3.12.278. Exempt Organization Unpostable Resolution

(1) Some transactions, payments and returns are unable to post to the BMF due to the programming of specific conditions. Research and perfection/correction of unpostable conditions are necessary to allow the transactions to post appropriately. This IRM provides procedures for maintaining the integrity of the BMF by resolving unpostable transactions/conditions that are not compatible with existing master file data or normal Submission Processing Campus operating procedures.

(1) The following provides authority for the instructions in this IRM to be performed in support of completing compliance functions to make credits or refunds of any internal revenue tax, processing of non-revenue forms, and administrative support forms:

1. Title 26 of the United States Code (USC) or more commonly knows as the Internal Revenue Code (IRC).

2. All Policy Statements for Submission Processing are contained in IRM 1.2.1, Servicewide Policy Statements.

(1) The Campus Director is responsible for monitoring operational performance for their campus.

(2) The Operations Manager is responsible for monitoring operational performance for their operation.

(3) The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

(4) The Team Employees are responsible to follow the instructions contained in this IRM and maintain updated IRM procedures.

(5) 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) The information in this IRM applies to the resolution of EO/BMF Unpostables through the Generalized Unpostable Framework (GUF) system.

(2) Program Reports: The GUF system generates control reports found on the Control-D application and are utilized for program management and review. See IRM 3.12.32.20, Error Resolution - General Unpostables, GUF Listings and Reports - General Information and Distribution.

(3) Program Effectiveness is measured by the following:

• Embedded Quality Submission Processing (EQSP)

• Balanced Measures

• Managerial Reviews

(4) Annual Review: The processes outlined in this IRM will be reviewed annually to ensure accuracy and promote consistent tax administration.

(1) Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

(2) Campuses coordinate with Headquarters at the beginning of each year to verify the programming of the Generalized Unpostable Framework (GUF) system is functional and validate the changes requested are implemented and programmed correctly. Sites review printed reports, test command codes and test resolutions of sample cases of each master file.

(3) Campuses monitor reports weekly for anomalies in the GUF system programming and elevate issues as needed. Headquarter analysts work with the Information Technology (IT) analysts to determine if additional action is needed to correct issues elevated. If needed, a ticket or a work request will be submitted to IT to update programming for the GUF system.

(1) Account: A taxpayer identified by a Social Security Number (SSN) or Employer Identification Number (EIN). Each account contains a record of the type of returns filed and the related tax periods.

(2) Accounts Maintenance Transcripts: A transcript generated when an unresolved credit or condition is present on the Master File.

(3) Amended Return: A second return filed which changes the information submitted on the original return.

(4) Asset Code: The code used to identify end of year total assets.

(5) Automated Collection System (ACS): A computerized system used in call site operated collections for tax periods within an account which is in taxpayer delinquent investigation (TDI) or taxpayer delinquent account (TDA) status.

(6) Automatic Data Processing (ADP): The handling and processing of data from electronic machines with a minimum of human intervention.

(7) Batch: A group of work of like documents within a program code.

(8) Block: Returns or documents grouped together for filing purposes; the ninth and tenth digits of the DLN indicate the blocking series where the return is filed. The eleventh digit of the DLN is the blocking series for examination purposes. It identifies whether the return was an original return, copy of the return, BRTVU/RTVUE print or no return and whether it was a survey or examined case file.

(9) Blocking Series: The blocking series is a three digit numeric field associated to the document or returns for posting to Master File.

(10) Business Master File (BMF): A file containing information about organizations filing business returns and related documents.

(11) Business Operating Divisions (BOD): Effective 01/01/2000, all IMF and BMF taxpayers will be systemically assigned to a BOD code based on the characteristics of the tax return. IMF taxpayers will either be assigned to the SB/SE (Small Business/Self-employed) BOD or to the TS (Taxpayer Services) BOD. BMF taxpayers will be assigned to the LB & I (Large Business & International) BOD, to the TE/GE (Tax Exempt Government Entities) BOD or to the SB/SE BOD.

(12) Calendar Year: The twelve month period from January 1 through December 31.

(13) Centralized Authorization File (CAF): A file which contains information regarding the type of authorization taxpayers have given representatives for the various modules within their accounts.

(14) Check Digit: Consisting of two alphabetic characters, the check digit is determined by the application of a mathematical formula to the SSN or EIN.

(15) Command Code (CC): A five character code used to input data and requests on IDRS.

(16) Computer Paragraph (CP): Computer generated notices used to request information from or give information to an organization regarding certain aspects of their tax return. Also, certain notices are generated to inform the campus of posting to the Master File which require additional action.

(17) Consolidate: The moving of data when one organization has erroneously been given more than one TIN.

(18) Credit Balance: A term noting a credit outstanding on a tax module. It is identified by a minus sign (−) after the amount.

(19) Cross Reference (XREF): An action which identifies related TINs and names (DBA).

(20) Cycle: One week's processing at the campuses, the Martinsburg Computing Center (MCC), and Tennessee Computing Center (TCC). The cycle is expressed as a six (6) digit code: the first four digits represent the processing year and the last two digits represent the processing week within the year.

(21) Document Code (DOC CODE): A two digit code which identifies the specific type of return or document which was filed or processed; it’s the fourth and fifth digits of the DLN.

(22) Document Locator Number (DLN): A control number assigned to every return, document or transaction input through the ADP system. The fourteenth (last) digit is the year of processing and is assigned by the campus computer program at the time of original input. The DLN is used to control, identify and locate documents and transactions processed in the ADP system.

(23) Dummy Return: An input return not prepared by the organization or an input document treated as a return.

(24) Employee Number: A ten digit number assigned to each employee authorized to access IDRS.

(25) Employer Identification Number (EIN): An assigned nine digit number used to identify a business tax account.

(26) Employment Code (EC): A one letter code used to identify certain employers regarding Social Security taxes and Federal Unemployment tax.

(27) Entity: The portion of the Master File record which identifies the organization. It contains the name, address, social security or employer identification number, employment code if applicable, name control, location codes, filing requirement codes, fiscal period and date of establishment.

(28) Excess Collections: An account of unapplied credits transferred from an unidentified or Master File account.

(29) Federal Tax Deposit System (FTD): Payments received by the Internal Revenue Service from a Federal Reserve Bank, indicating deposits made by an organization.

(30) Fiduciary: A person or institution entrusted to act on behalf of a taxpayer.

(31) File Source: A one digit code which follows the taxpayer identification number (TIN). The values are:

(32) Filing Requirement Code (FRC): This code identifies the type of return an organization must file.

(33) Fiscal Year Month (FYM): Any month an organization elects to be the ending month of its accounting year.

(34) Group Exemption Number (GEN): A four digit number issued to a parent organization and its subordinate chapters under a blanket "GROUP RULING."

(35) Group Exemption Roster (GER)/CC EOGEN: An alphabetic and numeric listing of organizations which were issued Group Exemption Numbers. Published semiannually as Document 6023, it was replaced by CC EOGEN, which allows on-line research using the GEN number of the group.

(36) Group Return: Form 990 filed by a parent organization for all of its subordinates which have elected to be covered by the group return. This return with its own EIN is filed in addition to the parent organization’s own return.

(37) Income Code: A code used to identify yearly receipts for EO/BMF returns.

(38) Integrated Data Retrieval System (IDRS): A computer system with the capability to instantaneously retrieve or update stored information which will work in harmony with our Master File or organization accounts. This system is aimed at quick resolution of problems and inquiries concerning current and prior taxpayer accounts.

(39) Julian Date: The numeric day of the year the return or document was numbered for processing; for example, January 15 would be shown as 015. The sixth, seventh and eighth digits of the DLN represent the Julian Date.

(40) Martinsburg Computing Center (MCC): The Martinsburg Computing Center, located in Martinsburg, WV, is where both business and individual transactions are posted to the various Master Files.

(41) Master File (MF): A record containing all information with respect to the organizations filing of returns and related documents. The BMF contains records on each organization, divided into two sections, the entity section and the returns section.

(42) Master File Tax Account Code (MFT): A two digit number which identifies the type of tax form.

(43) Merger: When two or more corporations combine and one is the successor corporation, the other corporation files final returns on their number. DO NOT confuse this with Consolidation (TC 011).

(44) Microfilm: A media to provide photographic records of tax data on a reduced scale.

(45) Name Control (NC): The first four letters of an entity's last name (in the case of an individual) or the first four letters of an entity's business name (in the case of corporations, etc.). The name control is used to check the Master File and ensure the TIN corresponds with the proper organization.

(46) Name Search Facility (NSF): This facility provides the capability to search a national data base for an unknown TIN (EIN or SSN) using name and address information. The NSF provides search capability for primary, secondary and Doing-Business-As (DBA) filers. The command codes used to search the NSF are CC NAMES (SSN) and CCs NAMEE (EIN)/NAMEB.

(47) National Account Profile (NAP): A national TIN file of entities on the IMF, BMF, EPMF and IRAF. It is used to validate the TIN or TIN/name control for IDRS input command codes and for researching with CC INOLE.

(48) Parent: The governing body of a controlled group of corporations or an exempt organization with a group ruling.

(49) Pending Transaction: A transaction input to IDRS but not yet effective on the Master File account.

(50) Pilot Voucher: An Exempt Organization/BMF Entity voucher prepared for processing group exemptions. This is a file copy only.

(51) Pilot Voucher File (PVF): This file of all pilot vouchers is kept in GEN order. The pilot vouchers are used in establishing new subordinates of a group ruling.

(52) Power Of Attorney (POA): The authorization of a third party by a taxpayer to represent the taxpayer in certain tax matters. See CENTRALIZED AUTHORIZATION FILE (CAF).

(53) Primary Location Code (PLC): The PLC is the Area Office code based on the address where the taxpayer receives mail. The BMF should generate the PLC, or we can create or change it by CC ENREQ/BNCHG, Document Code 50 or 63. The PLC is issued to identify the service center controlling the account.

(54) Prior Year: A tax period which precedes the current processing year.

(55) Re-Input: The reentry into the processing system of a return or document which has not posted to the Master File.

(56) Refile: A refile is sending the return or document back to Files to be filed in its original position in the block.

(57) Reject: A return or document which was not accepted by the campus computer because of incorrect or incomplete information.

(58) Reprocessable: The reentry into the processing system of a return or document which previously posted to the Master File.

(59) Resequence: A resequence occurs when a transaction cannot be posted or processed until the following week (cycle) at MCC.

(60) Return: A legal form or written evidence used by an organization to record tax information.

(61) Subordinate: A subordinate is a local affiliate of a Parent organization.

(62) Subsection Code: This code designates the type of exemption an organization has received.

(63) Supplemental Group Ruling Information (SGRI): A SGRI is a letter submitted to the IRS each year by the Parent organization of a group ruling detailing any changes to its subordinates.

(64) Tax Module: A tax module is part of an organizations account which reflects tax data for each type of tax and tax period.

(65) Tax Period: This is the period of time for which a return is filed. The Service uses a six digit code to indicate the end of the tax period for a given return. The first four digits represent the year and the last two digits represent the month.

(66) Taxpayer Delinquent Account (TDA): A TDA is a tax module in collection status in which a return was filed but not fully paid.

(67) Taxpayer Delinquency Investigation (TDI): A TDI is a tax account in collection status which has a filing requirement for which a return has not been received.

(68) Taxpayer Identification Number (TIN): The TIN is a generic term representing either an EIN or SSN.

(69) Transaction Code (TC): A three digit code used to identify transactions being processed, to maintain a history of actions posted to taxpayer accounts on the Master File, and to identify actions being taken on an organization’s account.

(70) Transcript: A transcript is a copy of entity and tax data from the Master File concerning an organizations account.

(71) Unpostable (UP): An unpostable is an input return or transaction which attempted to post to the Master File but could not because of inconsistencies with prior posted transactions, filing requirements or the input data.

(72) Unprocessable: An unprocessable is a document which is incomplete, illegible or otherwise unsatisfactory for input.

(73) For a list of acronyms and abbreviations see IRM 3.12.38-36, Acronyms and Abbreviations.

(1) Servicewide Electronic Research Program (SERP)

(2) Submission Processing Design Center (SPDC)

(3) Integrated Automation Technologies (IAT)

(4) Integrated Data Retrieval System (IDRS)

(5) National Archives and Record Administration (NARA) approved Document 12990, IRS Records Control Schedules, for records retention, disposition, and destruction guidance.

(6) Use the following list of IRMs in conjunction with this section; however, the list is not all inclusive:

• IRM 2.3, IDRS Terminal Responses

• IRM 2.4, IDRS Terminal Input

• IRM 3.11.12, Exempt Organization Returns (Returns and Documents Analysis)

• IRM 3.12.12, Exempt Organization Returns (Error Resolution)

• IRM 3.12.32, General Unpostables

• IRM 3.12.38, BMF General Instructions (unpostables)

• IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution

• IRM 3.13.2, BMF Account Numbers

• IRM 3.13.12, Exempt Organization Account Numbers

• IRM 3.13.222, BMF Entity Unpostable Correction Procedures

• IRM 3.17.79, Accounting Refund Transactions

• IRM 21.4, Refund Inquires

• IRM 21.4.4, Manual Refunds

(1) The National Taxpayer Advocate reached agreements with the Commissioners or Chiefs of the Taxpayer Services (TS) Division, Small Business/Self Employed (SB/SE) Division, Tax Exempt Government Entities (TE/GE) Division, Criminal Investigation (CI), Independent Office of Appeals, and Large Business and International (LB&I) that outline the procedures and responsibilities for processing Taxpayer Advocate Service (TAS) casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

(2) The SLAs are found at TAS Service Level Agreements.

(1) TAS initiates Form 12412, Operations Assistance Request (OAR), to request help from an operational function when it lacks the statutory or delegated authority to resolve a taxpayer’s problem.

(2) In cases requiring an OAR, TAS:

1. Prepares Form 12412, Operations Assistance Request (OAR);

2. Secures all necessary supporting documents;

3. Forwards Form 3210, Document Transmittal, to TS Division Liaison; and

4. Clearly identifies an OAR requiring expedited processing.

(3) TS Division:

1. Assigns a liaison in each office or campus where a Taxpayer Advocate is located;

2. Acknowledges receipt of the case via Form 3210 within one workday for expedite processing and within three workdays for non expedite cases;

3. Reviews the case for appropriate assignment;

4. Assigns the case to the appropriate employee within the function;

5. Provides TAS with the name and phone number of the TS employee assigned the case;

6. Determines a reasonable time frame for case resolution;

7. Provides TAS with written approval to input an adjustment or issue a manual refund, in accordance with TAS delegated authorities, after TS determination has been made;

8. Responds to TAS within three workdays in writing, via fax, or hand delivery of resolution in cases requiring expedited processing;

9. Returns Form 12412 within three workdays from the date all actions have been completed and transactions input.

(4) For more information, see IRM 13.1.19 Advocating With Operations Assistance Requests (OARs).

(1) CFOL provides nationwide access, meaning information processed through any area office or campus and posted to any Master File is available.

(2) CFOL command codes provide on-line access to Master File information, residing at MCC, via IDRS.

(3) CFOL command codes are available even when IDRS is not; however, you still need a password to sign on and access the command codes.

(4) CFOL command codes don’t show pending transactions, case controls, history items or unpostables. IDRS research must be performed in addition to CFOL research.

(5) Some of the more common CFOL command codes you will use include:

1. BMFOL - The Business Master File On–Line provides research of nationwide entity and tax data information posted to the BMF. It displays a summary or index (definer code I) of tax modules, showing the tax years available. The Business Master File is updated every Thursday morning at MCC. Therefore, any transaction that’s updating the BMF can be seen on BMFOL on Thursday prior to the weekend campus update.

2. BRTVU - provides a display of the transcribed line items on all business tax returns and their accompanying schedules or forms as the returns are processed at the campuses. Use BRTVU in lieu of ordering returns whenever possible.

3. EOGEN - EOGENP provides the Parent organization using the GEN of the group. EOGENS provides a list of subordinate organizations for the parent organization. This list is limited to 30 pages, with 20 subordinates per page. You can narrow the search for subordinates by entering the optional state abbreviation ("." for foreign addresses). This is especially helpful when researching large organizations such as Little Leagues, Lions Club International, etc. EOGEN will not research by EIN. If the EIN is known but not the GEN, research CC BMFOL definer O to obtain the GEN, then research CC EOGEN. EOGEN doesn’t provide full entity information for subordinates. It provides a starting point for further research.

4. INOLE - provides access to the NAP, which contains selected entity information for all Master File accounts. The NAP contains vital information which can identify the taxpayer, but doesn’t contain all of the entity data for the taxpayer. Additional research must be done using CC ENMOD or CC BMFOL. CC INOLE is updated each Wednesday at the computing centers.

(1) Integrated Data Retrieval System (IDRS): IDRS is a computer system with the capability to retrieve and update stored taxpayer account information on the Master Files. You perform research on IDRS through the use of various command codes (CC) input to an IDRS terminal.

(2) To implement the requirements of the Taxpayer Browsing Protection Act of 1997 (Public Law No. 105-35), the IRS created the unauthorized access, attempted access or inspection of taxpayer records (UNAX) program. UNAX is the willful, unauthorized inspection of any federal tax return or return information. See IRM 10.5.5, IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program Policy, Guidance, and Requirements, for additional 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 the EO Unpostable Unit will use.

(2) EDS research is required to determine correct status for most exempt organization unpostable accounts. EDS information should be used to update an exempt organization's filing status. EDS research should be used in conjunction with all other research tools to ensure accounts reflect current and accurate exempt organization data.

(3) The Inventory Control System replaces the Exempt Organization Application Control System (EACS) as the system which 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.

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

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

(1) The following table is a list of EO Status Codes:

(1) The following table is a list of EO Foundation Codes:

(2) See IRM 3.13.12.6.14, Foundation Code, for more information.

(1) The following table lists EO Affiliation Codes:

(1) The following table lists type of organizations:

(1) The GUF 1140 report is accessed on Control-D. The GUF 1140 report shows all new unpostables received in GUF.

(2) Unpostables should be closed within 60 days of appearing on the 1140 report or they will age.

(3) The acceptable old age for Exempt Organization unpostables is 10%.

(1) GUF is accessed by the employee via IDRS. Sign on to IDRS using your password prior to attempting GUF access. You are authorized to access only those accounts necessary to resolve your assigned cases. You are forbidden to access your own or your spouse's account, the account of a friend, relative or coworker, or any account in which you have a financial interest.

(2) Employees who engage in unauthorized access or browsing of tax accounts are subject to disciplinary actions and possible criminal prosecution. BROWSING is defined as looking at a tax account to satisfy a personal curiosity or for fraudulent reasons. See IRM 10.5.5, IRS Unauthorized Access, Attempted Access or Inspection of Taxpayer Records (UNAX) Program Policy, Guidance, and Requirements, for additional information.

(3) GUF is accessed using the IDRS CCs UPDIS, UPASG, UPCAS, UPBAT, UPTIN, UPRES and UPREV.

(1) Research IDRS to determine if there’s a pending TC 000 for the unpostable EIN. If a TC 000 is pending, research for a pending TC 016 Doc. Code 80 which will indicate the EO sub-module is being added.

(2) If there’s no pending TC 000, research for a better EIN. If a better EIN is found, look to see if there’s an EO section.

(1) Process UPC 301 cases with a pending TC 000 and no EO section as follows:

1. Research IDRS to determine when the TC 000 is going to post.

2. Input TC 016 with the proper status code to establish the EO section. IRM 3.13.12.6.18, EO Status Code and Year, for the proper status code.

3. Input the proper posting delay code, if necessary, to allow the TC 000 to post first.

4. Close the unpostable with URC 0 or 6, as appropriate, and cycle to post after the TC 016.

(2) Process UPC 301 cases needing EIN research as follows:

(3) Process UPC 301 RC 1 cases for MFT 47 (Form 8871) as follows:

1. Research the IRS 527 political organization search page at Search Political Organization Disclosures for the Form 8871, by the EIN listed on the Form 4251.

2. Determine if the Form 8871 is truly for a political organization by reviewing the purpose listed in Part III of the Form 8871. If the purpose listed isn’t related to a political activity (i.e., fund raising, campaigning, influencing, etc.), close the unpostable with URC 8, requesting rejects cancel the DLN. If the purpose listed is related to political activity (i.e., fund raising, campaigning, etc.) continue processing. See IRM 3.13.12.14, Section 527 Political Organizations, for the definition of a political organization.

3. Research CC ENMOD for a pending or posted TC 000.

If	And	Then
The TC 000 is posted	There’s an EO section in status 34, SS 82 with Form 990 FR of 01 and Form 1120 FR of 09	Close the unpostable with URC 0. Exception: If the name control on UPTIN is ZZZZ, close the unpostable with URC 6 to change the name control.
The TC 000 isn’t posted	There’s no EO section	Establish an EO section with CC EOREQ/EOCHG, Doc. Code 80, TC 016, definer codes AB, SS 82, classification code 1, status code 34/YYYYMM (current year and month), FYM (of the unpostable), Form 990 FR of 01, Form 1120 FR of 09 and remarks Close the unpostable with URC 0 and cycle to post after the TC 016. Exception: If the name control on UPTIN is ZZZZ, close the unpostable with URC 6 to change the name control.
The TC 000 is pending	There’s no EO section	Refer to the row above to establish the EO section.
There’s no TC 000 and there’s no Form 8871 on the IRS political organization search page		Close the unpostable with URC 8, requesting rejects cancel the DLN.

4. If there’s no TC 000 and there’s a Form 8871 on the IRS political organization search page (and it’s determined they are a political organization), research CC NAMEE/NAMEB using the name on the Form 8871:.

If	And	Then
An EIN is found and established on IDRS	There’s an EO section in status 34, SS 82 with Form 990 FR of 01 and Form 1120 FR of 09	Close the unpostable with URC 0. Exception: If the name control on UPTIN is ZZZZ, close the unpostable with URC 6 to change the name control to match the BMF. Note: Ensure an FYM is established on the BMF. If no FYM is established, input the FYM of the unpostable (for example, the unpostable is on tax period 202209, input 09 as the FYM).
An EIN is found and established on IDRS	There’s no EO section established	Establish an EO section with CC EOREQ/EOCHG, Doc. Code 80, TC 016, definer codes AB, SS 82, classification code 1, status code 34/YYYYMM (current year and month), FYM (see note), Form 990 FR of 01, Form 1120 FR of 09 and remarks. Note: If an FYM is established on the BMF, input that FYM. If no FYM is established, input the FYM of the unpostable (for example, the unpostable is on tax period 202209, input 09 as the FYM). Close the unpostable with URC 0 and cycle delay to post after the TC 016. Exception: If the name control on UPTIN is ZZZZ, close the unpostable with URC 6 to change the name control to match the BMF.
An EIN is found, but isn’t established on IDRS		Input TC 000 to establish the account. Establish an EO section with CC EOREQ/EOCHG, Doc. Code 80, TC 016, definer codes AB, SS 82, classification code 1, status code 34/YYYYMM (current year and month), FYM (see note), Form 990 FR of 01, Form 1120 FR of 09 and remarks (cycle delay as appropriate). Note: Input the FYM of the unpostable (for example, the unpostable is on tax period 202209, input 09 as the FYM). Close the unpostable with URC 6 with the new EIN and correct name control (if needed) and cycle delay to post after the TC 016. Print the Form 8871 and edit the correct EIN on it. Send it to EO Entity, MS 6273, requesting they remove the old EIN off the Oracle and add the new EIN to the Oracle. Send a 3910C letter to the organization informing them of the correct EIN to file their Form 8871.
An EIN isn’t found		Use CC ESIGN with MFI O to assign a new EIN. Establish an EO section with CC EOREQ/EOCHG, Doc. Code 80, TC 016, definer codes AB, SS 82, classification code 1, status code 34/YYYYMM (current year and month), FYM (see note), Form 990 FR of 01, Form 1120 FR of 09 and remarks (cycle delay as appropriate). Note: Input the FYM of the unpostable (for example, the unpostable is on tax period 202209, input 09 as the FYM). Close the unpostable with URC 6 with the new EIN and correct name control (if needed) and cycle delay to post after the TC 016. Print the Form 8871 and edit the correct EIN on it. Send it to EO Entity, MS 6273, requesting they remove the old EIN off the Oracle and add the new EIN to the Oracle. Send a 3910C letter to the organization informing them of the correct EIN to file their Form 8871.

(4) Process UPC 301 RC 1 cases for MFT 49 (Form 8872) as follows:

1. Research the IRS 527 political organization search page at Search Political Organization Disclosures for the Form 8872, by the EIN listed on the Form 4251.

2. If there’s no Form 8872, close the unpostable with URC 8, requesting rejects cancel the DLN.

3. If there’s a Form 8872, research CC NAMEE/NAMEB using the name on the Form 8872 and work as follows:

If	And	Then
You find an existing EIN	There’s an EO section with status 34, SS 82 with Form 990 FR of 01 and Form 1120 FR of 09 AND there’s a Form 8871 filed	Close the unpostable with URC 6 to the correct EIN and name control.
You find an existing EIN	There’s an EO section with status 34, SS 82 with Form 990 FR of 01 and Form 1120 FR of 09 AND there’s no Form 8871 filed	Close the unpostable with URC 8, requesting rejects cancel the DLN.
You find an existing EIN	There’s no EO section established	Close the unpostable with URC 8, requesting rejects cancel the DLN.
You can’t find an existing EIN		Close the unpostable with URC 8, requesting rejects cancel the DLN.

Note: A Form 8871 is required to be filed and posted before a Form 8872 can be filed.

(5) If the unpostable is a Form 8868 requesting an extension for Form 4720 on an SSN, research CC NAMEE/NAMEB for the correct SSN.

1. If the correct SSN is located, close the unpostable with URC 6 correcting the SSN. If unable to close with URC 6, close with URC 8 requesting rejects post the extension to the correct SSN.

2. If the correct SSN can’t be located, close the unpostable with URC 8 requesting rejects cancel the DLN.

(6) Process UPC 301 RC 1 cases for MFT 46 (Form 8038 series bonds) as follows:

1. Research IDRS using CCs NAMEB and/or NAMEE for another EIN:

If	Then
An EIN is found and established on IDRS	Close the unpostable with URC 6 to the correct EIN.
An EIN is found but the account isn’t established on IDRS	Use CC ENREQ/BNCHG with TC 000 to establish the account on Master File. Close the unpostable with URC 6, to the correct EIN, and cycle delay to post the TC 150 after the TC 000
An EIN can’t be found	Use CC ESIGN with MFI O to assign a new EIN Close the unpostable with URC 6, to the correct EIN, and cycle delay to post the TC 150 after the TC 000
An EIN, with a “P”, is found on CC NAMEB or NAMEE or CC ENMOD shows a dummy account resulting from a reject or unpostable action	Use CC ENREQ/BNCHG with TC 000 to establish the account on Master File Close the unpostable with URC 6, to the correct EIN, and cycle delay to post the TC 150 after the TC 000

Note: When performing research to locate another EIN try using different variations of the name. The name on the return may not be the name established on our records for previous bonds filed. Examples of different names to research are below (the list is not all inclusive):

If the name on the return is	Then research for
ABC County School System	ABC County Board of Education
Topaz City, NY	City of Topaz
Rural Fire Protection District	Add the city and/or state, from the address, to the name:

(1) All UPC 302 cases are assigned by GUF to B3 Category.

(1) Unpostables will receive both open cases and cases already closed by GUF using URC 2 as follows:

• Any TC 000 Doc. Code 80 with a blocking series other than 990–999 is assigned to Unpostables as an open case
  

• All other cases will be assigned to Unpostables after being closed by GUF using URC 2

(2) Compare the entity of the unpostable document with the entity on the BMF.

(1) Compare the transcribed name control with the name as shown on the BMF. If there was a spelling or transcription error, close the unpostable with URC A.

(2) If the return or document contains evidence of a name change or the established name line was misspelled, check for a pending TC 013. Process as follows:

(3) If research indicates the unpostable EIN belongs to another organization, research for a better EIN.

(1) Compare the transcribed name control with the name as shown on the BMF. If there’s a spelling or transcription error, close the unpostable with URC A.

(2) If there’s no transcription error, research BMF for a pending TC 013.

(3) If the EIN on the unpostable belongs to another organization, research IDRS for a better EIN. If a better EIN is found:

1. Ensure the name control is correct.

2. Perfect the document with the correct EIN.

3. Close the unpostable with URC 6.

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

(4) If a better EIN can not be found, proceed as follows:

(1) UPC 303 cases will occur when a name change or the need for a new EIN is indicated.

(2) When an organization requests a name change, appropriate documentation may be required in order for the name change to be made.

1. If the type of organization is a 1 on EDS or on CC BMFOLO, the organization is incorporated with the state. An amendment to the articles of incorporation along with proof of filing with the state are required. If the name change is on the Secretary of State's website, no documentation is required.

2. If the type of organization is a 2 on EDS or on CC BMFOLO, the organization is a trust. An amendment to the trust agreement is required along with the trustee(s) signature.

3. If the type of organization is a 5 on EDS or on CC BMFOLO, the organization is an unincorporated association. An amendment to the articles of association, constitution, bylaws, or other organizing documents are required along with signature of at least two officers/members.

(3) Any request to change a name on an Exempt Organization account must be accompanied by appropriate documentation in order to be considered.

(4) Close the unpostable with the appropriate URC and cycle to post after the TC 013.

(5) If the appropriate documentation is not attached, inform the organization the name change cannot be made until the required information is provided using letter 1224C. Close the unpostable with URC 6.

(6) If documentation of the name change is not required, proceed as follows:

1. Input the TC 013 to change the name.

2. Close the unpostable with the appropriate URC and cycle to post after the TC 013.

3. Send letter 252C to the organization acknowledging the name change.

(7) When the name lines differ and the return or document is for the subordinate of a group ruling, check for similarities (such as the lodge number, etc.).

(8) When the need for a new EIN is indicated, research IDRS to determine if another EIN is already established for the organization.

(9) If another EIN is not found, proceed as follows:

(1) Unpostables 304 are all auto-closed by GUF. IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution.

(1) Form 990-T has two due dates:

• If the extension is filed for a Form 990-T (sec. 401(a) & 408(a) trust), the due date is the 15th day of the 4th month

• If the extension is filed for a Form 990-T (corporation), the due date is the 15th day of the 5th month

(2) The above due dates should be used in determining the extended due date which should be granted on the Form 8868 for the Form 990-T.

(3) If the extension due date is incorrect; it may be necessary to delete the unpostable and input the TC 460 on CC REQ77 to ensure the correct extended due date is input.

(4) Research the UPC 305 RC 1 Form 8868 to ensure the correct extended due date will post to Master File.

(5) The notice code is edited in the top middle portion on Form 8868 and is input to generate a notice to the filer indicating whether an extension of time to file their return was approved or denied. The following Notice Codes are used on Form 8868:

• 1 = Approved 6 month extension

• 2 = Denied extension, not timely

(6) The unposted extension is for MFT 34 (990-T corp. only), 37, 44, or 67 do the following:

(7) The unposted extension is for MFT 34 401(a) or 408 trust and/or the words IRA are present in the name, take the following actions:

(1) All UPC 307 cases with EO MFTs (except MFT 36, Form 1041-A) are assigned by GUF to Entity Unpostables.

(2) Form 1041-A (MFT 36) is not a primary return and will not unpost due to FYM mismatch; the organization must also file a Form 1041 or Form 5227. If a Form 1041 or Form 5227 was filed by the organization, close the unpostable with URC 6 to change the FYM to agree with the BMF FYM.

(1) EO Unpostables will correct UPC 307 unpostables for all MFTs except MFT 36 for Form 1041-A. MFT 36 will bypass the UPC 307 check.

(1) UPC 308 cases with MFTs 33, 34, 36, 37, 44, 46, 60 or 67 are assigned to B3 category by the GUF system. EO UPC 308 RC 9 with MFT 10 are assigned to B3 category as well.

(1) Form 8872 is required to be filed monthly, quarterly, or semi annually dependant on the year. Even numbered years (i.e. 2006, 2008) must file quarterly or monthly. Odd numbered year (i.e. 2007, 2009) must file semi annually or monthly.

(2) For returns with a tax period for an even numbered year (i.e. 2008) check CC BMFOLI if filing a quarterly or monthly return and then take the following actions:

(3) Check CC BMFOLI to determine if the organization is filing a semi-annual or monthly return. For returns with a tax period for an odd numbered year (i.e. 2009) take the following actions:

(1) "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them their Form 940 was received but they are not required to file.

(2) Verify the employment code is correct; see IRM 3.13.12.6.28, Employment Code, for assigning employment codes.

(3) If the employment code is correct and if the BMF has a Form 940 FRC, use CC ENREQ/BNCHG with TC 016 and delete the Form 940 FR.

1. Research for the tax period on the unpostable return.
   

2. Determine if a manual refund is necessary. If a refund is necessary, close the unpostable and send to the information to Rejects for refund to be issued.

   Note: If the refund is for an employment code F, refer to the instructions in IRM 3.13.12.20.5, CP 172, If/Then chart prior to sending to Rejects.

   
   

3. Prepare a Form 13271 for routing to Rejects. Annotate the DLN should be canceled because the taxpayer is not required to file Form 940.

4. Correct the unpostable with CC UPRES and URC 8.

5. Send 858C letter unless one has been sent for the same MFT and tax period.

(4) If the employment code is not correct:

1. Contact FSLG to remove the employment code by e-mailing the request to tege.fsl.cpm@irs.gov or EEFAX to 855-243-4014.
   

2. Add the Form 940 filing requirement if not present on Master File.

3. Correct the unpostable with CC UPRES and URC 0.

(1) "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them their Form 940 was received but they are not required to file.

(2) Process RC 5 as follows:

1. Verify the employment code in IRM 3.13.12.6.28, Employment Code.
   

2. To avoid having erroneous tax modules established for the type of employer, any transactions which will create a tax module will unpost.
   

3. Verify the document’s MFT was transcribed correctly. If transcribed incorrectly, correct the MFT on the unpostable.
   

4. When the account is in status 97 with a Form 1120 filing requirement the employment code is not valid and the taxpayer is required to file Form 940. Remove the employment code and allow the return to post. Cycle delay as needed. Contact FSLG to remove employment codes A, F, G, Q or T by e-mailing the request to tege.fsl.cpm@irs.gov or EEFAX to 855-243-4014.

5. Any payment TC 610, 650, 660, 670 etc. should be applied to outstanding balances beginning with the oldest tax period first before refunding. See procedures in IRM 3.13.222.57 , Unpostable Code (UPC) 308 Reason Code (RC) 5.
   

6. If the unpostable is a TC 610 with a return DLN, and can be resolved without the return, follow procedures in IRM 3.13.222.57. If the return is needed to resolve the unpostable, hold the unpostable document until the unpostable TC 150 is received, then process both the payment and the return using instructions in IRM 3.12.278 and IRM 3.13.222.57.

   Note: Ogden Only- When closing with URC 8 for Rejects to issue a refund of any unposted payments, ensure a print of the screen indicating "Request Completed" from CCs LPAGE and UPRES and RTR (Remittance Transaction Research System) is attached to the Form 13271, Rejects Unit Routing Slip. When making any corrections to the CC UPRES print, circle out what is not needed and underline the Name Control, MFT, Tax period and Trace ID number in purple ink. Accounting will not refund an unposted payment without verification that correspondence was previously sent.

   
   

7. If the unpostable is a payment and paragraph (e) above doesn’t apply, follow procedures in IRM 3.13.222.57.

   Note: Ogden Only- When closing with URC 8, for Rejects to issue a refund of any unposted payments, ensure a print of the screen indicating "Request Completed" from CCs LPAGE and UPRES and RTR (Remittance Transaction Research System) is attached to the Form 13271. When making any corrections to the CC UPRES print, circle out what is not needed and underline the Name Control, MFT, Tax period and Trace ID number in purple ink. Accounting will not refund an unposted payment without verification that correspondence was previously sent.

   
   

8. If the payment is not to be applied to another tax period or is to be refunded, transfer the credit per local campus procedures, and include a copy of the taxpayer correspondence and any research material.
   

9. If payments are made to previous or future tax periods, apply to another tax period or initiate a manual refund as applicable.

10. If TC 700 or TC 710, credit transfer, contact the preparer for the corrective action needed.
    

11. If TC 840, manual refund, contact Accounting for the corrective action needed. Ensure the module is not a dummy account on IDRS. Research CC ENMOD/CC INOLE to verify the FRC if the second account is not on the BMF.
    

12. If TC 611, reversal of TC 610, contact the preparer for the corrective action needed.
    

13. If TC 520 cc 085-088, 089 (bankruptcy), or cc 081 (bankruptcy), contact Collection for corrective procedure.
    

14. A TC 370 account transfer must not post just because it’s a Doc. Code 51 or 52. If the employment code is correct, contact the initiator and inform them the employment code is correct, and the taxpayer doesn’t owe this tax and an abatement will be required. Hold this case until the initiator responds. When the response is received, change the employment code to allow the return to post and cycle as appropriate. Close the case with URC 0. Route the case to EO Accounts to review the case for possible adjustment and abatement of taxes. Use Form 3210 to route the case to EO Accounts. If the Doc. Code 51 was prepared because of an account maintenance transcript, the money on the tax module can be refunded. After the money is refunded, input TC 591 for the tax period on the BMF.
    

15. If TC 59X, check for a Form 940 FRC in the entity. If the Form 940 FRC is on the BMF, use CC ENREQ/BNCHG and delete the FRC. Use CC UPRES with URC D and void the document. If the Form 940 FRC is not on the BMF, use CC UPRES with URC D and void the document.
    

16. If TC 930, 940, 941 or 960, contact the preparer for the corrective action needed. If unable to resolve with contact, void the unpostable with URC D.
    

17. If the unpostable is the credit portion of a Doc. Code 34 credit transfer, apply to the account where the debit posted and route to the preparer. Close the unpostable with URC 6.

(1) The Form 990-T TC 150 will unpost as 308 RC 7 if the "Credit for small employer health insurance premiums" line (per the table below) is greater than zero and the EO status is other than 01, 02, 06, 07, 10, 11, 21, 24, 25, 30, 31, 40 or 42.

(2) Use the following table to correct UPC 308 RC 7:

(1) Form 941 filers who have employees on a seasonal or intermittent basis who don’t have distributions every quarter can file their Form 941 on a seasonal/intermittent basis. However, at least one return must be filed every year, even if no wages or distributions were made during the year. To identify these filers, Computer Condition Code T is used.

1. Seasonal/intermittent taxpayers who fail to check the seasonal/intermittent box on Forms 941 will be changed back to normal Form 941 filers.
   

2. Federal agencies cannot file Forms 941 on a season/intermittent basis. Verify the employment code.
   

(2) Use the following chart to resolve UPC 308 RC 8:

(1) "Zero" Forms 940 will bypass the unpostable check and a notice will be sent to the organization notifying them Form 940 was received but they are not required to file.

(2) Verify the unpostable entity is the same as the BMF.

(3) If the unpostable is Form 940 (TC 150), research to verify the subsection 03, 50, 60, or 70 is correct and update the Employment Code to W with CC ENREQ/BNCHG.

1. Research for outstanding balances. If outstanding balances are found, print CC BMFOLI and send to Rejects.

2. If no outstanding balances are located, send to Rejects for a manual refund.

3. Notify the taxpayer the Form 940 should be not be filed using letter 858C.

4. Close the unpostable with URC 8 requesting Rejects cancel the DLN because the taxpayer is not required to file Form 940.

(4) If the unpostable is a payment other than an RPS TC 610, research the BMF for any open modules with a balance due.

(5) If the unpostable is an RPS TC 610:

1. Research for the TC 150, which should also be unpostable

   Note: If TC 150 is not unpostable, resolve the TC 610 if possible without waiting for the TC 150 to post

   .
   

2. Notify the organization they are not liable for Form 940 using 858C letter.
   

3. Close both unpostables with URC 8 and request Rejects cancel the DLNs.
   

4. Eight code the money to Unidentified if there are no other open modules for the organization by completing Form 3244, attach a copy of the appropriate CC TXMOD, URC 8 the unpostable TC 610 to Rejects indicating the organization is not liable for the money. Attach the Form 3244 to the Form 13271 which is sent to Rejects.

(6) If TC 59X, check for a Form 940 FRC in the entity. If the Form 940 FRC is on the BMF, use CC ENREQ/BNCHG and delete the FRC. Use CC UPRES with URC D and void the document. If the Form 940 FRC is not on the BMF, use CC UPRES with URC D and void the document.

(7) If the unpostable is the credit portion of a Doc. Code 34 credit transfer, apply to the account where the debit posted and route to the preparer. Close the unpostable with URC 6.

(8) Input TC 016 and add Employment Code W to the account.

(1) - The following table provides instructions for resolving UPC 311 RC 1:

(1) UPC 313 RC 1 cases referenced in IRM 3.12.278.19, UPC 313 - No Related Transactions, are assigned to B3 category by GUF.

(2) All RC 8 cases will be closed with URC 2 and routed back to the preparer.

(1) If the unpostable is a TC 023, check the Form 5768 to see if the proper transaction code was input.

(2) If the unpostable is a TC 071, research UPTIN for an unpostable TC 070 for the organization.

(3) If the unpostable is a TC 072, research CC UPTIN for an unpostable TC 070 for the organization.

(4) If the unpostable is a TC 081 and there’s no TC 080 (denial):

1. Notify the organization the reversal of a denial of exemption from Social Security taxes can not be made since there’s no record of the denial.

2. Close the unpostable with URC D and destroy the form per local campus procedures.

(1) Determine if the extension date was input correctly. If not input incorrectly, close with URC D. Input TC 460 with correct date. If module contains a TC 160, prepare Form 3465 to Accounts Management requesting abatement of penalty. If input correctly and posted TC 620/460 has a later extension date, close with URC D.

(2) When the group return box was checked in error, Input URC D to delete the unpostable TC 460 and input a new TC 460 with the correct extended due date.

(1) All UPC 323 RC 2 and RC 3 cases referenced in IRM 3.12.278.22, UPC 323 Duplicate Transactions, are assigned by GUF to B3 category.

(1) Check the Form 5768 to see if the proper transaction code was input.

(2) If the transaction code should be a TC 023, close the unpostable with URC 8 and request Rejects correct the transaction code.

(3) If the TC 024 is correct:

1. Notify the organization this is the second election received and their Form 5768 can not be processed using a 3905C letter. Include the Form 5768 with the letter. Blackout the DLN and circle out the date stamp on Form 5768.
   

2. Close the unpostable with URC D.

(1) Request the Form 8274 source document folder from Files.

(2) Verify the entity on the Form 8274 matches the BMF.

(1) All EO UPC 324 cases are assigned to B3 category by the GUF system.

(1) The MAG-TAPE/FTD-CD on CC ENMOD and the "MTC" on CC ACTRA and hard copy transcripts indicate which return is being filed on magnetic tape.

(2) The Magnetic Tape Codes are as follows:

(3) Research to determine if the employment code, EO status and subsection code, or Form 940 filing requirement is correct.

(1) All UPC 329 RC 1 cases for TC 150, TC 157 and TC 620/460 (EO MFTs) are assigned by GUF to B3 category.

(2) All UPC 329 RC 2 cases for TC 150, TC 157, and TC 620/460 (EO MFTs) are assigned by GUF to B3 category.

(1) These instructions are general in nature. Specific instructions can be found in subsequent UPC 329 sections.

(2) Counsel approved sending back incomplete or incorrect 990 series EO returns (i.e., a Form 990 is filed, but the organization has a Form 990-PF filing requirement) to the filer. These returns should be identified and returned by the Code and Edit function; however, some may be processed and will unpost. The incomplete or incorrect returns should be returned to the filer with an explanation for the rejection and that no further processing will be completed.

(3) Always perform complete research. See IRM 3.12.278.6 for research procedures. If an original return has posted on Master File, which matches exactly with the unpostable return (creating a duplicate filing), close the unpostable with URC 8 requesting rejects cancel the DLN and associate with the posted return (if the paper return is received).

(4) All 990 series returns are required to be electronically filed (beginning on or after July 2, 2019 for Forms 990 and 990-PF; for tax years ending July 31, 2021 and later for Form 990-EZ, and as of February 1, 2021 for Form 990-T). Organizations can only electronically file the current and prior two years. Paper returns must be filed for tax years that can’t be electronically filed. If a paper return is received for a year it should be electronically filed, it should be sent back to the filer explaining they must electronically file.

(5) When a paper return is received with "Retroactive Reinstatement" written across the top of the return, and the EO status is 97, research EDS to determine if a recent application has been filed:

(6) UPC 329 resolution instructions may require the input of a TC 022; however, certain freeze codes prevent a TC 022 from posting and need to be resolved prior to input. If possible, update to a good status without input of a TC 022.

• If there’s a -T freeze on any account OR an EO account (MFT 34/37/44/50/67) contains one or more of the following freeze codes: -A, E-, -F, J-, -J, -L, N-, O-, P-, -R, -S, T-, -U, -V, W-, -W, X-, -Y, -Z, don’t input a TC 022 as it will unpost as a UPC 359.

  Note: A TC 022 can’t be input on a parent organization (affiliation code 6 or 8), it will always go unpostable.

• If a freeze code prevents the input of a TC 022, give the case to the manager or lead to elevate to the Submission Processing P&A analyst with oversight of the EO Unpostable process to resolve the freeze code condition.

• Suspend the case until the freeze code(s) are resolved and a TC 022 can be input.

(7) If the entity on the unposted return and the BMF entity, on IDRS, are the same, research CCs INOLE, ENMOD and EDS to determine if the BMF or the unpostable filing requirement is correct.

(8) If the BMF entity and unpostable entity are not the same, research for another EIN: