7.14.4. Letter Generation

(1) Purpose: This IRM lists procedures for EP specialists, reviewers, managers and other authorized users for the Employee Plans/Exempt Organization Determination System (EDS) Letter Generation System (LGS).

(2) Audience: Employee Plans (EP) Determinations and Quality Assurance (QA) staff

(3) Policy Owner: Director, EP

(4) Program Owner: EP

(5) Program Goals: The goal of EP Determinations is to ensure that plans are in compliance with the tax laws by reviewing applications for Determination Letters (DL), and opinion letters, and to protect the public interest by applying the tax law with integrity and fairness to all.

(1) Entity information is automatically transferred from the Data Transcription System (DTS) or TEDS to LGS. If entity information is not present or is incorrect for a case, you can add/correct it in LGS before you create a letter.

(2) Select option 1 (Create or Update Letter) to update entity information and create a letter.

(3) Select option 3 (Create or Update Entity) to update entity information without creating a letter.

(4) The Create or Update Entity Information screen (Exhibit 7.14.4-3) displays after you select these options. When you enter any character (lower or upper case) on this screen, the system automatically converts it to upper case when saved. Make any necessary changes and press F1 to advance to the next screen.

(1) The Create/Update Letter screen (Exhibit 7.14.4-4) displays after you select option 1 (Create or Update Letter) on the LG Menu and update any entity information.

(2) The two major parts to create a letter are selecting the addressee(s) and entering the letter text.

(3) Select the addressee by placing an "X" before the Taxpayer, POA 1 and/or POA 2 boxes. The POA(s) information must be displayed on the Create or Update Entity Information screen before you can enter an "X".

(4) Add any paragraph codes in the Para/Variable section of the screen. See IRM 7.13.5, Letter Generation, for a description of automatic, required, selective, and customized paragraphs.

(5) After you complete the Create/Update Letter screen and press F5 key, the Letter Format Screen (Exhibit 7.14.4-5) displays.

(1) (1) The ICS Menu displays when you select option 3 on the EDS Main Menu. Select option 4 to get to the LG Menu.

EDS-ICS-40ep  EP DETERMINATION SYSTEM (EDS) INVENTORY CONTROL SYSTEM MENU (ICS)
	(01) Query/Update Master Record and Status
	(02) Reserved
	(03) Multiple Case Assignment
	(04) Letter Generation System
	(05) Reprint Transmittal Sheets
	(06) Reserved
	(07) Print Closing Forms
	(08) Approval of Closed Cases
	(09) Reserved
	(10) Multiple Status 51/58/60/75 Updates
	(11) Re-Open To Review
	(12) Multiple Merit Closure Assignment
	(00) EXIT
	***Select one of the above:__
Hit F1:Execute   F10:Exit

(2) Press the F1 key.

Validity Checks
ITEM	PROMPT	DESCRIPTION
1	Select one of the above	Must be one of the valid option numbers (00 - 12).

(1) (1) Select option 4 on the ICS Menu and you'll see the LG Menu.

EDS-LGS-3  LETTER GENERATION MENU
LETTERS	ENTITIES
(01) Create/Update Letter	(03) Create/Update Entity
(02) Reprint a Letter
MISCELLANEOUS
(00) Exit
***SELECT ONE OF THE ABOVE:__
DLN: ______ Letter Number: __
EDS Case No: ___TEDS Case No: ______
Hit F1: Execute  F10:Exit
NOTE: The DLN search will NOT find cases that are older than 9 years.

(2) Enter option number 1, 2, or 3, the DLN, EDS or TEDS case number, and letter number. Press F1. If you don't enter the DLN, EDS/TEDS case number, or enter them incorrectly, or if the entity does not exist, an error message displays.

Note: NEVER use option 3 to create an entity. It will create an application in status 90 which cannot be worked. However, you may use option 3 to update an existing entity.

(3) If you select option 1 and there aren't input errors, the Create/Update Entity Information - Employee Plans screen (Exhibit 7.14.4-3) displays. If there is an input error, correct the search information and press F1.

(4) If you select option 2 and there aren't input errors, the Print Format/Selection screen (Exhibit 7.14.4-5) displays. If there is an input error, correct the search information and press F1.

(5) If you select option 3 and there aren't input errors, the Create/Update Entity Information - Employee Plans screen (Exhibit 7.14.4-3) displays. If there is an input error, correct the search information and press F1.

Caution: Only update an existing application if you aren't working the case in TEDS. Otherwise, an EDS block is created.

(1) (1) Select option 1 or 3 from the LG Menu and this screen displays. Use this screen to update entity information.

EDS-LGS-4 CREATE OR UPDATE ENTITY INFORMATION - EP
EIN:_-____ PLAN: __FFN: _____DLN: ______
Plan Sponsor Name:	____________________
	____________________
	____________________
	____________________
In Care Of:	____________________
Address:	____________________
City:	___________ State: _Zip: ___- ___

Name of Plan:	___________________
	___________________
Power of Attorney (1) Name:	____________________
	____________________
Address:	____________________
City:	___________ State: _Zip: ___- __
Power of Attorney (2) Name:	____________________
	____________________
Address:	____________________
City:	___________ State: _Zip: ___- __
Hit F1:Execute  F10:Exit

(2) If you select option 3 on the LG Menu, this screen displays entity information. If a blank screen displays, the entity does not exist and you should press F10 to return to the LG Menu. If information displays, review the entity information for accuracy and correct any errors (not applicable for TEDS cases) and press F1 to save changes. If EDS does not pass the validity checks (below), an error message displays and the cursor is positioned on the field in error. Correct the error (not applicable for TEDS cases) and press F1. Press F10 if you do not want to save changes. The LG Menu (Exhibit 7.14.4-2) displays when you press either F1 or F10.

(3) If you select option 1 on the LG Menu, this screen displays entity information. The screen functions the same as described in (2) above except that the Create or Update Letter screen (Exhibit 7.14.4-4) displays when you press F1.

(2)

Validity Checks
ITEM	PROMPT	DESCRIPTION
1	EIN	Employer Identification Number. Must be a valid EIN. The first two digits must be in the valid range as follows:
		01-06, 11, 13-16, 21-25, 31, 33-39, 41-48, 51-59, 61-64, 66-68, 71-77, 81-88, 91-99.
2	PLAN NUMBER	Plan number. If entered, must be numeric.
3	FFN	File Folder Number. If entered, must be numeric. First two digits must match the first two digits of the Case Number.
4	Case Number	Display only.
5	Plan Sponsor Name (Line 1)	Must be entered. If the Plan Sponsor Name is more than 35 characters long, continue on line 2; do not break a word after 35 characters. Carry the full word or grouping to line 2. All 35 positions of line 1 do not have to be filled to continue on line 2. Valid characters are any key on the keyboard, however, the first position must be alphabetic or numeric. No characters may follow two consecutive blanks, except blanks.
6	Plan Sponsor Name (Line 2)	If entered, Plan Sponsor Name (Line 1) must be entered. See Plan Sponsor Name (Line 1).
7	Plan Sponsor Name (Line 3)	If entered, Plan Sponsor Name (Line 2) must be entered See Plan Sponsor Name (Line 1).
8	Plan Sponsor Name (Line 4)	If entered, Plan Sponsor Name (Lines 2 and 3) must be entered. See Plan Sponsor Name (Line 1).
		Note: If State is (.), this line should contain the foreign street address. Lines 2 and 3 may then be left blank.
9	Address	May or may not be entered. If entered, the valid characters are any key on the keyboard. If any data is entered, the first position must be alphabetic or numeric.
		Note: If this is a foreign address, enter the street address on the Sponsor Name (Line 4). Enter the foreign City on this line.
10	City	Must be entered. The valid characters are any key on the keyboard, however the first character must be alphabetic or numeric. No characters may follow two consecutive blanks except blanks.
		Note: If this is a foreign address, enter the City on the Address Line. Enter the foreign Country on this line. If this is a MILITARY address, FPO or APO must be entered on this line if State is "AA", "AE" or "AP."
11	State	Must be entered. Must be a valid state abbreviation or for foreign addresses, a period followed by a blank (.). If this is a MILITARY address, enter the following:
		State Code	Geographic Region
		AA	No & So America
		AE	Europe
		AP	Pacific
12	Zip	Must be entered and numeric. The number making up the first 5 positions must be greater than 00600. If this is a MILITARY address, the zip code must be in the following ranges:
		State Code	Zip Code Range
		AA	34001-34099
		AE	09001-09899
		AP	96201-96699
		A validity check is executed on EDS to verify the state and zip code. If an invalid zip code is entered, the system message will ask you to verify the current zip code or correct.
13	Power of Attorney	May or may not be entered. If POA Name is more than 35 characters long, continue on Line 2. Do not break a word after exactly 35 characters, carry the full word or grouping to Line 2. All 35 positions of Line 1 do not have to be filled to continue on Line 2. Valid characters are any key on the keyboard, however the first position must be alphabetic or numeric.
14	POA (1) (Line2)	May or may not be entered. If entered "POA (1) (Line 1)" must be entered. Valid characters are any key on the keyboard, however if any data is entered, the first position must be alphabetic or numeric. No characters may follow two consecutive blanks except blanks.
15	Address	May or may not be entered. If entered, the first position must be alphabetic or numeric. The valid characters are any key on the keyboard.
16	City	Must be entered if "POA (1) (Line 1)" is entered. The valid characters are any key on the keyboard, however the first position must not be blank. No consecutive characters may follow two blanks except blanks. If this is a MILITARY address, FPO or APO must be entered on this line if State is "AA", "AE" or "AP."
17	State	Must be entered if "POA (1) (Line 1)" is entered. Must be a valid state abbreviation or, for foreign addresses, a period followed by a blank (.). If this is a MILITARY address, enter the following:
		State Code	Geographic Region
		AA	No & So America
		AE	Europe
		AP	Pacific
17	Zip	Must be entered if "POA (1) (Line 1)" is entered. Must be numeric. The number making up the first 5 positions must be greater than 00600. If this is a MILITARY address, the zip code must be in the following ranges:
		State Code	Zip Code Range
		AA	34001-34099
		AE	09001-09899
		AP	96201-96699
		A validity check is executed on EDS to verify the state and zip code. If an invalid zip code is entered the system message will ask you to verify the current zip code or correct.
18	Power of Attorney (2)	See Power of Attorney (1), item 12, above.
19	Power of Attorney (2) (Line 2)	See Power of Attorney (1) item 13, above.
20	Address	See Address, item 14, above.
21	City	See City, item 15, above.
22	State	See State, item 16, above.
23	Zip Code	See Zip Code, item 16, above.

(1) (1) Select option 1 on the LG Menu and press F1 in the Create or Update Entity Information screen and this screen displays. Use this screen to create, update and review a letter.

EDS-LGS-5  CREATE/UPDATE LETTER
EIN: ____FORM/PLAN: __FFN: ___LETTER CODE:_
Addressee (Place x before) _TAXPAYER
_ POA 1 _POA 2

Para	Variable	Para	Variable	Para	Variable
__	______	__	______	__	_____________
__	______	__	______	__	_____________
__	______	__	______	__	_____________
__	______	__	______	__	_____________
__	______	__	______	__	_____________
__	______	__	______	__	_____________
__	______	__	______	__	_____________

Required Paragraph w/ Variable - Enter Paragraph Number
______________________________

Hit F1-Execute, F4-Delete, F10-Exit

(2) This screen displays letter information if a letter was previously created for the application. Otherwise the screen is blank.

(3) Enter the fields according to the validity checks below. See IRM 7.13.5, Letter Generation, for a list of all available EDS paragraphs and IRM 7.11.5, Proper Use of Determination Letter Caveats, for commonly used EDS paragraphs for Letters 1132 and 5274.

(4) Press F1.

(5) If EDS does not pass the validity checks, an error message displays and the cursor is positioned on the field in error. Correct the error and press F1 again. If there aren't input errors and you entered customized paragraphs numbers, the Create/Update Letter (Continued) screen displays. Continue at (8), below. If there aren't input errors and you didn't enter customized paragraphs numbers, a message to press F5 displays. If you make any additional changes to letter, press F1 again to save the new changes. Once the letter is complete, press F5 to save and print the letter. The Print Format/Selection screen (Exhibit 7.14.4-5) displays.

(6) Press F4 to delete a letter from the system.

(7) Press F10 to exit the screen without saving changes.

(2)

Validity Checks
ITEM	PROMPT	DESCRIPTION
1	EIN	Display only. Employer Identification Number.
2	FORM/PLAN	Display only. Plan number for EP.
3	FFN	Display only. File folder number. Will be blank if FFN was not entered in the Create/Update Entity screen.
4	LETTER CODE	Display only. Letter number entered in the Letter Generation Menu screen.
5	TAXPAYER	Enter an "X" if a copy of the letter is to be sent to the Plan Sponsor or Organization.
6	POA 1	Enter an "X" if a copy of the letter is being sent to the POA. If the POA Name is not displayed, an "X" may not be entered.
7	POA 2	Enter an "X" if a copy of the letters is being sent to a second POA. If the POA Name is not displayed, an "X" may not be entered.
8	Para	Paragraph codes. Enter all 8000 series paragraphs displayed, any selective or customized paragraphs.
9	Variable	Variable text consisting of 1 to 20 characters that is inserted in the paragraph number entered. Enter the text that should be inserted into the variable. The text is printed exactly as entered. Upper and lower case characters must be entered where desired.
10	Required Paragraph Codes	Display only. Paragraph codes that must be entered in item 8 above. All "Required" paragraphs must have variable text entered.

(8) When you enter a customized paragraph code (9000-9999) on the Create/Update Letter screen, this screen displays.

EDS-LGS-6 CREATE/UPDATE LETTER (CONTINUED)
EIN: ____FORM/PLAN: __FFN: ___LETTER CODE: __ORG NAME:____________________
Customized Paragraph Code: __
Enter Text Below:
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
______________________________________
Hit F1-Execute, F4-Delete, F10-Exit

(9) This screen displays customized paragraphs if one was previously created. Otherwise the screen is blank.

(10) Enter or correct the customized paragraph. See IRM 7.11.5.5, Additional Guidance / Common Errors, when adding customized paragraphs.

(11) Press the F1 key. You'll see one of the following:

1. Another customized paragraph if you created more than one.

2. Another blank screen if you entered more than one 9000 series paragraph number on the Create/Update Letter screen.

3. The Create/Update Letter screen if you didn't enter any more 9000 series paragraphs. The message to press the F5 key displays.

(3)

(12) Press F4 to delete a 9000 paragraph from the letter.

(13) Press F10 to exit this screen without saving changes.

(14) Once the Create/Update Letter screen displays, a message to press F5 displays. If you change any other items on the letter, press F1 again to save the new changes. If you press F1, continue at (8), above. When you complete the letter, press F5 to save and print it. The Print Format/Selection screen (Exhibit 7.14.4-5) displays.

Validity Checks
ITEM	PROMPT	DESCRIPTION
1	EIN	Display only. Employer Identification Number.
2	FORM/PLAN	Display only. Plan number for EP.
3	FFN	Display only. File folder number. Will be blank unless a FFN has been entered in the Create/Update Entity screen.
4	LETTER CODE	Display only. Letter number entered in the Letter Generation Menu screen.
5	ORG NAME	Display only. Plan Sponsor or Organization name.
6	Customized Paragraph Code	Display only. 9000 series paragraph number entered in the previous screen.
7	Enter Text Below	Enter the text of the paragraph in exact format it should be printed. The text can be up to ten (10)* lines of 79 characters each.
		*NOTE: When beginning a paragraph, always leave the first line blank. Begin text on the second line. If the paragraph is long enough to require two screens (two 9000 series) enter a second paragraph number.

(1) (1) Press F5 in the Create/Update Letter screen and this screen displays. Use this screen to print the letter.

EDS-LGS-10  LETTER FORMAT SCREEN
	* Employee Number ___
	* Left Margin __
	* Print Mode _
	* Device Number __
	* Address Paragraph for Form 9098 ___
Hit F1:Execute

(2) The last line "Address Paragraph for Form 9098" only displays if you add paragraphs 6 and 8503 to a Letter 1132.

(3) Enter the fields according to the validity checks below. See your manager for the left margin and print mode used in your Post of Duty.

(4) Press F1.

(5) When there aren't input errors, more print screens will display. See your manager for the correct information to add to these print screens. The LG Menu (Exhibit 7.14.4-3) displays after the letter prints.

(6) When there is an input error, the error message displays and the cursor is positioned on the field in error.

1. Correct the input error.

2. Continue at (4), above.

(2)

Validity Checks
ITEM	PROMPT	DESCRIPTION
1	Employee Number	Must be numeric. Enter the five digit EDS Employee/Specialist number.
2	Left Margin	Must be numeric. Maximum margin is 19 spaces. See your manager for the margin to use in your Post of Duty (POD).
3	Print Mode	Valid entries are B, N, S, T, V, 1 - 9 or blank. Blank will default to "B." See your manager for the mode to use in your POD.
		T - send to a text printer S - sent to a slaved printer B - set up letter for batch print N - save letter but not print it V - view a letter just created 1 - 9 - locally defined print modes
4	Device Number	If "T" entered in the print mode, must be a printer number. Must be numeric.