If...

Then...

You accept the tax return as filed

The Matter of Processing the Converted Tax Return:

Follow delinquent return procedures.

Submit return to the FAST after the adverse status change posts to the EOBMF.

Issue Letter 5331.

Prepare RCCMS Closing Record for converted tax return, DC 208.

Enter ARDI Code on RCCMS Closing Record.

Enter the manual assessment amount and delinquent return code on the RCCMS Closing Record.

Enter Delinquent Return Amount, on RCCMS Closing Record.

Close tax case to the EO Closing Unit.

You issue a new 30-day Letter 950 (or Letter 3614) & report to correct the tax return, but the organization then replies with additional information showing the correction was unnecessary

The Matter of Processing the Converted Tax Return:

Follow delinquent return procedures.

Submit return to the FAST after the adverse status change posts to the EOBMF.

Issue Letter 2656.

Prepare RCCMS Closing Record for converted tax return, DC 208.

Enter ARDI Code on RCCMS Closing Record.

Enter the manual assessment amount and delinquent return code on the RCCMS Closing Record.

Enter Delinquent Return Amount on the RCCMS Closing Record.

Close tax case to the EO Closing Unit.

You issue a new 30-day Letter 950 (or Letter 3614) & report to correct the tax return, and the organization agrees with your correction.

The Matter of Processing the Converted Tax Return:

Follow delinquent return procedures for converted tax return.

Submit return to the FAST after the adverse status change posts to the EOBMF.

Stamp the received date on Form 4549 (or Form 870-E).

Issue Letter 2511.

Prepare the RCCMS Closing Record for converted tax return, DC 102.

Enter ARDI Code on the RCCMS Closing Record.

Close tax case to the EO Closing Unit.

You issue a new 30-day Letter 950 (or Letter 3614) & report to correct the tax return, and the organization fails to reply.

The Matter of Processing the Converted Tax Return:

Follow delinquent return procedures for converted tax return.

Submit return to the FAST after the adverse status change posts to EOBMF.

Prepare the RCCMS Closing Record for converted tax return, DC 604.

Close tax case to Mandatory Review to issue the SNOD.

You issue a new 30-day Letter 950 (or Letter 3614) & report to correct the tax return, and the organization disagrees with protest

The Matter of Processing the Converted Tax Return:

Follow delinquent return procedures for the converted tax return.

Submit the return to the FAST after the adverse status change posts to the EOBMF.

Issue Letter 5918, Rebuttal to Organization.

Prepare the RCCMS Closing Record for converted tax return, DC 601.

Close tax case to Mandatory Review to send to Appeals.

If the underlying adverse status change is not sustained by Mandatory Review or Appeals:

Mandatory review will also send the NMF SFCR converted tax return case file back to you for deletion.

Mandatory Review will destroy Form 2363-A and Form 5666 (located in the primary return case file).

Delete the NMF examination account. Follow deletion instructions in IRM 4.70.14.4.9.1, Deleting AIMS Accounts.

With respect to an SFR Form 990-PF converted tax return in subparagraph (6)e, the adjustment need not be limited to IRC 4940 tax, which is subject to deficiency procedures. You can also adjust non-tax items, such as the reported distributable amount, qualifying distributions, or undistributed income. If adjusting non-tax items is the only adjustment in the SFR, the adjustment is subject to a nonstandard 30-day letter, with protest to Appeals, but not subject to issuance of a final 90-day letter by Mandatory Review. Consult with *TEGE EO Review Staff on a nonstandard 30-day letter. Any IRC 4942 tax resulting from non-tax adjustments is itself reported separately on Form 4720, which is subject to full deficiency procedures.