that certain annual returns, reports, applications for exemption, and notices of status by a section 501(c)(3) organization be available for public inspection. Generally, the exempt organization is responsible for making these documents available for public inspection at its principal office and local or field offices having three (3) or more employees during regular business hours. Documents available for inspection include:

    • Form 990, Return of Organization Exempt from Income Tax

    • Form 990-EZ, Short Form Return of Organization Exempt From Income Tax (filed after December 31, 1996)

    • Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation

    • Form 990-T, Exempt Organizations Business Income Tax Return (section 501(c)(3) organizations filed after August 17, 2006)

    • Form 5227, Split Interest Trust (with the exception of Schedule A).

    • Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

    • Form 1024, Application for Recognition of Exemption Under Section 501(a) for Determination Under Section 120 of the Internal Revenue Code

    • Any document filed in support of such application

    • Any letter or other document issued by the IRS pertaining to such application

    • Application filed before July 15, 1987, only if it had a copy of the application on July 15, 1987

    • Form 8871, Political Organization Notice of Section 527 Status

    • Form 8872, Political Organization Report of Contributions and Expenditures, relating to political organizations.

    Note:

    Under Public Law 104-168, if a request for a document required to be provided is made in person, the organization must make an immediate response. If the response is to a written request, the organization must provide the requested copies within 30 days.

  6. Organizations are only required to make annual returns publicly available under IRC 6104 that were filed during the 3 year period beginning on the last day for filing the return.

  7. A penalty may be imposed pursuant to section 6652 on any person who does not make the annual returns (including all required attachments to each return) or the exemption application available for public inspection in accordance with IRC 6104(d). If more than one person fails to comply, each person is jointly liable for the full amount of the penalty. The penalty amount is $20 for each day during which a failure occurs. The maximum penalty that may be imposed on all persons for any one annual return is $10,000. There is no maximum penalty amount assessed against the individual person responsible for failure to make the exemption application available for public inspection. The penalty is assessed on the SSN of the individual as a Civil Penalty 600 or 601 and is processed NMF.

  8. Disclosure of contributors to exempt organizations and political organizations varies. In the case of an organization which is not an IRC 509(a) private foundation or an IRC 527 political organization, the disclosure of the above documents, or other IRC 6104(d) documents, does not include disclosure of the name or address of any contributor to the organization, disclosure of copies referred to in IRC 6031(b), or any information the Secretary withheld under IRC 6104(a)(1)(D).IRC 6104(a)(1)(D) authorizes the withholding of trade secrets, patent protected material, process, style of work or apparatus if it is determined that public disclosure would adversely affect the organization and information that is determined to adversely affect the National defense. Disclosure managers should work with TE/GE personnel to determine what information may be disclosed and what must be withheld. Some documents may require editing.

  9. Public Laws 106-230 and 107-276 made a number of changes to the filing requirements for IRC 527 Political Organizations. Due to these changes:

    • Political organizations must file Form 1120-POL if the organization has a taxable income over $100.

    • A political organization whose annual gross receipts are normally more than $25,000 must file a Form 990 or Form 990-EZ unless the organization is a "Qualified State or Local Political Organization" (QSLPO), as defined by IRC 527(e)(1). If a QSLPO, the Form 990 or Form 990-EZ is required if the annual gross receipts are normally more than $100,000.

    • A political organization may be required to file 8871 Form 8871 or Form 8872.

    Note:

    IRM 21.3.8.14, Section 527 Organizations, provides additional information on IRC 527 filing requirements.

  10. Political organizations may be required to file Form 8871 (electronically) and Form 8872 (paper or electronically). If Form 8871, including any supporting papers, and Form 8872, including Schedules A and B, are required to be filed, the IRS will make the forms available for public inspection. Schedule A requires the name, employer, occupation, amount of each contributor and an aggregate year-to-date amount for each contributor. Schedule B requires similar information for each recipient of the organization’s funds. Political organizations may choose to report amounts without providing all required information (or provide incorrect information) and pay the amount specified in IRC 527(j) (currently a 35% penalty on these amounts). The forms and instructions provide additional information. Organizations that have, or expect to have, either contributions or expenditures exceeding $50,000 must file required reports in electronic form. IRS is required to make available to the public on the internet a searchable database of all political organizations which file a Form 8871 or a Form 8872 with the IRS no later than 48 hours after receipt of such notice or report, whether received electronically or in paper format (see (10) below for additional details). The organization must also make these forms available at its principal office and at each of its local and field offices having more than three paid employees. Technical questions relating to Form 8871 and Form 8872 can be referred to the TE/GE Customer Accounts Services (CAS) telephone operation toll free number 1-877-829-5500. Additional information on these forms and requirements may be obtained in IRM 21.7.7.4.6, Form 8871, Political Organization Notice of Section 527 Status, and IRM 21.7.7.4.7,Form 8872, Political Organization Report of Contributions and Expenditures.

  11. Public Law 107-276 requires that information from the notices (Form 8871) and the reports (Form 8872) be made available to the public on the internet in a database that is searchable by the following items:

    • Names, states, zip codes, custodians of records, directors, and general purposes of the organization;

    • Entities related to the organizations;

    • Contributors to the organizations;

    • Employers of such contributors;

    • Recipients of expenditures by the organizations;

    • Ranges of contributions and expenditures; and

    • Time periods of the notices and reports.

      Note:

      The database is required to be downloaded. The website http://www.irs.gov/polorgs was created for this purpose.

  12. The intent of Congress in allowing for the public inspection of information governed by IRC 6104(a),IRC 6104(b), and IRC 6104(d), was to enable the public to scrutinize the activities of tax exempt organizations and trusts. Congress intended that these organizations and trusts be subject to a certain degree of public accountability in view of their privileged tax status and because the public has a right to know for what purposes their contributions are being or will be used.

  13. To the extent IRC 6104(a)(1)(A) and IRC 6104(b) specifically provide for the disclosure of exempt organization information by the IRS, other disclosure provisions (e.g., IRC 6103,IRC 6110, the Freedom of Information Act (FOIA), and the Privacy Act) do not apply.

  14. However, information concerning exempt organizations and trusts (or organizations and trusts which have applied for tax exempt status) whose disclosure is not specifically addressed by IRC 6104(a)(1)(A) or IRC 6104(b) may be disclosed pursuant to IRC 6103,IRC 6110, or the FOIA.

  15. If a member of the public requests information which is governed by IRC 6103, refer to IRM 11.3.2, Disclosure to Persons with a Material Interest, or IRM 11.3.3, Disclosure to Designees and Practitioners.

  16. If a member of the public requests information (other than information governed by IRC 6104) pursuant to the provisions of IRC 6110 or FOIA, refer to IRM 11.3.8, Disclosure of Written Determinations, and IRM 11.3.13, Freedom of Information Act.

  17. IRS has an internet website for displaying forms submitted by Political Organizations. These can be viewed at www.irs.gov/polorgs.

  18. IRS is responsible for providing the most complete and accurate copy of the forms to the customers.

3.20.12.1.1  (02-19-2009)
Public Inspection of Annual Returns and Applications for Tax Exempt Status

  1. IRC 6104(d) requires exempt organizations to make available for public inspection a copy of their annual information returns on Form 990 or Form 990-EZ for years beginning after December 31, 1986 and on Form 990-T for years beginning after August 17, 2006.

    Note:

    Form 1120-POL can not be disclosed.

  2. The returns must be made available for a three-year period beginning with the due date for the return (including any extension of time for filing).

  3. IRC 6104(d) also requires exempt organizations to make available for public inspection a copy of their application for recognition of Federal tax exemption on Form 1023 or Form 1024.

  4. IRC 6104(d) also requires the organization to make available for public inspection a copy of any papers submitted in support of such application and any letter or other document issued by the IRS with respect to such application.

  5. If an organization filed its application before July 15, 1987, it is required to make available a copy of its application only if it had a copy of the application on July 15, 1987.

  6. IRC 6104(d) requires tax-exempt organizations to provide copies of their returns and applications to persons who request them.

3.20.12.1.2  (02-19-2009)
General Guidelines

  1. Any instructions written at the campus (i.e., desk procedures) to clarify the IRM 3.20.12, Imaging Exempt Organization Returns can only be implemented once the instructions are approved by the TE/GE Submission Processing Programs Staff. Form 2061, Document Clearance Record must be signed and on file. If procedures are implemented prior to approval of TE/GE Submission Processing Programs Staff, the resources will be transferred back to TE/GE. TE/GE will not fund procedures that are not approved by the business owner.

  2. This IRM provides the necessary instructions, guidelines, and procedures for imaging the Exempt Organization (EO) returns, both the returns open for public inspection and not open for public inspection. Additional IRMs may be referenced in conjunction with this IRM which includes, but not limited to the following:

    • IRM 11.3, Disclosure of Official Information

    • IRM 3.5.20, Processing Requests for Tax Return/Return Information.

  3. All notices and/or letters used during processing of TE/GE submissions must be approved by the TE/GE Submission Processing Programs Staff. The Form 2061, Document Clearance Record must be signed and on file. No local letters will be approved or implemented.

  4. W&I is funded by TEGE based on receipts processed. Refer to table below as to how a count is taken. Only one count per receipt and no count is taken as a receipt produced unless the functions are completed as indicated in the table below.

    Type of Receipt Point of Count Explanation
    Paper Return Released from the SEIN System One count per return is taken after the following functions are completed:

    • Doc Prep

    • Scanning

    • Quality Control

    • Validation

    • Verification

    • Restricting - If required

    • Quality Review
    E-filed Return Released from the SEIN System One count per return is taken after the following processes are completed:

    • Scanning

    • Quality Control

    • Validation

    • Verification

    • Restricting - If required

    • Quality Review
    Refilms Released from the SEIN System One count per return is taken after the following processes are completed:

    • Scanning

    • Quality Control

    • Validation

    • Verification

    • Restricting - If required

    • Quality Review

  5. The following OFP and program codes must be used when processing the following forms.

    OFP Activity Program & Program Title
    360 Scanning, Re-scanning, Validation, Verification, Reassociation, Release, Restricting, Quality Review, 13110 - Form 990 Non-Remit
    13112 - Form 990 with 527 checked
    13114 - Form 990 E-filed Return
    13117 - Form 990 With Remit
    13119 - Form 990 Refilm
    13120 - Form 990-EZ Non-Remit
    13124 - Form 990–EZ E-filed Return
    13129 - Form 990 EZ Refilm
    13131 - Form 990 PF Non-remit
    13134 - Form 990-PF E-filed Return
    13135 - Form 990 PF Refund
    13138 - Form 990 PF With Remit
    13139 - Form 990 PF Refilm
    13140 - Form 990T Non-Remit
    13146 - Form 990T Refund
    13144 - Form 990-T E-filed Return
    13148 - Form 990T With-Remit
    13161 - Form 4720 Non-Remit
    13167 - Form 4720 With-Remit
    13190 - Form 5227 Non-Remit
    13197 - Form 5227 With-Remit
    13199 - Form 5227 Refilm
    13410 - Redesigned Form 990 Non-Remit
    13412 - Redesigned Form 990 with 527 checked
    13414 - Redesigned Form 990 E-filed Return
    13417 - Redesigned Form 990 With Remit
    13419 - Redesigned Form 990 Refilm
    13420- Redesigned Form 990EZ Non-Remit
    13424- Redesigned Form 990EZ E-filed Return
    13429 - Redesigned Form 990-EZ Refilms
    16010 - Form 8871/8872
    16011 - Form 8871/8872
    16012 - Form 8871/8872
    16019 - Form 8871/8872 Reflims
    550 Clerical support for the EO Imaging Function 13100 - Clerical Support
    13105 - From 2363A
    59600 - BBTS, releasing & establishing batches on BBTS
    720 Document Preparation - Preparing the document for scanning. See IRM 3.20.12.3.10. 13100 - Doc Prep All EO Returns/Documents
    880 Reviews conducted on the EO images created by Ogden Imaging Unit. The reviews charged to this time must be requested by TEGE 13100 - Imaging Reviews Requested by TEGE

  6. Foreign and U.S. possession organizations must report amounts in U.S. dollars and state what conversion rate the organization uses. If a return is received and the amounts are not provided in U.S. dollars ( numbers 0–9, or any combination of those numbers, the return is to be treated as an unprocessable return.

3.20.12.1.3  (02-19-2009)
Quality Review of Scanned Returns on CD/DVDs.

  1. Once a month, a statistical sample of scanned images will be reviewed. The sample will be no less than 40 filings a month.

  2. The review will be conducted within the Imaging operation.

  3. Hours used to conduct the review will be reported under 880-13100

  4. The review will consist of:

    • verifying that all index information was entered correctly See IRM 3.20.12.3.21.

    • verifying that all information that can not be disclosed was removed (redacted/restricted).

    • verifying that the scanned copy is good quality. See IRM 3.20.12.3.10.6.

    • verifying that all 3.20.12 IRM procedures were followed.

      Note:

      Other elements may be added to the review as agreed upon between W&I management and TE/GE Submission Processing Program Analyst (SPP).

  5. If errors are found, print the document (or pages if appropriate) and note the error condition.

    1. Prepare a report noting the type and date of error and sample size that was reviewed.

    2. After the monthly review is completed, route one copy of the error report with the document(s) and error condition to SE:T:BSP:SPP, Mail Stop 1110, Fax to (801) 620-5088, or e-mail to the TE/GE Submission Processing Programs Analyst with oversight of the project.

      Note:

      A shared folder has been established to save the monthly review.

    3. Copies of the error report are to be distributed after completion of the monthly review and no later than the 10th of each month.

    4. Route another copy of the error report with the document(s) and error condition to the Department Manager Imaging Unit, Mail Stop 6058.

3.20.12.2  (02-19-2009)
Disclosure to the Public

  1. Under authority of IRC 6104(b), information included on certain annual information returns of organizations and trusts which are exempt or seeking exempt status, or information required to be filed is required to be made available for public inspection.

  2. This disclosure authority pertains to any information required to be filed by these organizations or trust in accordance with IRC 6033 and IRC 6034.

  3. All activities connected with the public inspection of EO documents issued by Headquarters will be the responsibility of the Director, Office of Governmental Liaison and Disclosure.

  4. Generally speaking, information provided on the , Forms 990 and 990-EZ can be disclosed except for names and addresses of contributors and identifying contribution amounts or other data identified not available to the public. ; Everything included on tax-exempt Political Organization returns (Forms 990 with Section 527 box checked, Forms 8871, 8872, and 8453-X) can be disclosed.

  5. The entire Schedule B must be restricted.

  6. Contribution amounts listed on other schedules by the filer can be disclosed unless such amount could identify a contributor. If contributor can be identified the information must be redacted.

  7. Forms 1120-POL are NOT OPEN for public inspection as a result of legislation enacted in November 2002.

  8. Form 5768, Election/Revocation of Election by an Eligible Sec. 501(c)(3) Organization to Make Expenditures to influence legislation is used by eligible organizations who either elect to use or revoke their election to use the provisions of section of 501(h) of the Code relating to expenditures by public charities to influence legislation. The Form 5768 is not open for public inspection. The form is to be imaged if received with the Form 990 filing, but must be restricted.

  9. If there is a question as to whether information can or can not be disclosed contact the local Disclosure Office.

3.20.12.2.1  (02-19-2009)
Commonly Requested Documents

  1. Refer to IRM 11.3.9 for guidelines on what may be disclosed.

  2. The following is a list of commonly requested documents which are open for public inspection, but must follow the IRM procedures to ensure specific data is redacted/restricted prior to providing the filing to the public.

    • Form 990, Return of Organization Exempt from Income Tax, Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, and attachments required to be filed with the Service. For organizations (other than a Section 527 with periods beginning after 6/30/2000).

    • Schedule A, Organization Exempt Under 501(c)(3).

    • Schedule B, Schedule of Contributors , is to be completely restricted unless it is attached to a 990-PF.

    • Form 990-PF, Return of Private Foundation.

    • Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of IRC, and supporting documents. Denied applications are available, in redacted form, pursuant to section 6110.

    • Form 1024, Application for Recognition of Exemption Under Section 501(a) and supporting documents. Denied applications are available, in redacted form, pursuant to section 6110.

    • Form 1041-A, U.S. Information Return-Trust Accumulation of Charitable Amounts.

    • Form 1065 if filed by an organization described in IRC Section 501(d) (EO submodule-Subsection 40).

      Note:

      If Schedule K-1 is attached to a Form 1065, redact everything except the title of the schedule.

    • Form 4720, Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of IRC, if filed by a private foundation. Form 4720 filed by individuals are not subject to disclosure provisions of IRC 6104.

    • Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax.

    • Form 8871, Political Organization Notice of Section 527 Status.

    • Form 8872, Political Organization Report of Contributions and Expenditures.

    • Form 8453-X, Declaration of Electronic Filing of Notice of Section 527 Status.

    Note:

    The Form 5227 is available for public inspection, but the Form 5227 is not part of the images available to the public via CD/DVDs. No redaction or restriction is required of EO Imaging when processing the Form 5227.

3.20.12.2.2  (02-19-2009)
Forms and Attachments Open for Public Inspection

  1. Forms and Attachments required to be filed or voluntarily filed with certain EO returns (Forms 990, 990-EZ, and 990-PF) are disclosed unless listed in Section 12.2.3 or specified individual sections of the IRM 3.20.12.

  2. When the following items are voluntarily submitted with the return, they must be disclosed:

    • Wills, minutes of meetings, Articles of Incorporation etc.

    • Worksheets, and accountant/audit reports

    • Forms 8109 (FTD coupons)

    • Forms W-2

    • Forms 1099

    • Forms 1096

    • Forms 4562

    • extension of time to file, example Form 8868

    • Schedules from a Form 1040 i.e. Schedule D

  3. Often organizations will submit information and mark the page "NOT TO BE DISCLOSED." Unless the information is listed in Section 12.2.3, the information is "Open for Public Inspection" .

  4. Form 990 was revised for processing year 2008. The revised Form 990 consists of 11 pages and numerous schedules have been added. Each schedule indicates whether or not it is open for public inspection. The schedules that are open to public inspection are clearly identified in the upper right hand corner by the following statement, "Open to Public Inspection" . All other schedules are to be restricted, including but not limited to Schedule B.

  5. Form 990-T, Exempt Organization Business Income Tax Return, section 501(c)(3) organizations filed after August 17, 2006.

3.20.12.2.3  (02-12-2009)
Forms and Attachments Not Open For Public Inspection

  1. The following documents, forms, schedules and/or their related attachments may be attached to the return as supporting documentation and are NOT OPEN to Public Inspection. DO NOT disclose the following forms/items to the public.

    Form/Document Title Additional Information
    843 Claim For Refund and Request for Abatement. Taxpayers use Form 843 to claim a refund (or abatement) of certain overpaid (or over-assessed) taxes, interest, penalties, and additions to tax. Image and Restrict
    926 Return by a US Transferor of Property to a Foreign Corporation Image and Restrict
    990-BL Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons Image and Restrict
    1120-C
    (formally 990-C)     		Farmers' Cooperative Association Income Tax Return Image and Restrict
    990-T Exempt Organization Business Income Tax Return (non 501(c)(3) organizations) and all Form 990-T returns filed prior to August 17, 2006 Image and Restrict unless filed after August 17, 2006 and it is a 501(c)(3) filing. Then file procedures for redacting/restricting a Form 990-T
    1023 Application for Recognition of Exemption under Section 501(c)(3), unless the account has received an approved status. Do not disclose unless the application is clearly marked "approved"

    Note:

    If applications contains original signature, pull and route to appropriate area. Do not image. See IRM 3.20.12.3.10.1.

    		Image and Restrict
    1024 Application for Recognition of Exemption under Section 501(a), unless the account has received an approved status. Do not disclose unless the application is clearly marked "approved"

    Note:

    If applications contains original signature, pull and route to appropriate area. Do not image. See IRM 3.20.12.3.10.1.

    		Image and Restrict
    1028 Application for Recognition of Exemption under Section 521, unless the account has received an approved status.

    Note:

    If applications contains original signature, pull and route to appropriate area. Do not image. See IRM 3.20.12.3.10.1.

    		Image and Restrict
    1040 Individual Income Tax Return Image and Restrict
    1120 U.S. Corporation Income Tax Return Image and Restrict
    1120-POL U.S. Income Tax Return for Certain Political Organizations Image and Restrict
    1120-C
    (formally 990-C)     		Farmers' Cooperative Association Income Tax Return Image and Restrict
    2220 Underpayment of Estimated Tax by Corporations Image and Restrict
    4720 Return of Certain Excise Taxes on Charities and Other Persons Under Chapters 41 and 42 of the IRC, Image and Restrict unless the 527 box is checked or filed with a PF, then do not redact/restrict.
    5227 Split Interest Trust Image and Restrict
    5471 Information Return of U.S. Persons with Respect to Certain Foreign Corporations Image and Restrict
    5568 This form has been reinstated because Examination still uses this form. This form is used to transmit the Automated Information Management System (AIMS) labels for multiple appeals. Labels are placed on this form and the analyst can make changes directly on this form. Image and Restrict
    5578 Organizations that operate tax-exempt private schools use Form 5578 to provide IRS with the required annual certification of racial nondiscrimination. Image and Restrict
    5768 Election/Revocation of Election by an Eligible Sec. 501(c)(3) Organization to Make Expenditures to influence legislation Image and Restrict
    6069 Return of Excise Tax on Excess Contribution to Black lung Benefit Trust (under Section 4953) Image and Restrict
    7004 Form 7004 is used to request an automatic 6-month extension of time to file the returns shown on the form. Image and Restrict
    8038, 8038-G, 8038-GCM 8038-T Tax Exempt Bond Returns Image and Restrict
    8271 Investor Reporting of Tax Shelter Registration Number Image and Restrict
    8279 A corporation files Form 8279 to elect to be treated as a foreign sales corporation (FSC) or small foreign sales corporation (small FSC). Once the election is made, it is effective until terminated or revoked. It applies to each shareholder who owns stock in the corporation while the election is in effect. Image and Restrict
    8282 Donee Information Return, Image and Restrict unless the 527 box is checked then do not redact/restrict.
    8283 Noncash Charitable Contributions, unless the 527 box is checked. Image and Restrict unless the 527 box is checked then do not redact/restrict.
    8328 Tax Exempt Bond Return Image and Restrict
    8621 Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund Image and Restrict
    8865 Return of US Person with Respect to Certain Foreign Partnerships Image and Restrict
    8870 Information Return for Transfers Associated With Certain Personal Benefit Contracts Image and Restrict
    8879 Taxpayers use Form 8879 when their return is e-filed using the practitioner PIN method or when the taxpayer authorizes the electronic return originator to enter the taxpayer's PIN on his or her e-filed return Not imaged - staple and attach to the envelope prior to imaging the return
    8886 Reportable Transaction Disclosure Statements

    Note:

    Public Law 109-222 amended IRC 6033 requires that exempt organizations report certain information about their participation in reportable transactions. This information will be disclosed to the public pursuant to IRC 6104(b).

    		Image and Restrict
    8913 Credit for Federal Telephone Excise Tax Paid Image and Restrict
    Schedule B - Form 990-990-EZ Schedule B (Form 990, 990-EZ,) is used to provide information on contributions the organization Image and Restrict
    Schedule K-1 Often this Schedule is filed with Form 1065. The Form 1065 can be disclosed. Image and Restrict so only the title of the schedule is disclosed.
    State Returns Filers State Returns Do Not image - staple and attach to the envelope prior to imaging the return
    IRS Prepared Returns   Do Not Image
    Substitutes for Returns (SFR)   Do Not Image
    Reprocessble Returns   Do Not Image
    Secured Delinquent Returns   Imaged and all marks indicating the return was secured must be redacted.
    Dummy Returns   Not imaged
    Request for Copy Attachment Document received with E-filed returns. Restrict
    IRS CP Notices   Imaged but restricted/redacted
    Correspondence (IRS letters to and from the taxpayer)   Imaged but restricted/redacted
    Certified Mail Receipts   Not imaged - staple and attach to the envelope prior to imaging the return
    Cover sheets, such as a fax cover sheets and address cover sheets   Not imaged - staple and attach to the envelope prior to imaging the return
    Internally prepared documents   Not imaged - staple and attach to the envelope prior to imaging the return
    Form Instructions   Not imaged - staple and attach to the envelope prior to imaging the return
    IRS Edit Sheets   Not imaged - staple and attach to the envelope prior to imaging the return
    IRS routing slips   Not imaged - staple and attach to the envelope prior to imaging the return
    Post it notes   Not imaged - staple and attach to the envelope prior to imaging the return
    Letter asking for acknowledgment of receipt   Not imaged - staple and attach to the envelope prior to imaging the return
    "Sign Here" stickers   Not imaged - staple and attach to the envelope prior to imaging the return
    Correspondence (IRS letters to and from the taxpayer)   Imaged but restricted/redacted unless specific procedures are provided for specific letters/notices

  2. DO NOT disclose the following Information.

    Form Information Additional Information
    990 or 990-EZ Contributor/Donors names and addresses - Contributors may be individuals, fiduciaries, partnerships, corporations, associations, trusts, government agencies, or Exempt Organizations. A contributor is a person who gave money, securities, or any other type of property to the organization, either directly or indirectly. These are persons who have contributed gifts to the organization. During the scanning operation, Schedule B, contribution amounts and/or related information are restricted/redacted. However, contribution amounts will be provided by EO Photocopy when specifically requested, unless such amounts could reasonably be expected to identify a contributor.

  3. The following IRS codes and marks are NOT open for public inspection.

    FORM INFORMATION IMAGE / REDACT / RESTRICT
    990, 990-EZ, 990-PF, 990-T Any indication the return is under investigation Redacted
    Any indication of a delinquency status, i.e. the word "delinquent " stamped or written on the face of the return Redacted
    IRS Coding indicating a payment was received with the return Redacted
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Redacted

  4. Schedule or other information (including, but not limited to, Social Security Numbers, bank accounts, savings, checking, or credit union information) will be imaged but will not be restricted/redacted unless the schedule or information is listed in the tables above; IRM 3.20.12.2.3 or specified in other section within IRM 3.20.12.

  5. Questions about restricting particular schedules that are unusual or uncommon should be addressed to your local technical specialist or point of contact on the Program & Analyst Staff.

  6. In general, the names and addresses of contributors to an organization other than a private foundation shall not be available for public inspection.

    • Names and addresses of contributors to private foundation are open to public inspection.

    • For political organizations, names, addresses, and additional information provided on Form 8871 and Form 8872 are open to public inspection.

  7. TEGE has established the policy not to include Form 990 Schedule B, which lists contributors and the amounts of contributions, with the images of the Form 990 series. The Schedule B is to be restricted.

  8. The names, addresses, and amounts of contributions are bequest of persons who are not U.S. citizens to a foreign private foundation which received at least 85 percent of its support, other than gross investment income, from sources outside the U.S., shall not be made available for public inspection. For additional information refer to IRC 4948(b).

  9. E-filed documentation that was received by the filer and attached to his paper filings. Examples of documentation that may be attached are: E-filed rejection slips and EF Transmission Status notification.

  10. When documents are voluntarily submitted as supporting documentation and not specifically required by a code section other than section 6033, or listed in the tables above, the supporting documentation will be disclosed

3.20.12.2.4  (02-19-2009)
Information Subject to Deletion

  1. Contributor names and addresses and some contribution amounts must be redacted from certain returns before the returns are open to public inspection.

  2. In general, the names and addresses of contributors to an organization other than a private foundation shall not be available for public inspection.

    1. Except as provided in (4) below, names and addresses of contributors to private foundations are open to public inspection.

    2. For political organizations, names, addresses, and additional information provided on Form 8871 and Form 8872 are open to public inspections (see IRM 11.3.9).

  3. The amounts of contributions and bequests to an organization will be available for public inspection unless the disclosure can reasonably be expected to identify any contributor.

    Note:

    To reduce the risk of inadvertently identifying contributors, Exempt Organizations (EO) of TE/GE has established the policy to not disclose Schedule B, which lists contributors and the amounts of contributions.

  4. Except as provided in (5) below, amounts of contributions to a private foundation shall be available for public inspection. Grant or grantor information listed on a return is not considered to be information regarding contributions and is open to public inspection.

  5. The names, addresses, and amounts of contributions or bequests of persons who are not U.S. citizens to a foreign private foundation which from the date of its creation has received at least 85 percent of its support (other than gross investment income) from sources outside the U.S. (see IRC 4948(b)), shall not be made available for public inspection.

  6. DO NOT disclose the following Information.

    FORM INFORMATION
    990 or 990-EZ Contributor Names and Addresses

    Note:

    During the scanning operation, Schedule B, contribution amounts and/or related information are redacted. However, contribution amounts will be provided by EO Photocopy when specifically requested, unless such amounts could reasonably be expected to identify a contributor.

     
     
     

3.20.12.2.5  (02-19-2009)
Information That May Be Disclosed

  1. The statutory requirements of IRC 6104(a) regarding the withholding of certain information from documents available under that section do not apply to information which must be disclosed under IRC 6104(b). The reverse situation would also be true.

    Example:

    Trade secret information that the IRS has determined should be withheld from an organization's application does not have to be withheld from public inspection if included with its annual information return. Conversely, if an organization includes with its application a list of its major contributors and the organization is determined to be tax exempt, the IRS would not be obligated to remove this information before making the application available for public inspection.

  2. If an organization or trust files its return or other documents in accordance with IRC 6033 or IRC 6034 and specifically requests that certain data included therein not be opened for public inspection, the IRS cannot comply with this demand in view of the disclosure requirements of IRC 6104(b). Therefore, any information submitted by the organization or trust that is required to be filed pursuant to IRC 6033 or IRC 6034 must be disclosed subject to the exceptions described in IRM 11.3.9.

3.20.12.2.6  (02-19-2009)
IRS Codes and Marks that can be Disclosed

  1. Most IRS codes and marks can be disclosed. Exceptions are found below in 3.20.12.2.5.

  2. IRS Received Date can be disclosed.

  3. Document Locator Number (DLN) can be disclosed.

  4. Red, brown, orange or blue edit perfections can be disclosed.

  5. Transcription edit marks such as 'arrows' can be disclosed.

  6. The words Original, Final and Amended can be disclosed.

  7. Marks and stamps used by the scanning operators can be disclosed.

3.20.12.2.7  (02-19-2009)
Coded Edit Marks and Data Elements Not Open for Public Inspection

  1. A document which is required to be made available for inspection under IRC 6104(a) or IRC 6104(b) must be redacted of any coding information that was added to its face during processing.

  2. Coding information added to the face of a document which does not indicate specific facts with regard to the organization's or trusts liability or possible liability for any tax, interest or penalty (i.g., the date received or Document Locator Number (DLN) may be left on the document. If there is any doubt in this regard, the IRS employee should contact his/her Disclosure Manager before making the document available for public inspection.

  3. Some codes and marks used by the IRS and/or are required by IRC 6033 and IRC 6034 must be redacted before making the document available for public inspection.

  4. Do not disclose IRS marks that indicate a delinquency status, i.e. the word delinquent stamped or written on the face of the return.

    Note:

    A received date " is not " an indication of delinquency status, nor is the word(s) "statute" or "statute cleared"

    .

  5. Do not disclose IRS marks that indicate the return is under investigation, i.e. an audit stamp or the return was "secured " by field personnel. Additionally, do not disclose the "Y" edit mark added to the return during Document Preparation. See IRM 3.20.12.3.10.6.

  6. Do not disclose IRS marks that indicate a payment was received with the return, i.e. a stamp Received with Remittance, an amount written in green or purple, or a green or purple rocker.

  7. Do not disclose condition codes "D" , "R" , "V" , or "X" entered by IRS personnel.

3.20.12.3  (02-19-2009)
Creating Images — Scanning Operation

  1. This section provides instructions for making images of certain EO returns. These returns are:

    • Forms 990-PF

    • Forms 990/990-EZ

    • Forms 990/990-EZ with Section 527 box checked

    • Forms 8871

    • Forms 8872

    • Form 990–T

    • Form 4720

    • Form 5227

  2. The SOI EO Imaging Network (SEIN), a document imaging system that is used to scan and create images of specific EO returns. This is often referred to as the "front end processing" . Once a month, the returns (scanned images) that are available to the public for inspection are written to CD\//DVDs ("the back end processing" ) and distributed to various requestors nationwide. The images have specific information redacted, restricted or sanitized.

  3. All returns/attachments that are imaged through SEIN, are available to internal customers via OL-SEIN. The images on OL-SEIN are not redacted, the images contain complete return information as filed.

3.20.12.3.1  (02-19-2009)
Overview of SEIN

  1. The Imaging System is a mini system, using Windows XP, set up for user/operators to perform various processing steps through a series of templates and dialog boxes.

  2. The software program used for Scanning, Quality Control, Forms Processing, Validation, Verification, and Release (export of images and indexes to long-term storage) is called Ascent Capture.

  3. The Restricting and Quality Review steps use a different, specially programmed software other than Ascent Capture.

  4. The user/operator works with the paper returns, for Document Preparation, Scanning, Re-Scanning, Quality Control and Quality Review. The remainder of the work steps are worked using the image only.

3.20.12.3.2  (02-19-2009)
Glossary of Terms

  1. The following table reflects a list of terms commonly used in the Imaging operation.

    Figure 3.20.12-1
    Term Description
    Alchemy The name of the software program resident on CD/DVDs containing scanned images.
    Batch A collection of folders.
    Batch Manager Module is used to control the flow of batches.
    CD ARecorder A device used to produce and duplicate the CDs.
    Compact Disc (CD) These are created based on customer requests and contain the image of the returns.
    Contributor(s) Contributor may be individuals, fiduciaries, partnerships, corporations, associations, trusts, government agencies, or EOs. A contributor is a person who gave money, securities, or any other type of property to the organization either directly or indirectly. These are persons who have contributed gifts to the organization.
    Can be disclosed Information open for public inspection.
    Digital Video Disc (DVD) These are created based on customer requests and contain the image of the returns.
    Expedites These are the forms that are received marked as Expedites MUST be worked on a two day cycle.
    Fix-it An initially scanned return being fixed as a second submission.
    CFolder Collection of approximately 25 documents.
    Forms Processing The OCR step is an image clean up process that includes de-speckling (removal of unwanted dots). This process is turned on manually each day and needs no operator intervention.
    Image Server Consists of image storage devices called the Optical Jukebox and a Tier II computer for storing return indices.
    Image Storage Devices Optical Jukebox which permanently stores all the return images.
    Imaging System Consists of completely integrated hardware and software running on a Local Area Network (LAN) with PC Workstations running Windows XP.
    Initial Imaging The first scanning of returns.
    Quality Control (QC) Step is used to visually inspect scanned images and edit or reorder pages or returns.
    Quality Review (QR) Step is performed to ensure a quality product. It is a review of all previous functions. including quality of images, and to ensure all data that is required to be restricted/redacted is done to prevent un-authorized disclosure.
    Redaction Term used to define blocking out pieces of information not open to public inspection .
    Refilm Status given to a batch in the system that contains documents that have only certain pages to be scanned. Additional forms or information is received that was not part of the initial imaging. These are not original filings..
    Release Process which releases the returns to the Image Storage Devices (Optical Jukebox). This process is turned on manually each day and needs no operator intervention.
    Re-scanners Bell & Howell 1000FB, low-speed scanners for special scanning and Quality Control operations.
    Re-scanning Process of amending or adding an image.
    Restricting Function where Restricting and Redacting are performed. Additionally, pages can be rotated and the validation information can be changed and saved in this function.
    Restriction Term used when an entire page of information is not open to public inspection
    Scanners Consist of 1 Kodak i830 high-speed duplex scanner, and 2 Kodak i840 high-speed duplex scanners, which are used for initial scanning as well as re-image scanning.
    Scanning Process converts paper returns into digital images. The Scan module creates open batches, allows the operator to name the batch and set or modify scan options (e.g. document orientation, single-side, etc.) and reads returns.
    Software Program Software is set up for user/operators to perform different functions in the Imaging process. The Ascent Capture process was purchased to perform the Batch Manager, Scanning, Quality Control, Forms Processing, Validation, and the export of images and indexes to long-term storage. Additional software was written to perform Release, Restricting, and Quality Review.
    Validation Step is the process of entering certain fields from a return that allows it to be retrieved from the database. A keyboard operator obtains this information from various parts of the return and inputs it during the Validation process. Indexes include Organization Name, EIN, Tax Period, State, Zip Code, Total Assets and Subsection Code.
    Verification The process of checking the accuracy of a specified index. Verification is performed on the EIN, Tax Period, and Organization Name.
    Visually Unacceptable Refers to any page or document that has information that is cut off, illegible, too light, too dark, or missing.
    Workstations PC workstations running Windows XP are equipped with 21 inch monitors for viewing images.

3.20.12.3.3  (02-19-2009)
- Batch Manager Module

  1. The Batch Manager module is used to check the current status and to control the flow of batches. Batch Manager provides a summary table that displays the current status of all active batches in the Ascent Capture process.

  2. The Batch Manager module can be used to:

    1. Display the summary table showing the status, form type, program, batch and folder number of all active batches

    2. Create new batches

    3. Delete existing batches

    4. Edit or view batch properties

    5. Display a batch audit and error trail

3.20.12.3.4  (02-19-2009)
Receipt of Work – Timeframe Guidelines

  1. Timeliness guidelines for return imaging are specified in IRM 3.30.123 Processing Timeliness: Cycles, Criteria, and Critical Dates.

  2. Forms 990, 990-EZ, 990-PF, 990T, 4720, and 5227 initial returns are batched into folders of approximately 25 returns.

  3. Re-film returns will come from several areas within the campus. A blue tag (Document 7214) will be attached to denote re-film requirements. The Document 7214 will only be attached to original returns/documents requesting to be re-filmed. All photocopied re-filmed requests will not have the Document 7214 attached.

  4. All receipts have time frames and age criteria for processing/imaging the work.

    Note:

    Processing time in Imaging must be adjusted as necessary to meet PCD goals.

    Form/Type of work Time frame - Age Criteria
    Form 990-PF receipt Imaged within 10 work days of receipt
    Form 990, 990-EZ, 990-T, 4720, 5227 - Non-Peak Season Image within 15 work days of receipt
    Form 990, 990-EZ, 990-T, 4720, 5227 - Peak Season - March - Mid July & Dec - Mid Jan. Image within 20 work days of receipt
    Refund Returns Image within 5 work days from receipt
    E-filed Returns Imaged within 15 work days of receipt
    Refilms Must be batched and controlled within "One" workday of receipt and refilmed within 10 workdays.
    During peak season:
    March - Mid July, and
    Dec - Mid January
    an additional five days is added to process the refilm documents unless it is marked as an expedite.
    Refilm marked as expedite Must be re-filmed within two working days and routed to files to be associated with the IDRS action form
    Form 8453-X attached to a copy of the Form 8871 Two work days of receipt within the Imaging Unit to image the Form 8453-X and send it to Files
    Form 8872 Two work days of receipt within the Imaging Unit to image the Form 8872 and send it to Files
    Batches starting with "X" Are to be expedited on a two day cycle

3.20.12.3.5  (02-19-2009)
Loose Unattached Documents and/or Envelopes

  1. All unattached schedule(s), supplemental page(s) and/or envelopes which are separated from the original return during imaging must be reassociated with the original return when possible.

  2. If SEIN is unable to reassociate the loose or unattached document with the original return, the document will be route to EO Accounts, M/S 6710 to be associated to the original return. "Annotate on the routing slip why the document is being routed and/or what action needs to be taken."

  3. If unable to reassociate loose or unattached envelopes, the envelope will be given to the lead or manager to be destroyed.

3.20.12.3.6  (02-19-2009)
Initial Returns

  1. Initial returns are returns that are received for the first time from Extracting. These returns are batched and routed to the Imaging area. With remittance documents are routed to Deposit before being routed to the Imaging area.

  2. The instructions for imaging "Initial" Returns are different from the instructions for imaging Re-image returns and Fix-its. Refer to imaging re-imaged returns/documents for re-imaging procedures.

3.20.12.3.6.1  (02-19-2009)
Control and Routing for Initial Returns

  1. All initial returns are batched and controlled on the Batch/Block Tracking System (BBTS).

  2. When a batch of work is received, a log sheet is prepared with the program number, batch number, date, and volume (Batch Transmittal) .

  3. Each batch of work will be routed through Document Preparation (Doc. Prep.), Scanning, Quality Control, Validation, Verification, Reassociation, Restricting (restricting function on public disclosed returns), and Quality Review.

  4. When a folder of returns is completed through the various steps, the system will automatically release each folder to the next step.

  5. When all folders in a batch have completed all steps of the imaging process, the batch is be released on BBTS.

3.20.12.3.7  (02-19-2009)
Processing Batches of E-Filed Returns Imported into SEIN

  1. The Modernized Tax Return Database (MTRDB) provides Ogden with a redacted XML extract. SOI was requested to translate the XML to an oracle database. The oracle database is used to populate a Form 990 PDF. The PDF is loaded onto a CD\//DVD with all the other images of the paper Form 990 returns filed and provided to the public upon request. Refer to IRM 3.20.13.

  2. Forms 990-N are not to be converted to CD/DVD through SEIN, therefore they are excluded from the E-filed import into SEIN.

  3. The following steps are to be taken to process a batch of E-Filed EO returns

    1. Look in Batch Manager for a batch whose name starts with ‘EFILE 990’. It should be in Quality Control/Rescan.

    2. Open the batch in Quality Control/Rescan.

    3. Check the number of documents in the batch. Normally, there are 30 documents per batch.

    4. Check the documents to make sure the schedules are in the correct order.

    5. Rotate landscape documents, when needed.

    6. Perform OFAC review. If an OFAC potential name is identified, print off the first page of the return so the OFAC marks can be edited and the page will need to be rescanned.

    7. Proceed with Validation.

    8. Follow all IRM procedures for redacting and/or restricting a paper filed return.

    9. Set the OFAC Flag within the system, when applicable.

    10. Perform Verification.

    11. Release the batch.

    12. Open the batch in Restricting.

    13. Restrict all OFAC marks.

    14. Perform Quality Review.

3.20.12.3.8  (02-19-2009)
Re-Film

  1. Re-Film is performed when additional forms or information are received that was not part of the initial imaging. Examples of re-films are:

    • Information submitted after the initial return, such as, missing schedules.

    • Correspondence received from the filer providing missing information, such as the 2698C letter or the 2696C X letter.

  2. A return that has never been through the Imaging system is not imaged as a re-film. They must be treated as an original return.

  3. A change to the Employer Identification Number (EIN), name , tax period, or sub-section "do not" require re-filming, unless the form is a 8871, 8872 or 990-POL section 527. This type of re-film request will come from EO Entity.

  4. Do not re-film a return if it is not identified as being part of the returns that are imaged through the SEIN process in 12.3(1).

  5. Requests for re-filming returns/documents come primarily from EO Accounts and Error Resolution (ERS)/Rejects.

  6. Request from EO Entity are the following forms:

    • 8871

    • 8872

    • 990-POL section 527

    The request is generally to re-film the document to correct the EIN or Entity information.

  7. If re-film request is received as a photocopy, NO hours are reported under 31-720-13100.

  8. A copy of the 1st page of the return is required to be attached to the re-film documents. If the first page of the original return is not available, a modified print of BRTVU, or another approved IDRS prints must be attached to the front of the information requesting to be refilmed.

  9. The BRTVU print must be thoroughly edited and contain only the EIN, tax period, subsection code, form and entity information.

    Note:

    Subsection is only required if it is an index field for that return.

  10. If ENMOD or INOLES are used in place of BRTVU, they must be thoroughly edited and contain only the EIN, tax period, subsection code, form and entity information.

    Note:

    Subsection is only required if it is a index field for that return.

  11. If refilms are received with missing/incorrect information or are illegible they are to be rejected back to the originator indicating reason, such as what is missing and/or incomplete. If the refilm is from EO Accounts it will be rejected back to EO Accounts P&A Point of Contact at M/S 2100 not to the originator.

3.20.12.3.8.1  (02-19-2009)
Control and Routing of Re-Films

  1. Returns that need to be re-filmed are mailed to the Imaging Unit from other areas of the campus.

  2. Re-films must be separated by form type, batched and controlled on BBTS within 1 day of receipt within the Imaging Unit.

  3. Each batch of work will be Document Prepared (Doc. Prep.), Scanned, Quality Controlled (QC), Validated, Verified, Reassociated, Restricted, and Quality Reviewed (QR).

  4. When a block of returns is completed through the various steps, the system will release each block to the next step.

  5. After completion, proceed as follows:

    Received From: Form Type: then:
    Error Resolution Section (ERS)/Rejects 990 - PF

    Note:

    If live return/document

    		 Sort & Sequence M/S 6729
    Error Resolution Section (ERS)/Rejects Photocopied re-image request Destroy photo copy request
    EO Accounts Photocopied re-image request
    		Destroy - photo copies
    EO Accounts if original document route to files
    EO Entity Photocopied re-image request. Destroy - photo copies

    .

  6. The following are timeframes required to process all re-film requests:

    Type of re-film request Request Received from Refilm process Must be completed
    990-PF Error Resolution Section (ERS) 10 work days from Imaging receive date, except during March and December peak, then it is 15 work days.
    990 & 990 - EZ Error Resolution Section (ERS) 10 work days from Imaging received date, except during March and December peak, then it is 15 work days
    Returns that are not disclosable, example, 5227, 4720.

    Note:

    F4720 is disclosed if attached to a F990/990-EZ with Section 527 box checked as support documentation.

    		 Error Resolution Section (ERS) 10 work days from Imaging received date, except during March and December peak, then it is 15 work days
    All non-expedite re-film requests EO Accounts 10 work days from Imaging receive date, except during March and December peak, then it is 15 work days.
    F8871, F8872 and F990–POL (Section 527) EO Entity 10 work days from Imaging receive date, except during March and December peak, then it is 15 work days.
    Expedites all areas 2 workdays from Imaging receive date

3.20.12.3.8.2  (02-19-2009)
Re-Filming Letter 2696C X - Exempt Organization Miscellaneous Forms Request for Missing Information

  1. The 2696C X letter is sent to the filer if the original return is filed without a signature. The filer is asked to sign the declaration at the end of the 2696C X letter and return the letter.

  2. The following table provides the re-filming procedure for the 2696C X letter:

    2696C X Letter and re-film and
    is for a disclosable return, such as F990 and F990-PF received back from the filler with the declaration completed and attached 2696C X letter redact the letter except the declaration.
    is for a return that is not disclosed to the public on the CD/DVDs , such as F5227, F4270 received back from the filler with the declaration completed and attached 2696C X letter no redaction is needed.

3.20.12.3.8.3  (02-19-2009)
Re-Filming Letter 2697C - Form 990-PF - Request for Missing Information

  1. The 2697C letter is sent to the filer if the original return is identified during processing as needing additional information. The filer is asked to sign the declaration at the end of the 2697C letter and return the letter with the requested information.

  2. The following table provides the re-filming procedure for the 2697C letter:

    2697C Letter and re-film and
    is for a disclosable Form 990-PF return received back from the filler with the declaration completed the check box indicating that the organization is not required to file a Schedule B. 2697C letter redact the letter except the declaration. and the box showing the statement indicating that the Schedule B is not required.
    is for a return one that is not disclosed to the public on the CD/DVDs , such as F5227, F4270

    Note:

    2699C should only be used for the Form 990-PF therefore it would be very rare to see ti attached to a return other than the Form 990-PF.

    		received back from the filler with the declaration completed and additional documents required attached 2697C letter no redaction is needed.

3.20.12.3.8.4  (02-19-2009)
Re-Filming Letter 2698C - Form 990 - Request for Missing Information

  1. The 2698C letter is sent to the filer if the original return is filed without a Schedule B attached and the check box on the return stating that a Schedule B is not required is not checked.

  2. The filer is asked to check the box indicating if the organization is not required to file the Schedule B with the return. The filer is also instructed to sign the declaration at the end of the 2698C letter.

  3. If the filer is required to file a Schedule B the letter instructs them to complete the Schedule B and attach it to the Letter 2698C.

  4. The following table provides the re-filming procedure for the 2698C letter:

    2698C Letter re-film and
    Received back from the filler with Schedule B completed and attached Schedule B, do not image the 2698C letter follow procedures for imaging, redacting and/or restricting the schedule B
    Received with Box checked indicating Schedule B is not required 2698C do not redact or restrict the 2698C letter, unless filer has annotated on the 2698C letter information that is required to be redacted, such as information that can not be disclosed. The letter provides relevant information that would have been open to public inspection on the Form filed initially.

3.20.12.3.8.5  (02-19-2009)
Re-Filming Letter 2699C - Form 990-EZ - Request for Missing Information

  1. The 2699C letter is sent to the filer if the original return is identified during processing as needing additional information. The filer is asked to sign the declaration at the end of the 2696C letter and return the letter with the requested information.

  2. The following table provides the re-filming procedure for the 2699C letter:

    2699C Letter and re-film and
    is for a disclosable Form 990-EZ return received back from the filler with the declaration completed the check box indicating that the organization is not required to file a Schedule B. 2699C letter redact the letter except the declaration. and the box showing the statement indicating that the Schedule B is not required.
    is for a return one that is not disclosed to the public on the CD/DVDs , such as F5227, F4270

    Note:

    2699C should only be used for the Form 990-EZ therefore it would be very rare to see ti attached to a return other than the Form 990-EZ.

    		received back from the filler with the declaration completed and additional documents required attached 2699C letter no redaction is needed.

3.20.12.3.8.6  (02-19-2009)
Re-Filming Letter 3734C - Form 990/990-EZ - Correspondence Issues

  1. The 3734C letter is sent to the filer from EO Accounts for additional correspondence issues. If the filer sign the declaration at the end of the 3734C letter and return the letter with the requested information.

  2. The following table provides the re-filming procedure for the 3734C letter:

    3734C Letter and re-film and
    is for a disclosable Form 990/990-EZ return received back from the filler with the declaration completed the check box indicating that the organization is not required to file a Schedule B. 3734C letter redact the letter except the declaration. and the box showing the statement indicating that the Schedule B is not required.

3.20.12.3.8.7  (02-19-2009)
Re-Filming Letter 3735C - Form 990-T and 1120POL- Correspondence Issues

  1. The 3735C letter is sent to the filer from EO Accounts for additional correspondence issues.

  2. The following table provides the re-filming procedure for the 3735C letter:

    3735C Letter and re-film and
    is for a disclosable Form 990-T return received back from the filler 3735C letter Image and restrict the letter
    is for a Form 990-T that is not disclosable received back from the filler 3735C letter Image, do not restrict or redact letter

3.20.12.3.8.8  (02-19-2009)
Re-Filming Letter 3736C - Form 990-PF - Correspondence Issues

  1. The 3736C letter is sent to the filer from EO Accounts for additional correspondence issues. If the filer sign the declaration at the end of the 3736C letter and return the letter with the requested information.

  2. The following table provides the re-filming procedure for the 3736C letter:

    3736C Letter and re-film and
    is for a disclosable Form 990-PF return received back from the filler with the declaration completed 3736C letter redact the letter except the declaration.

3.20.12.3.9  (02-19-2009)
Fix-its

  1. Fix-its are errors identified after the return is sent to the release function and prior to the document leaving the Imaging Unit. An examples of an error corrected using the Fix-it process would be a poor quality image.

3.20.12.3.9.1  (02-19-2009)
Controlling and Processing Fix-its

  1. The return will need to be deleted from the system and reprocessed. Do not process them using the refilm procedures, the entire return must be reprocessed.

  2. Returns that need to be fixed due to processing imaging errors are batched within their own new batch or inserted in an established batch of work that contains the same form type. A Fix-it return is not counted as a new return and is not to be counted as a receipt. Taking another count for the return would result in double counting for one return.

  3. Each return must be Document Prepared (Doc. Prep.), Scanned, Quality Controlled (QC), Validated, Verified, Reassociated, Restricted, and Quality Reviewed (QR).

  4. When a batch has completed through the various steps, the system will automatically release each batch to the next step.

3.20.12.3.10  (02-19-2009)
Document Preparation

  1. Preparing the return for scanning is an important operation. Properly performed, this step can ensure efficiency through the remaining processes.

  2. During this step scanning operators will:

    1. Annotate edit marks throughout the return. See Exhibit 3.20.12-7.

    2. Review the entity and subsection code

    3. Identify items not open for public inspection

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.20.12.3.10.1  (02-19-2009)
Document Preparation — General Information

  1. Numbering helps in reassociation for rejected documents and during QR should a return require additional scanning or if information is not clear.

    1. Number all returns and their respective envelopes in the lower right hand margin.

    2. If there is no envelope attached, write "NE" as well as a number.

    3. If there is no envelope, but there are other items needing reassociation after imaging, number those items accordingly.

    4. If multiple returns were shipped in one envelope, write the number and alpha character (i.e. 1a, 1b, 1c and so on) on the returns.

    5. Ensure anything not scanned is attached to the envelope for reassociation later. This includes forms listed in table below, requests for acknowledgment of receipt, and check stubs.

      Note:

      IRS General Instructions, when they can be easily removed from the return package, do not need to be imaged and can be attached to the envelope for later association.

    6. Envelopes and other information not scanned should be kept in order for reassociation.

    7. If a return is missing the first page the return is unprocessable. Refer to unprocessable return procedures.

  2. VERIFY the return has a nine digit Employer Identification Number (EIN), a primary name, a valid state.

  3. If primary name is missing place the document in the Entity basket and route to EO Entity for additional research.

    Note:

    Do not edit missing information from other documents within the submission. EO Entity will research for missing data.

  4. If EIN is missing, incomplete or is invalid, (i.e. less than nine digits, incorrect format, etc.) place the document in the Entity basket and route to EO Entity for additional research.

    Note:

    Do not edit missing information from other documents within the submission. EO Entity will research for missing data.

  5. If a remittance is discovered, immediately take the complete return to the manager.

  6. Amended returns may be attached to a copy of the originally filed return. If this is the case, image the amended return per all imaging guidelines, do not image the copy of the original.

  7. The following forms are not part of the current imaging process. If returns are originals, they may be separated during pipeline processing and routed as required, . If attached refer to See IRM 3.20.12.2.3. for imaging and redacting/restricting procedures. .

    1. Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons

    2. Form 1023, 1024, and 1028, Application for Tax Exemption

    3. Form 1040, Individual Income Tax Return

    4. Form 1120, U S Corporation Income Tax Return

    5. Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under section 4953

    6. State Tax Returns

  8. Detach all original attachments per "Attachment Routing Guide" table below:

    Attachment Routing Guide
    Form/document
    Note:Only detach if the return is an original     		Applicable Forms if attached Detach Action
    Form 990 series All Yes If an original return, detach and image
    Form 1023, 1024, or 1028, Application for Exemption All Yes, if the signature is an original, otherwise leave attached If signature is an original route to CSPC
    201 W Rivercenter Blvd.
    Attn: EP/EO Determinations
    Team 31404
    Covington, KY 41011
    Form 1120-POL 990 / 990–EZ & 990–T Yes If an original return, do not image. Route to processing
    Form 4720 - Return of Certain Excise Taxes and other Persons under Chapters 41 and 42 of the IRC All that have an original signature Yes If original return, detach and image. CAUTION: note: When detaching Form 4720 from any other form make sure you also detach any applicable statements or attachments relating to Form 4720
    Form 4720 - Return of Certain Excise Taxes and other Persons under Chapters 41 and 42 of the IRC All that have an original signature No If attached to another return and the Form 4720 shows no tax liability, leave attached.
    Form 5227 - Split Interest Trust Information Return All Yes If original return, detach and image.

  9. If an original/amended return is received with a CP notice 420 thru 429 is attached and has not previously been worked by the Entity unit prior to receipt in Imaging take the following steps:

    • Pull return

    • Do Not Image

    • Route to Entity M/S 6273 via F3210

    • Annotate in the remarks that a TDI notice is attached

  10. Additionally, the following document preparation must be completed:

    1. Indicate/annotate "Return Scanned" or "filmed" and the date.

    2. Remove all staples.

  11. Brochures, pamphlets, and other materials the EO has filed should be imaged. If unusually large amounts of attachments, books, etc. are with the return, contact management to determine if scanning is necessary.

  12. If the Form 8913 is attached to a Form 990-EZ or Form 990-PF as a supporting documentation the Form 8913 is to be imaged and restricted.

3.20.12.3.10.2  (02-19-2009)
Telephone Excise Tax Refund (TETR) Procedures for 2006 Form 990T

  1. Taxpayers may be entitled to request credit or a refund of excise taxes paid on long distance services. The credit/refund is claimed using the 2006 Form 990-T or 1120-POL.

  2. The TETR return can be identified by one or more of the following:

    • "Telephone Excise Tax Refund" or "Notice 2006–50" , or similar wording written on Form 990-T or attachments.

    • Form 8913 is attached.

    • Line 44f contains a dollar entry.

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

  4. If the Form 990-T is filed "only" for the Telephone Excise Tax Refund (TETR), pull the return and do not image. Leave the return in the batch and follow the standard routing processing for all other returns within the batch of work.

  5. If the Form 990-T is filed and includes the TETR, the form will be imaged and processed per the Form 990-T procedures.

3.20.12.3.10.3  ≡ ≡ ≡ ≡ ≡ ≡ ≡
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    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.20.12.3.10.4  (02-19-2009)
Unprocessable Return

  1. An unprocessable EO return is either of the following:

    • A return with completely illegible entries

    • Missing page one, entity data to index is not available

    • Foreign and U.S. Possession organizations that amounts are not converted to U.S. currency or written in numerical characters.

  2. The following steps should be taken:

    • Do not image the return.

    • Do not stamp the return indicating that it was scanned.

    • Pull the return and place in the front of the batch

    • Route the unprocessable return(s) to Code & Edit with the other processed returns in the batch.


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