Accounts Management (AM) employees respond to taxpayer correspondence and phone calls as well as process claims, certain applications and other internal adjustment requests.

IRM 21.7.7 provides guidance to employees assigned to AM, BMF, EO Accounts and TE/GE Customer Service Representatives (CSR) located in the OAMC. The following subjects are covered in this IRM:

Refer to IRM 1.2.1.13, Servicewide Policies and Authorities, Policy Statements for Customer Account Service Activities, for information.

The Director, Tax Exempt/Government Entities, Business Systems Planning (BSP) is the executive responsible for the Exempt Organization and Tax Exempt Bond programs.

Additional information is found in IRM 1.1.13.7.3, Accounts Management (AM) and IRM 21.1.1, Accounts Management and Compliance Services Overview.

All EO and TEB account related issues and correspondence are worked in the EO Accounts unit or by TE/GE Customer Service Representatives (CSR) located in the OAMC. CSRs and Tax Examiners (TE) located in other call sites or campuses are not authorized to resolve EO or TEB account related issues. See IRM 21.7.7.6.23, Exempt Organization Penalties, for guidelines relating to EO penalty abatements.

Areas that are not authorized to work EO penalties or account related issues must follow case referral procedures as outlined in IRM 21.3.5, Taxpayer Inquiry Referrals Form 4442.

Accounts Management (AM) assistors must be familiar with the Taxpayer Bill of Rights (TBOR). The IRS formally adopted a Taxpayer Bill of Rights in June 2014, which provides the nation’s taxpayers with a better understanding of their rights and helps reinforce the fairness of the tax system. In 2015, Congress charged the Commissioner with ensuring IRS employees are familiar with and act in accord with the taxpayer rights as afforded by Code Section 7803(a)(3).

The TBOR lists rights that already exist in the tax code, putting them in simple language and grouping them into 10 broad categories. Employees are responsible for being familiar with and acting in accordance with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see Taxpayer Bill of Rights | Internal Revenue Service (irs.gov) and Policy Statement 1-236 in IRM 1.2.1.2.36, Servicewide Policy Statements. The TBOR is now part of the Code and was passed by Congress as part of Pub. L. No. 114–113, Div. Q, Title IV, § 401(a), Dec. 18, 2015.

IRM 1.4.16, Accounts Management Guide for Managers, provides guidance for program management and review of programs assigned to Accounts Management.

Goals, measures, and operating guidelines are listed in the annual Program Letter.

Quality data and guidelines for measurement is referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support.

The ReferenceNet Legal and Tax Research Services page provides an Acronym Database to research acronyms found within this IRM.

In addition to IRM 21.7.7, Exempt Organizations and Tax Exempt Bonds, EO tax examiners and CSRs will refer to resources available to them, including but not limited to:

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

The SLAs are found at Service Level Agreements (sharepoint.com).

Generally, congressional inquiries are worked by TAS. When a congressional inquiry is received via telephone or correspondence, follow the procedures in IRM 21.1.3.18, Taxpayer Advocate Service (TAS) Guidelines, to determine whether the congressional inquiry should be referred to TAS.

The table below lists the IRC, SS, a description of the organization, and the classification code. Refer to Document 6209 for the filing requirement codes.

When an EO MFT (34, 36, 37, 44, 50, or 67) transaction attempts to create a tax module on BMF, the entity module must contain an EO section. The EO section provides information about the exempt organization. The codes in the subsection field (SUB) provide specific information about the organization when used in connection with the subsection chart provided above.

The EO section is created by TE/GE Determinations or the Ogden EO Entity unit.

If an EO section isn't present on ENMOD, forward the case to EO Entity Control.

Both BMF and EO codes are present on ENMOD (FR codes, employment codes, subsection codes, status codes, etc.)

The organization files returns based on the type of exemption determined by the IRC section and is identified by subsection (SUB) on ENMOD.

The following definitions apply to various codes relating to an exempt organization.

To determine whether an organization's gross receipts are normally to be $50,000 or less, apply the following test. An organization's gross receipts are considered normally to be $50,000 or less if the organization is:

Form 8868, Application for Automatic Extension of Time To File an Exempt Organization Return, is used to request an automatic three month extension of time to file Form 990, Form 990-EZ, Form 990-PF, Form 990-BL, Form 990-T, Form 1041-A, Form 1041 (for NECTs), Form 1065 (for 501(d) organizations), Form 4720, Form 5227, Form 6069 and Form 8870 if filed for period prior to December 31, 2015. If necessary, an additional three month (not automatic) extension can also be requested for periods prior to December 31, 2015.

For periods which begin after December 31, 2015, Form 8868 will be used to request an automatic six month extension for all forms listed above.

Form 7004 is used to request an automatic six month extension of time to file for Form 1120-POL.

Refer to IRM 21.7.7.6.22, EO Extensions, for additional information regarding extensions.

Most EOs are required to make ES payments on their unrelated business income tax as if they were corporations if the tax shown on the return is $500 or more.

Tax exempt organizations use Form 990-W to compute their estimated tax. Estimated tax must be paid with Electronic Federal Tax Payer System (EFTPS), if required.

Refer to IRM 21.7.7.6.23.2, Estimated Tax Penalty, for additional information.

Returns and return information of a tax-exempt organization which are publicly available under IRC 6104 may be disclosed to any requester making a proper request. However, returns and return information which are not publicly available under IRC 6104 are protected by IRC 6103 and may not be disclosed unless authorized by a section of 6103 of the Internal Revenue Code.

Most items on Form 990-PF are disclosable. Almost everything on Form 990 and Form 990-EZ except for the names and addresses of contributors and identifying contributions amounts and everything included on tax exempt Political Organization returns (Form 990 with IRC 527 box checked, Form 8871, and Form 8872 can be disclosed, see IRM 3.20.12-1, Form 990/990-EZ Schedules and Requested Attachments Open for Public Inspection through 3.20.12-4, Not Open on All Forms.

The Tax Technical Corrections Act of 2007, Pub. L. 110-172, H.R. 4839, provides that the Internal Revenue Service is required to make Forms 990-T that are filed by a section 501(c)(3) organization publicly available for inspection and copying pursuant to section 6104(b). This provision is effective for returns filed after August 17, 2006, the date of enactment of the Pension Protection Act of 2006, Pub. L. 109-280 (PPA). It applies only to Forms 990-T filed to report UBIT. If the return was filed only to claim erroneous back-up withholding, for example, it isn't open under IRC 6104.

Form 5227, with the exception of Schedule A, is also open for public disclosure.

Form 1120-POL isn't open for public inspection as a result of legislation enacted on November 2, 2002. See IRM 11.3.9, Exempt Organizations, for more information regarding disclosure. If there is a question as to whether information can be disclosed or not see IRM 3.20.12, Imaging and Perfecting Exempt Organization Returns for Public and Internal Viewing. or contact the local Disclosure manager.

Requests for returns must be made in writing on Form 4506-A, Request for a Copy of Exempt or Political Organization IRS Form. All inquiries or Forms 4506-A received in EO Accounts must be routed to the RAIVS Unit (MS: 6716). Refer to IRM 11.3.9, Exempt Organizations, for additional disclosure information.

Internal Revenue Code (IRC) 6104(a)(1)(A) requires the Internal Revenue Service (IRS) to make available for public inspection:

In addition, the IRS must furnish, upon request, a statement indicating the subsection and paragraph of IRC 501 which describes the exempt organization or trust. However, the disclosure of certain information relating to trade secrets, patents, processes, style of work or apparatus of an organization, or national defense information may be restricted. Refer to IRM 11.3.9,, Exempt Organizations, for a description of the documents available for disclosure and further explanation of disclosure limitations.

IRC 6104(d) requires that certain annual returns, reports, applications for exemption, and notices of status be available for public inspection. Generally, the exempt organization is responsible for making these documents available for public inspection at its principal office and local or field offices having three (3) or more employees.

The organization need not disclose any portion of an application relating to trade secrets, national defense, etc., which also would not be disclosed by the IRS. Withholding of this information is made upon determination by the IRS based on request by the organization.

The public disclosure rules apply both to information submitted that is required by the forms and to information submitted voluntarily.

Requests for approved applications or letters must be made in writing on Form 4506-B, Request for a Copy of Exempt Organization IRS Application or Letter. All inquiries or Forms 4506-B received in EO Accounts must be routed to the TE/GE Adjustment Unit, P.O. Box 2508, Room 4024, Cincinnati, OH 45201. Refer to IRM 11.3.9, Exempt Organizations, for additional disclosure information.

Correspondence from persons unable to obtain a copy of a return from the organization should be routed to the appropriate Exam Classification Site. Refer to IRM 21.7.7.6.15, Routing Exempt Organization Correspondence Issues, for the address.

The Ogden Submission Processing Campus (OSPC) began the Imaging process in July 1998. It replaced the aperture card (microfiche) process for Form 990-PF. The Imaging process scans returns and attachments on high-speed scanners to produce images for Online SEIN and the public. The Internal Revenue Service sells USBs with images of all Form 990-PF, Form 990 and Form 990-EZ returns to various watch dog groups including The Foundation Center, The Urban Institute and other entities throughout the country. These various groups provide comprehensive information on a foundation's grant making interests, limitations, application procedures and funding patterns. Additionally, many grant seekers use this information for research.

The following is a list of forms that are currently imaged:

All EO returns and related schedules referenced above are imaged "as filed." In January 2018 the Imaging process was moved to the end of the pipeline process. The Imaging Unit scans the returns after they are processed through ISRP and ERS. All returns processed through the imaging system will have a "filmed" or "scanned" stamp and date in the left-hand margin on the first page of the return. If the return or related schedules aren’t stamped and dated, they need to be identified for scanning using the procedures in following section.

A political organization subject to IRC 527 is a party, committee, association, fund (including a separate segregated fund described in IRC 527(f)(3)) or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures (or both) for an exempt function.

The exempt function of a political organization is influencing or attempting to influence the selection, nomination, election or appointment of an individual to any public office or office in a political organization, or the election of the Presidential or Vice Presidential electors.

A political organization must be organized for the primary purpose of carrying on exempt function activities. A political organization does not need to be formally chartered or established as a corporation, trust, or association. A separate bank account in which political campaign funds are deposited and disbursed only for political campaign expenses can qualify as a political organization. When there are no formal organizational documents, consideration is given to statements of the members of the organization at the time of its formation that they intend to operate the organization primarily to carry on exempt function activities. A political organization may engage in activities that are not exempt function activities, but these may not be its primary activities.

Political organizations include principal campaign committees, newsletter funds, and certain separate segregated funds maintained by tax-exempt organizations.

A principal campaign committee is the political committee designated by a candidate for U.S. Congress as his or her principal campaign committee for purposes of IRC 302(e) of the Federal Election Campaign Act of 1971 and IRC 527(h).

Political organizations that have tax-exempt status under IRC 527 of the Internal Revenue Code (unless exempted from filing) must file some or all of the forms listed as a condition of tax-exempt status:

A state or local organization may be considered a Qualified State or Local Political Organization (QSLPO), if it meets the following criteria:

Federal tax law divides political organizations into several different categories, and provides different filing requirements for each category as shown in the table below:

CC BMFOL with definer "O" displays the Exempt Organization data for a specific EIN. Available information includes Group Exemption Number (GEN), Area Office (AO), current and prior status, and filing requirements.

Use CC EOGEN to locate the EIN of a central, group, or subordinate organization. EOGEN does not provide full entity information for subordinates. CC EOGEN requests group ruling information for an exempt organization - both central organizations and subordinates. The GEN is a four digit number located in the EO Entity section of an account which can be accessed by using CC ENMOD, INOLES, or BMFOLO. CC EOGEN with definers "P" and "S" are explained below:

If undeliverable notices CP 120A, 152 or 299 are received in Accounts Management, destroy the notices per local procedures without conducting any research for another address.

The following is a list of EO and GE forms:

The table below shows the form type, MFT, taxability, and due dates for various EO returns.

The table below shows the due dates for both fiscal and calendar year filers:

The following exempt organization returns can be filed electronically through an approved IRS 990 e-file provider:

The Taxpayer First Act (TFA), enacted July 1, 2019, requires tax exempt organizations to file information returns and related forms electronically. The new law affects tax exempt organizations in tax years beginning after July 1, 2019.
The following IRS forms are included in the mandate:

For small exempt organizations, the TFA specifically allowed a postponement of the requirement to file electronically ("transitional relief" ). For tax years ending before July 31, 2021, the IRS will accept either paper or electronic filing of Form 990-EZ. For tax years ending July 31, 2021, and later, Form 990-EZ MUST be filed electronically.

Forms 990, Return of Organization Exempt from Income Tax, and 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation, for tax years ending July 31, 2020 and later MUST be filed electronically.

Form 990-T, Exempt Organization Business Income Tax Return, for tax years ending December 2020 and later with a due date on or after April 15, 2021, MUST be filed electronically and not on paper. A limited exception applies for 2020 Form 990-T returns submitted on paper that bear a postmark date on or before March 15, 2021.

Private Foundations must electronically file Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code, as required by Section 3101 of the Taxpayer First Act of 2019.

Updated information about which forms, tax years, attachments, and schedules are acceptable for (and those excluded from) e-filing can be found in Publication 4164, Modernized e-File (MeF) Guide for Software Developers and Transmitters, and on the IRS website under the "General Information" heading on the page titled Modernized e-File (MeF) User Guides and Publications.

Current approved IRS e-file providers are listed at Exempt Organizations and Other Tax Exempt Entities Modernized e-File (MeF) Providers.

A Web page on irs.gov provides transmitters with updated operational status information for MeF users. The page provides updates when there is a change that impacts transmitters for more than an hour during peak. Information on the normal maintenance window is also available on this page. Transmitters who encounter problems can check the Web status by typing "e-file status" in the search window.

Form 990 and Form 990-EZ are used by tax-exempt organizations, nonexempt charitable trusts, and IRC 527 political organizations to provide the IRS with the information required by IRC 6033.

The MFT for Form 990 and Form 990-EZ is 67, tax class "4" and the return is due the 15th day of the 5th month after the tax year end. Form 990 Doc Code is 90 and Form 990-EZ Doc Code is 09.

The Doc Code for Form 990 is "93 " and the Form 990-EZ Doc Code is "92" .

All Forms 990 and Forms 990-EZ, are imaged or scanned.

Form 990 must be filed by an organization exempt from income tax under section 501(a) (including an organization that hasn’t applied for recognition of exemption) if it has either:

An organization can choose to file Form 990-EZ instead of Form 990 if their gross receipts are less than $200,000 and total assets at the end of the tax year are less than $500,000. See the instructions for Form 990 for more information, including special rules regarding controlling organizations under section 512(b)(13) and sponsoring organizations of donor advised funds.

If an organization normally has gross receipts of $50,000 or less, it must submit Form 990-N, if it chooses not to file Form 990 or Form 990-EZ. Exceptions to filing Form 990-N are described in the instructions for Form 990 and Form 990-EZ for certain section 509(a)(3) supporting organizations and for certain organizations described in Section B. Organizations Not Required To File Form 990 or 990-EZ of the instructions for Form 990 and the General Instruction B for Form 990-EZ.

Unless excepted (see table in IRM 21.7.7.5.9.1.1.4, Annual Information Returns), a tax-exempt political organization must file an exempt organization annual information return if it has gross receipts of $25,000 or more for the taxable year ($100,000 for QSLPOs). A tax-exempt political organization with gross receipts of less than $100,000 and assets of less than $250,000 at the end of the year may file a Form 990-EZ, Short Form Return of Organization Exempt from Income Tax. Otherwise, it files a Form 990, Return of Organization Exempt from Income Tax.

Form 990-PF is an annual information return that must be filed by:

The MFT is 44 and the tax class is "4" . The return is due the 15th day of the 5th month after the tax year end. Form 990-PF filers should have a SS 03 with Foundation Code (FC) 02 - 04, or Status Code (SC) 92.

Form 990-PF is used to:

Private foundations are required to file Form 990-PF regardless of their amount of gross receipts.

A private foundation that has disposed of all of its assets and does not terminate its private foundation status must file a Form 990-PF for the taxable year of the disposition.

All Forms 990-PF are imaged or scanned after initial processing of the return.

Form 990-T is used to:

Any domestic or foreign organization exempt under IRC 501(a) or IRC 529(a) (except an organization described in IRC 501(c)(1)) must file Form 990-T if it has gross income from an unrelated trade or business of $1,000 or more or is liable for proxy tax on lobbying and political expenditures. Any college or university of a state or other governmental unit as well as any subsidiary corporation wholly owned by such college or university, must file Form 990-T if it has gross income from an unrelated trade or business of $1,000 or more.

Form 990-T is MFT 34 and the tax class is 4. Form 990-T has two possible due dates:

Form 990-BL is a historical form beginning with tax year 2021. Section 501(c)(21) trusts can no longer file Form 990-BL and will file Form 990 (or submit Form 990-N, if eligible) to meet their annual filing obligations under section 6033.

Some section 501(c)(21) trusts may be required to file Form 6069, Return of Certain Excise Taxes on Mine Operators, Black Lung Trusts, and Other Persons Under Sections 4951, 4952, and 4953.

The Form 990-BL was processed to Non-Master file (NMF). The MFT is 56, the tax class is "6" , and the doc code is 88. The return is due the 15th day of the 5th month following the close of the tax year.

If a Form 990-BL is received, return it to the filer explaining section 501(c)(12) trusts must now file Form 990 (or submit Form 990-N, if eligible).

Political organizations and certain exempt organizations file Form 1120-POL to report their political organization taxable income and income tax liability under IRC 527.

The MFT is 02 and the tax class is "3" . The due date for Form 1120-POL is the 15th day of the 4th month after the end of the tax year. Political organizations may request a six-month extension of time to file by submitting a Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. The organization must file the extension by the Form 1120-POL due date.

A political organization must file Form 1120-POL if it has any political organization taxable income. An exempt organization that isn't a political organization must file Form 1120-POL if it is treated as having political organization taxable income under IRC 527(f)(1).

An organization that files Form 1120-POL may also be required to file the following forms:

EO Accounts works all Form 1120-POL account related issues regardless of the EO status.

Form 8871 posts to Master File with a TC 150. The MFT is 47 and the Doc Code is 61. Amended returns post as a TC 976 (Form 8453-X) will post to Master File as a TC 971 AC 351 on ENMOD).

If a political organization:

The organization must file the return electronically at the IRS Internet web site at irs.gov/polorgs, per IRC 527(i)(1)(A). The IRS TE/GE:BSP national office programmers maintain a stored database of the information the organization inputs. To file Form 8871, the political organization must have its own EIN even if it has no employees. To obtain an EIN, an organization must file Form SS-4, Application for Employer Identification Number, with the IRS. See the Form SS-4 instructions for information on how to obtain an EIN online (only for applicants in the U.S. or U.S. possessions), via the telephone (only for applicants outside of the U.S. or U.S. possessions), by fax or by mail.

New political organizations must submit to the Ogden campus a Form 8453-X, Political Organization Declaration for Electronic Filing of Notice of Section 527 Status, containing the signature for the electronic Form 8871.

Form 8453-X isn't required to be filed on an amended Form 8871.

Every political organization that is to be treated as a tax exempt political organization under the rules of IRC 527 must file Form 8871, except for:

The IRS will no longer accept paper Form 8872 reporting on periods after 2019. Form 8872 reporting information for periods starting on or after January 2020, will be due electronically by IRC 527 organizations. These include political parties, political action committees and campaign committees of candidates for federal, state or local office.

Most tax-exempt political organizations have a requirement to file semiannual, quarterly or monthly reports on Form 8872 To file electronically, the organization must have the username and password it received from the IRS after electronically filing its initial notice (Form 8871). Organizations can file electronically using the IRS website at irs.gov/polorgs. To replace a password, taxpayers must contact:
IRS
Attn: Request for 8872 Password
Mail Stop 6273
Ogden, UT 84201 Fax (855) 214-7520

Form 8872 posts to Master File as a TC 150. The MFT is 49 and the Doc Code is 61.

Every IRC 527 tax exempt political organization that accepts a contribution or makes an expenditure for an exempt function during the calendar year must file Form 8872 except:

An organization must file Form 8871 before it can file Form 8872. If the organization has not filed Form 8871, it may be subject to taxation under IRC 527(i)(4) and the requirements for filing Form 8872 are not applicable.

All other political organizations are required to file Form 8872 to report the names, addresses and, if an individual, the occupation and employer, of any person to whom expenditures are made that aggregate $500 or more in a calendar year and the amount, date and purpose of each expenditure.

Due dates for Form 8872 vary depending on whether the form is due for a reporting period that occurs during a calendar year in which a regularly scheduled election is held or any other calendar year.

Refer to the following table to determine the filing requirements for Form 8872:

A political organization that does not disclose this information must pay an amount equal to the highest corporate tax rate (21% for tax years beginning after December 31, 2017 and 35% for prior tax years) multiplied by the amount of contributions and expenditures not disclosed and report it on the Form 1120-POL. If a political organization doesn’t file Form 8871 and is subject to tax on its income, it isn't required to file Form 8872.

A political organization isn't required to file Form 8872 for any period of time that it is subject to tax on its income because it did not file or amend a Form 8871.

Form 8453-X is automatically generated for a new political organization to complete when a Form 8871 is submitted electronically. The organization must print the form, sign it, and mail it to the Ogden campus. In doing so, the electronic filing of Form 8871 is authenticated.

When Form 8453-X isn't submitted to the Ogden campus within 60 days of the filing, the IRS will send the organization a username and password that must be used to file an amended or final Form 8871 or to electronically file Form 8872.

If Form 8453-X is submitted without a signature, the signature page of the form will be returned to the organization requesting a signature.

A TC 971 AC 351 is entered by EO Entity when a Form 8453-X is received.

Send mis-routed Forms 8453-X received in EO Accounts to EO Entity.

Form 5227 is used to report the financial activities of a split-interest trust described in IRC 4947(a)(2) and to determine whether the trust is treated as a private foundation and is subject to the excise taxes under Chapter 42.

The MFT is 37 and the tax class is 4. Form 5227 is due the 15th day of the fourth month after the calendar year ends.

Split interest trusts are required to file annually regardless of whether or not their income is distributed.

Section 6652(c)(2)(C) allows for a Daily Delinquency Penalty to be charged on split interest trusts for not filing a timely return. A penalty is imposed on the trustee if he/she knowingly fails to file. Refer to IRM 21.7.7.6.23, Exempt Organization Penalties, for additional penalty information.

Form 5227 is publicly available under IRC 6104(b) except for the non 170(c) beneficiaries which are exempt from disclosure. Schedule A, Distributions, Assets, and Donor Information (page 7) isn't open for inspection.

Form 5227 is detached by C&E and processed separately from the return to which it was originally attached.

Form 5227 is processed as a Form 990-PF if:

Income flows from Form 5227 or Form 1041-A to Form 1041 and Form 1040. If any amount on one return is amended, all returns must be amended. Interest, dividends, capital gains, etc. on Form 1040 should be at least the amounts reported on Form 5227 or Form 1041-A. Capital gains, however, can be rolled into trust principal or corpus and not be distributed. If it is distributed, per Part II Form 5227, the amounts should match.

The Tax Cuts and Jobs Act of 2017 (P.L. 115-97 amended section 641(c)(2). As a result, electing small business trusts (ESBTs) are no longer subject to the charitable information reporting requirements under IRC 6034 and don’t file Form 1041-A.

Trustees must file Form 1041-A for a trust that claims a charitable or other deduction under section 642(c) unless an exception applies.

The MFT is 36 and the tax class is 4. The return is due the 15th day of the fourth month after the calendar year ends.

To receive an automatic extension, the trustee must file Form 8868 on or before the original due date of Form 1041-A.

A trust that files Form 1041-A must report on the calendar year. A trust exempt from tax under IRC 501(a) or described in IRC 4947(a)(1) does not file Form 1041-A and may use a non-calendar year.

A decedent’s estate isn't required to file Form 1041-A. Section A (Type of entity) on page 1 of Form 1041 will indicate if the entity is a decedent’s estate.

A copy of Form 1041-A may be attached to Form 5227. R&C separates the returns for processing.

IRC 6652(c)(2) permits separate penalties of $10 a day, up to a maximum of $5,000, against both the trust and the trustee for not filing Form 1041-A on time, unless there is reasonable cause. The law also provides penalties for filing a false or fraudulent return.

When a DDP is assessed on the Form 1041-A due to late filing and the taxpayer isn't required to file a Form 1041-A, the penalty can be removed without a reasonable cause statement.

Form 4720 is filed by:

Form 4720 is used to figure and pay:

Form 4720 provides for the assessment of tax:

Return generally has the same due date as Form 990-PF, Form 5227, Form 990 or Form 990-EZ. The MFT is 50.

Form 4720 is divided into the following sections:

Interest is computed as established under IRC 6621.

Every IRC 501(c)(3) organization which operates, supervises, or controls a private school must file a certification of racial nondiscrimination.

If an organization is:

The certification must be filed annually by the 15th day of the 5th month following the end of the organization's calendar year or fiscal period.

Form 5768 is a numbered return but does not have a specific MFT. The transaction posts to the entity module with the year the election is effective (TC 024) or revoked (TC 023). The Doc Code is "77" and information can be accessed using CC BMFOLE, INOLE, or MFTRD. The volume is minimal.

IRC 501(h), however, permits certain eligible IRC 501(c)(3) organizations to make limited expenditures of specified amounts to influence legislation. An organization making the election will, however, be subject to an excise tax under IRC 4911 if it spends more than the amounts permitted by that section.

To make or revoke the election, the EO enters the ending date of the tax year to which the election or revocation applies on Form 5768 in item 1 or 2, as applicable. If Form 5768 is received in processing attached to another return, detach it and process separately. The election is:

Form 5768 is filed by an organization that is exempt under IRC 501(c)(3) and files Form 990. IRC 501(c)(3) states that an organization exempt under that section will lose its tax-exempt status and its qualification to receive deductible charitable contributions if a substantial part of its activities is attempting to influence legislation.

Form 990-N, Electronic Notice (e-Postcard) for Tax - Exempt Organizations not Required to File Form 990 or 990-EZ is filed by organizations who normally have gross receipts of $50,000 or less.

With the exception of a duplicate filed condition (e.g., E-filed & paper return both post to a module), don’t attempt to resolve any issues associated with Form 990-N. Route any and all correspondence, inquiries, or CP notices about Form 990-N to Entity MS: 6273 for resolution. Refer to the table below to determine which area will resolve the duplicate or amended return issue.

A CP 299 generates every time a Form 990 filing requirement changes from 01 to 02. It’s an information notice only and doesn’t require a response. The notice informs the filer they need to file a yearly electronic Form 990-N through the IRS web site because their gross receipts are normally $50,000 or less. Failure to file this yearly electronic notification results in loss of their exempt status.

The annual electronic notice is due by the 15th day of the fifth month after the close of the tax period. The notice includes the following information:

A CP 259A delinquency notice will generate 120 days after the due date of the Form 990-N if there is no TC 150, 59X or TC 460 on the tax module. The organization must respond to this notice and the responses are worked in EO Entity MS: 6273. Also, there are no penalties assessed against the organization for late filing or extensions granted.

Failure to file the annual electronic notice or Form 990 or Form 990-EZ for three consecutive years, will result in revocation of the organization's tax-exempt status as of the filing due date of the third year. The EO can be reinstated by (re)applying and paying the appropriate user fee. Reinstatement of tax-exempt status may be retroactive to the date of revocation, if the EO can show that there was reasonable cause for not filing.

The Following organizations are exempted from the annual notification requirement:

Except for the items in IRM 21.7.7.1, Scope and Purpose, all EO account related issues and inquiries are resolved in the EO Accounts units at OAMC. Route any account related issues received at other locations, to OAMC, EO Accounts, MS: 6710. Route inquiries and information EO Accounts is unable to address (check with the lead first) to one of the following locations for resolution:

Mail Form 3115, Application for Change in Accounting Method, with all attachments filed by EO to:

Send all EO claims and amended returns to OAMC, EO Accounts unit. On site classification is available for claims/amended 990-T returns with an attached Form 8941 or amount on line 44f.

All claims and/or amended returns for a Form 990-T with an attached Form 8941 or amount on line 44f of the 990-T (even if there is other unrelated business income on the return) will require additional review before approval of the claim.

Payments made after March 1, 2013 for the 45R credit (line 44f) are subject to a reduction of 5.7% due to sequestration.

Regulated Investment Company (RIC) or Real Estate Investment Company (REIT) refunds of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ must be supported by Form 2439 and reviewed by the Field. See IRM 21.7.7.6.3.6, Form 2439 - Regulated Investment Company Shareholders’ Refunds, for more information.

All claims must be complete. If there is missing information, the claim should be returned with no consideration using a Letter 0916c.

When a request for a manual refund is received:

EO claims meeting CAT-A criteria will be emailed to EO Classification or referred to an EO Exam Area Office.

The following claims or amended returns will be emailed to the unit lead as directed in IRM 21.7.7.6.16.2, Claim for Refund/Reconsideration ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The unit lead will review, electronically sign Form 5597 or Form 5588 (AIMS card), confirm the TC 420 has been input to establish the account on AIMS and then will email the claims package to *TE/GE CPC Case Assignment (tege.cpc.case.assignment@irs.gov) with a cc to the unit manager.

If the case shows an open AIMS control in status 09 or above, forward the case directly to the applicable EO Exam Area Office. Cases with status 08 or below are worked in EO Accounts Management. Conduct initial research via CC AMDISA to determine the Employee Group Code (EGC). Find the EGC address on SERP under the Who/Where tab, EXAM Employee Group Code (EGC) Contacts bullet. Before referring a case directly to an EO Exam Area Office, compile a complete claim package consisting of the following information:

If the EGC is 772X, prepare a Form 3210 and route the case to the Exempt Organization Compliance Unit (EOCU), MS: 1112, located in Ogden, UT. Annotate "CLtoEOCU" in the Activity field on TXMODA.

If the group code is other than 772X, continue compiling the claim package as outlined below and send the case to the related EGC. Find the EGC address on SERP under the Who/Where tab, EXAM Employee Group Code (EGC) Contacts bullet.

Once you compile the claim package :

For EP Form 990-T claim procedures, refer to IRM 21.7.7.6.16.11, Form 990-T Employee Plan (EP) Claim Procedures.

Refer to the table below in determining when and where you should route other amended returns or penalty abatement cases.