We derive the kinetic equations for polaron hopping in organics that explicitly take into account the double occupation possibility and pair intersite correlations. The equations include simplified phenomenological spin dynamics and provide a self-consistent framework for the description of the bipolaron mechanism of the organic magnetoresistance. At low applied voltages the equations can be reduced to effective resistor network that generalizes the Miller-Abrahams network and includes the effect of spin relaxation on the system resistivity. Our theory discloses the close relationship between the organic magnetoresistance and the intersite correlations. Moreover, in the absence of correlations, as in ordered system with zero Hubbard energy, the magnetoresistance vanishes.