3.13.12. Exempt Organization Account Numbers

(1) The IRM enables the EO Entity employees to meet the criteria for correcting and processing Exempt Organization returns.

(2) The IRS is committed to a customer service program that encourages taxpayers to comply voluntarily with the tax laws and assists them in meeting their obligations.

(1) The procedures in this IRM are a translation of a variety of legal and administrative authorities into practical guidance the Tax Examiners to help process Exempt Organization returns

(2) These authorities take many forms: Treasury Regulations, the Internal Revenue Code (IRC), legislation, revenue rulings and revenue procedures, and advice from Counsel to name only some.

(3) The principal IRC section for the purpose of tax exemption is IRC 501 (tax exempt organizations). Other sections of the Internal Revenue Code are cited in this IRM as they apply to the topic being discussed.

(4) While specific revenue procedures are cited in the IRM when they are applicable to the issue being covered, three revenue procedures, updated annually, are the chief authority for the actions under the jurisdiction of the Associate Chief Counsel (EEE) and of TEGE Division:

• Rev. Proc. 2022-1 - Associate Chief Counsel (EEE)

• Rev. Proc. 2022-4 - Commissioner, TEGE Division, Employee Plans Rulings & Agreement

• Rev. Proc. 2022-5 -Commissioner, TEGE Division, Exempt Organizations Rulings & Agreement

(1) EO Entity Employees work the following:

• Establishing entities on the BMF.

• Maintaining entities on the BMF.

• Updating entities on the BMF.

• Processing Form 1128, Application to Adopt, Change or Retain a Tax Year.

• Processing Form 8274, Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security Taxes and Medicare Taxes.

• Processing Form SS –16, Certificate of Election of Coverage Under the Federal Insurance Contributions Act.

• Processing taxpayer correspondence relating to entity.

• Consolidating multiple EINs.

• Maintaining exempt organizations.

• Processing exempt organization delinquent notices.

• Processing supplemental group ruling information (SGRI).

• Assigning group exemption numbers (GEN).

• Processing returns without an employer identification number or a change of organization.

(2) The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights.

(1) Program Reports: For information about the various diagnostics and reports used to assess the health of the program, refer to IRM 1.4.16.2.4, Measures and Diagnostic Goals.

(2) Program Effectiveness is determined by ERS Rejects employees successfully using IRM guidance to perform necessary actions and duties.

(1) Incoming mail and cases are either delivered to the EO Entity Clerical Support area or picked up by an EO Entity designee from the appropriate areas on a daily basis.

(2) All time frames start from local received date unless otherwise specified. The turnover time frames are as follows:

• Returns from Receipt and Control is five (5) days from the IRS received date.

• Returns from all other functions is five (5) days from receipt in the Entity function.

• Expedite cases are two (2) days from receipt in the Entity function.

(3) Basic sorting categories with the working time frames and batch sizes are as follows:

(4) The campuses may expand the basic categories. In this case, base the batch size of each category on batch sizing theory.

(5) If, in sorting the mail, an item belongs in another category, sort as appropriate.

(6) The sorter must have a better than average knowledge of Taxpayer Advocate cases. If the item meets prescribed Taxpayer Advocate criteria, don’t sort as previously instructed. Refer these items to the Manager or designee for expedite handling. See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for TAS case criteria.

(7) Base batch sizes on a theory of volume. All entity cases are to be worked within a time frame based on IRS received date, batch all work by the end of each day or whatever time the campus designates as end of day. Therefore, work batched late in the day most likely will not meet maximum batch size. In addition, other circumstances may dictate batch sizes be smaller than prescribed.

(8) Although not required, combine partially worked batches of like cases and same date in order to keep the work flowing and reduce inventories.

(9) It is important to be able to readily identify types of work and the working time frame without having to look at each individual batch. One way of achieving this is to use colored folders for the batches of work.

(10) There are certain types of cases which are generally not delivered to EO Entity by mail. Instead, they are hand-carried to the Manager or a designee. It is the Manager's responsibility to batch these cases with the appropriate working time frames.

(11) The point of count is a step in the process when work is counted, released, completed and/or resolved. A document, module, transcript etc., is counted as one. Refer toIRM 3.30.20, Organization, Function, and Program (OFP) Codes.

(1) Use these definitions in this IRM:

(1) In addition to this IRM and to the resources cited therein, Tax Examiners may also need to refer to supplemental resources and to other IRMs, such as the following:

• IRM 3.11.12, Exempt Organization Returns

• IRM 3.24.12, Exempt Organization Returns

(1) The Customer Account Data Engine (CADE) 2 Program Office in Headquarters is charged with the primary goal to implement a single, modernized programming solution that provides daily processing of taxpayer accounts.

(2) The BMF, EO and EPMF campus cycles are:

1. Campus Cycle: Thursday – Wednesday

2. Master File Processing: Friday – Thursday

3. Notice Review: Saturday - second Monday (8+ days)

4. Unpostables: New UPCs available Tuesday; closing Tuesday

(3) BMF, EO and EPMF transaction posting time frames are outlined as follows:

• Transactions will be viewable using CFOL command codes on Saturday following the weekly Master File processing run on Thursday.

• Transactions will be viewable as posted transactions using IDRS command codes on Monday following the weekly Master File processing run on Thursday.

(4) Cycle posting dates will reflect a format of YYYYCCDD. YYYY indicates the year. CC indicates the posting cycle. For IMF transactions, the following values for DD are defined:

• 01 = Friday

• 02 = Monday

• 03 = Tuesday

• 04 = Wednesday

• 05 = Thursday

(1) National Service Level Agreements (SLAs) were established between Operating Divisions. IRM 3.13.12 contains specifics regarding SLAs that pertain to activities performed by use of this IRM. For additional information, refer to the Taxpayer Bill of Rights available at Taxpayer Bill of Rights.

(1) Background of Section 3705(a):

1. The Restructuring and Reform Act of 1998, Section 3705(a) provides identification requirements for all IRS employees working tax-related matters.

2. IRS employees are required to give their name and unique identification number during taxpayer telephone, face-to-face and manually generated correspondence. In addition a telephone number the taxpayer may call is required on all taxpayer correspondence.

3. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax-related matters.

(2) All IRS employees, in the field, national, and regional office, who communicate by telephone, correspondence, or face-to-face with taxpayers or their personal representatives on tax-related matters are required to provide (at a minimum) the following information:

• Telephone Contact - title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID card) number

• Face-to-Face - title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID card) number provided at the appropriate time during the conversation

• Correspondence - title (e.g., Mr., Mrs., Ms., Miss); last name; IDRS, letter system or badge identification (ID card) number; and telephone number where the taxpayer's question can be answered

  Note: IDRS numbers are automatically generated when sending CRX letters and are considered identification numbers.

(3) Customer Service Representative employees may also provide their location for identification purposes. E-mail and faxes to taxpayers on general tax information, are considered manually-generated correspondence and must include the required information.

(4) Manually generated correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

(5) When a taxpayer insists on speaking with a specific employee who previously handled their inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer's inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to their manager.

(6) Correspondence letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information. Otherwise, if the taxpayer doesn't need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

(7) It isn't necessary to repeat the ID card (badge) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) their ID card (badge) number on the first contact.

(8) Before disclosing any tax information in all types of taxpayer contact, you must be sure you are speaking with an authorized representative of the organization.

(1) The EO Entity Manager, Lead or tax examiner should monitor recurring problems in processing areas. The EO Entity manager will initiate a Quality Analysis (appraisal) when appropriate. The Ogden TE/GE Processing Center Program Staff, at Mail Stop 1110, must be notified of all quality analysis reviews. The Quality Analysis should include examples and figures showing volumes and percentages. Any information will be forwarded to the Chief, Planning and Analysis Staff.

(2) The Quality Review tax examiner is assigned the following:

• To review the area responsible for the error.

• To respond to their manager within five (5) workdays with recommended corrective action.

• To follow-up on significant problems to assure corrective actions were taken.

(3) All EO entity work needs to be submitted timely to Quality Review to ensure the Quality Review tax examiner can review the work in a timely manner. See IRM 21.3.8, Tax Exempt/Government Entities (TE/GE) Customer Account Services (CAS) Telephone Operations, for further information.

(4) Any instructions written at the service center (e.g., desk procedures) to clarify IRM 3.13.12, EO Account Numbers, may be implemented once the instructions are approved by the Document Perfection Section Chief and the Ogden TE/GE Processing Center Program Staff at Mail Stop 1110.

(1) The format of this IRM includes:

• Indented bullets (•) are used when the order of items isn't important.

• Indented numerical listings are steps done in the order listed.

• Indented alphabetical listings are procedures done in no particular order.

(1) The following is a list of transaction codes (TCs) used by the Entity Control Function:

(1) The following is a list of letters that can be used:

(2) The following is a list of CP notices that are sent to the taxpayer:

(3) The following list of CP notices are for internal use:

(1) This listing is numeric by GEN (Group Exemption Number) showing EIN and parent name. It also has an alpha listing with the following information:

• Name of organization—first 50 characters as it appears on BMF

• GEN - group exemption number

• EIN - employer identification number

• SS - subsection number

• TF - type of foundation

• CL - classification code

• RD - ruling date

• ST - status code

• FF - file folder number

• AC - activity code

• DT - deductibility code and year

• City and state where parent organization is located

(2) The data for this listing is extracted twice a year and is printed as Document 6023.

(3) CC EOGEN can do the following:

• Find a parent organization using CC EOGENP.

• Provide a list of subordinate organizations for the parent organization by using CC EOGENS. This list is limited to 30 pages with 20 subordinates per page.

• Narrow the search for subordinates using the state abbreviation or "." for foreign addresses. This is especially helpful when researching large organizations such as Little League, Lions Club International, etc.

(4) CC EOGEN cannot do the following:

• Research by EIN. If you know the EIN but not the GEN, research CC BMFOL, definer O to get the GEN, then research CC EOGEN.

• Provide full entity information for subordinates. It provides a starting point for further research.

(5) CC EOGEN with definer code "P" will generate CC BMFOLO for the parent's EIN.

(6) CC EOGEN with definer code "S" will generate a list of the subordinates for the GEN.

(7) For further information on the proper format and use of CC EOGEN, see IRM 2.3, IDRS Terminal Responses.

(1) The Name Search Facility (NSF) provides national centralized name search capability which replaces the Key Index File (KIF).

(2) Access NSF using CC NAMES for Social Security Number (SSN) searches and CC NAMEE/NAMEB for EIN searches. CCs NAMES and NAMEB allow you to query a national file of name and address data at the Martinsburg Computing Center (MCC), using a taxpayer name and address to locate a SSN or EIN.

(3) The NSF will match the data you entered to data in the files and will return the SSNs or EINs of possible matches. The more information you enter, the narrower the search and the better the possibility for a match.

(4) You can query using either the primary filer name or a secondary filer name. For an EIN, both primary name and "Doing-Business-As" (DBA) name will be searched. The NAMES and NAMEE CCs will adjust for some spelling errors and will perform phonetic matches.

(5) Two CCs, FINDS (SSN/IRSN/ITIN) and FINDE (EIN), were added to the NSF. They use the input TIN to access the NSF data base, and return the name(s), address(es), etc. for the TIN. Users are required to enter the CC name, the definer, and the 9-digit TIN (with no hyphens), including leading zeros, if present. The domestic search requires the definer D and the international search requires the definer I. If users don’t enter a definer, they receive an error message. The FINDS/FINDE results are sorted first by primary TIN (when the search was for the secondary TIN), then by activity cycle, and then by name. The activity cycle is displayed in descending order, with the most current data first.

(6) Refer to IRM 2.3, IDRS Terminal Responses, for more information.

(1) EDS is an automation of certain segments of the EP/EO determination process. EDS is a menu-driven system. The Inventory Control Subsystem and the Letter Generation Subsystem are the two segments EO Entity will use.

(2) The Inventory Control System replaces EACS as the system that tracks cases from opening to closing; however, EACS, which is renamed Master File Pipeline System continues to function in the campuses as the link between EDS and Master File.

(3) The Letter Generation Subsystem provides a means to automatically generate requests for additional information and the viewing and generation of closing letters.

(4) Use the EDS Instructional Job Aid to operate the menu-driven system.

(5) The following is a list of the Open Status Codes:

(6) The following is a list of Closed Status Codes:

(7) The following is a list of Type of Request Codes:

(1) The BMF portion of the EO/BMF entity module is created by a TC 000, Doc. Code 04, 63, 80 or 81. It may contain the following information:

• Employer identification number (EIN)

• Name control (N/C) or check digit (C/D)

• Establishment date

• Employment code (EC)

• Fiscal year/month (FYM)

• Filing requirement code (FRC)

• Primary location code (PLC)

and the following entity identifying data:

• Primary name

• Primary continuation name

• Sort name

• Care of name

• Location address

• Foreign address

• Mailing address

(2) The BMF entity module, with its fields defined below, can be changed by IDRS CCs ENREQ/BNCHG or EOREQ/EOCHG.

1. EIN is the employer identification number assigned to each organization by Entity Control. To change the number, use a TC 011, Document Code 63 with CC ENREQR/BRCHG. TC 011 changes are restricted for input by campuses only.

2. N/C is created by the coding of the organization's name. To change the name control, use CC ENREQ/BNCHG with Document Code 63, TC 013.

3. C/D is the check digit created from the EIN when the account posts to the BMF. It cannot be changed.

4. Establishment Date is the date the organization started business or was established on the BMF. To create it, use TC 000. It cannot be changed.

5. EC is the employment code that identifies the type of employment taxes or FUTA (Form 940) taxes an organization is required to pay. To change this code, use Document Code 63 or 80.

6. FYM is the fiscal year/month created either when the organization is established on the BMF or when the first return is posted. To change it, use Document Code 63 or 80.

7. FRC the filing requirement code, for exempt organizations can be for Form 941 and Form 944 , Form 720, Form 940, Form 1120, or Form 1041 under certain conditions. These FRCs can be changed with a Document Code 63 or 80. The positive EO FRCs for Forms 990, 990-EZ, 990-T, 990-PF and 5227 can only be changed with CC EOREQ/EOCHG, Document Code 80. Delete all non-EO FRCs with CC ENREQ/BNCHG Document Code 63.

   Exception: Delete the FRC for Form 1041-A with a TC 591 cc 020 on the last 1041-A filed.

8. The Universal Location Code (ULC) is the area office codes based on the address where the organization receives mail. The BOD code will be used for routing work to the appropriate campus. All accounts with a TE BOD code will be processed by the Ogden Submission Processing Center.

9. SSN Sole proprietor cross reference SSN - The business owner's SSN added to identify ownership of a BMF account. The SSN must be removed if the account becomes tax exempt.

(3) The Entity Identifying Data are defined below:

1. Create the primary name and primary continuation name by inputting a TC 000. To change them, use a TC 013, Document Code 63, CCs ENREQ/BNCHG.

2. Sort name is used to identify the organization another way. For organizations with a group ruling, the sort name identifies the chapter, union, etc.

3. Care of name is used if the taxpayer identifies a person or a place, e.g., Merchants Bank-Trust, for mailing.

4. Location street address is the street address where the organization is located and is different from the mailing address. It can be a foreign address.

5. Location City/State/ZIP is the city or country where the organization is located.

6. Foreign address is used when the organization has a foreign mailing address.

7. Mailing street address is where IRS will mail notices and returns. If it's a foreign address, it will contain the city of the foreign country and ZIP code.

8. Mailing City/State/ZIP is where IRS will mail notices and returns. If it's a foreign address, the city will be the country, and the state and ZIP will be a blank.

(1) Create the EO section of the EO/BMF entity module for a new entity with a TC 000, Document Code 80 or 81. If the entity is already on the BMF, create the EO section with a TC 016, Document Code 80 or 81.

(2) The EO section information can only be changed by CC EOREQ/EOCHG. The EO section contains the following information:

1. Subsection (SS), current and prior, identifies the IRC under which the organization is exempt. It also determines the type of return the organization will file. The current SS will be shown on CCs INOLE, ENMOD, and BMFOLO. The SS is assigned when the organization's request for exemption is approved. To make a change to the subsection, it must be approved by Cincinnati and updated from EDS or a determination letter. New applications processed as of July 2007 will also be updated in TEDS. If an erroneous subsection is on the BMF with Status 06, 10, 11, 40 or 41, delete it with the input of a TC 022.

2. Classification code (CL) identifies the type of organization or the purpose for which it was established. One to two different codes may be present. The CL will be shown on CCs INOLE, ENMOD, and BMFOLO. The CL can be changed only by Cincinnati.

3. Status code and date (ST), current and multiple prior status, indicates the status of the organization. The code identifies whether or not the organization was granted an exemption or, it was applied for, revoked or terminated. The ST is normally established by Cincinnati when the exemption is granted, denied or revoked. The campus can establish ST Codes 06, 07, 10, 11, 12, 20, 36, 40 and members of a group ruling. Also, the campus can re-establish Status 01 when it is on EDS or from a determination letter, or re-establish a good status after ST 20, 21, 26, 28, or 29 has posted. The current ST is shown with the status date (YYYYMM) on CCs BMFOLO, INOLE, and ENMOD.

4. Affiliation code (AF) indicates an individual ruling or group ruling. The AF is shown on CCs INOLE, ENMOD, and BMFOLO. It normally isn't changed unless the entity is changing from a group to an individual ruling, or from an individual to a group ruling.

5. Ruling date (RD) is the date the exemption was granted or ruled on. The RD is shown on CCs ENMOD, INOLE, and BMFOLO. This date is normally not changed except by Cincinnati.

6. Group exemption number (NG), or GEN, is the number Cincinnati assigns when the organization is granted a group exemption. This number is used to identify all the organizations (subordinates) that are a part of the group. The GEN is shown on CCs INOLE, ENMOD, and BMFOLO. It can be changed, but CAUTION must be used.

7. Foundation code (TF) is the code given to all organizations exempt under IRC 501(c)(3). This code identifies the type of foundation. The TF is shown on CCs INOLE, ENMOD, and BMFOLO. To change the foundation code requires approval from Cincinnati and the campus can only update it from TEDS, EDS or a determination letter or Form 990-PF. If a foundation code is on the BMF but the subsection changed to one that doesn't require a foundation code, delete it with the input of a 990.

8. Deductibility code and year (DY) indicates whether contributions to the organization are deductible from income. The code is determined by Cincinnati when the exemption is granted and can be changed only by Cincinnati.

9. Activity code (AC) identifies the principal activity of the organization. This code is normally changed by Cincinnati.

   Note: Activity codes may still be present on accounts, however, they are no longer assigned or actively used.

10. National Taxonomy of Exempt Entities Code (NTEE) is a system of classifying the purposes, activities and fields of interest of non-profit organizations. The "NTEE system" will eventually replace the present activity codes. This code is assigned by and normally changed by Cincinnati.

11. North American Industry Classification System (NAICS) code is a 6-digit Principal Business Activity (PBA) code. The EO activity code is actually the PBA code. Both the activity code and the NAICS code will be maintained on the EO section.

12. Type of organization (TO) indicates whether the organization is a trust, corporation or an unincorporated association. The TO is shown on CCs INOLE, ENMOD, and BMFOLO. The code is assigned by Cincinnati when the exemption is granted and is normally changed by them. The campus will input the TO on all group rulings.

13. File folder number (FF) identifies the administrative case file folder number located in Cincinnati. The FFN is assigned by Cincinnati when an application for exemption is received. The FFN will normally not be changed. The FFN is shown on CC BMFOLO.

14. Pension plan (PP) indicates whether or not the organization has a pension plan. It is assigned by Cincinnati when the exemption is granted and is normally changed by Cincinnati.

15. TEP case code (TEP) is input if the organization is identified as a "large case."

16. Posting delay code (PDC) may be input (Range 1-6) with the transaction to be "cycled" when multiple transactions are required to adjust an account.

    Example: In a complex adjustment with seven transactions where two must post three cycles after the first four, and the last must post a cycle after the second two, input a Posting Delay Code 3 with the fifth and sixth transactions, and a Posting Delay Code 4 with the last transaction. Posting of these transactions to the MCC MF will be deferred until the indicated number of posting cycles has passed. All transactions will be input at the same IDRS terminal session. Cycled transactions will be held on the MCC re-sequencing transaction files until the required staggered sequence among the transactions. Posting delay capability is provided for the following IDRS entity change command codes: CCs ENREQ/BNCHG and EOREQ/EOCHG (Doc. Codes 50, 53, 63, 80 and 81).

(1) EO Transaction Codes include TC 000, 012, 013, 014, 016, 020, and 022.

(2) The following format fields appear on the CC EOCHG screen:

• EOCHG

• EIN

• NM-CTRL - Name Control

• DOC-CD - Document Code

• TC - Transaction Code

• TRANS-DEFINER-CD - Transaction Definer Code

• PSTNG-DLAY-CD - Posting Delay Code

• NEW-NAME-CTRL - New Name Control

• PRIMARY-NAME - Primary Name - two available lines

• SORT-NAME - Sort Name or DBA

• CARE-OF-NAME - Care-of Name

• FOREIGN-STREET - Foreign street address

• MAIL-STREET-OR FOREIGN-CITY/ZIP- Mailing Street Address or Foreign Country

• MAIL-CITY/STATE/ZIP-OR-FOREIGN COUNTRY - Mailing City, State, Zip or Foreign Country

• LOCATION-STREET-ADDRESS - Location Street Address

• LOCATION-CITY/STATE/ZIP - Location City, State, Zip

• SUBSECT-CD - Subsection Code

• FNDTION-CD - Foundation Code

• CLSF-CD - Classification Code

• AFFLTIN-CD - Affiliation Code

• TYPE-ORG - Type of Organization

• HOSP-IND - Hospital Indicator Code

• STS-CD/DT - Status Code/Year/Month

• RULNG-DT - Ruling Date

• ACTY-CD - Activity Code

• CONTRIB-DED-CD/YR - Contribution Deductibility Code Year

• FRM-GRP-EXEMP-NUM - From Group Exemption Number

• NEW-GRP-EXEMP-NUM - New Group Exemption Number

• FFN- File Folder Number

• 944-BYP- 944 Bypass Indicator

• PENSION-PLN-CD - Pension Plan Code

• ADVNC-RULNG-DT - Advance Ruling Date

• TEP-CASE-CD - TEP Case Code

• EMPLMNT-CD - Employment Code

• FYM - Fiscal Year Month

• NTEE - National Taxonomy of Exempt Entities Code

• NAICS-CD - North American Industry Classification System Code

• F944-YR/IND- Form 944 Year Indicator

• REGIS-DT

• ORGANIZE-DT

• FILING-REQUIREMENTS - Filing Requirements

• REMARKS - Remarks

(3) The information for some of the fields will be taken from the pilot voucher, EDS, correspondence or the returns.

(4) The following tables show a quick reference to the valid fields with Document and Transaction Codes.

(5) Document code 80 valid fields:

(6) Document code 81 valid fields:

(1) Transaction Code 000 establishes an account on the BMF.

(2) Before establishing an account, research CCs NAMEE and NAMEB for an EIN that may have been removed from Master File. If able to locate an EIN, input TC 000 to re-establish the account with the current name, address and filing requirements..

(3) CC ENREQ is used to request a CC BNCHG format for input of TC 000. It must be preceded by CC ENMOD. See , CC ENREQ/BNCHG for additional information.

(4) The following fields must be input:

• TC 000

• Name Control

• Primary Name

• Address, city, state and ZIP code

• Filing Requirements (other than EO)

Note: If a filing requirement is not needed, input a "1" in the NOT-REQUIRED field.

• "Notice of Intent" indicator "1" must be input when establishing the EIN

Note: The intend indicator allows the input of a TC 000.

(5) Establish an EO section once the EIN is established.

(6) Any transaction that needs to be cycled or held for later input can be cycled up to 6 cycles using a posting delay code. See IRM 2.4, IDRS Terminal Input.

(1) For 016, a definer code will always be necessary if a filing requirement for Forms 990, 990-PF, 990-T, 5227 or Not Required (NR) is input.

(2) Definer Codes A, B, C, D, and F may be input in any position.

1. All or one of Definer Codes A, B, and C may be present with a TC 016, Document Code 80 or 81.

2. When entering Definer Code D, it must be the only definer code and the Document Code must be 81.

3. When entering Definer Code F, it must be the only definer code and the Document Code must be 80.

(1) The EO entity portion on the BMF consists of the following 35 character fields:

• Primary name (legal name)

• Continuation of primary name

• Sort name (DBA or business name)

• Care of name (% and name)

Note: The percent sign (%) character is only valid to identify a care of name.

(2) Primary name and continuation of primary name must not be longer than a total of 70 characters or 35 characters each line. Don’t split a word between lines.

(3) Use only the following characters for the legal name:

• alpha

• ampersand (&)

• numeric

• hyphen (-)

  Note: Don’t leave a space before or after the hyphen. Don’t use a double hyphen.

(4) A period (.) isn't an accepted character. If the organization's name has a period within the name, substitute a space for the period.

(5) An apostrophe (') isn't an accepted character. If the organization's name contains an apostrophe, omit it.

(6) CC ENREQ/BNCHG is used to change entity fields.

(7) The entity fields can be input independently, with the exception of the continuation of the primary name that requires the input of the primary name field.

(8) Mail going to a domestic organization may carry two name lines. The priority of these name lines is as follows:

1. Primary name

2. Sort name if present on the BMF

3. Care of name

4. Foreign street address

5. Continuation of primary name if no foreign street is present

(9) Input the primary name, care of name and sort name accurately to ensure outgoing mail can be properly delivered.

(10) For accurate identification of an organization, input the following information as a sort name with the number first (don’t duplicate the primary name on the sort name line):

• Local #

• District #

• Unit #

• Post #

• Council #

• School name

• Governmental division

(11) For accurate identification of a trust, input the following information at the end of the primary name line:

• Account number

  Note: If the entire account number doesn’t fit on the primary name line, enter the entire number on the sort name line (don’t input part of the number or the entire number on the continuation name line).

• Donor number

• Contract number

(1) Suffixes such as P.A. for Professional Association, P.C. for Professional Corporation, and INC. for Incorporated indicate a corporate entity. To input a corporate entity:

1. Don’t modify the corporate name. Don’t abbreviate, change symbols or change "and" to "&". The corporation receives its charter from the state exactly as shown by the organization.

2. Bracket (]) following the word THE] in the corporate name or business name, unless "The" is followed by only one word. This will allow you to use the second word as the name control, but the primary name will be printed on any notice or letter exactly as the taxpayer indicated on his form or return.

(2) The true trust name must appear on the primary name line. If the true trust name isn't present or can’t be determined from the primary name line, contact the organization by phone, fax or letter.

(3) If a parent primary name has the word "Grand" or "Supreme" in it, don’t use the word "Grand" or "Supreme" in a subordinate’s primary name.

(4) If the parent or subordinate insists the subordinate’s primary name is other than the parent’s primary name, honor the organization’s request and change the name.

(5) If an invalid character is used in the name line, drop the special character from the taxpayer's name.

(6) Use the first four characters of an individual's first name to identify political organizations.

(7) When using CC ENREQ/BNCHG, Document Code 63 to input the Primary Name Line:

1. The Transaction Code must be 000.

2. All lines must be entered as they should appear on the BMF.

3. Never enter information in the primary name that isn't a part of the primary name.

4. The second name line is used as a continuation of the organization name. Never enter a character in the first position.

5. The new name control must always be entered. For name control procedures, see IRM 3.13.12.6.8.

6. When working EO type accounts, see IRM 3.13.12.6.8.1 for corporation name control procedures and IRM 3.13.12.6.8.2 for trust name control procedures.

(1) The sort name is another way to locate the organization. BMF uses the sort name to locate the organization on the National Account Index using CC NAMEE/NAMEB.

(2) If the sort name is an individual name (e.g., a trustee) enter the name as indicated by the filer followed by their title.

(3) Delete the word "The" from the sort name, unless it is followed by only one word.

(4) The sort name can be a:

• Business or trade name if different from the true name

• Trustee of a trust, if the trustee is an individual

• Local #, unit #, district #, post #, council # of a national organization

(5) The sort name can't be a:

• Care of Name, unless it is an individual trustee

• Financial or banking institution

• Location address

• Officer's name of a corporation (e.g., president or vice-president)

(6) When using CC EOREQ/EOCHG, Document Code 80 to input the sort name:

1. This is a 35 character field and is treated exactly the same as a BMF secondary sort name on the BMF.

2. The first position must be numeric or alpha.

3. To delete the sort name, input $$ in the first two positions of the sort name line.

4. If the organization is part of a group ruling and the primary name line is the name of the parent, there must be a sort name. Don’t duplicate the primary name on the sort name line. The sort name must never be included as part of the primary name.

(1) When using CC ENREQ/BNCHG, Document Code 63, to input the In Care of Name (CO):

1. If the CO is input, enter a percent sign (%) in the first position, followed by a space and then the name.

2. To delete the CO, input $$ in the first two positions of the in care of name line.

(1) To input the name control:

1. Use any combination of 2–4 alpha and numeric characters.

2. Use blanks only in the last two positions of the name control.

3. Don’t use ampersand (&) or hyphen (-) in the first position of the name control.

(1) Use the following to input a corporation name, sort name and name control:

• Application for an Employer Identification Number (Form SS–4)

• The filing of a return without an EIN

• A return with a name change

• Correspondence from the organization indicating a name change

(1) Use the following to input a trust name, sort name and name control:

• Application for an Employer Identification Number (Form SS–4)

• The filing of a return

• A return with a name change

• Correspondence requesting a name change

(2) Keep the primary name to no more than 70 characters. Abbreviate the following words or phrases, if necessary:

(3) Always input an individual trustee in the sort name line. If the trustee is a bank, mortgage company or corporation input in the in care of (%) name line.

(4) Use the following example for inputting a trust name:

Return or form shows:
Turtle Memorial Cemetery Perpetual Trust Fund
William C Bear Trustee

Primary Name: TURTLE MEMORIAL CEMETERY PERPETUAL
[Continuation of Primary Name]: TRUST FUND
Sort Name: WILLIAM C BEAR TTEE

(5) An Individual Retirement Account (IRA) should follow Trust name rules by inputting the first name, last name, IRA and the account number (if available). The name control will be the first four characters of the last name.

(1) Use the following to input non-profit organization names:

• Application for an Employer Identification Number (Form SS–4)

• The filing of a return without an EIN; e.g., Forms 990, 990-EZ, 990-T, 990-PF, 5227, and Form 990-BL (tax years before 2021 only, see IRM 3.13.12.9.8), Form 1041-A, Form 4720, and Form 8868

• A return with a name change

• Correspondence requesting a name change

(1) The following sections provide instructions on domestic, domestic foreign, and foreign addresses.

(1) The table below includes a complete listing of EO Subsection and Classification Codes:

(2) When inputting the Subsection Code (SS) with CC EOREQ/EOCHG and either Document Code 80 or 81:

1. Use TC 016 if Document Code is 80.

2. Use TC 016 if Document Code is 81.

(3) If the Doc. Code is 81, input the following items:

1. SS must be 01-19, 23, or 70.

2. Definer Code must be A or D.

3. If SS is 03, then Type of Foundation must be 09-18.

4. Enter the classification code.

(4) If the Document Code is 80, perform the following validity and consistency checks:

1. SS must be 01, 02, 04-25, 40, 50, 60, 70-71, 81-82, 90-93.

2. If the SS is 03 and Status isn't 70-72, input the Type of Foundation as 02, 03, 04, 09–18, or 21-25.

3. If the SS is other than 03 and the previous subsection was 03, enter 99 in the type of foundation field.

4. If the SS is 03 and the Status is 70-72, don’t enter the type of foundation.

5. If the SS is 82 and the Status is 34, don’t enter the type of foundation.

6. Enter the classification code.

7. TC is 016, enter Definer Code A.

(5) Subsection validity checks are also dependent on filing requirements and status codes. See IRM 3.13.12.6.33 and IRM 3.13.12.6.18 for status codes.

(6) If an erroneous subsection is on the BMF, delete with TC 022.

(1) When inputting the Foundation Code (TF) with CC EOREQ/EOCHG and either Document Code 80 or 81:

1. If the Document Code is 80, the TC must be 016.

2. If the Document Code is 81, the TC must be 016.

3. If the SS is 03 and the Status isn't 70-72, the TF must be input.

4. If the SS is 03 and the Status is 70-72, the TF should not be input.

5. If the SS is 82 and the Status is 34, the TF should not be input.

6. If there is a Form 990-PF FR, the TF must be 02, 03 or 04.

   Note: TF of 02 is input by Cincinnati; however, for UPC 355 it may be input by the campus. Be very sure the TF of 02 is correct before inputting it, as it exempts the organization from paying taxes on a Form 990-PF. See UPC 355 instructions in IRM 3.12.278, Exempt Organization Unpostable Resolution.

7. If there is a Form 990 FR of 01 and SS is 03, Type of Foundation must be 09-25.

   Note: TF 09 is never valid, but it does allow the posting of Form 990 and Form 990-PF under special circumstances.

8. If there is a Form 990 FR of 06, the Foundation Code must be 10.

9. To delete a foundation code, input 99.

(2) The following table is a list of foundation codes and descriptions:

(1) When inputting the Classification Code (CL) with CC EOREQ/EOCHG and either Document Code 80 or 81:

1. If Document Code is 80, the TC must be 016.

2. If Document Code is 81, TC must be 016.

3. Valid CLs are 1, 2, 3, 4, 5, 6, 7, or 8.

4. A maximum of 2 classification codes may be entered beginning with the left-most position. If minimum of one CL is used, don’t enter zeros in the remaining positions.

5. If Doc. Code is 80 and CL is 1, the Subsection Code must be 01-25, 40, 50, 60, 70-71, 80-82 or 90–93.

6. If the CL is 2, the SS must be 03-06, 09 or 12-14.

7. If the CL is 3 or 4, the SS must be 03-06 or 12.

8. If the CL is 5-8, the SS must be 03.

9. If Document Code is 81 and CL is 1, SS must be 01-19, 23 or 70.

10. Subsection code must be input.

(1) These instructions for inputting the Affiliation Code (AF) with CC EOREQ/EOCHG apply to either Document Code 80 or 81.

(2) Required fields for TC 016 - Document Code 80 - AF 1, 2, or 3:

1. Definer Code C must be input.

2. If New GEN is input, it must be 9999.

3. If New GEN is input, From GEN must be input.

(3) TC 016 - Document Code 80 - AF 6, 7, 8, or 9

1. Definer Code must be C or F.

If	Then
Definer Code is C,	Either New GEN or From GEN or both must be present.
From GEN is input,	It must match the GEN on the BMF.
New GEN is input,	Valid range is 0002–9998.

2. If the parent affiliation code was established incorrectly on the BMF, use Definer Code C to make the change. See IRM 3.13.12.6.3.3 for Definer Code C instructions.

   Example: BMF shows an "8" church, but it should be a "6".

(4) TC 016 - Document Code 81 - AF 7 or 9

1. Definer Code C or D must be input.

2. From GEN must be input using the range from 0002 - 9998.

(5) The table below shows a list of affiliation codes and descriptions:

(1) These instructions for inputting the Type of Organization Code (TO) with CC EOREQ/EOCHG apply to either Document Code 80 or 81.

1. If Document Code is 80, the TC must be 016.

2. The TO and SS must be as follows:

(2) If the Document Code is 81, TC must be 016 and the following items must be present:

1. Definer Code must be a D.

2. TO must equal 5.

(3) The table below shows the Type of Organization and the descriptions:

(1) This section covers EO Status Codes 01, 06, 07, 10-12, 18-36, 40-42, 70-72, and 97-99.

(2) The instructions for inputting the Status Code and Year (ST) with CC EOREQ/EOCHG apply to Document Codes 80 and 81 and must be input with TC 016.

1. Input the status code as 2 digits and the year as YYYYMM.

(3) If the Document Code is 81, input the following items:

1. Definer Code must be B or D

2. Status Code must be 01, 20, 22, 26 or 29

   Note: Status 29 should not be manually input by the campus.

(4) The following validity and consistency checks are performed:

(5) If inputting TC 012 and the Document Code is 80, the following validity and consistency checks are performed:

(6) For Document Code 80, the ST may be 01, 06, 07, 10-12, 18-20, 22-26, 27, 28, 30-34, 40-42, or 70-72, and the following validity and consistency checks are performed:

(7) If Status is 27, the following validity and consistency checks are performed:

1. The fields that are input are name control, EIN, From GEN, To GEN = 9999, definer code, status 17 and date, filing requirements 990-01 or 990-02 and remarks.

2. Definer codes are ABC.

3. Status code date entered as current month and year (YYYYMM).

4. Transaction Code must be 016.

5. Document Code must be 80.

6. Remarks must be input.

(8) If Status is 28, the following validity and consistency checks are performed:

1. The only fields that can be input are name control, EIN of subordinate being placed in Status 28, From GEN, definer code, status code and date, transaction code, document code and remarks.

2. Document code must be 80.

3. Transaction code must be 016.

4. Definer code must be B.

5. Status code must be 28 and status code date entered as month and year (YYYYMM).

6. From GEN must be input.

7. Remarks must be input.