Part 7. Rulings and Agreements

Chapter 21. Exempt Organizations Determinations Processing

Section 5. Determination Case Processing Assistance

7.21.5 Determination Case Processing Assistance

Manual Transmittal

May 01, 2023

Purpose

(1) This transmits revised IRM 7.21.5, Exempt Organizations Determinations Processing, Determination Case Processing Assistance.

Material Changes

(1) Updated case closing procedures, modifying the guidance as listed below:

Section Modification
IRM 7.21.5.2 Removed establishment of hardcopy cases in EDS and added electronic case submission for Forms 1023, 1023-EZ, 1024, 1024-A, and 8940.
IRM 7.21.5.3 Removed EDS case assignment instructions, as all cases are now assigned and worked in MEDS.
IRM 7.21.5.5 Modified instructions to use MEDS case categories instead of the Special Handling Notice.
IRM 7.21.5.6 Changed instructions for mailing letters.
IRM 7.21.5.7 Modified instructions for requesting administrative files.

(2) Incorporated procedures in Interim Guidance Memorandum TEGE 07-0122-0005, Reissued Guidance on Processing Electronically Submitted Form 1023.

(3) Incorporated procedures in Interim Guidance Memorandum TEGE-07-0122-0003, Interim Guidance on Processing Electronically Submitted Form 1024.

(4) Incorporated procedures in Interim Guidance Memorandum TEGE-07-0121-0001, Interim Guidance on Processing Electronically Submitted Form 1024-A.

(5) Incorporated procedures in Interim Guidance Memorandum TEGE-07-0423-0007, Processing Electronically Submitted Form 8940.

(6) Edited the document for plain language, as required by the Plain Writing Act of 2010.

Effect on Other Documents

This supersedes IRM 7.21.5 dated February 16, 2018.

Audience

Tax Exempt and Government Entities
Exempt Organizations

Effective Date

(05-01-2023)

Stephen A. Martin
Director, Exempt Organizations, Rulings and Agreements
Tax Exempt and Government Entities

7.21.5.1 (05-01-2023)

Program, Scope, and Objectives

  1. Purpose: This IRM provides instructions for certain aspects of processing Exempt Organizations (EO) determination letter requests.

  2. Audience: The procedures in this manual apply to EO Rulings and Agreements (R&A) employees such as tax examining technicians and clerks who process EO and Employee Plans (EP) determination cases.

  3. Policy Owner: Director, Exempt Organizations, Rulings and Agreements.

  4. Program Owner: Exempt Organizations.

7.21.5.1.1 (05-01-2023)

Background

  1. EO R&A Employees, including tax examining technicians and clerks, help with EO and EP determination cases processing including:

    • Case establishment

    • Case assignment

    • Letter processing

    • File maintenance

7.21.5.1.2 (05-01-2023)

Authority

  1. Rev. Proc. 2023-5, updated annually, lists procedures for issuing determination letters on exempt status (in response to applications for recognition of exemption from federal income tax under Section 501 or 521 other than those subject to Rev. Proc. 2023-4, updated annually, private foundation status, and other determinations related to exempt organizations). The determination letters are under the jurisdiction of the Director, EO Rulings and Agreements.

7.21.5.1.3 (05-01-2023)

Responsibilities

  1. Within EO R&A, the Processing & Support Unit establishes, assigns, and maintains cases.

7.21.5.1.4 (05-01-2023)

Program Controls

  1. The EO R&A Processing and Support Managers review the work performed in this IRM.

7.21.5.1.5 (05-01-2023)

Acronyms

  1. This manual uses the following acronyms.

    Acronym Definition
    AIS Application Identification Sheet
    BMF Business Master File
    Campus Support Cincinnati Accounts Management Campus Support
    DLN Document Locator Number
    DTS Data Transcription System
    EDS EP/EO Determination System
    EIN Employer Identification Number
    EO Exempt Organizations
    EP Employee Plans
    FRC Federal Records Center
    IDRS Integrated Data Retrieval System
    R&A Rulings and Agreements
    MEDS Modified EP-EO Determination System, previously known as TEDS

7.21.5.2 (05-01-2023)

Case Establishment

  1. Forms 1023, 1023-EZ, 1024, 1024-A, and 8940 must all be submitted electronically through Pay.gov. The Cincinnati Accounts Management Campus Support (Campus Support) receives all other EO determination letter requests, processes user fees, and establishes cases. See IRM 3.45.1, Processing Employee Plan and Exempt Organization Determination Applications and User Fees.

  2. Campus Support establishes EO determination letter request cases electronically in Modified EP-EO Determination System (MEDS).

  3. Occasionally, a case may need to be established for an EO Determinations employee.

    Example:

    An initial case was established incorrectly.

  4. The Processing and Support - Files & Records Unit establishes EO Determinations cases in MEDS, as needed.

  5. See IRM 7.22.1, Determination Letter Automation Systems Overview, for MEDS and EDS system information.

7.21.5.2.1 (05-01-2023)

MEDS Case Establishment

  1. To request a MEDS case establishment, prepare and email Form 14263, Request for Case Establishment, to *TEGE Determinations Processing.

  2. A Files & Records Unit employee will:

    1. Monitor the email box for submitted forms.

    2. Establish MEDS cases based on Form 14263 submissions.

      Note:

      See IRM 7.22.8.2, Data Transcription System (DTS), for specific procedures.

    3. Ask the employee who submitted the request for additional information/clarification, if needed.

    4. Email Campus Support with the name and EIN of the applicant and request a Document Locator Number (DLN).

    5. Email the MEDS case number to the requesting employee.

    6. Print and keep a copy of Form 14263.

7.21.5.3 (05-01-2023)

Case Assignment

  1. The Files & Records Unit assigns cases to EO Determinations groups (and/or specialists) based on instructions from EO Determinations area managers and specific requests.

    Note:

    Employees email specific requests to *TEGE Determinations Processing.

  2. To assign a case in MEDS:

    1. Complete a search based on the request criteria.

    2. Ensure no older cases are awaiting assignment (if assigning non-specific cases).

    3. Highlight the appropriate number of cases to assign to the group/specialist.

    4. Select File, then Change Status.

    5. Select appropriate status from the drop-down menu.

    6. Click OK for the Assignment menu.

    7. Click on assignee.

    Note:

    See the MEDS user manual, IRM 7.22.4.10.1, Case Assignment, for more information.

7.21.5.4 (05-01-2023)

Letter Processing

  1. EO Determinations specialists and tax examiners generally prepare/generate their own case letters.

  2. Specialists and tax examiners prepare and import closing letters in MEDS using published letters on the TEGE EO Sharepoint Site.

7.21.5.5 (05-01-2023)

Processing MEDS Case Category Issues

  1. Tax examiners review closed cases for certain MEDS Case Categories.

  2. If the case category *Forward Form 2363-A is selected, the clerical staff will retrieve the completed form from the MEDS Non-Disclosable folder and email it to *TE/GE-EO-Adjustments.

  3. If the case category *Forward Form 14268-User Fee Refund is selected, the Adjustments Unit will retrieve the signed request from the MEDS Non-Disclosable folder after the case is closed (Status 21) and process the refund request. The Adjustments Unit Manager digitally signs the form and imports it back into the MEDS Non-Disclosable folder (overwriting the existing form).

  4. Tax examiners enter their own Automatic Revocation (AR) TC590s. Specialists email the *TE/GE-EO-Correspondence Unit to have AR TC590s input. Specialists and tax examiners email the Correspondence Unit for all Non-AR TC590s.

    1. If the case isn’t an auto revocation reinstatement, email the *TE/GE-EO-Correspondence Unit with the subject line "Non-AR TC590 Requested." Include the EIN, name of organization, effective date, and FYM in body of email. Hold case until you receive instructions from Correspondence Unit on when to close the case.

    2. See IRM 7.21.10, Processing EO Correspondence, for instructions on inputting TC590s.

    3. If unable to complete a TC590 for any reason, email the *TE/GE-EO-Correspondence Unit with the subject line "AR TC590 Needed After Closing." Include the EIN and name of organization in body of email. Proceed with case closing.

    4. After inputting TC590s, hold case for closing until the following Thursday.

    Caution:

    Updates you make after close of business on Wednesday are considered made on Thursday for processing purposes. Hold any cases with TC590 inputs on Thursday until the following Thursday.

  5. If there are Form 990s that need to go to Ogden, send a copy of the return(s) to *W&I EEF OSPC Batching or efax to 855-539-9495. If a paper Form 990 is placed in the basket in the mail room marked for Form 990s, mail the form to Ogden.

7.21.5.6 (05-01-2023)

Mailing Closing Letters

  1. Mail all closing letters after the cases are closed:

    1. Ensure there is a date and signature on each letter.

    2. Mail one copy of letter to each recipient.

    3. If there is a Letter 937-A, mail it with a copy of the closing letter.

    4. Move the closing letter from the MEDS Working folder to either the Non-Disclosable folder or Disclosable folder, as appropriate.

7.21.5.7 (05-01-2023)

Administrative File Requests

  1. Files & Records Unit employees respond to requests for administrative case files.

  2. Requestors may complete and email Form 14264, Request for Exempt Organizations Administrative File, to *TEGE Determinations Processing. An employee monitors the email box, identifies and retrieves the requests, and assigns them to employees to complete.

  3. Administrative files may be located in different mediums (such as imaged file copies on DVD or MEDS) or locations based on the timing of the request. File locations include:

    • Cincinnati Federal Building

    • FRC

    Note:

    Case files closed July 2004 and after are generally available on MEDS.

  4. Research IDRS, EDS, DVD Master List, MEDS, and the Processing Record database to determine the location of an administrative file. After locating the administrative file, secure and deliver the file to the requestor.

  5. Locate administrative files on DVD:

    1. Research the DVD Master List using the EIN. If no results, research the name control for cases closed on EDS up through 2004.

    2. If there is a DVD, write the DVD number on the request.

    3. Retrieve the DVD from the DVD file cabinet.

    4. Insert the DVD into a computer, locate the case file, and drag the file to your desktop to make a copy.

    5. Send the file to the requestor by email or by burning a copy to a DVD.

  6. Locate administrative files on MEDS:

    1. Use the Advanced Search feature locate a case file.

    2. If you find the case on MEDS, make a folder on the computer desktop using the EIN.

    3. Open the folder in MEDS and click on Documents.

    4. Click on Disclosable.

    5. Highlight all forms.

    6. Click on File.

    7. Select Export (this should show the EIN folder you created and automatically import the documents). Use the same procedures for requested Non-Disclosable documents.

    8. Send the documents to the requestor by email or hard copy printout.

  7. Locate and request administrative files at the Federal Records Center (Springboro, Ohio):

    1. Research the EO Closed Case Database for the EO accession number and box.

    2. Complete an OS Get Services request including Form OF-11, Reference Request - Federal Records Center.

    3. Fax a coversheet and the OF-11 to a support service specialist in Covington, KY, Facilities Management.

    4. When you receive the case from the FRC, enter the information on the tracking spreadsheet; put a label on the back of the file with identifying information; prepare a Form 3210 or other acceptable documentation; and deliver to the requestor.

    5. When the requestor returns the case, enter the information into the tracking spreadsheet and return the case to the FRC.

    6. Review the status of outstanding cases periodically (such as every 30 days) for case control.