5.19.22. Business Master File (BMF) Return Delinquency

(1) Follow procedures in this subsection when the response indicates no activity or no employees (employment taxes) for the period(s).

(1) Follow procedures in this subsection when the response indicates they are not liable and/or will not be liable for future returns on the delinquent MFT.

(1) Follow procedures in this subsection when the response indicates the taxpayer is out of business.

(1) This section addresses closing modules without enforcement action even when a return is due if it meets certain criteria. Policy Statement P–5–133 of IRM 1.2.14, Servicewide Policies and Authorities - Policy Statements for the Collecting Process allows closing modules if the following condition is met.

• There would be no tax due on the delinquent return(s).

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  Note: Minimum tax due is defined as the aggregate net tax due.

Exception: This policy statement does not apply to Form 1065, U.S. Partnership Return of Income, Form 990 series, and Form 1120-S, U.S. Income Tax Return for an S Corporation. These forms are used for various reporting purposes and generally do not have tax due.

• ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  Note: For accounts over 6 years, do not contact or send letter, just close using the appropriate TC 59X.

(2) For accounts that meet P-5-133 criteria, managerial approval is required for closing account "Little or no Tax Due" with the exception of accounts over six years old. If the module meets criteria for "Little or No Tax Due", document AMS history with all research and actions taken and follow procedures in the table below:

(3) If account does not meet P-5-133 criteria, see IRM 5.19.22.5.3.1.3, BMF Taxpayer Liable.

(1) This section will provide procedural guidance on identified decedent accounts related to sole proprietor businesses and husband and wife partnerships.

(2) All procedures apply to contacts via telephone, correspondence or in person unless otherwise noted.

(3) All information secured and/or actions taken must be documented on AMS. If original documents are secured, make copies and return the originals to provider.

(4) When speaking to or corresponding with third parties, refer to IRM 11.3.2.4.11, Deceased Individuals.

• See IRM 5.19.2.5.4.6.6, IMF Response Taxpayer Deceased for procedures on identifying decedent entities.

• See IRM 5.19.1.5.3.2, Deceased Taxpayers - Entity Changes for guidance on any Entity issues.

(5) If a telephone call is received from a third party stating taxpayer is deceased and the business is no longer in business:

• Ask probing questions to secure date of death

• Request a copy of the death certificate

• Research IDRS to determine if taxpayer is liable to file the return

• Take necessary closing actions, if applicable

(6) If there is an indication the delinquent module will have a potential liability or there is a balance due module existing on the entity or an associated module, attempt to secure the following information to be forwarded to the Advisory Unit.

• Date of Death (unless there is a prior TC 540 already on the module). If there is no date of death present on CC INOLES, attempt to secure a copy of the death certificate.

• County in which the taxpayer resided at time of death, and County in which taxpayer died, if different.

• Name, address, telephone number of the fiduciary (executor or administrator), if any.

• If speaking to third party on telephone, secure name and telephone number of person, if different than fiduciary.

• If combo account, inquire for open probate and assets. See IRM 5.19.1.5.3, Deceased Taxpayers for guidance.

• Probe to determine if an EIN has been requested for the Estate, if applicable. If an EIN was requested, ask if a Form 1041 has been filed

(7) CSCO employees refer to the If/Then table below for documenting and closing the module:

(8) ACS and ACSS employees refer to the If/Then table below for documenting and closing the module:

(9) FA employees refer to the If/Then table below for documenting and closing the module:

(1) A Limited Liability Company (LLC) is an unincorporated business entity created under state law that has characteristics of both a partnership and a corporation.

(2) A LLC may have two or more members or it may be a single member. A LLC with two or more members has the option of filing, under certain conditions, as a partnership, or as a corporation. LLCs can be identified by a "LLC>" indicator on CC ENMOD. If present, "LLC>S" identifies the entity as a single member and "LLC>M" as a multi-member.

• A single member LLC has the option under certain conditions, of either filing as a corporation, or be disregarded for tax purposes, in which case the single owner reports the LLC's income tax items directly on their own personal tax return. A single member LLC can opt to file as a corporation by filing Form 8832, Entity Classification Election. This is identified by a TC 076 on CC ENMOD. Refer to Publication 3402, Tax Issues for Limited Liability Companies, for additional information.

• For tax years after January 1, 2009, a single member LLC is treated as a separate corporation for employment tax and excise tax purposes, even if it has elected disregarded entity status for federal income tax purposes.

• For tax periods after January 1, 2009, a single member LLC must file employment tax and excise tax returns under its own EIN.

(3) If a RD response states they are an LLC and have filed another way (such as personal Form 1040 with appropriate Schedule, employment, partnership or corporation return under another EIN or MFT), research the other account module. If LLC did file another way, document AMS of actions taken, including the EIN the LLC filed under and then follow procedures in the tables below

(4) CSCO employees refer to the If/Then table below:

(5) ACS and ACSS employees refer to the If/Then table below:

(6) FA employees refer to the If/Then table below:

(7) If the response states they are an LLC and have filed an employment, partnership or corporation return under another EIN, MFT or Form 1040, U.S. Individual Income Tax Return, research the other account module, if it does not indicate a return was filed, or the response does not provide the EIN the return was filed under, see IRM 5.19.22.5.3.1.3, BMF Taxpayer Liable.

(1) Taxpayers are required to file Form 940 if they answer "yes" to either one of these questions for the year at issue or the proceeding year:

• Did they pay wages of $1,500 or more to employees in any calendar quarter?

• Did they have one or more employees for at least some part of a day in any 20 or more different weeks?

(2) Taxpayers need to include all full-time, part-time, and temporary employees. However, if the business is a partnership, advise they do not count its partners.

(3) If the Employment Code (EC) of the Entity is T, W, F or G (identified on CC’s INOLE and BMFOLE) the taxpayer is generally not liable to file. Forward any inquiries related to a Federal Agency as indicated by EC "F", to the centralized FAD team in Brookhaven Campus. See Federal Agency Delinquency (FAD) Contact Information on SERP.

(4) State and Local Governments that act as fiscal agents for home health care workers will be required to file Form 940 and are identified by EC "A".

(5) Agricultural employers are liable if they meet either of the tests below:

• They paid cash wages of $20,000 or more to agricultural workers in any calendar quarter in the current or preceding calendar year.

• They employed 10 or more agricultural workers for some portion of a day during any 20 different weeks in the current or preceding calendar year.

(6) Employers with household employees are liable and have the option to file either a Form 940 or Schedule H (Form 1040) if they paid $1,000 or more in any calendar quarter during the current or preceding year for work in:

• A private home

• A local college club

• A local chapter of a college fraternity or sorority

(7) For additional guidance see IRM 21.7.3, Unemployment Taxes and Publication 15, (Circular E) Employer's Tax Guide for further guidance on filing requirements.

(8) For information on Form 940 deposit requirement see IRM 20.1.4.9, Form 940. For procedures to respond to taxpayer requests for a payment arrangement including a balance due on Form 940 account(s), refer to IRM 5.19.1, Balance Due.

(9) When addressing Form 940, research and address all applicable employment tax returns for the same year by the wages reported on the Form 940. If research indicates taxpayer is liable to file a related employment tax return(s) for the same year, taxpayer contact is required to address delinquency, either by telephone or appropriate letter.

(10) If the taxpayer states they are not liable because no wages or insufficient wages were paid, review the Form 941, Form 943 or Form 944. Document AMS of actions taken and follow procedures in the table below:

(11) Some organizations, such as religious, charitable, and educational organizations, are exempt from FUTA taxes. If an organization claims to be exempt from FUTA taxes research the entity through CC ENMOD for possible TC07X/09X indicator. The transaction code indicates taxpayer made an election and has been granted church exemption from Social Security tax or small business election. If an entity has been identified as an exempt organization, document AMS history with all research and actions taken and follow procedures in the tables below.

(12) CSCO employees refer to the If/Then table below:

(13) ACS and ACSS employees refer to the If/Then table below:

(14) FA employees refer to the If/Then table below:

(15) If the taxpayer states they are not liable because the business is closed, see IRM 5.19.22.5.3.1.2, BMF Response "Other".

(16) If the taxpayer states they are not liable because the business is an LLC, see IRM 5.19.22.5.3.1.2.2, BMF Response Limited Liability Company (LLC).

(17) If the business merely had a change in the method of operation (e.g., sole proprietor to corporation or partnership to sole proprietor) during the notice period, so that the new entity is a successor employer see IRM 4.19.5.4.7.14, Successor Employer review accounts before requesting a Form 940.

(18) For case resolution, the taxpayer can file a combined Form 940 on either TIN. Document AMS history with all research and actions taken, including TIN of the combined return, and follow procedures in the tables below.

(19) CSCO employees refer to the If/Then table below:

(20) ACS and ACSS employees refer to the If/Then table below:

(21) FA employees refer to the If/Then table below:

(22) If a taxpayer with household employees states they now report all wages on Schedule H with their Form 1040, document AMS history with all research and actions taken and follow procedures in the tables below.

(23) CSCO employees refer to the If/Then table below:

(24) ACS and ACSS employees refer to the If/Then table below:

(25) FA employees refer to the If/Then table below:

(1) If the taxpayer states they are not liable because the business is closed, see IRM 5.19.22.5.3.1.2, BMF Response "Other".

(2) If the business responds it is a seasonal or intermittent filer but does not indicate if they are liable, verify the filing requirements on ENMOD or INOLE. Document or change filing requirements to denote a casual/intermittent filer, if appropriate, using CC ENREQ. Refer to Document 6209 for BMF Filing Requirements.

(3) If the business responds indicating they are a seasonal or intermittent filer and therefore not liable, document AMS history with all research and actions taken, including season/months of business operation, if applicable, and follow procedures in the tables below.

(4) CSCO employees refer to the If/Then table below:

(5) ACS and ACSS employees refer to the If/Then table below:

(6) FA employees refer to the If/Then table below:

(7) If a taxpayer with household employees states they currently report all their employment taxes on Schedule H with their Form 1040, research CC RTVUE to verify if they reported as stated. Document AMS history with all research and actions taken and follow procedures in the tables below.

(8) CSCO employees refer to the If/Then table below:

(9) ACS and ACSS employees refer to the If/Then table below:

(10) FA employees refer to the If/Then table below:

(11) If the Return Delinquency notice is requesting a delinquent Form 941 , but the taxpayer states that they are a Form 944 filer for that year, research and verify via Form 944 cache indicator on CC BMFOLE to determine the correct FR for year of the delinquent tax period. The filing requirement for Form 941/944 can change based on whether the employers annual employment tax liability (that is, social security, Medicare, and withheld Federal income taxes) is $1,000 or less. However, the taxpayer is sent prior notification if their filing requirement is changed. See IRM 5.19.22.5.3.1.2.6, BMF Response Form 944, Employer's ANNUAL Federal Tax Return, for additional information regarding the requirements for Form 944 criteria. Document AMS history with all research and actions taken and follow procedures below.

(12) For CSCO employees, if the taxpayer has Form 941 FR for that calendar year, and the taxpayer states they meet the criteria for Form 944 FR, and did not have employees for the delinquent quarter, then:

1. Inform the taxpayer that our records indicate they are required to file Form 941 for the delinquent year, as based on a look-back period for that calendar year, although their tax for that year meets the Form 944 criteria.

2. Input TC 590, with appropriate closing code on the Form 941 quarter(s) the taxpayer states had no employees.

(13) For ACS and ACSS employees, if the taxpayer has Form 941 FR for that calendar year, and the taxpayer states they meet the criteria for Form 944 FR, and did not have employees for the delinquent quarter, then:

1. Follow procedures above.

2. If account is on ACS, input history code "TOC0,30,RDPND" or "TOS0,30,RDPND". See IRM 5.19.5-5, ACS History Codes.

(14) For FA employees, if the taxpayer has Form 941 FR for that calendar year, and the taxpayer states they meet the criteria for Form 944 FR, and did not have employees for the delinquent quarter, then:

1. Follow procedures above.

2. If account is on ACS, input history code "TOC0,21,RDPND" or "TOS0,21,RDPND". See IRM 5.19.5-5, ACS History Codes.

(15) If a response is from an agricultural employer and they state Form 943 was filed instead of Form 941, research CC BMFOLI for filing history. If research validates taxpayers response, document AMS history with all research and actions taken and follow procedures below.

(16) For CSCO employees, if Form 943 posted for delinquent period, then:

1. Input a TC 591 CC 075 using CC FRM49 on the Form 941 delinquent module.

2. Transfer any credits misapplied from Form 941 module(s) to the Form 943.

3. If any Form 941 were filed in error, follow procedures in IRM 21.7.2, Employment and Railroad Tax Returns.

(17) For ACS and ACSS employees, if Form 943 posted for delinquent period, then:

1. Input a TC 591 CC 025 using CC FRM49 on the Form 941 delinquent module.

2. Transfer any credits misapplied from Form 941 module(s) to the Form 943.

3. If any Form 941 were filed in error, follow procedures in IRM 21.7.2, Employment and Railroad Tax Returns.

4. If the account is on ACS, enter the ACS history code "TOC0,30,RDPND" or "TOS0,30,RDPND". See IRM 5.19.5-5, ACS History Codes.

(18) For FA employees, if Form 943 posted for delinquent period, then:

1. Input a TC 591 cc 020 using CC FRM49 on the Form 941 delinquent module.

2. Transfer any credits misapplied from Form 941 module(s) to the Form 943.

3. If any Form 941 were filed in error, follow procedures in IRM 21.7.2, Employment and Railroad Tax Returns.

4. If the account is on ACS, enter the ACS history code "TOC0,21,RDPND" or "TOS0,21,RDPND". See IRM 5.19.5-5, ACS History Codes.

(19) If a Form 941 posted for delinquent period, then control or refer the case, see IRM 5.19.22.5.4, Return Delinquency TIN and Entity Research.

(20) If neither Form 941 or Form 943 has posted, then see IRM 5.19.22.5.3.1.3, BMF Taxpayer Liable.

(21) If research indicates taxpayer had wages paid over $1,500 for a Form 941, in any given quarter (per tax period), the taxpayer may be liable to file a Form 940 for the applicable tax year. Complete research to determine if taxpayer needs to file a Form 940 whether it is in an open TDI status or not see IRM 5.19.22.5.3.1.2.3, BMF Response Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. If there is no indication the taxpayer filed under another EIN send a letter to the taxpayer requesting the return.

(22) Effective January 1, 2012, monthly filing and special deposit procedures became obsolete.

(1) If taxpayer states not liable for Form 943 as they reported under their Individual return Form 1040 (Schedule F), research cross reference SSN on Form 1040 Schedule F for wages paid. Input TC 590 cc 075 on module if applicable.

(2) If a response is from an agricultural employer and they state Form 941 was filed instead of Form 943, research CC BMFOLI for filing history, document AMS history with all research and actions taken and follow procedures below.

(3) For CSCO employees, if a Form 941 posted for delinquent period, then:

1. Input a TC 591 CC 075 using CC FRM49 on the Form 943 delinquent module.

2. Transfer any credits misapplied from Form 943 module(s) to the Form 941.

3. If any Form 943 returns were filed in error, follow procedures in IRM 21.7.2, Employment and Railroad Tax Returns.

(4) For ACS and ACSS employees, if a Form 941 posted for delinquent period, then:

1. Input a TC 591 CC 025 using CC FRM49 on the Form 943 delinquent module.

2. Transfer any credits misapplied from Form 943 module(s) to the Form 941.

3. If any Form 943 returns were filed in error, follow procedures in IRM 21.7.2, Employment and Railroad Tax Returns.

4. If the account is on ACS, enter the ACS history code "TOC0,30,RDPND" or "TOS0,30,RDPND". See IRM 5.19.5-5, ACS History Codes.

(5) For FA employees, if a Form 941 posted for delinquent period, then:

1. Input a TC 591 CC 020 using CC FRM49 on the Form 943 delinquent module.

2. Transfer any credits misapplied from Form 943 module(s) to the Form 941.

3. If any Form 943 returns were filed in error, follow procedures in IRM 21.7.2, Employment and Railroad Tax Returns.

4. Document AMS of actions taken.

5. If the account is on ACS, enter the ACS history code "TOC0,21,RDPND" or "TOS0,21,RDPND". See IRM 5.19.5-5, ACS History Codes.

(6) If the taxpayer responds indicating they have agricultural employees and filed a Form 941, control or refer the case, see IRM 5.19.22.5.4, Return Delinquency TIN and Entity Research .

(7) If neither Form 943 nor Form 941 has posted, see IRM 5.19.22.5.3.1.3, BMF Taxpayer Liable.

(8) If the taxpayer states they are not liable because the business is an LLC, IRM 5.19.22.5.3.1.2.2, BMF Response Limited Liability Company (LLC).

(1) If the taxpayer states that during the period in question the total tax liability is $2,500 or more, notify the taxpayer they are still required to file the Form 944 for the delinquent tax period and can only change their filing requirement for the current tax year.

(2) An entity cannot have an open FR for both Form 941 and Form 944 within the same tax year. However, if a return posts (TC 150) to the incorrect FR for the year in question, input a TC 590 on the open TDI. If a TC 291 is present on the module indicating the return was reversed, forward to AM to add tax back onto the module.

(3) Entities that are exempt to the Form 944 program:

• Household and agricultural employers,

• Taxpayers with a LB&I BOD code,

(4) Since Form 944 is considered interchangeable or a successor to Form 941, Form 944 information can be discussed with a valid Form 2848 or Form 8821 that states "Employment taxes" as the type of tax information, or lists Form 941 or Form 944 as the tax form number. Reporting agents do not have the authority to opt-out of the program for their clients.

(5) As of January 2009, a "F944 CACHE" field was created on CC ENMOD and BMFOLE to indicate tax years (2006-2015) for Form 944 filing requirement.

• CC BMFOLE displays the cache on the second page, with an indicator "1" on each year the taxpayer is liable to file Form 944, and "blank" if the filing requirement is other than Form 944.

• CC BMFOLE displays the cache with an indicator "2", An indicator "2" in a cache field means that the taxpayer is liable for a Form 944 for the current year and will be liable for a Form 941 in the following year. At the close of a current year, an indicator "2" automatically updates to an indicator "1".

• CC ENMOD displays the cache on the first page, with a "1" under the tax years the taxpayer has a Form 944 FR, and "9" if the FR is other than Form 944.

(6) Document AMS history with all research and actions taken and follow procedures in the table below:

(7) If Form 944 FR was not effective for the calendar year of the RD module and the taxpayer is liable to file Form 941 for the delinquent module, and there were wages or withholding for the RD tax period, then see IRM 5.19.22.5.3.1.3, BMF Taxpayer Liable.

(8) For CSCO employees, if Form 944 FR was effective for the calendar year and they are not liable to file, then:

1. Input TC 590 cc 075 on the RD module, and any other open RD Form 941 modules for the RD calendar year.

2. If the taxpayer’s current FR is Form 944, input TC 590 cc 075 on the Form 941 RD module.

(9) For ACS and ACSS employees, if Form 944 FR was effective for the calendar year and they are not liable to file, then:

1. Input TC 590 cc 025 on the RD module, and any other open RD Form 941 modules for the RD calendar year.

2. If the account is on ACS, enter the ACS history code "TOC0,30,RDPND" or "TOS0,30,RDPND". See IRM 5.19.5-5, ACS History Codes.

3. If the taxpayer’s current FR is Form 944, input TC 590 cc 025 on the Form 941 RD module.

(10) For FA employees, if Form 944 FR was effective for the calendar year and they are not liable to file, then:

1. Input TC 590 cc 020 on the RD module, and any other open RD Form 941 modules for the RD calendar year.

2. If the account is on ACS, enter the ACS history code "TOC0,21,RDPND" or "TOS0,21,RDPND". See IRM 5.19.5-5, ACS History Codes.

3. If the taxpayer’s current FR is Form 944, input TC 590 cc 020 on the Form 941 RD module.

(11) Do not change filing requirements from a Form 944 to Form 941 or vice versa on a subsequent year based on a prior year filing. See IRM 21.7.2.4, Employment Tax Returns Procedures, for additional guidance.

(12) If research determines the taxpayer is not liable to file Form 944 for the tax period indicated, IRM 5.19.22.5.3.1.1, BMF Response Taxpayer Not Liable.

(1) A corporation must file Form 966 Corporate Dissolution or Liquidation, if it adopts a resolution or plan to dissolve the corporation or liquidates any of its stock.

(2) Form 966 is required to be filed within 30 days after the resolution or plan is adopted to dissolve the corporation or liquidate any of its stock.

(3) If line 10 of Form 966 refers to "Sec.1361(b)(3)(B)" the form must be referred to the appropriate Entity area for review of intent of Q-sub election.

(4) If a Form 966 is received with the statement, "Filed Pursuant to Notice 97-4" refer the form to the appropriate Entity area.

(5) If a Form 966 is received "without" the statement "Filed Pursuant to Notice 97-4 ", or if the taxpayer refers to line 10 "Section 331 or 332" on the Form 966 (which identifies a partial or complete liquidation), refer to the table below to close the filing requirements and forward the Form 966 to files:

1. Code the top of each Form 966 received with name control, and tax period.

2. Review CC ENMOD to identify if there are open filing requirements (FR) on the entity. If there are open FR on the entity, use the date in Box 7A as the dissolution date to close filing requirements. If there is no final year indicated, no date on Box 7A, use the current year as the final year.

3. Input the "date business closed" on CC ENMOD.

4. It is not necessary to research to validate whether the taxpayer is liable to file or not since the taxpayer signed the Form 966 validating their dissolution of the corporation.

5. For ACS, ACSS, CSCO and FA employees, if a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.22.5.6, Credit Balance Overview.

6. Document AMS history with all research and actions taken, including the dissolution date, and follow procedures in the table below to close the applicable filing requirements:

If	Then
For CSCO,	Input TC 591 cc 75 (using CC FRM49) on period subsequent to dissolution date. If the taxpayer is on the telephone and states there is a liability on the current year return, inform the taxpayer they are required to file a final return. However, do not remove the filing requirements.
For ACS and ACSS Employees,	Input TC 591 cc 25 (using CC FRM49) on periods subsequent to the dissolution date. If the taxpayer is on the telephone and states there is a liability on the current year return, inform the taxpayer they are required to file a final return. However, do not remove the filing requirements. If the account is on ACS, enter history code "TOC0,30,RDPND" or "TOS0,30,RDPND" .
For FA Employees.	Input TC 591 cc 20 (using CC FRM49) on period subsequent to dissolution date. If you are speaking to the taxpayer on the telephone and states there is a liability on the current year return, inform the taxpayer they are required to file a final return. However, do not remove the filing requirements. If the account is on ACS, enter the history code "TOC0,21,RDPND" or "TOS0,21,RDPND" .

7. These forms do not get processed or assigned a DLN as the form is only used to inform the IRS of the dissolution of their corporation. Forward the Form 966 directly to appropriate Campus Support site (files) via Form 3210. See also IRM 3.5.61.1.9 , Ramped Down Campuses - Processing of Documents, for additional information.

   Note: Form 966 for various years can be sent to Files using one (or the same) Form 3210. Complete a Form 3210, in the "remarks" section, write: "Form 966 - file and maintain in the alpha files".

(6) If received in Philadelphia forward form(s) along with Form 3210 to:

IRS, Ogden Submission Processing Center

1973 N. Rulon White Blvd., Mail Stop 6722

Ogden, UT 84201-1000

(7) If Form 966 is received, use current year as last return due. If form not secured, request it from taxpayer, and close the following years as explained above.

(8) Input "Out of Business date on CC ENMOD" if date is provided on Form 966 . An "Out of Business date" can not be input or created more than 12 months after the current date.

(9) On all actions above, document AMS of all pertinent information including actions taken.

(1) If taxpayer responds stating they filed a Form 990 instead of a Form 1041. Review the account, if research shows a TC 598 cc 032 or cc 097, this indicates the taxpayer's exempt status has been revoked and they are required to file Form 1041. For additional information see IRM 5.19.22.5.3.1.2.11, BMF Response Form 990, Return of Organization Exempt From Income Tax.

(2) All return delinquency issues and coding, along with the preparation of the return for processing are completed at the receiving site, and only the "Form 1041 Return" is sent to CSPC for processing.

(3) The type of trusts reported on Form 1041 are:

• Decedent's Trust - The fiduciary must file for the estate of a domestic.

• Trust - The fiduciary must file for domestic trust taxable under IRC Sec 641.

• Bankruptcy Estate - The fiduciary must file for an estate of an individual involved in bankruptcy proceeding under Chapter 7 or 11.

Note: See IRM 21.7.4.4.1, Form 1041, U.S. Income Tax for Estates and Trusts, for additional information.

(4) If response indicates no liability for Form 1041 because the trust did not have sufficient income, document AMS history with all research and actions taken and follow procedures in the table below:

(5) If response indicates there is no current or future liability for Form 1041 or it describes a trust with any of the following terms, document AMS history with all research and actions taken and follow procedures in the table below:

• Unfunded Trust (trust set up but no money credited)

• Grantor Trust (taxpayer filed for information purposes only)

• Charitable Remainder (taxpayer files for information purposes only)

• Revocable Trust (filing for information purposes only)

• Keogh Plan (retirement plan for self-employed individuals)

• Retirement Plan

• Custody Account

• Agency Account

• Employee Benefit Account

• Life Insurance Trust

• Guardian and Conservationist

• Ancillary Trust

• Charitable Revocable Unfunded Trust (CRUT)

• Substantial Owner (taxpayer files for information purposes only)

(1) If the taxpayer states the partnership only consists of a husband and wife partnership, they may opt to file as a " Qualified Joint Venture- Husband and Wife" on their personal tax return. For tax years beginning after December 31, 2006, the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28) provides that a "qualified joint venture" whose only members of the partnership are husband and wife have the option to report their partnership income on their joint tax return and elect not to be treated as a partnership for Federal tax purposes. Taxpayers can report their business earnings, expenses, etc. as sole proprietors under Schedule C on their 1040 tax return. The taxpayer must divide all items of income, gain, losses, deductions, and credit between them in accordance with their respective interests in the business, and report the income and deductions on their jointly filed federal tax return. Refer to IRM 21.7.4.4.2, Form 1065, U.S. Return of Partnership Income for additional information.

1. If a taxpayer states they are a husband and wife partnership and/or they filed the delinquent year as a "qualified joint venture" and reported their business income on their joint individual Federal tax return - verify if taxpayer reported the income on their individual tax return.

2. If it is determined by research the taxpayers included their partnership income on their personal joint tax return, input TC 590, with the appropriate closing code on the delinquent tax year for the Form 1065.

3. If the taxpayer states they will no longer file as a partnership, or dissolving partnership, and will continue to file as a joint venture, input a TC 591 with the appropriate closing code.

(2) Taxpayer states they have not filed Form 1065 but are filing Form 1120 or vice versa, input a TC 591 on the inappropriate MFT to close the FR for that form. Document AMS of actions taken.

(3) If taxpayer states they are not liable because the partnership has dissolved, see (Link to other response section)

(4) If the response indicates no liability for filing based on any of the following situations:

1. Joint venture (an association for investment purposes only that conducts no business),

2. Doctors and lawyers who have a common secretary, office manager, etc.,

3. Husband and wife partnership,

4. IRC 761(a) election was made,

5. Partnership for investment only, not active business,

6. Partnership for joint production, extraction, or use of property, not for selling services or property produced or extracted, or

7. Partnership made up of dealers in securities for a short period for the purpose of underwriting, selling, or distributing a particular security,

8. Disregarded Entity (for additional information see IRM 21.7.13.4.3.5, Disregarded Entities),

   Note: If a disregarded entity has employees they may still be required to file employment taxes.

9. If the taxpayer states they are not liable because the business is an LLC, see IRM 5.19.22.5.3.1.2.2, BMF Response Limited Liability Company (LLC).

(5) Document AMS history with all research and actions taken and follow procedures in the table below:

(6) If the partnership states they did not receive any income and did not pay or incur any expenses, they are not considered to engage in a trade or business, and are not required to file a Form 1065, document AMS history with all research and actions taken and follow procedures in the table below:

(1) If the taxpayer states the corporation is a Form 1120-S filer and TC 090 is not present on ENMOD, document AMS history with all research and actions taken and follow procedures in the table below:

If	And	Then
A return was filed and a UPC310/ RJ150 is on module,	The account is in Notice Status 02,	Input delay C15 using CC ASGNB, see IRM 5.19.22.5.1.1, Accelerate and/or Delay To TDI Status 03 for additional information on accelerating to ACS.
A return was filed and a UPC310/ RJ150 is on module,	Account is in TDI Status 03,	If the account is on ACS, enter history code OADT, 45, CMNTS. See IRM 5.19.5-5 , ACS History Codes.
No return has been filed.	Account is in Notice Status 02,	Refer taxpayer's correspondence or Form 4442 to Entity Control. Input delay C08 using CC ASGNB to accelerate account to ACS. See IRM 5.19.22.5.1.1, Accelerate and/or Delay To TDI Status 03, for additional information. Send Letter 86-C to taxpayer to inform their account was referred to Entity, if applicable.
No return has been filed.	Account is in TDI Status 03,	Refer the taxpayer's correspondence or Form 4442 to Entity. Send Letter 86-C to taxpayer to inform their account was referred to Entity, if applicable. If the account is on ACS, enter history code "OADT, 45, CMNTS". See IRM 5.19.5-5, ACS History Codes.

Note: If research indicates a TC 090 present on the module the Filing Year Month (FYM) now becomes a 12.

1. If the corporation states a Form 990 series has been or will be filed instead of Form 1120, document AMS history with all research and actions taken and follow procedures in the table below:

   Note: For ACS, ACSS, CSCO and FA employees, if a credit balance remains on the account, you must follow all credit balance research procedures before closing the module with a TC 590, 591 or 593. See IRM 5.19.22.5.6, Credit Balance Overview.

If	And	Then
No previous filing history,	Account is in Notice Status 02,	Refer account to Entity. Note: Attach any pertinent information on Form 4442 or appropriate form. Input delay C08 using CC ASGNB. to accelerate to ACS, see IRM 5.19.22.5.1.1, Accelerate and/or Delay To TDI Status 03 Send Letter 86-C to taxpayer to inform them of referral to Entity, if applicable.
No previous filing history,	Account is in TDI Status 03,	Refer account to Entity. Note: Attach any pertinent information on Form 4442 or appropriate form. Send Letter 86-C to taxpayer to inform them of referral to Entity, if applicable. If the account is on ACS, enter history code "OADT, 45, CMNTS". See IRM 5.19.5-5, ACS History Codes.
Research indicates Exempt Status (Form 990) has been revoked (TC 598 cc 032 or cc 97).	For CSCO, ACS, ACSS and FA employees,	Inform the taxpayer their exempt status has been revoked and they are required to file Form 1120.
Form 990 (MFTs 33, 34, 44, 56, or 67) has been filed.	For CSCO Employees,	Input TC 591 cc 075 using CC FRM49 (on the Form 1120 module).
Form 990 (MFTs 33, 34, 44, 56, or 67) has been filed.	For ACS and ACSS Employees,	Input TC 591 cc 025 using CC FRM49 (on the 1120 module). If the account is on ACS, enter history code "TOC0, 30, RDPND" or "TOS0, 30, RDPND". See IRM 5.19.5-5, ACS History Codes.
Form 990 (MFTs 33, 34, 44, 56, or 67) has been filed.	For FA Employees.	Input TC 591 cc 020 using CC FRM49 (on the Form 1120 module). If the account is on ACS, enter history code "TOC0, 21, RDPND" or "TOS0, 21, RDPND". See IRM 5.19.5-5, ACS History Codes.

(2) Corporations that are connected to a parent corporation by stock ownership in a chain of corporations are considered subsidiaries. The parent corporation files one Form 1120 for all corporations involved as a consolidated return. If taxpayer's response states a consolidated Form 1120 tax return was or will be filed by a parent corporation, document AMS history with all research and actions taken, including the parent company TIN if secured, and follow procedures in the table below:

(3) If the taxpayer states the corporation merged with another corporation and all returns will be filed under merged corporation's TIN, document AMS history with all research and actions taken, including the TIN of the merged corporation as appropriate, and follow procedures in the table below:

(4) For all other responses, follow the chart below:

(5) If a credit balance remains on the account, research and attempt to resolve the credit balance by following credit balance research procedures. See IRM 5.19.22.5.6, Credit Balance Research Overview.

(1) Use the following Chart to resolve responses on Form 990.

(1) All Form 2290 correspondence received in Collection Operations and the module is not in Status 02 or 03 must be sent to the:

Cincinnati Campus, CIRSC Excise,

Stop 5701G

(2) If the taxpayer is liable for filing a Form 2290, document AMS history with all research and actions taken, including the date vehicle was first used during the taxable period, if applicable, and follow procedures in the table below: