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

(1) Taxpayer Services (TS) is funded by TE/GE based on receipts processed. Refer to table below for how a count is taken. Only one count per receipt and no count is taken as a receipt produced unless the functions are completed as indicated in the table below. How a receipt is Counted

(2) Use the following Organization, Function and Program (OFP) codes when processing the following forms. Function and Program (OFP)

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

(1) Post the results on an agreed site where TE/GE, TS and other management officials can access the data.

(2) The sample is no less than 40 filings a month per unit.

(3) The review is conducted within the Imaging operation.

(4) Report hours used to conduct the review under 880-13100.

(5) During the review, verify:

1. All index information was entered correctly, see IRM 3.20.12.3.23, Validation.

2. All information that cannot be disclosed on the form, schedules and requested attachments were removed (redacted/restricted) and all restricted information is moved to the end of the return behind the Schedule B.

3. The scanned copy is good quality, see IRM 3.20.12.3.7, Processing Batches of E-Filed Returns Imported into SEIN.

4. All IRM 3.20.12 procedures were followed.

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

(6) If you find errors during the review do the following:

1. Print the document (or pages if appropriate).

2. Note the error condition.

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

(1) IRC 6104(d) requires tax-exempt organizations to provide copies of their returns and applications to persons who request them. Congress intent in allowing public inspection of information governed by IRC 6104(a), IRC 6104(b), and IRC 6104(d), was to enable the public to scrutinize the activities of tax exempt organizations and trusts.

• Congress intended that these organizations and trusts be subject to a certain degree of public accountability in view of their privileged tax status.

• The public has a right to know for what purposes their contributions are being or will be used.

(2) If a member of the public requests information, the IRS is responsible for providing the most complete and accurate copy of the forms to the customers. IRC 6104 requires the IRS to make the following available for public inspection:

• Form 990, Return of Organization Exempt From Income Tax.

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

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

• Form 990-T, Exempt Organizations Business Income Tax Return (and proxy tax under Section 6033(e)), (section 501(c)(3) organizations filed after August 17, 2006).

• Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code, if filed by a private foundation.

  Note: Form 4720 filed by individuals or organizations other than private foundations, are not subject to disclosure provisions of IRC 6104.

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

  Note: The Form 5227 is available for public inspection, but is not part of the images available to the public via USBs. EO Imaging is not required to redact or restrict when processing the Form 5227.

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

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

  Note: Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, cannot be disclosed.

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

(4) IRC 6104(d) also requires exempt organizations to make available for public inspection a copy of their application for recognition of Federal tax exemption, a copy of any papers submitted in support of such application and any letter or other document issued by the IRS with respect to such application on:

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

  Note: Denied applications are available, in redacted form, per IRC section 6110.

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

  Note: Denied applications are available, in redacted form, per IRC section 6110.

• Form 1024, Application for Recognition of Exemption Under Section 501(a).

  Note: Denied applications are available, in redacted form, per IRC section 6110.

(5) Refer to IRM 11.3.9, Exempt Organizations, for guidelines on what may be disclosed.

(6) You must follow the IRM procedures to ensure specific data is redacted/restricted before providing the filing to the public.

(1) Forms, Schedules and requested attachments required to be filed with certain EO returns (Forms 990, 990-EZ, 990-PF, and 990-T) are imaged and disclosed. See Exhibit 3.20.12-1, Form 990/990-EZ Schedules and Requested Attachments Open For Public Inspection, through Exhibit 3.20.12-4, Not Open On all Forms, or specified individual sections throughout IRM 3.20.12.

(2) Form 990 was revised for tax year 2008 and subsequent. The tax year 2010 revision of Form 990 consists of 12 pages and numerous schedules. Each schedule indicates whether or not it is open for public inspection. The schedules that are open to public inspection are clearly identified in the upper right hand corner by the following statement, "Open to Public Inspection". All other schedules and attachments not required to be filed are to be restricted, including, Schedule B.

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

(1) The following items are extraneous material when submitted with the return, they are not disclosed:

• Wills, minutes of meetings, articles of incorporation etc.

• Forms 8109 (FTD coupons)

• Forms W-2

• Extension of time to file, e.g., Form 8868

• Schedules from a Form 1040 e.g., Schedule D

• Form 1098-C, Form 1098-E, and Form 1098-T

(2) See Exhibit 3.20.12-4, for these items may be attached to the return as supporting documentation and are NOT OPEN to Public Inspection.

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

(4) IRS E-filed documentation that was received by the filer and attached to their paper filings is extraneous material and are restricted.

(5) When documents are voluntarily submitted as supporting documentation and not specifically required by a Code section other than IRC 6033, and listed in Exhibit 3.20.12-1, Form 990/990-EZ Schedules and Requested Attachments Open For Public Inspection, through Exhibit 3.20.12-3, Form 990-T Schedules and Requested Attachments Open For Public Inspection, the supporting documentation is extraneous material and is restricted.

(1) Except as provided below, names and addresses of contributors must be redacted from public inspection. Redact contribution amounts if they can reasonably be expected to identify the contributor (which is usually not the case).

(2) To reduce the risk of inadvertent disclosure of contributor information, IRS policy is not to disclose Schedule B. When specifically requested, however, EO Photocopy will provide the Schedule B with redacted names and addresses of contributors and redacted contribution amounts if they can reasonably be expected to identify contributors.

(3) For Form 990-PF, Schedule B information generally is open to public inspection.

(4) For IRC 527, Political Organizations, Schedule B of Form 990 is open to public inspection but is restricted in Imaging.

1. When specifically requested EO photocopy provides the Schedule B once an organization is confirmed to be a IRC 527 political organization.

2. If determined they are not an IRC 527 political organization, EO Photocopy provides a redacted Schedule B as stated in paragraph 2 above. See IRM 3.20.13, Exempt Organization Returns Processing, Exempt Organizations Photocopy Procedures, for additional instructions on this process.

3. Contributor information and other information on Forms 8871 and 8872 is also open to public inspection. See IRM 11.3.9, Exempt Organizations.

(5) Information relating to contributions and grants made by the filing organization is open to public inspection in all cases.

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

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

(1) Most IRS codes and marks can be disclosed. See exceptions in IRM 3.20.12.2.7, IRS Codes and Marks Not Disclosable, the following can be disclosed:

• IRS Received Date

• Document Locator Number (DLN)

• Red, brown, orange, or blue edit perfections

• Transcription edit mark such as ‘arrows’

• The words Original, Final and Amended

• Marks and stamps used by the scanning operators

• Edit marks used by SEIN employees to indicate the return requires redaction/restriction

• IRS stamps and employee names

  Exception: CI employees names can not be disclosed.

(2) If there is any doubt as to what can be disclosed, contact the TE/GE Analyst before making the document available for public inspection.

(1) Redact a document that is required to be made available for inspection under IRC 6104(a) or IRC 6104(b) of any coding information that indicates specific facts about the organization's or trust's liability or possible liability for any tax, interest or penalty, that was added to the first page of the return during processing.

(2) Some codes and marks used by the IRS and/or are required by IRC 6033 and IRC 6034 must be redacted before making the document available for public inspection. Do not disclose the following:

1. IRS marks or data provided by the filer that indicate a delinquency status, Compliance or Collection activities e.g., the word delinquent stamped or written on the first page of the return, or a Form 433-A, Form 656-A or request for an installment agreement.

   Note: A Received Date "is not" an indication of delinquency status, nor are the word(s) "statute" or "statute cleared"

   .

2. IRS marks that indicate the return is under investigation, e.g., an audit stamp or the return was secured by field employees.

3. IRS marks that indicate a payment was received with the return, e.g., a stamped Received with Remittance, an amount written in green or purple, or a green or purple rocker.

   Note: The payment voucher on e-file returns are IRS generated and are restricted.

4. The Y edit mark added to the return during Document Preparation. See IRM 3.20.12.3.13.6 Document Preparation - Editing.

5. Condition codes "D", "R", "V", or "X", entered by IRS employees.

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

(2) The software program, called Kofax Capture, is used for Scanning, Quality Control (QC), Forms Processing, Validation, Verification, and Release (export of images and indexes to long-term storage) and is referred to as the "front end".

(3) The Restricting and Quality Review (QR) steps use different, specially programmed software other than Kofax Capture and is referred to as the "back end".

(1) The following table lists terms commonly used in the Imaging operation.Glossary Terms

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

(2) The Batch Manager module can be used to:

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

• Delete existing batches.

• Edit or view batch properties.

• Display a batch audit and error trail.

(1) See IRM 3.30.123 Processing Timeliness: Cycles, Criteria, and Critical Dates for timeliness guidelines for return imaging.

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

(3) Re-film returns come from several areas within the campus.

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

(1) Reassociate all unattached schedule(s), supplemental page(s) and/or envelopes separated from the original return during imaging with the original return when possible.

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

(3) If unable to reassociate loose or unattached envelopes, give the envelope to the lead or manager to be destroyed.

(1) Initial returns are returns that are received for the first time from ERS.

(2) The instructions for imaging "Initial" Returns are different from the instructions for imaging Reimage returns and Fix-its. Refer to imaging reimaged returns/documents for reimaging procedures.

(3) See IRM 3.20.12.3.8, Imaging Amended Returns, for procedures on imaging Amended returns.

(1) Imaging receives e-filed Forms 990/990-EZ/990-PF/990-T from the Data Management Division (DMD) Developer imported directly into SEIN. Forms 990-N are excluded from the e-filed import into SEIN.

(2) Take these steps to process a batch of e-filed EO returns:

1. Open restricting and find assigned batch.

2. Check the name line to see if any adjustments are needed to PTA/PTO (School name before Congress).

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4. Check each document making sure all restricted info has been restricted correctly.

5. Rotate supplemental PDF pages.

6. If there are blank pages, note the batch and the document number and suspend. Give information to the Lead or Manager.

7. Close the batch and proceed to the next assigned batch.

(1) Treat and process an amended return as an initial/original filing.

(2) If you receive an amended return from Accounts Management and the return:

1. Has a DLN but no "scan stamp", follow the instructions within the remarks field on the Form 12634.

2. Has no DLN and no scan stamp, route to Code & Edit to be processed as an initial/original filing.

(1) Refilm is performed when additional forms or information are received that were not part of the initial imaging. See table below for examples of refilms:

(2) These returns are not refilms:

1. A return that has never been through the Imaging system is not imaged as a refilm. Treat it as an original return.

   Example: Form 990 when a Form 990-EZ was filed in error.

2. Amended returns submitted by the filer are not a refilm. Process them as an original filing.

3. A return, if not part of the returns that are imaged through the SEIN process in IRM 3.20.12.3, Creating Images - Scanning Operation.

(3) Requests for refilming returns/documents come primarily from EO Accounts and TECU.

(4) EO Entity request include the following forms:

• 8872

• 990 filed by a POL IRC 527.

  Note: The request is generally to refilm the document to correct the EIN or Entity information.

(5) If you receive a refilm request as a photocopy, documents are to come from the sender with Doc Preparation completed, use OFP Code for type of return being refilmed, IRM 3.20.12.1.1, Responsibilities.

(6) A copy of the 1st page of the return must to be attached to the refilm documents. If the first page of the original return is not available, a modified print of BRTVU, or another approved IDRS prints must be attached to the front of the information requesting to be refilmed.

(7) The BRTVU print must be thoroughly edited and contain only the EIN, Tax Period, Subsection Code, Form and Entity information.

(8) If any other IDRS print such as ENMOD, BMFOL, or INOLES are used in place of BRTVU, they must be thoroughly edited and contain only the EIN, Tax Period, Subsection Code, Form, and Entity information.

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

(10) Restrict page 1 of the return and prints of IDRS attached to the front of the information requesting to be refilmed.

(1) EO Compliance agents secure original Form 990 series returns from filers that require imaging.

(2) Do not send these returns through processing after being imaged as Compliance has already established an account through substitute for return (SFR) procedures and adjusted that account with the necessary changes from the secured original return.

(3) To avoid routing and processing these original returns unnecessarily, EO Compliance agents write wording across the top similar to "Amended return secured by TE/GE" and the date, photocopy the original return within one day of receipt and route the same day to the Exam single point of contact (SPOC), M/S 1114.

(4) The Exam SPOC will verify the quality of the photocopy is acceptable for imaging and sends directly to the Imaging day shift manager the same day.

• Form 12634 (green routing slip) with
  "Attention Imaging", mail stop 6058

• Exam Cover sheet attached to each photocopy with the following wording:
  "IMAGE REQUEST
  This is a copy of an original return secured by EO Exam and not imaged.
  Please image and destroy copy.
  If you have any questions, contact: EO Exam EO FAST team M/S 1114 "

• Photocopy of original Form 990 series return.

(5) If the photocopy quality is unacceptable to produce a quality image, reject the photocopy back to the Exam SPOC, M/S 1114, indicating the reason, such as "poor quality for Imaging".

(6) If the photocopy quality is acceptable for imaging, follow established original return imaging instructions throughout IRM 3.20.12.

(1) Examples of why a filer cannot file an electronic Form 990-N without IRS help include:

• The Form 990-N system is not allowing the filer to submit their filings

• EO Submodule is not established

• Filer has no access to a computer

(2) When a filer is unable to file an electronic Form 990-N, they may send in a paper Form 990/990-EZ, and cross out the "990-EZ or 990." on the top of the form and write "Form 990-N", "could not access the 990-N system" or similar wording, anywhere on the form. Send these returns to Entity at Mail Stop 6273, to establish the Form 990-N electronically for them. Do not image Substitute Forms 990-N. All Form 990-Ns must be filed electronically.

(1) Fix-its are errors identified after the return is sent to the release function and before the document leaves the Imaging Unit.

(1) It’s important to properly prepare the return for scanning to ensure efficiency through the remaining processes.

(2) Scanning operators must:

1. Annotate edit marks throughout the return. Exhibit 3.20.12-6, Required - Imaging Edit Marks.

2. Review the entity and subsection code.

3. Identify items not open for public inspection.

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   ≡ ≡

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(1) The Form 990 core form consists of 12 pages and numerous schedules. The schedules that are open to public inspection are clearly identified in the upper right hand corner by the following statement, "Open to Public Inspection."

(2) The Form 990 includes the following schedules:

• Schedule A, Public Charity Status and Public Support

• Schedule B, Schedule of Contributors

• Schedule C, Political Campaign and Lobbying Activities

• Schedule D, Supplemental Financial Statements

• Schedule E, Schools

• Schedule F, Statement of Activities Outside the United States

• Schedule G, Supplemental Information Regarding Fund-raising or Gaming Activities

• Schedule H, Hospitals

  Note: More than one Schedule H may be attached to a return, keep pages in order per Schedule H.

• Schedule I, Grants and Other Assistance to Organizations, Governments and Individuals in the United States.

• Schedule J, Compensation Information

• Schedule K, Supplemental Information on Tax Exempt Bonds

• Schedule L, Transactions with Interested Persons

• Schedule M, Non-Cash Contributions

• Schedule N, Liquidation, Termination, Dissolution or Significant Disposition of Assets

• Schedule O, Supplemental Information to Form 990 or 990-EZ

• Schedule R, Related Organizations and Unrelated Partnerships

(3) Arrange/organize the Form 990 return pages in the following order:

• Schedule A, Public Charity Status and Public Support

• Schedule C, Political Campaign and Lobbying Activities

• Schedule D, Supplemental Financial Statements

• Schedule E, Schools

• Schedule F, Statement of Activities Outside the United States

• Schedule F-1, Continuation Sheet for Schedule F

• Schedule G, Supplemental Information Regarding Fund-raising or Gaming Activities

• Schedule H, Hospitals

  Note: More than one Schedule H may be attached to a return, keep pages in order per Schedule H

• Schedule I, Grants and Other Assistance to Organizations, Governments and Individuals in the United States

• Schedule I-1, Continuation Sheet for Schedule I

• Schedule J, Compensation Information

• Schedule J-1 & J-2, Continuation Sheet for Schedule J

• Schedule K, Supplemental Information on Tax Exempt Bonds

• Schedule L, Transactions with Interested Persons

• Schedule M, NonCash Contributions

• Schedule N, Liquidation, Termination, Dissolution or Significant Disposition of Assets

• Schedule N-1, Continuation Sheet for Schedule N

• Schedule O, Supplemental Information to Form 990 or 990-EZ

• Schedule R, Related Organizations and Unrelated Partnerships

• Schedule R-1, Continuation Sheet for Schedule R

• Requested attachment.

  Example: List of affiliations on a partial group return, Amendments for name change and/or reasonable cause statement (i.e., late filing statement, penalty removal request, penalty abatement, etc.). See Exhibit 3.20.12-1.

  Note: Supplemental information clearly identified as a continuation of the form, schedule(s) or requested attachments will be placed in order behind the applicable form, schedule or requested attachment.

• Schedule B, Schedule of Contributors

• All extraneous material. See Exhibit 3.20.12-1 through Exhibit 3.20.12-4.

Note: Page(s) following the form or schedule on an e-file return are part of the form or schedule. Do not move them. The MeF platform only allows filers to e-file three years, the current year and two prior years, Imaging will not see the 2008 revision in the e-filed batches.

(1) Form 990-EZ was redesigned for Tax Year (TY) 2008. The revised Form 990-EZ core form consists of four pages and includes various schedules.

(2) The schedules that are open for public inspection are clearly identified in the upper right hand corner by the following statement, "Open to Public Inspection".

(3) Arrange the Forms 990-EZ in the following order:

• Schedule A, Public Charity Status and Public Support (pages in sequential order)

• Schedule C, Political Campaign and Lobbying Activities

• Schedule E, Schools

• Schedule G, Supplemental Information Regarding Fund-raising or Gaming Activities

• Schedule L, Transactions with Interested Persons

• Schedule N, Liquidation, Termination, Dissolution or Significant Disposition of Assets

• Schedule O, Supplemental Information to Form 990 or 990-EZ

• Requested attachments.

  Example: Amendments for name change and/or reasonable cause statement (i.e., late filing statement, penalty removal request, penalty abatement, etc.). See Exhibit 3.20.12-1.

  Note: Supplemental information clearly identified as a continuation of the form, schedule(s) or requested attachments will be placed in order behind the applicable form, schedule or requested attachment.

• Schedule B, Schedule of Contributors

  Note: Schedule B may have any number of pages. Assemble all similar pages together.

• All extraneous material. See Exhibit 3.20.12-1 and Exhibit 3.20.12-4.

  Note: Page(s) following the form or schedule on an e-file return are part of the form or schedule. Do not move them. The MeF platform only allows filers to e-file three years, the current year and two prior years.

(1) Arrange/organize the Forms 990-PF return in the following order:

1. Return pages in order.

2. Schedule B in order.

Note: Schedule B may have any number of pages. Assemble all similar pages together.

3. All requested forms and attachments.

   Note: Supplemental information clearly identified as a continuation of the form, schedule(s) or requested attachments will be placed in order behind the applicable form, schedule or requested attachment. See, Exhibit 3.20.12-2, Form 990-PF Schedules and Requested Attachments Open For Public Inspection.

4. All extraneous material. See Exhibit 3.20.12-2 and Exhibit 3.20.12-4.

   Example: Forms not open to the public such as Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding and Form 2220, Underpayment of Estimated Tax by Corporations.

Note: Page(s) following the form or schedule on an e-file return are part of the form or schedule. Do not move them. The MeF platform only allows filers to e-file three years, the current year and two prior years, Imaging will not see the 2008 revision in the e-filed batches.

(1) Arrange return pages organized in order, pages one through four.

1. Arrange the pages sequentially.

2. All requested forms and attachments.

3. All extraneous information. See Exhibit 3.20.12-3 and Exhibit 3.20.12-4.

   Note: Supplemental information clearly identified as a continuation of the form, schedule(s) or requested attachments will be placed in order behind the applicable form, schedule or requested attachment. See Exhibit 3.20.12-3.

(2) If Form 990-T is filed claiming only Back-up Withholding (BUWH) or IRC 45R credit:

• Do not image

• Do not stamp as imaged

• Leave in DLN order in the batch

(3) If Form 990-T is filed and includes BUWH or IRC 45R Small Business Credit, image the return.

(1) Arrange return pages in order.

(2) Arrange the pages sequentially with supplemental information following the form.

(1) Arrange return pages in order.

(2) Arrange the pages sequentially with supplemental information following the form.

(1) The Receipt and Control (R&C), Extracting area receives and identifies Statute period returns and routes them to statutes to be cleared.

(2) When the Statute Unit sends the returns via Form 12547, Document Transmittal, to the Imaging Unit to be imaged, they must annotate the following information on the Form 12547 for each return:

• EIN

• Name Control

• Tax Period

• MFT

(3) The Imaging Team acknowledges receipt of the statute returns by placing a check mark by the return information on the Form 12547. Send a copy of the acknowledged Form 12547 to Statutes at M/S 6741 within 10 days of receipt.

(4) Returns stamped Statute Cleared are original returns and need to go through the processing pipeline before being imaged. Don’t image these returns. Send them to be processed.

(5) Returns stamped No Statute Issue are amended statute returns even if the return is not marked as amended.

(1) The Scanning process captures images from paper returns for release to the public and internal use.

(1) The "Quality Control" module is used to visually inspect scanned images (compared to paper document) for errors and to rescan those that are incorrect.

(2) Rescanning function MUST only be done on a workstation that is attached to a scanner.

(3) The operator uses the documents and the imaged return to verify that all pages are:

• Scanned correctly.

• Positioned correctly.

• In the correct order.

Note: If any data is missing from the image, the document must be rescanned.

(4) At the Quality Control stations documents can be created or split.

(5) In addition, documents and pages can be:

• Rejected

• Un-rejected

• Rotated

• Deleted

• Replaced

• Inserted

(1) Validation is the process of entering descriptive information associated with a return for later retrieval from the database. The operator obtains information from various parts of the return that include the following:

• EIN

• Tax Period

• Organization Name

• State

• Zip Code

• Subsection Code (Forms 990 and 990-EZ ONLY)

• Total Assets (Forms 990, 990-PF, 990-EZ and 5227 ONLY)

• Total Tax on Form 4720

• Gross Income on Form 990-T

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• Schedule H attached (Form 990)

(2) Enter the EIN.

1. A valid EIN consists of 9 digits in the following format: NN-NNNNNNN.

2. If EIN is missing, invalid, or incomplete, make a copy of the first page of the document and give to manager for resolution.

(3) Enter the Tax Period Ending. The Tax Period Ending is the month and year the accounting period ends. The filer's tax period must be less than but not more than 12 months. A calendar year return ends in December. A fiscal year ends in any month other than December.

1. Correct the Tax Period to a six digit number.

2. The first four digits represent the year, the last two digits represent the month (YYYYMM).

   Example: A calendar year 2024 return, has a tax period of 202412. A fiscal year 2023 return ending in May has a tax period of 202305.

3. The taxpayer may write the tax period under the return title. If another IRS office edits the tax period ending, use the edited Tax Period ending date.

(4) Enter the Primary Name Line. Use abbreviations only if the name line exceeds the maximum characters allowed per field. The name line is captured as the filer submits the return with the following exceptions,

1. If corrected by pipeline processing use corrected name.

2. If the EO used an "&" (ampersand) enter "and". If the EO used "and", enter "and".

3. Do not abbreviate anything beyond the abbreviations listed in Exhibit 3.20.12-5, Abbreviations for Commonly Recurring Words. Abbreviations must only be used if the name line exceeds the maximum characters allowed per field.

4. Do not space before or after a hyphen. If the filer shows a space before and/or after the hyphen, omit the hyphen.

5. Do not double space.

6. Do not use single or double quotes, periods or commas in the name line.

7. Do not input an apostrophe, do not space for the apostrophe. Example, if the name is O'Brien, you would enter the name as OBrien.

8. Omit all other special characters such as # or?.

9. If the special character "&" is part of the name line, spell out the special character.

   Example: Name line is: Store & Foundation, the name line would be input as Store and Foundation.

10. Always include Union, Post or Club numbers on the name line.

11. Only include the word "The" if it is associated with only one other word.

    Example: The EO name shown on the return is "The Group." Both words would be included as the primary name. However, if the EO name on the return was "The First Group" only, "First Group" would be included as the primary name.

12. If the first name line includes donor numbers, account numbers, or contract numbers, do not include.

    Example: "8256972 Trust for May Flower" or "First Bank FBO May Flower 158935". The numbers must not be included in the primary name line.

13. "Formerly known as" (FKA), Attention (ATTN), "In care of" (C/O), "%", or "Doing Business As" (DBA), and the name that follows is a secondary sort line for Entity Perfection. This information must not be included in the primary name line. This is not an all inclusive list.

    Note: Do not capture the "Also Known As" (AKA) if it is the same as the primary name.

    Exception: "Doing Business As" (DBA) and the name that follows, does not need to be removed when pre-populated on e-file returns.

14. If the name is a Parent Teacher Association (PTA), enter PTA then school name.

    Note: If PTA is at the end or in the middle of the name, move it to the beginning of the name. For example, May Flower PTA would be PTA May Flower. If PTA is showing in name line multiple times drop the duplicates.

15. If the name is a Parent Teacher Organization (PTO), enter PTO then school name.

    Note: If PTO is at the end or in the middle of the name, move it to the beginning of the name. For example, May Flower PTO would be PTO May Flower. If PTO is showing in name line multiple times drop the duplicates.

(5) "DO NOT" abbreviate words in the Name Line unless it is one of the exception cases above, or the name line exceeds the amount of allowed character per field.

(6) Enter the State Code

1. Use the United States Postal Service approved abbreviations for States and the District of Columbia.

2. If no state is found, enter "ZZ".

(7) Enter the ZIP Code which consists of 5 or 9 digits. If the zip code:

1. Belongs to a foreign address, enter five zeros.

2. Is not listed, enter five zeros.

3. Is less than five digits, enter five zeros.

4. Is more than five but less than nine, enter the first five digits.

5. Is more than five and more than nine, enter the first five digits.

6. No Zip Code or state is found, enter "ZZ" and five zeros.

(8) For Forms 990 and 990-EZ, enter SUBSECTION CODE

1. If Subsection (SS) Codes conflict (e.g., INOLES shows SS03, but taxpayer indicates otherwise in item J), use the SS on the INOLES print. If another IRS office edits the SS, use the edited SS. If more then one SS is edited use the following criteria: 1. SS edited in the left margin. 2. SS edited in the Entity area 3. Taxpayer intent (in item J).

2. Valid entries for 501(c) returns are blank, or 01 through 27. If unable to determine SS from return, enter blank. If filer indicates a "0" treat as a blank.

3. Follow table below for SS Code.

(9) For Forms 990, 990-EZ, 990-PF, and 5227, enter the Total Assets. For Form 990-T, enter Gross Income and Total Tax for Form 4720. See IRM 3.20.12.3.24, Index Fields Per Form, for additional information.

1. If the total assets is a negative number, input as a negative.

   Example: Negative numbers may display with a hyphen or different brackets, e.g., -2000, (2000), [2000], or <2000>.

2. Do not use dollar signs or commas.

3. If the asset line is blank, input zero.

4. Input total assets edited by IRS.

   Note: This includes, but not limited to, items arrowed from another line by Code & Edit. Do NOT enter edited assets if a 1 or 1x is present.

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(11) Form 990, enter "Y" in the index field if a Schedule H is attached to the return. This field will default to "N "and can be skipped if there is no Schedule H attached to the return. See IRM 3.20.12.3.24.

(1) Refer to table below for index fields on Form 990 per version. Form 990 Index Fields

(2) Refer to table below for index fields on Form 990-EZ per version. Form 990-EZ Index Fields

(3) Refer to table below for index fields on Form 990-PF per version. Form 990-PF Index Fields

(4) Refer to table below for index fields on Form 990-T per version.Form 990-T Index Fields

(5) Refer to table below for index fields on Form 4720 per version. Form 4720 Index Fields

(6) Refer to table below for index fields on Form 5227 per version. Form 5227 Index Fields

(1) If an image of a document is not correct, or if the document does not meet imaging criteria, the document will be rejected back to the Quality Control station for corrections. Pages may be deleted during validation using "Batch Editing."

(2) If Form 990 was imaged in error, the images for the return must be deleted from the system.

(1) This step is the process of checking the accuracy of a specified index. The operator reenters the EIN, Tax Period, and Organization Name.

(1) After the returns have completed either Rescan or Verification, reassemble the folders of paper documents.

(2) Associate the returns with the correct envelopes and/or attachments and staple securely.

(3) If Form 5800 edit sheet is part of the filing, move it to the left side of the return, under the entity section, and staple securely.

(4) Refer to IRM 3.10.72, Campus Mail and Work Control - Receiving, Extracting, and Sorting, for proper procedures to attach envelopes to the back of the returns or documents.

(1) The Release process releases the documents to the image storage devices. This process is turned on manually each day and performs automatically.

(2) The process needs to be monitored on Batch Manager for errors.

(1) A document that is required to be made available for inspection under IRC 6104(a) or IRC 6104(b) must be restricted/redacted (sanitized) of any coding information that indicates specific facts about the organization's or trust's liability or possible liability for any tax, interest or penalty, that was added to the first page of the return during processing. This also includes any other internal processing forms or work papers that IRS employees prepared that would reveal information that can not be disclosed under IRC 6104.

(2) The Restricting function is used to identify any information Not Open for Public Inspection.

(3) EO Returns that are not processed through the "Restricting" function are:

• 4720

• 5227

• 990-T - non-501(c)(3) returns

(4) Form 4720 can be disclosed if it is either:

1. Attached to Forms 990–PF as supporting documentation.

2. Filed with Form 990/990–EZ with the 527 box checked.

(5) E-filed documentation that the filer received and attached to their paper filings are considered extraneous material and is imaged but must be restricted/redacted.

(6) You may leave coding information added to the first page of the return that doesn't indicate specific facts about the organizations' or trusts' liability or possible liability for any tax, interest or penalty (e.g., the date received or Document Locator Number (DLN)) on the document. If you have any doubt in this regard, the IRS employee will contact the servicing Disclosure Office before making the requested information available for inspection.

(7) Redact the following coding information, which is written or stamped on the first page of the return and required by IRC 6033 and IRC 6034, before making the documents available for inspection:

1. Condition codes "D", "R", "V", "X"

2. Payment received

   Note: The payment voucher on e-file returns are IRS generated and are restricted.

3. Delinquent return code

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

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

1. Except as noted,(12) below, names, and addresses of contributors to private foundations are open to public inspection.

2. For political organizations, names, addresses, and additional information provided on Form 8871 and Form 8872 are open to public inspection. Refer to IRM 11.3.9, Disclosure of Official Information - Exempt Organizations, for additional information.

(10) To reduce the risk of inadvertently identifying contributors, Exempt Organizations (EO) established the policy to not include Schedule B. Completely restrict Schedule B except for Form 990-PF.

(11) Information on grants and contributions the filing organization makes by listing on a return is not considered to be information about contributions and is open to public inspection. These are the EO’s expenses. You can distinguish them from contributions received based on the line number below:

1. Form 990 (rev. 2008 and subsequent), expenses are shown on Lines 13 through 19 or Lines 13-17 (rev. 2007 and prior)

2. Form 990-EZ (all revisions), expenses are shown on Lines 10 through 17

(12) The names, addresses, and amounts of contributions or bequests of persons who are not US citizens to a foreign private foundation that from the date of its creation has received at least 85 percent of its support (other than gross investment income) from sources outside the US (see IRC 4948(b)), shall not be made available for public inspection, a foundation that checks box D(2) on the Form 990-PF

(13) For additional information see IRM 3.20.12.2.4, Contributor Information Subject to Deletion.

(1) The Quality Review step ensures each process of the program is completed to the highest quality possible.

(2) This includes viewing all pages to ensure that required data is restricted/redacted, preventing unauthorized disclosure issues.

(3) The QR function can correct these errors:

1. Errors made during Validation

2. Errors made during Restricting

(4) Errors made during Quality Control cannot be corrected in the Quality Review function. When these errors are found:

1. Pull the paper return.

2. Route for correction.

(5) Sometimes returns are imaged erroneously and not discovered until it reaches the Quality Review function. If this is the case:

1. Delete the image from the system

2. Pull the hard copy document from the folder

3. Circle out all stamps indicating the return was scanned, or use a single "X"

(6) If an error occurs because the document separator sheet was not recognized, this is cause for deletion. In this case:

1. Delete the image from the system,

2. Pull both hard copy paper returns from the folder,

3. Merge the documents back through the entire Imaging Process.

(1) Political Organizations must file an electronic Form 8871 in order to be a tax exempt political organization.

(2) Do not scan Form 8871. Route Form 8871 to the Entity Unit to take the appropriate account action.

(3) Some Political Organizations that have submitted a Form 8871 may be required to submit Forms 990/990-EZ, and/or 8872.

(4) Imaging will perform Document Preparation, Scanning, Validation, Restricting and Reassociation on all Political Organization Forms.

(5) Form 8453-X must be submitted after the electronic submission to authenticate the electronic filing.