EP – Unagreed Forms 5330 and 990-T

"Unagreed" cases are those cases in which the taxpayer disagrees with the examiner’s position, or agrees only in part. The case is unagreed if any, or all, of the following conditions exist:

The amount of initial tax shown on the return is in dispute.

The initial tax is not in dispute but the taxpayer cannot or will not correct the issue giving rise to the excise tax, or the IRS considers the correction or proposed correction unacceptable.

The taxpayer refuses to file a delinquent Form 5330, or Form 990-T or sign Form 870-EP.

Examiners must inform their group manager at the first indication that a case might be unagreed. Examiners must document the CCR as to the method used to contact the group manager (email, telephone call, face to face discussion, etc.) and the manager’s response. Use the CCR to clearly reflect case activities and contacts with the taxpayer/representative.

If the taxpayer refuses to file a delinquent Form 5330, or Form 990-T establish an SFR in accordance with IRM 4.70.13.9.8.7, EP – Processing Form 5330 or 990-T Substitute for Return.

Establish unagreed Forms 5330, or 990-T on RCCMS and AIMS in the same manner as agreed returns. See IRM 4.70.14.2.1.2.4, EP - Processing Agreed Forms 5330 and 990-T.

For forms 5330: Follow the procedures in IRM 4.70.14.2.1.2.4 (5) and (6), Processing Agreed Form 5330 and 990-T, to determine if there is an entity module on AIMS. If there is no entity module, prepare and process Form 4442 according to IRM 4.70.13.9.5.2.2, EP Preparation of Form 4442.

For Forms 990-T: Follow the procedures set forth in IRM 4.70.14.2.1.2.4.13, EP - Obtaining a Trust EIN, to obtain an EIN for the trust if the trust does not already have an EIN.

Prepare and send by certified mail a 30-Day Letter package to the taxpayer (and POA if applicable). See IRM 4.70.14.2.4.2.1.3, EP 30-Day Letter Package, for instructions to examiner on what is required.