The Exempt Organizations (EO) Rulings and Agreements Processing & Support Unit is responsible for providing responses to taxpayer inquiries (correspondence) on exempt organization matters including, but not limited to:

The Processing & Support Unit also receives requests from internal customers through an email box *TE/GE-EO-Correspondence Unit. The lead monitors the email box and delegates work.

Policy Statement 21-3 is outlined in IRM 1.2.1.13.3, Timeliness and Quality of Taxpayer Correspondence, and provides that the Service will issue quality responses to all taxpayer correspondence. Taxpayer correspondence is defined as all written communication from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited. This includes taxpayer requests for information, as well as that which may accompany a tax return: responses to IRS requests for information; and annotated notice responses. A quality response is:

Policy Statement 21-4, is outlined in IRM 1.2.1.13.4, Policy Statement 21-4 (Formerly P-6-13), One-stop service defined, and states that:

EO R&A Determinations is primarily responsible for up-front, customer-initiated activities such as determination letter requests, taxpayer assistance, and assistance to other Exempt Organizations/Government Entities (EOGE) offices.

EO R&A Determinations includes the Processing & Support Unit.

Within the Processing & Support Unit, the Correspondence Unit is responsible for responding to taxpayer inquiries and taking any necessary actions.

The Correspondence Unit uses Enterprise Case Management (ECM) to process correspondence received and to track inventory.

See IRM 7.21.1, Exempt Organizations Determinations Processing Overview, for information on:

Commonly used abbreviations include:

Commonly used systems for performing these procedures include:

The following table defines terms used throughout this IRM section:

Retrieve your bundle of mail to screen from the drawer marked "TO BE SCREENED."

Bundles will be marked with date and number of pieces included.

Correspondence received that isn’t otherwise processed in the incoming mail/correspondence is screened by a clerk.

Make sure there’s an EIN written on the first page of each piece of Correspondence that is left in your bundle to be scanned and worked. If there’s not an EIN listed, conduct IDRS research (CC:NAMEE) to locate their EIN. If you don't find an EIN, still put in the bundle to be scanned.

After pulling out all other correspondence, recount the pieces, mark out the old number of pieces and add new number. Place the new number of pieces of correspondence and rebundle. Place the bundle in the drawer labeled "Already Screened."

Email your manager the number of pieces in the bundle and the date received.

Before closing a case in ECM you must complete the tasks for all Request Types. Uploaded copies of all documents, sub-module updates, or any other updates done to fulfill the request. When you submit the Response letter, ECM will automatically return to the Work Case Screen. See the Correspondence Unit Toolkit for examples.

All actions taken must be documented in the Case History (located at the bottom of the screen).

Select the date you mailed the Response Letter (this will be the date you close the case).

Choose a disposition from the drop down menu.

Media Requests:

To process a media request:

Congressional Requests:

Determine what document is being requested.

Determine who submitted the request (Item 3, Category of requester).

If the request is for copies of returns (such as Forms 990, 990-EZ, 990-PF, 990-T, and 5227), see IRM 7.21.10.3, Screening Incoming Mail/Correspondence.

If the request is for an affirmation letter, see IRM 7.21.10.7.1, Affirmation Letter.

If the request is for copies of Form 1023, 1023-EZ, 1024, 1024-A, or 8940 or a determination letter, see IRM 7.21.10.6, Copy Requests.

If an organization requests a copy of a group ruling request or certain Form 8940 requests (such as exceptions from Form 990 filing requirements, reclassification of foundation status - including type of supporting organization, and termination of private foundation status) they are also publicly disclosable. Form 8976 isn't open to public inspection. See your manager or lead if you're uncertain as to whether an approved request is disclosable under IRC 6104 (see IRM 7.21.1.2.1, Public Inspection).

An individual or an organization may request affirmation of an organization's exempt status (including its own status).

Research IDRS to verify whether the organization is currently exempt (Status 01, 21, or 25 on IDRS).

If organization is currently exempt and has a Ruling Date listed as 000000, see IRM 7.21.10.5, Working Correspondence Requests in ECM.

If Status is 20, see IRM 7.21.10.7.7, Reinstatement (IDRS Status 20). If Status is not 01, 21, or 25, research MEDS/EDS or DVD. If EDS shows an "I" case closed Status 01, 06, or 09:

Prepare the appropriate affirmation letter (see also Exhibit 7.21.10-2, Correspondence Letter Guide). Also, update Masterfile Status to 01 for an organization in Status 21 requesting affirmation of its own exempt status. Before updating to 01, see IRM 7.21.10.7.7, Reinstatement (IDRS Status 20).

An organization can request a certified letter of exemption if needed (for example, if an organization is party to litigation and needs to substantiate its exempt status in court). If the organization is in Status 01 on IDRS, the Disclosure Office will certify the letter (place an official IRS stamp on the letter). To request a certified letter from the Disclosure Office:

Supersedes letters are used to correct errors on a determination letter.

Examples of common IRS errors include incorrect:

Before issuing a supersedes letter, research the letter in question to determine whether the IRS made an error on the letter. Review:

To correct a letter error:

Electronically date and sign the supersedes or affirmation letter using the current Director’s signature. Import into the MEDS Disclosable folder.

Update IDRS, if necessary (as well as MEDS/EDS/LINUS, if applicable).

Entity name and address changes must be made by an authorized person (see IRM 7.21.1.3, Authorized Persons). Name changes must be submitted in writing. Address changes may be requested by telephone or in writing.

Research IDRS and MEDS/EDS (as necessary) to determine the exempt status of the organization.

Update an organization's name after verifying the changes are appropriate.

Entity updates are completed in ECM, but may need to be updated in IDRS.

An organization may submit correspondence indicating its application for exemption was not, but should have been, processed as an automatic revocation case or information related to its automatic revocation is incorrect (such as incorrect revocation date on TEOS).

Research IDRS and MEDS/EDS to determine whether the organization was correctly revoked or whether the determination case was not correctly worked as an automatic revocation case.

When a case is received back after technical review (see IRM 7.21.10.8.2, Technical Assistance), take any actions needed based on the specialist's instructions on the prepared CCR (see IRM 7.20.4.2.10, Correspondence Correction Cases).

Effective for tax years beginning after 2006, an exempt organization that is required to file a Form 990-series return or notice (Form 990, 990-EZ, 990-N, or 990-PF) is subject to automatic revocation of its exempt status if it fails to file a required Form 990-series return or notice for three consecutive years (IRC 6033(j)). Automatic revocation is effective as of the due date of the third annual return or notice. See IRM 7.20.4.2, Automatic Revocation, for more general information on automatic revocation.

An organization that is automatically revoked is:

An organization that isn't required to file an annual return or notice (such as a church, integrated auxiliary of a church, affiliate of a governmental unit, etc.) isn't subject to automatic revocation. An organization that claims to meet a Form 990-series filing exception must have a determination or ruling from the IRS recognizing it as having met that exception.

Research IDRS to determine whether an organization is in Status 97. Check TEOS to see if the organization’s revocation is posted.

For correspondence from an organization already in Status 97, see IRM 7.21.10.7.6.1, Organization in Status 97. For correspondence received from an organization where the organizations's status needs to be updated to Status 97, see IRM 7.21.10.7.6.2, Update Organization to Status 97.

Use the appropriate research tools to determine if a revocation is appropriate:

An organization in IDRS Status 20 (Termination) may request to have its exempt status reinstated.

Review the request and any submitted documents. If any information indicates a new organization was formed later than the ruling date on IDRS (such as new name, dates on organizing documents, etc.), see IRM 7.21.10.7.14, Changes in Organizational Structure or Form.

Otherwise, research IDRS to determine whether the organization has met its filing requirements (if it had them) or whether the organization is subject to automatic revocation. If you're unable to determine filing requirements (such as a filing exception), research MEDS/EDS or administrative file. If organization has been filing Form 1120 (other than subsection 12), then it hasn't filed the required returns and is subject to automatic revocation. Go to step (3)(a) below.

Review the correspondence to determine whether to forward it without taking action or to process it:

If an organization submits information on organizational or operational changes (such as changes in officers, bylaws, Articles of Incorporation, activities, etc.), prepare Letter 4174, EO Response to Information Submitted to Records, notifying the organization to report changes on its Form 990-series return.

If an organization submits information stating it has dissolved or intends to dissolve, verify the organization's exempt status on IDRS. Research BMFOLR and if the Alpha Code field has an F that means they have filed a final return.

To update an organization without filing requirements to Status 20, it must submit:

If correspondence indicates a merger occurred, research the status of the entities involved. In a merger, there is generally a single surviving entity; however, in some transactions, a new legal entity is created. Read the submitted documents carefully to ensure you correctly identify the surviving organization and that any IDRS updates are correct. If a new legal entity was created see IRM 7.21.10.7.14, Changes in Organizational Structure or Form.

If the surviving (or non-surviving) organization is a subordinate organization or it appears none of the organizations involved are exempt, prepare Form 14271, EO Determinations EO Merger Memo, and mail it with the correspondence to EO Entity at:

If the correspondence is from the surviving entity:

If the correspondence is from the organization merged out of existence (non-survivor):

If an organization submits correspondence requesting information about an EIN assignment or Letter 147C, EIN Previously Assigned, research IDRS to determine whether an EIN is assigned. If an EIN is:

An organization may submit correspondence indicating its exempt status isn't correctly reflected in Masterfile (in other words, not listed on TEOS, not able to file Form 990-N, etc.). The organization should provide a copy of its determination letter.

If the letter appears fraudulent, see IRM 7.21.10.8.4, Fraudulent EO Determination Letters.

If the letter is legitimate, review the letter and IDRS to determine whether the organization should be automatically revoked (for example, if it has filing requirements, has it failed to file required returns or notices for three consecutive years). Update Masterfile based on the determination letter and any other available information (such as the DVD). If you're unable to determine the Status Code date, enter the Ruling Date as the Status Code date.

If unable to confirm exemption, prepare Letter 4163, No Record of Exemption of Organization.

Organization should not be automatically revoked (in other words, it didn't have filing requirements or filed the required returns or notices) then prepare Letter 4168, Affirming 501(c) Exemption.

If an exempt organization submits correspondence indicating it has changed its organizational form (for example, trust to corporation), prepare and mail Letter 5458, New Corporation, to notify the organization whether it must file a new application for exemption for the new legal entity.

If an exempt organization submits correspondence indicating it wishes to change the subsection under which it's exempt, research MEDS/EDS to determine whether there is an open case.

If an organization submits correspondence requesting an action that requires Form 8940, Request for Miscellaneous Determination, and/or a user fee, send Letter 6108, Information Request for Missing Information using the correct Selectable Paragraph. Requests that generally require a form and/or a user fee include:

If an organization submits the following, forward the correspondence to the Adjustments Unit.

An NECT can request reclassification from IRC 509(a)(3) to private foundation.

If an NECT submits correspondence requesting an update to Masterfile to reflect its description as a private foundation because it no longer meets the requirements of IRC 509(a)(3) (such as based on the Pension Protection Act of 2006) and has filed Form 990-PF for taxable years starting on or after January 1, 2008, update Masterfile to Subsection 92 (see Notice 2008-6). Prepare Letter 4171, Affirm NECT Status.

If the NECT hasn't filed Form 990-PF for taxable years starting on or after January 1, 2008, or submits a different request about foundation classification, follow the procedures in IRM 7.21.10.7.16, Miscellaneous Determination Requests.

For correspondence received on FTE cases:

If a private foundation wants to terminate its private foundation classification and become a public charity, send Letter 6108, Information Request for Missing Documentation, which requires them to submit Form 8940 through Pay.gov.

If an organization submits correspondence requesting expedite treatment of Form 1023-EZ:

Organizations can be included in a group ruling. This process allows a single organization called the parent, to request a group ruling. They have subordinate organizations that are considered to be exempt under the parent’s group ruling exemption.

If a subordinate organization submits correspondence about its exemption or requests an update or change (see IRM 7.21.10.7.4, Entity Change, for name and address changes), research IDRS and MEDS/EDS to determine whether there is an open case for the organization. If so, forward the correspondence to the assigned specialist.

If the organization is in Status 27 or 28, prepare Letter 4163, No Record of Exemption of Organization.

If the organization is in Status 97, see IRM 7.21.10.7.6, Automatic Revocation - Status 97.

For all other requests, prepare Letter 4185, Sub Submits Information - EO.

Follow the following table for information requests:

Send all Tax Exempt Bonds (TEB), Indian Tribal Governments (ITG) and Federal, State, Local Government/Employment Tax (FSL/ET) inquiries (other than those sent Letter 4076, Federal Tax Status of Governmental Entity - EO) to the appropriate office. Ask your lead for the current office contact.

Forward these types of correspondence (not all inclusive) requiring technical assistance to your lead:

An EO Determinations specialist reviews the correspondence and recommends how to process the request.

Specialists are assigned technical correspondence in ECM.

The specialist will review the correspondence, conduct any necessary research, and determine the appropriate action. The specialist may call the taxpayer or, if applicable, forward the correspondence to the *TE/GE-EO-Congressionals mailbox.

If a submitted determination letter appears fraudulent, research IDRS, MEDS/EDS, and DVDs (as necessary) to determine the exempt status of the organization. Fraudulent letter indicators may include:

If research indicates the letter isn't valid, forward the correspondence to your manager.

Your manager will forward the information to TIGTA, who is responsible for investigating the issue, determining any actions to take, and notifying the organization, if necessary.