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Part 3. Submission Processing

Chapter 45. TE/GE Processing

Section 1. Processing Employee Plan and Exempt Organization Determination Applications and User Fees

3.45.1  Processing Employee Plan and Exempt Organization Determination Applications and User Fees

All Official Use Only content has been replaced with ≡.

3.45.1.1  (01-01-2009)
Overview

  1. IRM 3.45.1, Processing Employee Plan and Exempt Organization Determination Application Guidelines provide instructions for processing determination letter applications and user fees.

  2. The role of the Cincinnati Submission Processing Center (CSPC) is to perform the initial processing of the determination letter request submitted by the taxpayer. Receipt and Handling , a part of the Processing Division performs the initial stages of the Determination processing. The cases are then transhipped to EP/EO Determination Processing Section in Cincinnati, Ohio. These procedures apply to all employees at CSPC who process determination applications and associated user fees.

  3. IRM 3.45.1 provides procedures for processing user fees that accompany applications for determination letters. These procedures establish minimum security requirements, provide instructions for processing applications and fees, and maintain records of user fees remitted.

  4. The main objective of this IRM is to provide clear instructions and processing guidelines to eliminate the need for separate desk instructions.

  5. Any instructions written at the campus (i.e., desk procedures, alerts) to clarify the IRM 3.45.1, Processing Employee Plan (EP) and Exempt Organization (EO) Determination Applications, may be implemented only after the instructions are approved and document cleared, signed Form 2061 on file, by the TE/GE Processing Center Program Staff analyst with oversight of the process. Any deviations to the procedures without authorization of the TE/GE analyst with oversight could result in transferring of resources/funds back to TE/GE.

  6. Form 8717, User Fee for Employee Plans Determination Letter Request, Form 8718, and page 12 of Form 1023 package, User Fee for Exempt Organization Determination Letter Request, serve several purposes:

    1. Document payments made in determination case files

    2. Help taxpayers understand the user fee program

    3. Ascertain the correct fee

  7. User fees are payable with most determination letter applications. Fees are not refundable except as provided in section 10 of Rev. Proc. 2009–8.

  8. Remittances must be made out to United States Treasury to be acceptable. Checks made out to IRS, US Government, etc. must be over stamped with United States Treasury. Remittances made out to another company must be returned to the taxpayer, and the application accompanying the return check will be processed as a Non Remit document.

  9. The EP/EO Determination Letter Application User Fee Manual Deposit Unit assigns the Document Locator Number (DLN) on all applications, non-remit and remit.

  10. The DLN is stamped on the first page of the package. The package is assembled per the required assembly order.

  11. As of January 1, 2008, all Deposit Tickets created within the Service and updated to IRACS are required to be identified with a 14 character Trace ID Number.

  12. For the EP/EO packages the Trace ID Number will be stamped on the bottom of the page that the DLN is stamped on.

  13. All applications, non-remit and remit are established on the Letter Information Network User Fee System (LINUS). with the exception of the Form 5310-A.

  14. LINUS is the official financial database for all EP/EO Determination user fees.

  15. The applications are then processed through EDS or TEDS where additional data is captured.

  16. LINUS generates the acknowledgment notices for all applications that are not processes through the Modified Exempt Determination System (TEDS).

  17. The EDS Input sheets are generated from LINUS. The EDS input sheets are generated for applications established in LINUS and are processed through the Legacy system.

  18. Applications processed through TEDS will not generate EDS input sheets, they will require a folder label generated from TEDS.

  19. The Master & Prototype (M&P) Mass Submitters and Volume Submitter (VS) Programs are sent to Cincinnati, OH to the attention of the M&P or VSC coordinator Room 5106. The User Fee and first page of the application will be routed to CSPC for processing. See IRM 3.45.1.13.. Pre-approved plans consisting M&P Plans and VS plans are being processed through the HQMAPICS (Cincinnati Employee Plans User Fee Screen) system. CSPC will receive a Form 3210, check and a copy of HQMAPICS User Fee Screen from Cincinnati.

3.45.1.2  (01-01-2009)
General Guidelines

  1. User fee processing units will be designated as "controlled areas." See Manager's Security Handbook.

  2. Use the following access controls in the controlled area.

    1. Control access to the area from other areas through the use of partitions, screen, walls, cabinets or other such devices.

    2. Post the area as a "controlled area" .

    3. Post a list containing names of those employees who are allowed access without registering prominently at the entrance of the area. The unit manager will revise the list as necessary.

    4. Establish a register which contains the name of the visitor, date and time in and out, and the reason for the visit. The register must be completed by all visitors (not listed on the access list), who have received permission to enter the area from the area's manager.

    5. The unit manager will collect the register on a quarterly basis for audit trail purpose.

  3. Safeguard remittances during non-duty hours in appropriate containers, (see Manager's Security Handbook). Coordinate with local security officers to assure adequate security is maintained.

  4. All applications and correspondence must be date-stamped to reflect the date received by the Service. Applications received at CSPC must indicate the postmark date and received date.

  5. All submissions must be sorted and batched per the IRS receive date. If multiple IRS receive dates are mixed within a batch the oldest IRS receive date is used to determine the age of the batch.

  6. All editing to the application or edit sheet unless specified otherwise within IRM 3.15.259 "must" be done in "RED" .

  7. The application package is a legal document and only the approved editing should be done on the application. Do not mark or edit the application package with information unless it is an approved edit mark.

  8. Procedures within this IRM are also in conjunction with other IRM procedures which impact the EP/EO Determination Application packages. The list below is not all inclusive, but only an example of other IRMS.

    • IRM 21.3, Correspondence, contains specific instructions for initiating correspondence.

    • IRM 21.1.3 contains specific instructions for handling disclosure issues and third party requests.

    • IRM 1.10.1, Internal Revenue Service Correspondence Manual.

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates.

    • IRM 3.10.72, Extracting, Sorting and Numbering.

  9. IRM 1.10.1 IRS Correspondence Manual is the central authority for handling taxpayer correspondence. IRM 1.10.1 takes precedence over all other IRMs addressing the Service's handling of taxpayer correspondence.

  10. Refer to IRM 1.15.29, Records Control Schedule for Service Center Operations for retention of forms.

  11. All the TE/GE "C" letters have the toll free number hard coded in the selective paragraphs. If you are issuing a letter for a TE/GE return and the letter does not have the telephone operation toll-free number hard coded in the paragraph, use EXTREME caution that you type the correct number 1-877-829-5500. If you need to type the entire paragraph it must read: "if you have any questions, please call us toll free at 1-877-829-5500." .

  12. Problems encountered meeting established time frames, i.e. 72 hour deposit, 6 work day time frame for applications or the 3 work day time frame for correspondence (ADF packages, remit or non-remit), and other required time frames, and system problems must be reported to the TE/GE Submission Processing Programs analyst with oversight of the project the same business day as they were discovered.

  13. W&I will provide TE/GE Submission Processing Programs analyst with oversight of the project an action plan showing how the problem will be resolved and provided the expected time frame the campus expects to be in accordance with the required time frames.

  14. Use boxes equal to Box #8115-00-117-8249 size C, maximum weight of 45 lbs, to ship the application to the EP/EO Determinations Processing in Cincinnati for technical processing and final determination. All boxes/packages must be marked with the appropriate room number.

  15. EO Applications, unless specific applications are identified and requested to be shipped to a different address are sent to the following address:.

    Internal Revenue Service
    550 Main Street
    FOB Room 4022
    Cincinnati, OH 45202

  16. EOCC packages that have completed Imaging process with the exception of those cases that were pulled from the original box will be shipped to the Federal Record Center (FRC). See below for the shipping address of those packages that were pulled from the original box. The EOCC shipment will be picked up weekly via an outside contractor and delivered to FRC. The boxes must be labeled "FRC" .

  17. For EOCC processed packages that are sent to FRC the Box Transmittal and a copy of the TEDS Reconstitution Report will we sent to the following address:

    Internal Revenue Service
    550 Main Street
    FOB Room 4024
    Attn: Lead Record Unit Clerk
    Cincinnati, OH 45202

  18. EO Closed Cases (EOCC) are to be shipped to the following address if the box/package contains "Fixed" cases, the box must also be marked with "Fixed Cases" . The fixed EOCC packages are not to be labeled with FRC and can not be sent to FRC. The boxes must be sent over to FOB to receive the accession numbers. Ship EOCC fixes packages to:

    Internal Revenue Service
    550 Main Street
    FOB Room 4024
    Attn: Lead Record Unit Clerk
    Cincinnati, OH 45202

  19. Incomplete EP/EO Cases are to be shipped to the following address:

    Internal Revenue Service
    550 Main Street
    FOB Room 4022
    Attn: EP/EO Incomplete Cases
    Cincinnati, OH 45202

  20. EP Applications, unless specific applications are identified and requested to be shipped to a different address, example EP duplicate cases are to be shipped to the following address.

    Internal Revenue Service
    550 Main Street
    FOB Room 2405
    Attn: EP Lead Technical Screener
    Cincinnati, OH 45202

  21. Ship all EP duplicate cases that have been processed through Legacy or TEDS via F3210 to:

    Internal Revenue Service
    550 Main Street
    Attn: Lead Screener / Duplicates
    FOB Room 4511
    Cincinnati, OH 45202

  22. Ship all EP Applications received with a Foreign check or a Foreign address via F3210 to:

    Internal Revenue Service
    550 Main Street
    Attn: EP Lead Technical Screener
    FOB Room 4511
    Cincinnati, OH 45202

  23. Ship all EO Applications received with a Foreign check or a Foreign address via Form 3210 to:

    Internal Revenue Service
    550 Main Street
    Attn: Supervisor of EO Adjustment Unit
    FOB Room 4024
    Cincinnati, OH 45202

  24. When procedures refer to Form 8718 you will use Part XI, User Fee Information for Form 1023 instead of the Form 8718. The Form 1023 package does not require the Form 8718 it was revised to include the "User Fee Voucher" as part of the application, Part XI, User Fee Information, page 12 of the application.

  25. Function and Program Codes used for EP/EO Determination process are:

    OFP Activity Program
    150 All Data transcription from EO applications relating to the user fee established in LINUS. 13150
    150 All Data transcription from EO applications relating to the user fee established in LINUS for applications processed through TEDS. 13155
    150 All Data transcription from EO Additional Payments in LINUS for applications processed through TEDS and Legacy. Additional Payments for a TEDScases is often referred to as a remit ADF package. 13151
    150 All Data transcription from EP applications relating to the user fee established in LINUS. 72870
    150 All Data transcription from EP Additional Payments in LINUS for applications processed through TEDS and Legacy. Additional Payments for a TEDS cases is often referred to as a remit ADF package 72871
    150 All Data transcription from EP applications relating to the user fee established in LINUS for applications processed through TEDS. 72875
    310 Data transcription from EO applications to EDS. Generally referred to as Code & Edit function. 13150
    310 Data transcription from EP applications to EDS. Generally referred to as Code & Edit function. 72870
    360 Imaging Exempt Organization Closed Cases (EOCC)

    Note:

    Includes Completion, and Verification, manual ID, and rescan. Does not include shipment of boxes, Doc Prep or the initial scanning of the package.

    		13159
    360 Imaging EO applications through TEDS

    Note:

    Includes Completion, and Verification, manual ID, and rescan. Does not include shipment of boxes, Doc Prep or the initial scanning of the package.

    		13155
    360 Imaging EO additional payments through TEDS. Additional Payments for a TEDS cases is often referred to as a remit ADF package

    Note:

    Includes Completion, and Verification, manual ID, and rescan. Does not include shipment of boxes, Doc Prep or the initial scanning of the package.

    		13151
    360 Imaging EO additional documents, non-remit through TEDS.

    Note:

    Includes Completion, and Verification, manual ID, and rescan. Does not include shipment of boxes, Doc Prep or the initial scanning of the package.

    		13152
    360 Imaging EP additional payments through TEDS. Additional Payments for a TEDS cases is often referred to as a remit ADF package

    Note:

    Includes Completion, and Verification, manual ID, and rescan. Does not include shipment of boxes, Doc Prep or the initial scanning of the package.

    		72871
    360 Imaging EP additional documents, non-remit through TEDS

    Note:

    Includes Completion, and Verification, manual ID, and rescan. Does not include shipment of boxes, Doc Prep or the initial scanning of the package.

    		72872
    360 Imaging EP applications through TEDS

    Note:

    Includes Completion, and Verification, manual ID, and rescan. Does not include shipment of boxes, Doc Prep or the initial scanning of the package.

    		72875
    550 Clerical support, includes batching of the receipts, controlling EO work on BBTS, sorting, balancing and preparing deposit package, cleaning of the scanners, second sort process for TEDS, and boxing work for shipment. 13150
    550 Clerical support includes batching of the receipts, controlling EP work on BBTS, balancing and preparing deposit package, cleaning of the scanners, sorting, second sort process for TED, and boxing work for shipment. 72870
    720 Doc Prep for all EP packages processed through TEDS. This includes applications/correspondence/ADF packages, remit and non-remit. Time for the initial scanning of the package is reported under 720. 72870
    720 Doc Prep for all E0 packages processed through TEDS. This includes applications/ correspondence/ADF packages, remit and non-remit. Time for the initial scanning of the package is reported under 720. 13150
    880 Quality review conducted for all EO packages. 13150
    880 Quality review conducted for all EP packages. 72870

3.45.1.2.1  (01-01-2009)
EP & EO Determination Letter Application Forms

  1. The table below provides a list of the applications that can be used to apply for a determination letter and are processed at CSPC through the Legacy system or TEDS.

    Application Form Number Description Processing System
    Form 1023 Application for Recognition of Exemption LINUS - EDS
    Form 1024 Application for Recognition of Exemption Under Section 501(a) LINUS - EDS
    Form 1025 Dummy Application for IRC sections 501(c)(1),(11), (14), (16), (18), (21), (22), (23), AND (26), (27), (28), and 501(d). LINUS - EDS
    Form 1026 Dummy Group Ruling Application LINUS - EDS
    Form 1028 Application for Recognition of Exemption LINUS - EDS
    Form 5300 Application for Determination for Employee Benefit Plan LINUS - EDS
    Form 5307 Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans LINUS - TEDS
    Incomplete packages are processed through LINUS - EDS
    Form 5310 Application for Determination for Terminating Plan LINUS - EDS
    Form 5310-A Notice of Plan Merger of Consolidation, Spin-off, or Transfer of Plan Assets or Liabilities: Notice of Qualified Separate Lines of Business EDS
    Form 6406 Short Form Application for Determination for Minor Amendment of Employee Benefit Plan LINUS - EDS
    Form 9999 Used to identify requests for the qualified status of a group trust LINUS - EDS
    Form 4461 Application for Approval of Master or Prototype Defined Contribution Plan HQEP

3.45.1.2.2  (01-01-2009)
Receipt of Work – Time Frames

  1. Unless otherwise stated, security, time frames and other required procedures will be followed according to IRM 3.10.72, IRM 3.30.123 and IRM 3.45.1

  2. EP and EO applications are batched into batches of approximately five (5) applications. Five applications per batch is NOT a required number, it is only a recommended/suggested number. The applications are prepared to be processed through the Legacy system or TEDS where the package will be imaged, data captured, verified and available to the end user through the repository. All applications must be transhipped to the EP/EO Processing Section , Cincinnati within 6 work days of receipt at CSPC, additional time is allowed during peak time frames.

  3. For a Legacy application package the six (6) work day time frame includes:

    • Depositing of the money.

    • Establish record in LINUS.

    • Establishment in EDS, when required.

    • Generating and mailing of the acknowledgement notice.

    • Shipping of the hard copy to EP/EO Processing.

  4. For a TEDS application package the six (6) work day time frame includes:

    • Depositing of the money.

    • Establish record in LINUS.

    • Exporting the package to the repository

    • Generating and mailing of the acknowledgement notice.

  5. EP/EO correspondence/additional documents has a required turn around time frame of three workdays. The three (3) work days include batch, processing through the TEDS system and making the image available to view in the repository. it does not include shipping of the hard copy to EP/EO Processing in Cincinnati.

  6. Shipping of the hard copy to EP/EO Processing in Cincinnati must be completed within in two work days of the images available within the repository.

  7. User Fees will be deposited according to required time frames. Refer to IRM 3.8.45, and IRM 3.30.123.

  8. Additional payments are to be batched and controlled within 1 day of receipt within EP/EO Determination Deposit Unit (CSPC). Additional deposits must be deposited within two workdays of receipt. See IRM 3.45.1.5.11.

  9. The earliest receive date in inventory will be processed first, with exceptions to the expedite cases, expedite cases takes priority.

  10. All expedite packages are to be worked within two days of IRS receipt.

  11. The EO Closed Cases are batched and processed as multiple batches per box. The work must be controlled on an inventory mechanism within one (1) workday of receipt at the campus. The box is split into multiple batches to assist with processing through the imaging system. No set number of packages is required per batch, however it is recommended the box is split in half to create two batches. The EO Closed cases will be imaged, data captured, verified, and transhipped to the Cincinnati Area Office within 15 calender days, additional time is allowed during peak time frames.

  12. Additional time to process a package "must" be coordinated through TE/GE Submission Processing Programs analyst assigned oversight of the Determination Process.

3.45.1.2.2.1  (01-01-2009)
Control and Routing of EP/EO Determination User Fee Unit Inventory

  1. All work must be batched and controlled on the Batch/Block Tracking System (BBTS) under the appropriate program code:

    Type of Work Program Code
    EO Applications - Legacy 13150
    EP Application - Legacy 72870
    EO Closed Cases 13159
    EP Closed Cases 72879
    EO Applications - TEDS 13155
    EP Applications - TEDS 72875
    EO Additional Payments 13151
    EP Additional Payments 72871
    EO Additional Document Filing (ADF) - Non-remit 13152
    EP Additional Document Filing (ADF) - Non-remit 72872

  2. Each batch of work will be routed through:

    • Sorting

    • Batching

    • Payment processing

      Note:

      Not applicable to EOCC

    • Document Preparation (Doc Prep)

      Note:

      Not applicable to EOCC

    • Batch Scanning Module

      Note:

      Not applicable to Legacy process

    • Form Identification Module (identify forms auto)

      Note:

      Not applicable to Legacy process

    • Package integrity Verification Module (verifies required documents)

      Note:

      Not applicable to Legacy process

    • Manual Form identification (step of fix-up)

      Note:

      Not applicable to Legacy process

    • Rescan (step of fix-up)

      Note:

      Not applicable to Legacy process

    • Package Completion Module

      Note:

      Not applicable to Legacy process

    • Package Verification Module

      Note:

      Not applicable to Legacy process

    • Printing labels

      Note:

      Not applicable to EOCC or Legacy process

    • Generating Acknowledgment Notice

      Note:

      Not applicable to EOCC

    • Electronic Stored to Documentum Module

      Note:

      Not applicable to Legacy process

    • Reconstitute Package Module

      Note:

      Not applicable to Legacy process

  3. All EO Closed cases will have the Doc Prep completed prior to arriving at CSPC for imaging, with the exception on inserting the "Package" and "Batch" control sheet.

  4. If package(s) were pulled from batch for Doc Prep issues, close the batch on BBTS and forward the completed packages to EP/EO Determination Processing Section. The pulled package(s) will be processed under a new batch number and identified as fixed cases.

  5. The table below provides information for the TEDS Batch Control Number format per package type.

    Package Type Batch Control Number Format Format Description
    New Application ABBBBYYJJJ A designates that the batch is an application package
    BBBB is the four digit BBTS batch number that was entered by the scan operator
    YY is the last 2 digits of the year
    JJJ is the Julian date that the batch was scanned
    Additional Document Filing DNNNNYYJJJJ D designates that the batch is an Additional Document Filing package
    NNNN is a sequential identifier that begins at 001 each day
    YY is the last 2 digits of the year
    JJJ is the Julian date that the batch was scanned
    EO/EP Closed Cases EBBBBYYJJJ E designates that the batch is an EO or EP Closed Case package
    BBBB is the four digit BBTS batch number that was entered by the scan operator
    YY is the last 2 digits of the year
    JJJ is the Julian date that the batch was scanned
    Correspondence Case CBBBBYYJJ C indicates that the batch is a correspondence case package
    BBBB is the four digit BBTS batch number that was entered by the scan operator
    YY is the last 2 digits of the year
    JJJ is the Julian date that the batch was scanned

3.45.1.2.3  (01-01-2009)
User Fee Schedule for EP and EO Determination Applications

  1. The IRS announced increases in selected user fees - including fees for letter rulings and determination letters for Employee Plans (EP) and Exempt Organizations (EO) for 2006.

  2. Effective July 1, 2006, under the revised and centralized EP determination letter program, fees for opinion and advisory letters and determination letters involving Form 5300, 5307, and 5310, which currently range from $125 to $6,500, increase to $200 to $15,000.

  3. Effective July 1,2006, EO fees for determination letters and requests for group exemption letters, which currently range from $150 to $500, increase to $300 to $900.

  4. Table below provides old and new user fees for EP and EO determination letters

    Form Pay Type Fee Prior to July 1, 2006 Fee July 1, 2006
    1023 Initial Request - Gross Receipts less than $10,000 $ 150.00 $300.00
    1023 Initial Request - Gross Receipts $10,000 or more $500.00 $750.00
    1024 Initial Request - Gross Receipts less than $10,000 $150.00 $300.00
    1024 Initial Request - Gross Receipts $10,000 or more $500.00 $750.00
    1025 Initial Request - Gross Receipts less than $10,000 $150.00 $300.00
    1025 Initial Request - Gross Receipts $10,000 or more $500.00 $750.00
    1026 Group Rulings $500.00 $900.00
    1028 Initial Request - Gross Receipts less than $10,000 $150.00 $300.00
    1028 Initial Request - Gross Receipts $10,000 or more $500.00 $750.00
    5300 With Demo 5 and/or Demo 6 $1,250.00 $1,800.00
    5300 No Demo 5 or Demo 6 $700.00 $1,000.00
    5300 Multiple Emp. 2-10 With Demo 5 and/or Demo 6 $1,250.00 $2,300.00
    5300 Multiple Emp. 11–99 With Demo 5 and/or Demo 6 $2,000.00 $2,300.00
    5300 Multiple Emp. 100–499 With Demo 5 and/or Demo 6 $3,500.00 $15,000.00
    5300 Multiple Emp. over 499 With Demo 5 and/or Demo 6 $6,500.00 $15,000.00
    5300 Multiple Emp. 2-10 No Demo 5 and/or Demo 6 $700.00 $1,500.00
    5300 Multiple Emp. 11–99 No Demo 5 and/or Demo 6 $1,400.00 $1,500.00
    5300 Multiple Emp. 100–499 No Demo 5 and/or Demo 6 $2,800.00 $10,000.00
    5300 Multiple Emp. over 499 No Demo 5 and/or Demo 6 $5,600.00 $10,000.00
    5307 With Demo 5 and/or Demo 6 $1,000.00 $1,000.00
    5307 No Demo 5 or Demo 6 $125.00 $300.00
    5310 With Demo 5 and/or Demo 6 $375.00 $1,800.00
    5310 No Demo 5 or Demo 6 $225.00 $1,000.00
    5310 Multiple Emp. 2–10 With Demo 5 and/or Demo 6 $375.00 $2,300.00
    5310 Multiple Emp. 11–99 With Demo 5 and/or Demo 6 $600.00 $2,300.00
    5310 Multiple Emp. 100–499 With Demo 5 and/or Demo 6 $1,000.00 $15,000.00
    5310 Multiple Emp. over 499 With Demo 5 and/or Demo 6 $2,000.00 $15,000.00
    5310 Multiple Emp. 2–10 No Demo 5 or Demo 6 $225.00 $1,500.00
    5310 Multiple Emp. 11–99 No Demo 5 or Demo 6 $450.00 $1,500.00
    5310 Multiple Emp. 100–499 No Demo 5 or Demo 6 $9,000.00 $10,000.00
    5310 Multiple Emp. over 499 No Demo 5 or Demo 6 $1,800.00 $10,000.00
    6406 Minor Amendment No Demo 5 or Demo 6

    Note:

    Obsolete as of 7-9-2007, Rev Proc 2007-44

    		 $125.00 $300.00
    9999 Group Trust $750.00 $750.00

    .

  5. In accordance with the income tax treaty between the United Sates and Canada, Canadian registered charities are automatically recognized as exempt under 501(c)(3) without filing an application for exemptions. Therefore, no user fee is required when a Canadian registered charity submits all or part of a Form 1023.

3.45.1.2.4  (01-01-2009)
Systems Used to Process the EP/EO Applications

  1. The Letter Information Network User Fee System (LINUS) provides TE/GE with a financial database for all Determination user fees. LINUS is an integral step in the processing of the applications. Acknowledgment notices and the EP/EO Determination Input Sheets are generated from this System.

  2. The EP/EO Determination System (EDS) is an automated system for processing determination applications. EDS is a menu-driven system with four available subsystems. Refer to IRM 7.4.3.

  3. Modified Exempt Determination System(TEDS), is the system intended to replace EDS. In TEDS all documentation in an application package is scanned and data is captured as index fields. Images are available through Documentum. Not all applications are processed through TEDS, Applications are processed through TEDS per the TEDS Project schedule. Until the applications are processed through TEDS they will be processed through the Legacy systems LINUS and EDS.

  4. Headquarter Employee Plan system (HQEP), is the system used to process the M&P and the VSC application's user fees. HQMAPICS provides an audit trail covering a daily schedule of user fee collections for specific dates and user fee receipts by fee type.

3.45.1.3  (01-01-2009)
Sorting Applications Within the EP/EO Determination Letter Application Manual Deposit Unit - AKA Second Sort

  1. This section provides procedures fine sorting the applications within the EP/EO Determination Letter Application Manual Deposit Unit.

    Note:

    For Extracting procedures refer to IRM 3.10.72, Extracting, Sorting and Numbering.

3.45.1.3.1  (01-01-2009)
Received Date and Postmark Date

  1. The EP/EO determination applications should be dual stamped within the Extraction Unit, however, it is the responsibility of the EO/EP Determination Remittance Technician during second sort to verify the application was stamped correctly. This section provides procedures for the Postmark and Received Date.

  2. The EP/EO application packages are all dual stamped with the Postmark Date and the Received Date on the appropriate page of the package type. The table below provides examples of the documents that are dual stamped per the package type:

    Package Type Form / Page
    Form 5307 Form 5307 page 1
    Form 5300 Form 5300 page 1
    Form 5310 Form 5310 page 1
    Form 1023 1st page of the application
    Form 1024 Form 1024 page 1
    ADF packages - Remit & Non-remit AIS

    Note:

    Do not place the stamp over the information which may be relevant to reaching a determination regarding the qualification of the plan.

  3. The Received Date is stamped on the right.

    Note:

    The "Received Date" is the "first" IRS received date except for the ADF & EOCC/EPCC packages. Refer to paragraph below for ADF receive date..

  4. The Received Date for an ADF package is the date the package was received within the CSPC EP/EO Determination User Unit.

  5. The Received Date for an EOCC/EPCC package is the date the package was received within the CSPC EP/EO Determination User Unit.

  6. The Postmark Date is stamped on theleft.

  7. Take the following action for missing or illegible postmarks:

    If . . . Then . . .
    the postmark is missing or illegible use the date stamp on the envelope as the postmark date
    there is no date stamp on the envelope use the IRS received date as the postmark date
    Faxed ADF package Use the date it was faxed to CSPC EP/EO Determination User Fee Unit

  8. It is imperative to determine the correct postmark and received date. The control date for EP and EO applications are taken from the postmark date.

  9. For EP the beginning of the declaratory judgement date is determined by the control date and for EO the control date determines if the organization has timely submitted the application .

  10. All submissions must be sorted and batched per the IRS receive date. If multiple IRS receive dates are mixed within a batch the oldest IRS receive date it used to determine the age of the batch.

  11. The IRS receive date is captured for all packages processed through TEDS. The IRS receive date must be captured during the initial steps of scanning the batch.

3.45.1.3.2  (01-01-2009)
EO Applications With Remit, (Form 1023, 1024, 1025, 1026, and Form 1028)

  1. Sort the work in numerical order

    • Form 1023 - Application for Recognition of Exemption - 501 (c)(3)

    • Form 1024 - Application for Recognition of Exemption - 501 (a)

    • Form 1025 - Applications requesting exemption for which there is no application, will be processed using the cover letter in lieu of the application.

    • Form 1026 - A request for group exemption for which there is no application, will be processed using the cover letter in lieu of the application. Organizations will request to be recognized as central organization in their cover letter, providing a list of their related subordinate organizations

    • Form 1028 - Sec 521 Farmer's Cooperative

  2. Additional sort for the EO applications are as follows:

    • TEDS Process

    • Legacy

    • Obsolete Version

    • Insufficient User Fees

    • Expedite Request

    • Follow up Applications

    • Failure to Establish (FTE)

    • Congressional Letters

    • VEBA applications

  3. Sort and associate the EO applications as follows:

    1. Review submission for a Congressional Letter.

    2. Scan for EXPEDITE criteria. If applicable place application in a pink folder for identification by the EP/EO Determination Section in Cincinnati.

    3. All expedite applications must be kept separate from the other applications and reported on the TE/GE Daily Release Report. Refer to Expedite procedures.

    4. Refer to 3.45.1.3.2.4 to determine if the EO Applications requesting expedite process should be processed as an expedite application.

    5. Verify the Employer Identification Number (EIN) to ensure validity, (ie 9 digit).

    6. If the EIN is not present, or valid, search through the remainder of the application for a valid EIN, if one is found, verify the EIN via IDRS research. If an EIN is found, write the EIN in "RED" on the application and the Form 8718, or part XI User Fee Information for the Form 1023 .

    7. If unable to find a valid EIN, put the entire application package in the Entity basket for IDRS research.

      Note:

      If Form SS-4 is found within the application package place it on the top of the package before placing it in the Entity basket.

    8. Thumb through the application package to ensure there are not other applications or remittances within the submission.

    9. Verify the check is made payable to United States Treasury.

    10. Write the money amount in the top right corner Form 8718, for Form 1023 write the money amount on page 12, Part XI - User Fee Information directly above the EIN, do not write the application number in the top left corner.

    11. Occasionally you will receive a "multi" Multiple remittances used for paying one fee; or a "split" one remittance used for paying fees on multiple applications.

    12. If a multi or split is received, a notation must be made in the upper left hand corner of the Form 8718, or page 12 of the application. showing how many checks were received and the total fee received. M-N (M= multi, N= number of checks received)

      Note:

      Omit the dollar sign, decimal following zeros when writing dollar amounts, (i.e. $250.00 will be written as 250)
      EXCEPTION: Annotate cents when actual cent amount is received, (i.e. $250.75 will be written as 250.75)

    13. On Form 1026 write "Gr. Ruling" in the upper right corner.

    14. Remove the staples from the check and paper clip the check to the front of the Form 8718.

    15. Stagger the application package documents in the following order, except for the Form 1023 .
      Form 8718
      Application
      Form 8821 or Form 2848, if applicable
      Cover Letter

    16. Assemble the Form 1023 in the following order:
      Form 1023 checklist
      Form 2848, Power of Attorney and Declaration of Representative (if filing)
      Form 8821, Tax Information Authorization (if filing)
      Expedite request (if requested)
      Application - Form 1023 and Schedules A-H, as required
      Articles of organization
      Amendments to articles of organization in chronological order
      Bylaws or other rules of operation and amendments
      Documentation of nondiscriminatory policy for schools, as required by Schedule B
      Form 5768 (if filing)
      All other attachments, including explanations, financial data, and printed materials or publications.
      Form 8718, if one was filed with the application.

    17. The envelope must be "torn down" , leaving only the front of the envelope attached to the application package.

    18. Verify all necessary items have been date stamped properly

    19. Bind applications together

    20. Band application in packs of 5, when possible

      Note:

      DO NOT mix form types

    21. Attach Pink Batch Ticket to front of pack

  4. The Batch Ticket contains the following information:

    1. EO 1023, 1024, 1025, 1026 or 1028 W/R (use appropriate form number)

    2. Rec. Date

    3. Vol XX

    4. Employee Initial

  5. If an EO application is received from the filer and has been returned to the applicant from EO Determination processing, the application will be processed as a new application. EO cases will no longer be processed as a RESUB. The following actions will be followed:

    • Circle out all prior DLNs, postmark dates, and receive dates.

      Note:

      Do not cross them out, for audit purposes the prior DLN must be available to view.

    • Circle out all prior annotations of prior user fees.

    • Stamp and process the application with a new DLN.

  6. For additional information on procedures for perfecting the payment document see IRM 3.8.45, Manual Deposit Process.

  7. Form 1025 must have an IDRS print of BMFOLO to verify the organization's address.

  8. Form 1026 must have an IDRS print of BMFOLO to verify the organization is in current status "01" and to obtain an address for the organization. If status is not "01" see your work leader.

  9. If a Non-IRS application is received from the filer process as an IRS application if information is available to deposit money. If information is missing refer to procedures for incomplete application and payment perfection process.

3.45.1.3.2.1  (01-01-2009)
VEBA Applications

  1. Sort Form 1024 applications received with "VEBA" written across the top of the application from the other applications

  2. Process the application per the procedures for processing the Form 1024 applications.

  3. Transship the VEBA applications in a separate box to EO/EP Processing Unit.

  4. Provide the count of the VEBA applications on the TEGE Release report with the other Form 1024 applications. Do Not break the count out separate.

3.45.1.3.2.2  (01-01-2009)
Obsolete EO Applications Revision Dates

  1. EO Division has approved returning EO applications if they are filed on an obsolete revision. The table below provide the valid version all other reversions are considered obsolete and will be processed as an obsolete form.

    Form Purpose of Form Valid Revision Date
    8718 User Fee Form

    Note:

    If application is received with invalid revision, CSPC will prepare valid revision

    		 6/2006
    1023 Application for Exemption for 501(c)(3) 6/2006
    1024 Application for non 501(c)(3) subsections 9/1998
    1028 Application for Exempt for Farmers' Co-ops (section 521) 9/2006
    8734 Form for Advance ruling follow-up cases 1/2004

  2. Applications filed on an application other than valid revision will be returned to the filer by the EO Determination Processing Section.

  3. Obsolete applications must be sorted from the other EO applications during second sort. They are not to be batched with the valid revisions. Refer to procedures in section above for EO Applications with Remit.

  4. If the filer submits their application on an obsolete version and the user fee is insufficient, the application will be processed as an obsolete application. Refer to table below for sorting obsolete applications filed as an initial submission:

    If and then process as
    application is filed on an obsolete version with an incorrect user fee, obsolete application
    application is filed on an obsolete version with an incorrect user fee and a request for expedite treatment obsolete application
    application is filed on an obsolete version a request for expedite treatment obsolete application
    application is filed on an obsolete version with correct user fee obsolete application
    No application only Form 8718 or pg. 12 for Form 1023 with correct user fee obsolete application
    No application only Form 8718 or pg. 12 for Form 1023 with incorrect user fee obsolete application

3.45.1.3.2.3  (01-01-2009)
Insufficient User Fee

  1. EO Division has approved returning EO application to the filer if filed with an insufficient User Fee.

    Note:

    This is for all applications with the postmark date of July 1, 2006 or later.

  2. EO Applications filed with an insufficient user fee will be returned to the filer by the EO Determination Processing Section if the additional user fee is not received within 90 days.

  3. The EO applications with insufficient user fees must be sorted from the other EO applications. All other sorting procedures apply. Refer to procedures in section above for EO Applications with Remit.

  4. If the application is filed on an obsolete form revision and received with an insufficient user fee, sort and process the application as a obsolete application.

  5. If the filer is asking for expedite treatment and has submitted an insufficient user fee, sort and process the application as an insufficient user fee application.

  6. Insufficient user fee applications must have some user fee with the application. If the application is given a non-remit DLN, it is notconsidered an insufficient user fee application the application is process as a non-remit application.

  7. The only valid user fees are:

    • $300.00

    • $750.00

    • $900.00

    • or a combined total of multiple payments that " equal " one of the user fees listed above.

3.45.1.3.2.4  (01-01-2009)
Sorting Expedite Applications

  1. EP/EO applications that request expedited processing, and meet criteria will be processed within 2 work days, forwarded to EP/EO Determination Processing Section and separated from the other applications. All special expedites, such as applications as a result from a disaster will be processed according to time frames given in specified disaster procedures.

  2. When processing an expedite application through TEDS the procedures are the same as when processing them through Legacy with the exception as stated below:

    • Batched separately from other applications

    • Expedite letter is placed behind the "Correspondence Control Sheet" during Doc Prep.

    • Annotation is required during Doc Prep to identify the application is to be processed as an expedite. Refer to expedite indicators for TEDS.

    • Priority at the time of scanning must be set at "1" .

    • Expedite indicator is captured during Data Completion and verified during Data Verification.

  3. Requests for expedited treatment of an application must be made in writing and must contain a compelling reason why the case should be worked ahead of other applications. Generally, expedited treatment will be granted if the application has a grant pending and the failure to secure the grant may have an adverse impact on the organization's ability to continue operations.

  4. EO applications requesting expedite processing will not qualify as an expedite if filed on an invalid version, submitted as a non-remit application or received with an insufficient user fee.

  5. Applications that the purpose of the newly created organization is to provide disaster relief to victims of emergencies such as flood and hurricanes, will be treated as an expedite application.

3.45.1.3.2.4.1  (01-01-2009)
Applications Received For China Earthquake Disaster - May 2008

  1. All Form 1023 application and/or cover letters that have Disaster Relief: "China Earthquake" written at the top of the application or some statement referring to the disaster relief indicated on the application or within the cover letter will be treated as an expedite application. Refer to section 3.45.1.8 for expedite procedures.

  2. If the application is processed through TEDS the "001-Proposed Expedites" is selected for the expedite indicator.

  3. If form is an obsolete form, process the request as an obsolete application.

  4. If the application is received with an insufficient user fee, process the request as an insufficient application.

  5. If the application is received as a non-remit application, process the request as a non-remit.

3.45.1.3.2.4.2  (01-01-2009)
Applications Received For State of California Wildfire Disaster

  1. All Form 1023 application and/or cover letters that have Disaster Relief: "State of California Wildfire" written at the top of the application or some statement referring to the disaster relief indicated on the application or within the cover letter will be treated as an expedite application. Refer to section 3.45.1.8 for expedite procedures.

  2. If the application is processed through TEDS the "001-Proposed Expedites" is selected for the expedite indicator.

  3. If form is an obsolete form, process the request as an obsolete application.

  4. If the application is received with an insufficient user fee, process the request as an insufficient application.

  5. If the application is received as a non-remit application, process the request as a non-remit.

3.45.1.3.2.4.3  (01-01-2009)
Indian Ocean Tsunami Relief

  1. The purposes of section 170 of the Internal Revenue Code of 1986, a taxpayer may treat any contribution made in January 2005 as if the contribution was made on December 31, 2004. If such contribution is a cash contribution made for the relief of victims in areas affected by the December 26, 2004, Indian Ocean tsunami for which a charitable contribution deduction is allowable under section 170 of the Internal Revenue Code of 1986.

  2. New organizations seeking tax-exempt status to provide relief to victims of the December 2004 tsunami in Southeast Asia should apply by filing Form 1023 and write at the top of the form "Tsunami Relief." The IRS will give such applications immediate attention.

  3. Tsunami Relief requests will be treated as an expedite application and placed inside a pink folder.

  4. If the application is processed through TEDS the "103-Tsunami Expedites" is selected for the expedite indicator.

3.45.1.3.2.4.4  (01-01-2009)
Applications filed indicating that they are for Hurricane Katrina , Rita & Wilma

  1. All Form 1023 application and/or cover letters that have Disaster Relief: Hurricane Katrina, Hurricane Rita or Wilma written at the top of the application or disaster relief indicated within the cover letter will be treated as an expedite application.

  2. If form is an obsolete form, process the request as an obsolete application.

  3. If the application is received with an insufficient user fee, process the request as an insufficient application.

  4. If the application is received as a non-remit application, process the request as a non-remit.

  5. The following paragraph was issued to the public concerning the hurricane and how the public should submit the Form 1023:
    Newly formed Hurricane relief organizations should write Disaster Relief: Hurricane Katrina, Rita or Wilma at the top of the IRS application Form 1023. Applications for Recognition of Exemption from Federal Income Tax Under Section 501(c)(3) of the Internal Revenue Code, and on the envelope. The IRS will give such applications immediate attention.

  6. If the application is processed through TEDS the "103-Katrina Expedites" is selected for the expedite indicator.

3.45.1.3.3  (01-01-2009)
Sorting EP Applications with Remit (Form 4461, 5300, 5307, 5310, 5310-A, and Form 6406)

  1. The work is sorted in numerical order, Form 4461 through Form 9999.

  2. The following are applications filed for EP

    Form Number Description
    4461 Application for Approval of Master or Prototype or Volume Submitter Defined
    4461-A Application for Approval of Master or Prototype or Volume Submitter Defined Benefit Plan
    4461-B Application for Approval of Master or Prototype or Volume Submitter Defined Contribution Plan; Mass Submitter Adopting Sponsor or Practitioner
    5300 Application for Determination for Employee Benefit Plan
    5307 Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans
    5310 Application for Determination for Terminating Plan
    5310–A Notice of Plan Merger or Consolidation, Spin-off, or Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Line of Business
    6406 Short Form Application for Determination for Minor Amendment of Employee Benefit Plan

    Note:

    Per Rev Proc 2007-44 the Form 6406 is obsolete effective July 9, 2007.

  3. If an organization requests to file as a group trust, they may do so with a cover letter. This request is considered to be a "Form 9999" .

  4. Make sure that all applications that are received in the same envelope or are identified in the mail room as applications that came in together stay together. It is important that these applications stay together.

  5. The following information is required on the Form 8717. If any of the information is missing the employee sorting must fill in the missing information.

    Note:

    ALL approved editing must be done in "RED" no other editing should be done on the document.

    • Line 1 - Name of plan sponsor

      Note:

      If two entity names are listed on the "Sponsors Name Line" , research IDRS to find the correct sponsors name.

    • Line 2 - Sponsor's employer identification number (EIN)

    • Line 3 - Plan Name

    • Line 4 - Plan Number

    • Line 5a thru 5h - appropriate indicator box

  6. Verify the employer identification number (EIN) is present and valid, (i.e. 9 digit number).

    • If the EIN is not present, or valid, search through the remainder of the application for a valid EIN, if one is found, verify the EIN via IDRS research. If an EIN is found, write the EIN in "RED" on the application and the Form 8717.

    • Verify the EIN is the same as on the application . If not place application in the Entity Basket for additional research.

    • If unable to find a valid EIN, put the entire application package in the Entity basket for IDRS research.

      Note:

      If Form SS-4 is found within the application package place it on the top of the package before placing it in the Entity basket.

    • Thumb through the application package to ensure that there are not other applications or remittances within the submission.

  7. Verify the check is made payable to United States Treasury.

  8. Write the money amount in the top right corner of the Form 8717.

    Note:

    Occasionally you will receive a "multi" Multiple remittances used for paying one fee; or a "split" one remittance used for paying fees on multiple applications.

  9. If a multi or split is received, a notation must be made in the upper left hand corner of the 8717, showing how many checks were received and the total fee received.

    Note:

    M-N (M= multi, N= number of checks received).

    Note:

    Omit the dollar sign, decimal following zeros when writing dollar amounts, (i.e. $250.00 will be written as 250).
    EXCEPTION: Annotate cents when actual cent amount is received, (i.e. $250.75 will be written as 250.75).

  10. See table below for additional required editing on the Form 8717:

    If Transaction Type . . . Then notate as . . . Description
    Multi M-nn When more than one payment submission is attached
    Split S-nn When payment submission are split between applications
    Memo Entry ME When payment submissions are processed at another campus and application is processed at CSPC

  11. If an EP application is received from the filer and has been returned to the applicant from EP Determination processing, the application will be processed as a new application. Effective November 15, 2006 EP Determination Section asked that the cases no longer be processed as a RESUB. The following actions will be processed as follows:

    • Circle out all prior DLNs, postmark dates, and receive dates.

      Note:

      Do not cross them out, for audit purposes the prior DLN must be available to view.

    • Circle out all prior annotations of prior user fees.

    • Stamp and process the application with a new DLN.

  12. Organize the application package documents in the following order:
    Form 8717
    Application
    Form 8821 or Form 2848, if applicable
    Cover Letter

  13. The envelope must be "torn down" , leaving only the front of the envelope attached to the application package.

  14. Verify all necessary items have been date stamped properly

  15. Band application in packs of five (5), when possible

    Note:

    DO NOT mix form types unless they came in together.

  16. Attach Orange Batch Ticket to front of pack.

  17. The Batch Ticket contains the following information:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.3.1  (01-01-2009)
Sorting Form 4461 - Volume Submitter (VS) Specimen Plans

  1. If block "5g(1)" on the Form 8717 is checked, it is treated as a Volume Submitter Specimen Plan. The User Fee of $1,500.00 per plan is required.

  2. Volume Submitter Plans must have a VS# written on top of the Form 8717 before it can be processed through LINUS. If no VS# is present complete Form 3210 and send the submission to:

    Internal Revenue Service
    Employee Plans - Room 5106
    Attn: Volume Submitter Coordinator
    P.O. Box 2508
    Cincinnati, OH 45201

    Internal Revenue Service
    Employee Plans - Room 5106
    Attn: Volume Submitter Coordinator
    550 Main St.
    Cincinnati, OH 45202

3.45.1.3.3.2  (01-01-2009)
Sorting Form 5300, 5307, 5310, and Form 6406

  1. Verify the check is made payable to United States Treasury.

  2. Write money amount in the top right corner of Form 8717.

  3. Paper clip check to the front of the Form 8717.

  4. Verify all documents have been properly date stamped.

  5. Ensure no other applications are enclosed in the submission.

  6. As of June 17, 2002, the Service issues a unique number to any Power of Attorney (POA) who wishes to have their submissions (Forms 5307 and/or 5300) kept together to be worked in the same area of the country.

    Note:

    Referred to as the Green Number.

  7. To participate, the POA must have at least 30 applications that will be filed at one time. The POA cannot request a specific area and/or agent receive their submissions.

  8. Sponsors will be issued a number that must be written on every application in green ink on the upper left-hand corner of the first page of the application.

  9. Band together all of the items above in packs of five (5).

  10. Attach Orange Batch Ticket to front of pack, except for the Form 5307 which has a Blue Batch Ticket.

  11. The Batch Ticket contains the following information:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

  12. When Form 6406 has completed processing it must be transhipped directly to the following address:

    Internal Revenue Service
    550 Main St.
    FOB Room 2405
    Attn: EP Lead Technical Screener
    Cincinnati, OH 45201

3.45.1.3.3.2.1  (01-01-2009)
Unprocessable EP Applications

  1. EP application packages will be considered unprocessable if any of the following information is missing. The package will be forwarded to the "Exception Sub-Process" to research for missing items. All editing MUST be done in RED.

    • Page 1 of the application

    • Form 8717

    • Name- Block 1a

    • Address - Block 1a

    • Employer Identification Number (EIN) - Block 1b

    • Plan Number - block 4b

    • Postmark date

    • Received date

3.45.1.3.3.2.2  (01-01-2009)
Sorting Form 5300 — Remit Multiple Employer Plans

  1. A Multiple-employer plan is a plan that is maintained by more than one employer and may file for a separate determination letter using Form 5300.

3.45.1.3.3.2.2.1  (01-01-2009)
Form 5300 - Multiple-Employer Remit Lead Plan

  1. Verify the check is made payable to United States Treasury.

  2. Write money amount in the top right corner of Form 8717.

  3. Paper clip check to the front of the Form 8717.

  4. Flag the application that has the exact same EIN in item 1b and the exact same plan name in item 4a of Forms 5300 as in item (2) and (3) of Form 8717, respectively.

  5. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  6. Verify all documents have been properly date stamped.

  7. Ensure no unrelated applications are enclosed in the submission.

  8. Copy the first page of the Form 5300 Lead Plan application and attach the copy to the top batch of the Form 5300 applications filed for the participating employers.

  9. Attach Batch Ticket to front of pack.

  10. The Batch Ticket contains the following information:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.3.2.2.2  (01-01-2009)
Form 5300 - Multiple-Employer With Participating Employers

  1. Prepare a Form 8717 if one is not provided by the filer.

  2. The following information is required on the Form 8717 if prepared by IRS:

    • Schedule Fee indicator of the Lead Plan

    • Write "0" in the top right corner of Form 8717

  3. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  4. Verify all documents have been properly date stamped.

  5. Ensure no unrelated applications are enclosed in the submission.

  6. Associate the copy of the Form 5300 Lead Plan to the folder of the first Form 5300 participating employer's application.

    Note:

    This copy will assist EP Rulings and Agreement in re-associating the lead plan with the participating employer's plans.

  7. Batch Ticket to front of pack.

  8. The Batch Ticket contains the following information:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

  9. The envelope will not be copied and attached to the participating employer's applications. The envelope will remain attached to the application for the lead plan.

  10. When possible all Form 5300 applications for the participating employers are to be batched in the same batch. This will assist in keeping all the applications together,

3.45.1.3.3.2.3  (01-01-2009)
Sorting Form 5310 - Application for Determination for Terminating Plan

  1. Plan sponsors or administrators of pension, profit-sharing, or other deferred compensation plans use Form 5310 to ask IRS to make a determination on the plan's qualification status at the time of the plan's termination.

  2. The lead plan is required to pay the required user fee. All other concurrently filed Forms 5310 are not required to pay a user fee.

3.45.1.3.3.2.3.1  (01-01-2009)
Form 5310 - Application for Determination for Terminating Plan - Remit Multiple Employer (Lead) Plan

  1. Verify the check is made payable to United States Treasury.

  2. Write money amount in the top right corner of Form 8717.

  3. Paper clip check to the front of the Form 8717.

  4. Flag the application that has the exact same EIN in item 1b and the exact same plan name in item 4a of Forms 5310 as in item (2) and (3) of Form 8717, respectively.

  5. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  6. Verify all documents have been properly date stamped.

  7. Ensure no unrelated applications are enclosed in the submission.

  8. Copy the first page of the Form 5310 Lead Plan application and attach the copy to the top batch of the Form 5310 applications filed for the participating employers.

  9. Attach Batch Ticket to front of pack.

  10. The Batch Ticket contains the following information:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.3.2.3.2  (01-01-2009)
Form 5310 - Application for Determination for Terminating Plan - Participating Employers

  1. Prepare a Form 8717 if one is not provided by the filer.

  2. The following information is required on the Form 8717 if prepared by IRS:

    • Schedule Fee indicator of the Lead Plan

    • Write "0" in the top right corner of Form 8717

  3. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  4. Verify all documents have been properly date stamped.

  5. Ensure no unrelated applications are enclosed in the submission.

  6. Associate the copy of the Form 5310 Lead Plan to the folder of the first Form 5310 participating employer's application.

    Note:

    This copy will assist EP Rulings and Agreement in re-associating the lead plan with the participating employer's plans.

  7. Batch Ticket to front of pack.

  8. The Batch Ticket contains the following information:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

  9. The envelope will not be copied and attached to the participating employer's applications. The envelope will remain attached to the application for the lead plan.

  10. When possible all Form 5310 applications for the participating employers are to be batched in the same batch. This will assist in keeping all the applications together.

3.45.1.3.3.2.4  (01-01-2009)
Sorting Form 9999 (no application) - Remit

  1. Form 9999 was created because there is no designated application form for a Group Trust. A group trust may request a determination letter by writing a cover letter and requesting the approval of such trust. To input the request on the LINUS and TEDS systems.

  2. The following steps are taken to prepare package for processing:

    1. Print IDRS INOLESusing the definer code "P" .

    2. Print IDRS INOLES without the P if IDRS message is received "Record not found."

    3. Attach the INOLES research to the front of Form 8717.

    4. Write "Money amount" in the top right corner of Form 8717.

    5. Flag the cover letter (this acts as the application).

    6. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    7. Verify all of the documents have been properly date stamped.

    8. Band together all of the above documents.

    9. Band together in pack of five (5) when possible

    10. Attach orange batch ticket to front of pack.

  3. The batch ticket contains the following information:

    1. Form 9999 W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.4  (01-01-2009)
Sorting EP and EO Applications that are Non-Remit

  1. This section provides procedures for sorting applications received and processed as non-remit.

  2. Through out this section the Form 8718 is referred to, for the Form 1023 Part XI, User Fee information takes the place of the Form 8718.

3.45.1.3.4.1  (01-01-2009)
EO Applications Non-Remit

  1. EO application are Forms 1023, 1024, 1025, 1026, and 1028.

  2. All non-remit applications require up-front research to determine how the application is to be processed.

  3. If the Form 1023 non-remit application has a Canadian address the filer is not required to submit a user fee. The income tax treaty between the United States and Canada, recognizes a Canadian registered charity exempt under 501(c)(3). No user fee is required when a Canadian registered charity submits all or part of a Form 1023.

  4. The form 1023 for the Canadian organization will receive a Non-Remit DLN but will be treated as a valid application with a valid user fee and processed through TEDS.

  5. If application is filed on an invalid version, application will be processed as an obsolete application. No additional research is required. See IRM 3.45.1.3.2.2. for valid revision dates.

  6. Non-Remit applications are not established on EDS.

  7. The following rules apply to "Non-Remit Mail."

    1. Prepare Form 8718, if necessary.

    2. Edit in the money field of the Form 8718 "0" .

    3. Review each submission for a Congressional Letter.

    4. Scan the entire submission including the cover letter for any indication that the application was previously submitted.

    5. Research LINUS to determine the appropriate procedures to process the application.

      Original Application Filed on Obsolete Version
      LINUS Research shows and then and
      Prior application received and process as a obsolete application correct user fee was paid with original application and no additional money received with follow-up application process application as a Non-Remit Application Do not establish case in EDS.
      Prior application received and process as a obsolete application insufficient user fee was paid with original application and no additional money received with follow-up application process application as a Non-remit application do not establish in EDS
      Prior application received and process as a obsolete application insufficient user fee was paid with original application and additional money received with follow-up application. LINUS shows total user fee a valid amount. process application as a Follow-Up application establish case in EDS using postmark date from the new received application
      Prior application received and process as a insufficient User Fee application No user fee received and received on valid version Process as a Non-remit application do not establish in EDS
      Prior application received and process as a insufficient User Fee application No user fee received and received on valid version Process as a Non-remit application do not establish in EDS
      No prior application was received No user fee received and filed on a valid version Process as a Non-remit application do not establish in EDS

      Original Application Filed as Insufficient User Fee
      LINUS Research shows and then and
      Prior application received and process as an Insufficient application no additional money received with follow-up application process application as a Non-Remit Application Do not establish case in EDS.
      Prior application received and process as a Insufficient application insufficient user fee was paid with original application and additional money received with follow-up application. LINUS shows total user fee a valid amount. process application as a Follow-Up application establish case in EDS using postmark date from the new received application

    6. Verify the Employer Identification Number (EIN) to ensure validity. If no EIN can be found, place the case in the Entity basket with a Form SS-4, if one is available, on top.

    7. Cut down envelope to ensure all checks have been removed.

  8. Sort and associate the application as follows:

    1. Verify an indicator has been marked on the Form 8718.

    2. Complete Form 8718, if needed.

    3. Write "O" in the upper right corner of the Form 8718.

    4. Flag the application if it shows a different address than on EDS.

    5. Flag the POA, if present.

    6. Verify all necessary items have been properly date stamped.

    7. Circle out all previous DLNS and date stamps.

    8. Bind the submission together.

    9. Batch submissions in packs of five (5), when possible.

    10. Attach a yellow Batch Ticket to front of pack.

  9. The ticket contains the following:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.4.1.1  (01-01-2009)
Sorting Follow-Up Non-Remit Applications

  1. A Follow-Up application is an application that has been previously submitted and has received a letter from the IRS requesting additional information.

  2. A Follow-up application can also be a result of an prior application submitted as a obsolete application. The follow-up application can only be processed as a "Valid" application if the correct user fee was paid and filed on a valid form revision.

  3. Applications are considered a Follow-up application if LINUS shows a valid user fee paid and the user fee has not been refunded, identified as dishonored or shows a bracket around the money amount. Do not process Non-Remit Applications as a Follow-up application unless the following condition occurs.

    LINUS research shows and then and and
    Prior application received and processed as an obsolete application correct user fee was paid process application as a Follow up Application establish case in EDS using postmark date from the new received application identify application as a follow-up to obsolete application . Place application in a purple folder.
    Prior application received and processed as an obsolete application insufficient user fee was paid process application as a non-remit application Do not process as a Follow-Up Application Do Not establish in EDS  
    Prior application received and process as a insufficient User Fee application No additional user fee received Process as a non-remit application Do not process as a Follow-Up Application do not establish in EDS  

3.45.1.3.4.1.2  (01-01-2009)
Sorting EO FTE Non-Remit

  1. An FTE letter is sent to an organization when no response is received on an additional information request. The status is closed on EDS when an FTE letter is sent out. FTE letters begins "Our letter dated ddmmyyyy asked you to send us additional information..."

  2. Sort and associate the submission as follows:

    1. Research EDS to determine that the case is in status "11 or 12" .

    2. If case shows status 11 or 12, process application as a "S" cased.

    3. Batch Form 1023 and Form 1024 FTE separate.

    4. Complete Form 8718, if needed, and flag behind the EDS sheet.

    5. Write "O" in the upper right corner of the Form 8718.

    6. Circle out any previous received dates and DLNs.

    7. Paper clip the check to the front of the Form 8718.

    8. Flag the POA, if present.

    9. Verify all necessary items have been properly date stamped.

    10. Bind the submission together.

    11. Band submissions in packs of five (5), when possible.

    12. Attach yellow batch ticket to front of pack.

  3. If the application shows a different address than EDS, use the most current information.

    Note:

    To determine which is most current, compare the signature date on the application and the last status date on EDS.

  4. The batch ticket contains the following information:

    1. 1023 FTE N/R (use appropriate form number)

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.4.1.3  (01-01-2009)
Sorting Form 8734 - Support Schedule For Advance Ruling Period - Legacy

  1. The Form 8734 is filed at the end of the five year advance ruling period. The due date is within 90 days after the end of the advance ruling period. Some organizations which have not completed a tax year consisting of at least 8 months receive an advance ruling determination. The Form 8734 enables the IRS to determine the foundation code of the organization. A user fee is "not" required for Form 8734.

  2. The Form 8734 is not processed through TEDS.

  3. The Form 8734 must have a BMFOL print pulled and attached to all Form 8734s. The entity information is to be captured from the Form 8734, unless it is missing from the Form 8734 then the data is captured from the BMFOL print.

  4. If an organization provides a copy of the Form 990 Schedule A, it may be used in lieu of a completed Form 8734 if it contains sufficient entity information..

  5. Process as follows:

    1. Place Form 8734 on top of the submission.

    2. Flag the Power of Attorney (if submitted).

    3. Flag any notice of a change of an address.

    4. Print IDRS BMFOLO.

    5. Attach BMFOLO print, page 1 & 2, to the front of all Form 8734.

    6. Verify Form 8734 has been properly date stamped.

    7. Band together all of the above documents.

    8. Batch in packs of 10 when possible.

    9. Attach a yellow batch ticket to front of pack.

  6. The batch ticket contains the following information:

    1. ADV Ruling Form 1023 N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.4.2  (01-01-2009)
Sorting EP Applications Non-Remit

  1. EP application form numbers are 5300, 5307, 5310, 6406, 4461, and 9999.

  2. All applications received together must stay together, with the exception of the cases processed through TEDS.

  3. The following rules apply to "Non-Remit Mail"

    1. Prepare Form 8717, if necessary

    2. Verify the Employer Identification Number (EIN) to ensure validity. If no EIN can be found, place the case in the Entity basket with a Form SS-4, if available, with the Form SS-4 on top of the application

    3. Cut down envelope to ensure all checks have been removed

3.45.1.3.4.2.1  (01-01-2009)
Sorting Form 5300, 5307, 5310,4461, or 6406

  1. Process as follows:

    1. Write "0" in the top right corner of Form 8717

    2. Flag the application form

    3. Flag the Power of Attorney (if submitted)

    4. Verify all required documents have been properly date stamped

    5. Ensure no other applications are enclosed in the submission

    6. Band together all of the items above.

    7. Batch applications in pack of five (5) when possible

    8. Attach white batch ticket to front of pack

  2. The batch ticket contains the following information

    1. Form 5300, 5307, 5310,4461, or 6406, (use appropriate form)

    2. Rec date

    3. Vol XX

    4. Employee Initial

3.45.1.3.4.2.2  (01-01-2009)
Sorting Form 5300 — Multiple Employer Plans Non-Remit Lead Plan

  1. A Multiple-employer plan is a plan that is maintained by more than one employer and may file for a separate determination letter using Form 5300.

  2. The lead plan is required to pay the required user fee. All other concurrently filed Form 5300 are not required to pay a user fee.

3.45.1.3.4.2.2.1  (01-01-2009)
Form 5300 - Multiple-Employer Lead Plan

  1. Write "0" money amount in the top right corner of Form 8717.

  2. Flag the application that has the exact same EIN in item 1b and the exact same plan name in item 4a of Forms 5300 as in item (2) and (3) of Form 8717, respectively.

  3. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  4. Verify all documents have been properly date stamped.

  5. Ensure no unrelated applications are enclosed in the submission.

  6. Keep the Non-remit lead plan and the non-remit participating employer's plans together.

  7. Attach Batch Ticket to front of pack.

  8. The Batch Ticket contains the following information:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.4.2.2.2  (01-01-2009)
Form 5300 - Multiple-Employer AParticipating Employers

  1. Prepare a Form 8717 if one is not provided by the filer.

  2. The following information is required on the Form 8717 if prepared by IRS:

    • Schedule Fee indicator of the Lead Plan

    • Write "0" in the top right corner of Form 8717

  3. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  4. Verify all documents have been properly date stamped.

  5. Ensure no unrelated applications are enclosed in the submission.

  6. Batch Ticket to front of pack.

  7. The Batch Ticket contains the following information:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

  8. The envelope will not be copied and attached to the participating employer's applications. The envelope will remain attached to the application for the lead plan.

  9. When possible all Form 5300 applications. lead plan and participating employer's are to be batched in the same batch. This will assist in keeping all the applications together,

3.45.1.3.4.2.3  (01-01-2009)
Sorting Form 5310 — Applications for Determination for Terminating Plan - Non-Remit Lead Plan

  1. Plan sponsors or administrators of pension, profit-sharing, or other deferred compensation plans use Form 5310 to ask IRS to make a determination on the plan's qualification status at the time of the plan's termination.

  2. The lead plan is required to pay the required user fee. All other concurrently filed Form 5310 are not required to pay a user fee.

3.45.1.3.4.2.3.1  (01-01-2009)
Form 5300 - Terminating Lead Plan

  1. Write "0" money amount in the top right corner of Form 8717.

  2. Flag the application that has the exact same EIN in item 1b and the exact same plan name in item 4a of Forms 5310 as in item (2) and (3) of Form 8717, respectively.

  3. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  4. Verify all documents have been properly date stamped.

  5. Ensure no unrelated applications are enclosed in the submission.

  6. Keep the Non-remit lead plan and the non-remit participating employer's together.

  7. Attach Batch Ticket to front of pack.

  8. The Batch Ticket contains the following information:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.4.2.3.2  (01-01-2009)
Form 5310 - Terminating Plans - Participating Employers

  1. Prepare a Form 8717 if one is not provided by the filer.

  2. The following information is required on the Form 8717 if prepared by IRS:

    • Schedule Fee indicator of the Lead Plan

    • Write "0" in the top right corner of Form 8717

  3. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    Note:

    Verify correct POA is with the appropriate application.

  4. Verify all documents have been properly date stamped.

  5. Ensure no unrelated applications are enclosed in the submission.

  6. Batch Ticket to front of pack.

  7. The Batch Ticket contains the following information:

    1. Appropriate form number N/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

  8. The envelope will not be copied and attached to the participating employer's applications. The envelope will remain attached to the application for the lead plan.

  9. When possible all Form 5310 applications. lead plan and participating employer's are to be batched in the same batch. This will assist in keeping all the applications together.

3.45.1.3.4.2.4  (01-01-2009)
Sorting Form 5310-A if processed through Legacy

  1. This form is used to notify the Service if plans are involved in a merger, consolidation, transferring assets, or acting as a Qualified Separate Lines of Business (QSLOB). They usually submit more than 1 Form 5310–A. Float forms to the top for processing and the other form to the back of the first. Form 8717 is "not" applicable for a Form 5310-A because there is no user fee involved.

    1. Determine the surviving plan by reviewing all of the attachments and the cover letter.

    2. Place the Form 5310-A with the surviving plan on line 3a on top.

    3. Highlight the surviving plan (if unable to determine, highlight the plan on line 3a).

    4. Staple Form 5310-A showing the reversal of the consolidation or merger (surviving plan on line 5c) to the back of the Form 5310-A containing the surviving plan on line 3a.

    5. Flag the Power of Attorney Form 2848 or 8821 (if the sponsors name is the same as the Form 5310-A on the top and plan number is the same as the surviving plan).

    6. Verify all documents have been properly date stamped.

    7. Band together all of the above documents.

      Note:

      For QSLB omit b,c,d, and e procedures.

3.45.1.3.4.2.5  (01-01-2009)
Sorting Form 9999 (no application) - Non-Remit

  1. Form 9999 was created because there is no designated application form for a Group Trust. A group trust may request a determination letter by writing a cover letter and requesting the approval of such trust. To input the request on the LINUS and MEDS systems.

  2. The following steps are taken to prepare package for processing:

    1. Print IDRS INOLESusing the definer code "P" .

    2. Print IDRS INOLES without the P if IDRS message is received "Record not found."

    3. Attach the INOLES research to the front of Form 8717.

    4. Write "0" in the top right corner of Form 8717.

    5. Flag the cover letter (this acts as the application).

    6. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    7. Verify all of the documents have been properly date stamped.

    8. Band together all of the above documents.

    9. Band together in pack of five (5) when possible

    10. Attach white batch ticket to front of pack.

  3. The batch ticket contains the following information:

    1. Form 9999 NR

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.3.4.3  (01-01-2009)
Sorting Miscellaneous Mail Non-Remit

  1. Miscellaneous "Non-Remit" mail can be any of the documents below:

    • Memo entry applications with accompanying Form 2221.

      Note:

      Memo Entries will always be processed as "with remit"

    • An EP or EO application without page 1 included.

    • An EO Group Exemption Request, which is processed as described in Sorting Form 1026.

    • An EP Group Trust Request, which is processed as described in Sorting Form 9999.

    • A Form 8734 – Advance Ruling Request.

    • A Volume Submitter Specimen Plan.

    • Correspondence required to be routed to Tax Payer Assistance (TPA).

    • An interested party letter.

    • Correspondence required to be routed to the Volume Submitter Coordinator.

    • An answer to IRS TE/GE request for additional information addressed to a specific revenue agent.

    • Form 5768 - Election/Revocation of Election - route to EO Entity, M/S 6052, Ogden, Utah if received separate from an application.

    • Form 2424 - Account Adjustment Voucher.

    • Misrouted mail that does not pertain to TE/GE.

  2. All correspondence should be stamped with the R&C EP/EO Determination User Fee Units date stamp.

    Note:

    This provides the date that the correspondence was received within the unit

  3. Through out this section if Form 8718 is referred to, Part XI, User Fee Information takes the place of the Form 8718 for the Form 1023.

3.45.1.3.4.4  (01-01-2009)
Incomplete EO & EP Applications - Non-Remit

  1. EP and EO applications with Missing Page 1 can be processed as long as you can determine the application form number by reviewing the pages received in the application package. Form numbers are usually found in the top left corner of each page of the application.

  2. If page 1 is missing proceed as follows:

    1. Research LINUS and EDS to verify there is not an existing open case

    2. Research IDRS using INOLES, with a "P" for EP and BMFOLO for EO.

    3. Attach the INOLES or BMFOLO prints in lieu of the first page of the application

    4. Flag the Power of Attorney, if submitted.

    5. Verify all required documents have been properly date stamped

    6. Band together all of the above documents.

    7. Band together in pack of five (5) when possible

    8. Attach white batch ticket to front of pack for EP and yellow batch ticket to front of pack for EO

  3. The batch ticket contains the following information:

    1. Indicated appropriate N/R Form

    2. Rec Date

    3. Vol XX

    4. Employee Initial

  4. If additional research does not provide entity information to process the application, proceed as follows:

    • Route incomplete application to EP/EO Determination Processing Section. Identified as an incomplete non-remit application.

    • Transship incomplete applications separate from all other applications. Do not include them on the TE/GE daily release report.

3.45.1.3.5  (01-01-2009)
Processing TE/GE Misdirected Mail

  1. Route this mail in an interagency envelope to

    TE/GE Division
    Correspondence Unit
    J. W. Peck FOB
    Room 4024

  2. The table below lists the types of correspondence that should be routed.

    Request for:
    status
    expedite (no application enclosed)
    amendments
    terminations
    name and address changes
    copies of determination letters
    termination of private foundation status
    Form 8718 with no check or application
    POA forms with no application
    Schedule A with no check
    Documents left out of a previous submission
    Undeliverable Acknowledgement Letters
    Advance rulings with no financial information
    EDS open status with no check

  3. All correspondence should be stamped with the R&C EO/EP Determination User Fee Units date stamp.

    Note:

    This provides the date that the correspondence was received within the unit

3.45.1.3.6  (01-01-2009)
Processing Interested Party Letters

  1. When a member of a pension plan writes to the IRS to voice concerns regarding the plan, it is known as "An Interested Party Letter."

  2. Forward all Interested Party Letters to:

    EP/EO Determination Processing Section
    FOB
    Room 4024

3.45.1.3.7  (01-01-2009)
Mail Received From Area Office — Interoffice Mail

  1. Interoffice mail is received on a Form 3210. Complete the Form 3210 "Acknowledgment" receipt and return copy to originator, if two copies are provided, Acknowledgment and File copies. See IRM 3.45.1.11.11.

  2. All correspondence should be stamped with the R&C EO/EP Determination User Fee Units date stamp.

    Note:

    This provides the date that the correspondence was received within the unit

  3. The receive date entered in the TEDS system for remit/non-remit interoffice mail that is processed as an ADF package is the date the package was received within the EP/EO Determination User Fee Unit.

  4. The receive date entered in LINUS for remit interoffice mail is the first IRS receive date. The IRS receive date is provided on the Form 3210.

3.45.1.3.8  (01-01-2009)
Advance Ruling Form 8734 (F Cases)

  1. Advance Rulings enable IRS to determine which foundation code an organization should fall under.participating employer's. The Advance Rulings are identified on the Form 3210 as Foundation Follow-ups (F's).

3.45.1.3.9  (01-01-2009)
Advance Ruling (F Cases) with BMFOLO

  1. Advance Rulings are received from the EP/EO Determination Centralization Site in Cincinnati with a BMFOLO print attached to the top of the request. If one is not provided, one will need to be printed and attached to the request.

  2. Proceed as follows:

    1. Place IDRS BMFOLO page 2 with the entity information showing on top of request

    2. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    3. Date stamp Form 8734

    4. Flag any address changes.

    5. Band submission

    6. Batch in pack of 10 when possible

    7. Attach yellow batch ticket to front of pack.

  3. The Batch Ticket contains the following information

    1. Form 8734 Advance Ruling NR

    2. Rec date

    3. Vol XX

    4. Employee Initial

3.45.1.3.10  (01-01-2009)
Failure to Establish (FTEs)

  1. FTEs are EO applications only.

  2. These requests are received by revenue agents or the EO/EP Adjustment Unit then forwarded to EP/EO Determination User Fee Unit on a Form 3210. FTEs are identified on Form 3210 with "Please re-establish" written in the remarks box and usually contain a copy of the FTE letter, financial data, or a conformed organizing document.

    Note:

    Unless requested by a specialist, revenue agent or EP/EO Adjustment Unit TE the application is treat as a new application .

  3. The requests are received with an EDS Case Control Sheet attached to the top of the request. Proceed as follows:

    1. Verify the status on the EDS Case Control Sheet is "11 or 12" and the request type is "S or I" .

    2. Determine if the FTE is a Form 1023 or Form 1024.

      Note:

      The form is listed at the top of the EDS Case Control Sheet

    3. Separate the Form 1023 and 1024 FTEs.

    4. Determine if the FTE is with remit.

    5. If with remit and one is necessary, prepare Form 8718 and write the money amount in the top right corner of Form 8718.

    6. If it is non-remit and one is necessary, prepare Form 8718 and write "0" in the upper right corner of Form 8718

    7. Circle out any invalid receive dates and DLNs

    8. Place the EDS Case Control Sheet on top. Pull EDS research if the EDS Case Control Sheet is not attached.

    9. Flag the application form only if a change has been made in the "in care of" or address field.

    10. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    11. Date Stamp Form 8718, the application form

    12. Batch the Forms 1023 and Forms 1024 separately

    13. Fill out and attach the appropriate batch card

3.45.1.4  (01-01-2009)
Case Assembly of EP/EO Determination Letter Applications

  1. This section provides procedures on case assembly for all determination letter applications and is performed as part of the second sort function.

3.45.1.4.1  (01-01-2009) )
Application With Remit (W/R) & Non-Remit (N/R)

  1. Application with Form 8717 or 8718:

    Note:

    Form 8718 is not required with the Form 1023.

  2. Ensure the check is payable to United States Treasury. A check payable to IRS must be stamped United States Treasury.

  3. Associate the EP applications for Legacy in the following order:

    • Form 8717

    • Application form

    • Power of Attorney authorization(s)

    • Cover Letter or taxpayer correspondence

    • All remaining contents at the back of the package

    • Bind application together

    • Sort the applications by the form number, with remit or no remit

    • Route applications to the TE/GE Deposit Unit daily.

  4. Associate the EO Application in the following order, other than the Form 1023.:

    1. Form 8718

    2. Application form

    3. Power of Attorney authorization

    4. Cover Letter or taxpayer correspondence

    5. All remaining contents at the back of the package

    6. Bind application together

    7. Sort the applications by the form number, with remit or no remit

    8. Route applications to the TE/GE Deposit Unit daily.

    Note:

    If Form 5768 is received with the application leave attached. No data information is required to be captured.

  5. Associate the Form 1023 in the following order:

    Note:

    All documents may not be filed with every application package.

    1. Form 1023 checklist

    2. Form 2848, Power of Attorney and Declaration of Representative (if filing)

    3. Form 8821, Tax Information Authorization (if filing)

    4. Expedite request (if requested)

    5. Application - Form 1023 and Schedules A-H, as required

    6. Articles of organization

    7. Amendments to articles of organization in chronological order

    8. Bylaws or other rules of operation and amendments

    9. Documentation of nondiscriminatory policy for schools, as required by Schedule B

    10. Form 5768 (if filing)

    11. All other attachments, including explanations, financial data, and printed materials or publications.

    12. Form 8718, if one was filed with the application

3.45.1.4.2  (01-01-2009)
EP Applications without a Form 8717

  1. If the Form 8717 is not attached, prepare the form and attach the payment when applicable.

  2. Form 8717 is required for the following EP Applications:

    • Form 5300 - Application for Determination for Employer Benefit Plan

    • Form 5307- Application for Determination for Adopters of Master or Prototype, Regional Prototype or Volume Submitter Plans

      Note:

      Form 5307 will be processed utilizing TEDS

    • Form 5310 - Application for Determination Upon Termination

    • Form 6406 - Short Form Application for Determination for Amendment of Employee Benefit Plan

    • Form 5310 -A - Notice of Plan Merger or Consolidation, Spin-off, or Transfer of Plan Assets or Liabilities; Notice of Qualified Separate Lines of Business, does not require a Form 8717

  3. The following information is required for the Form 8717:

    • Line 1 - Sponsor's name (employer if single-employer plan)

    • Line 2 - Employer identification number (EIN)

    • Line 3 - Plan Name

    • Line 4 - Plan number

      Note:

      If Form 8717 is prepared by IRS the Form 8717 must be stamped with "Prepared by IRS" .

3.45.1.4.3  (01-01-2009)
EO Applications Without a Form 8718 or Page 12 for a Form 1023

  1. If the Form 8718 or page 12 for a form 1023 is not attached, prepare the form and attach the payment when applicable.

  2. Form 8718/Page 12 is required for the following EO Applications:

    • Form 1023 - Application for Recognition on Exemption under Section 501(c)(3) of the Internal Revenue Code. Page 12 of the Form 1023 replaces Form 8718.

    • Form 1024 - Application for Recognition of Exemption Under Section 501(a) or for Determination Under Section 120

    • Form 1028 - Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code

  3. The following information is required when preparing the Form 8718:

    • Line 1 - Name of the organization, "1a" of the application

    • Line 2 - Sponsor's employer identification number (EIN), line "2" of the application.

      Note:

      If Form 8718 is prepared by IRS the Form 8718 must be stamped with "Prepared by IRS" .

3.45.1.4.4  (01-01-2009)
Form 9999 Group Trust (no application)

  1. Application for a ruling on the qualified status of a Group Trust is requested through a cover letter. There is no Group Trust application, the cover letter is used in lieu of an application and will be entered into LINUS as Form 9999.

  2. Sort and associate the application as follows:

    1. Print IDRS INOLESusing the definer code "P" .

    2. Print IDRS INOLES without the P if IDRS message is received "Record not found."

    3. Attach the INOLES research to the front of Form 8717.

    4. Write "Money amount" in the top right corner of Form 8717.

    5. Flag the cover letter (this acts as the application).

    6. Flag the Power of Attorney Form 2848 or 8821 (if submitted).

    7. Verify all of the documents have been properly date stamped.

  3. Band together all of the items above.

  4. Band together in packs of five (5).

  5. Attach Orange Batch Ticket to front of pack.

  6. The Batch Ticket contains the following information:

    1. Appropriate form number W/R

    2. Rec Date

    3. Vol XX

    4. Employee Initial

3.45.1.4.5  (01-01-2009)
Identifying The Organizing Document For An Exempt Organization

  1. A corporation, trust, or association, can apply to become an Exempt Organization. Each organization is required to submit a copy of their organizational document. Documents must meet the minimum criteria.

  2. The organizing document will be used to determine the organization name "ONLY" when the application is received without a name entered on Line 1a, or Line 1 of Form 1023.

3.45.1.4.5.1  (01-01-2009)
Organizing Document For A Corporation

  1. Corporations must submit Articles of Incorporation . The application will state whether or not the organization is a corporation.

  2. The Articles Of Incorporation must show proof they have been filed with the state. This is called a conformed organizing document. Each Article of Incorporation should be stamped by the state in which it is filed.

  3. The full legal name and the state's stamp showing proof of filing are the two requirements needed to determine the proper name to input on LINUS.

  4. If the application is received with Line 1A or Line 1 of Form 1023 complete, the name will be taken "as is" from Line 1A and Line 1 of Form 1023 (rev 10/2004& 6/2006).

  5. If the information on Line 1A or Line 1 of Form 1023 is missing, the following table should be used to assist you in determining the proper name.

    If you receive: Then take the name from:
    Only the certificate The certificate
    The certificate and articles with no proof of filing The certificate
    Articles with proof of filing The articles
    Original articles with no proof of filing and amended articles with proof of filing The amended articles
    Original articles with proof of filing and amended articles with no proof of filing The original articles
    Original articles with proof of filing and certificate of amendment The amended certificate
    Original articles with no proof of filing and certificate of amendment The amended certificate


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